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Japanese recruitment firm Temp Holdings Co. (2181: JP) reported strong first quarter revenue growth of +29.7% to JPY 86.1 billion (USD 89.3 million) for the period ending 30 June 2013, from JPY 60.5 billion (USD 62.8 million) during Q1 2012.
Operating profit for the period rose from JPY 2.4 billion (USD 24.9 million) during the first quarter of last year, to JPY 3.91 billion (USD 40.6 million) this year, an increase of +38.7%. Pre-tax profit rose to JPY 3.93 billion (USD 40.7 million) from JPY 2.52 billion (USD 26.1 million) a year ago. Net profit also increased to JPY 1.98 billion (USD 20.5 million) from JPY 1.49 billion (USD 15.5 million) last year. Pre-tax profit and Net profit rose +36.2% and +24.8%, respectively.
The Japanese recruiter has been actively expanding its operations throughout Asia with the aim of becoming the largest Japanese staffing firm. According to research from Staffing Industry Analysts, Temp Holdings is currently the second largest staffing firm in Japan, with a market share of approximately 5%. Temp Holdings, which operates in Japan as Tempstaff, also operates in Indonesia, China, Hong Kong, Korea, Singapore, Taiwan, and the United States. Its overseas expansion has been done in partnership with US recruiter, Kelly Services.
Looking ahead, Temp Holdings predicts that revenue for the full year, ending 31 March 2014, will reach JPY 365 billion (USD 3.8 billion). Operating profit is expected to reach JPY 18.5 billion (USD 191.9 million), with net profit at JPY 9 billion (USD 93.3 million).
In trading today, the company’s share price rose +0.54% to JPY 2,434 (USD 25.25), an increase of +169% compared with a year ago. Based on its share price, the company has a current market value of JPY 159.5 billion (USD 1.65 billion).