Accordant (AGC:NZC), the New Zealand-based temporary staffing provider, announced today in its annual report that revenue rose 2.7% to NZD 227.4 million (USD 137.5 million) in FY 2022.

In January 2023, Accordant agreed terms to acquire Auckland-based executive search firm Hobson Leavy.

Accordant said the slow processing of visa applications for migrant workers and working holiday visa travellers during FY23 constrained the temporary candidate pool and contracted the size of the temporary job market, however it added that it has seen recent improvements in visa processing.

As a result of one-off costs related to the Queen’s memorial public holiday, historic ACC (Accident Compensation Corporation) claims and acquisition costs incurred for the Hobson Leavy transaction, profit was impacted. The Group reported NZD 2.0 million (USD 1.2 million) net profit after tax for the year to 31 March 2023, down from NZD 3.0 million (USD 1.8 million) for 2022.

“The first half of the year was marked by strong business confidence, boosted to some extent by the opening of New Zealand’s border,” said Accordant Group CEO Jason Cherrington. “However, employers started taking a more cautious approach to hiring in the December quarter, and prolonged visa application and job check processing meant the final quarter of the year was challenging.”

The Group has two defined Reporting Segments. The first segment is AWF and The Work Collective (TWC), which includes Contingent Blue Collar Labour Hire associated with infrastructure, logistics, manufacturing, technical and construction. TWC is Accordant’s social initiative that provides opportunities for those who face barriers to employment.

The other segment is Madison Recruitment, Absolute IT, JacksonStone & Partners, and Hobson Leavy. The segment involves White Collar Contingent temporary employees and contractors together with Permanent Recruitment and Executive Search associated with professional and managerial positions including technology and digital business sectors. Within the White-Collar Reporting Segment are four operating segments: Madison Recruitment, Absolute IT, JacksonStone & Partners and Hobson Leavy.

Revenue by segment

“With demand still outweighing supply across most sectors, a strong result in our executive recruitment business and a full year of our migrant workers contribution to profits expected, we remain confident in our ability to deliver a significantly improved financial result for the year ahead,” Cherrington said.

Cherrington said the overall tight labour market had driven a greater acceptance from employers around more lateral approaches to sourcing, hiring, employer branding, recruitment marketing, training, onboarding, performance management, finance, technology, and integration.

“We continue to position our business for growth across the white collar segment, whilst mitigating the risks and uncertainty that has featured over the years within our blue collar business. We remain confident of growing both areas.”

Accordant Board Chair Simon Bennett added, “Our strategy based on optimisation, expansion and diversity of earnings remains relevant and achievable. Our team are cognisant of the levers which require focus in the current market.”

Accordant shares closed yesterday at NZD 1.69 (USD 1.02), up 0.59% on the day. The company has a market cap of NZD 57.14 million (USD 34.5 million).