Australian recruitment firm Ignite (IGN:ASX) published its preliminary final report yesterday after markets closed reporting revenue fell by 6.7% for the year ended 30 June 2023 to AUD 106.6 million (USD 80.6 million).

Gross profit decreased by 8.7% increased to AUD 12.2 million (USD 9.8 million) while gross margin fell to 11.5%. The decline in the gross profit relative to the revenue decrease was due to the lower gross profit contribution from permanent recruitment revenue and managed services year-on-year.

Gross margin declined to 11.5% in the FY 2023 period due to a reduction in contribution from permanent placements in the year and a smaller relative contribution from managed services.

Garry Sladden, chairperson, said, “It is disappointing to report a statutory loss of AUD 1.5 million (USD 0.9 million) for the 2023 financial year, after the significant operating performance improvements achieved in FY 2021 and FY 2022. Clearly the investment in FY 2023 in Talent Solutions and in additional Specialist Recruitment headcount did not deliver an appropriate return as planned.”

During the period, the Australian and New Zealand Specialist Recruitment business accounted for 95.3% of revenue from continuing operations (2022: 93.7%) with Managed Services making up the balance during the period.

“Ignite will commence FY 2024 with a significantly lower total headcount and overall cost base,” Sladden added. “Management continues to invest in training, learning and development to provide our people with the necessary skills, experience, and in qualifications they need to be successful.”

In March the group announced Tim Moran resigned as CEO. Following Moran’s decision to step down as CEO, the group appointed Cameron Judson as Executive Director.

Ignite shares closed today at AUD 0.06 (USD 0.038), up 20.0% on the day and 71.43% above the 52 week low of AUD 0.035 (USD 0.022) set on 27 March 2023. The company has a market cap of AUD 4.48 million (USD 2.8 million).