Amadeus FiRe AG (AADX: GER), the German staffing firm, announced preliminary unaudited financial key figures for FY 2024 of €436.9 million in the 2024 financial year, down 1.2% on the previous year’s figure of €442.4 million. 

Lower operating gross profits in the personnel services segment and forward-looking investments in the digital transformation of the Amadeus Fire Group led to a disproportionately large decline in operating earnings (EBITA) of around 21%, the company added.

The operating EBITA in 2024 is expected to amount to €55.5 million (previous year: €70.4 million) and is below the lower end of the range of the group’s own forecast for operating EBITA for the
2024 financial year of €57 million by €1.5 million.

The increasingly negative sentiment in the German economy in the previous year, which
intensified again in the fourth quarter, and the associated reluctance to place
orders had an impact on the Amadeus Fire group’s results for the 2024 financial year.

According to Amadeus FiRe, the increases in revenue and operating gross profit in the training segment correspond to an operating result on par with the previous year.

In the personnel services segment, uncertainty among clients and candidates regarding future economic developments in Germany led to a decline in revenue and operating gross profit. As the expenses for the current personnel services organisation are only adjustable to a limited extent and with a time lag, this had a disproportionate impact on the operating result.

Within the personnel services segment, the company said the ongoing increase in revenue from interim management/project management can only offset the current decline in revenue from
temporary staffing and permanent placement to a limited extent. Here, the increasingly
negative business climate, particularly in Q4/2024, is noticeably impacting revenue and
operating gross profit and subsequently earnings.

Amadeus FiRe added that the economic downturn has hit the company’s commercial and IT sectors, slowing temporary and permanent placements in 2024. Companies are reluctant to hire, and candidates remain hesitant to switch jobs. November and December saw the weakest performance of the year.

Amadeus FiRe shares closed on 10 February at €78.00, down 3.1% on the day. The company has a market cap of €420.99 million.