SD Worx, the Belgium-based HR solutions provider, reported consolidated revenue on 26 August of €581.8 million in the first half of the year, an increase of 10.9% compared to the first half of 2023 (€524.6 million).

The consolidated adjusted EBITDA grew 36.7% from €88.5 million in the first half of last year to €121.0 million during the first six months of 2024.

SD Worx also reported consolidated net result increased from €42.5 million in the first two quarters last year to €54.9 million in the first half of this year.

Filip Dierckx, chairman of the board of directors at SD Worx, said in a press release, “The reported financial numbers meet our expectations. We started the year with an excellent first quarter but saw growth slowing down during the second quarter. This is in line with the macro-economic circumstances: generally, we see economic growth relatively weakening.”

Kobe Verdonck, CEO of SD Worx, added, “We are happy with the overall growth across the group. This is reflected in the results of all markets where we provide payroll and HR solutions to our customers. I would like to thank our employees for their contribution to our growth and our customers for their trust in our technology and services.”

“Our organic growth and the acquisitions of Tribeperk, Romanian Software and Sheepblue earlier this year show that we are working well on our ambition to be the leading European HR solutions provider for all companies of any size. We are looking forward to the second half of the year where we will continue our growth.”

SD Worx has been on an acquisition spree. In January 2024, the group announced its subsidiary Protime, acquired its Spanish sector peer, SoftMachine.

In April, SD Worx successfully closed the acquisition of Romanian Software S.R.L., a Romanian-based provider for payroll and Human Capital Management (HCM) solutions.

In May, SD Worx acquired Polish HR tech start-up TribePerk, expanding its go-to-market to Polish SMEs and boosting its position on the Polish market.

In July, Ardian, a private investment house, and SD Worx reached an agreement for the sale of F2A, the leading Italian HR and payroll solutions provider controlled by Ardian since February 2016.

More recently in August, SD Worx acquired 100% of the shares of TMF Jobs, a recruitment and temporary employment agency focused on European cross-border workers.

Key factors contributing to the group’s net result include sustained and solid growth in operational performance, as well as an increase of €14.8 million on commission income influenced by the level of interest rates on the group’s operating profit and the strategic buy-and-build policy employed by the group.

Revenue by segment

The People Solutions includes Payroll and Reward/Core HR, Workforce Management, and Corporate.

The main drivers behind the segment’s results is solid organic growth which amounts to €42.3 million or 10.1% (excluding growth in commission income obtained under the customer fund cooperation agreement). The organic growth is noted across all markets where the group has a presence, both in recurring and non-recurring business. Within the Belgian market, the group realised additional one-off revenues relating to the support it provides to its customers on the organization of the social elections. Inorganic growth through new acquisitions contributed €8.6 million in revenue.

The company said the growth in consolidated revenue for the group was in spite of the challenging environment in which the Staffing & Career Solutions segment continues to operate. As a result of this difficult market, the group saw revenue within this segment decrease. The group aims at limiting the impact on adjusted EBITDA by actively monitoring its costs to compensate for the lower revenue.

Restructuring cost and integration costs amount to €2.2 million, relating mainly to the integration and rebranding tracks for both prior acquisitions, such as Intelligo, Integhro and SD Worx Croatia, and new acquisitions, such as SoftMachine and Romanian Software.