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Dutch staffing firm DPA Group (DPA:AEX) reported on Thursday that first-quarter revenue rose by nearly +15% to €17.2 million from €15.0 million a year ago. But the firm, which specialises in legal, IT and financial services, saw profits drop in the period.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) was €1.0 million, compared to €1.3 million a year ago. The firm reported a net profit €0.1 million against a net profit of € 0.7 million at the same time last year.
Gross profit fell to €3.7 million from €4.2 million, a decline of -12%. In the quarter, the gross margin dropped to 22% from 28% year-on-year. “The decline in profits and the gross margin is largely explained by the fact that the first quarter of 2013 had three working days less than the same quarter in 2012,” the company said. An increase in the use of independent contractors also put a strain on the gross margin, the firm added.
But CEO Eric Winter said the firm has benefitted from two recent acquisitions. He added the company is also focused on keeping costs down.
In early trading, the company’s share price fell by -0.07% to €1.38, an increase of +11% from a year ago. Based on its stock price, DPA has a market value of €62.76 million.
DPA Group is a specialist staffing firm based in the Netherlands and is ranked among the largest recruiters in the country.