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Australia – Clarius Group predicts net loss during H1

04 December 2013

Recruitment firm Clarius Group Ltd (CND: ASX) has warned that it expects to incur a net loss after tax in the range of AUD 1.3 million (USD 1.2 million) to AUD 1.5 million (USD 1.4 million) for the half-year ending 31 December 2013. This compares with a net loss after tax of AUD 500,000 (USD 455,400) for the same period last year.

One-off costs of AUD 200,000 (USD 182,160) before tax are as a result of an ongoing restructuring of the group's cost base, yielding annualised savings of AUD 800,000 (USD 728,640) before tax.

Managing director Kym Quick said, "The first half of financial year 2014 has continued to present some of the most difficult trading conditions that we and the wider recruitment industry have seen. Combined with a still lacklustre local permanent recruitment market, we also saw the flow-on effect of the market's cautiousness in contracting revenues.”

"The restructuring activity from last financial year has yielded the expected cost savings; however, the market decline has been more pronounced than anticipated. There has been positive sentiment following the Federal Election, however little increased hiring activity as we lead into what has historically been a quiet period due to the impending holiday season.”

"Our Asian business expansion strategy continues to deliver positive outcomes with China revenue growth on target and now delivering ongoing profits. We expect with further productivity gains and expansion opportunities, this region will continue to contribute profitable results," Mr Quick concluded.

Clarius Group is one of the largest staffing firms in Australia, according to research from Staffing Industry Analysts. In their most recent financial statement, the company reported a -17.6% drop in revenue for the full year 2013.

The company’s share price plummeted by -15.5% to AUD 0.25 (USD 0.23), a fall of -21% compared with a year ago. Based on its current share price, the company has a market value of AUD 21.95 million (USD 20 million).  

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