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France – Synergie revenue up 2.2% on like-for-like basis as domestic and international markets boost growth

18 September 2019

Synergie, the Paris-based staffing firm, reported revenue for the six months ended 30 June 2019 rose to €1.29 billion, up 4.6% from 2018, or 2.2% on a like-for-like basis.

The firm ranks as one of the world’s largest staffing companies and the sixth-largest staffing firm in France.

In July 2019 Synergie reported revenue for the second quarter of €674.2 million, an increase of 3.9% when compared to the same period in the previous year.

(€ millions) H1 2019 H1 2018 Change Like-for-like
Revenue 1,295.6 1,238.8 4.6% 2.2%
EBITDA 64.8 61.5 5.3% N/A
Current Operating Profit 52.1 53.6 -2.7% N/A
Net Profit 27.2 36.6 -25.6% N/A

In France, revenue reached €630.8 million, up 7.1% (or 4.1% on a like-for-like basis). Temporary employment was up 4.2% in a market down 0.3% at the end of July according to Prism’emploi, and was boosted by strong growth by DCS Easyware, the digital services company consolidated in June 2018, which generated turnover of €21.7 million (up 10.8%) over the half-year.

International revenue totalled €664.8 million (51.3% of consolidated turnover), up 2.3% (or 0.5% on a like-for-like basis), with contrasting performances from region to region: Southern Europe was up 4.7% while Northern and Eastern Europe contracted by 3.3%.

According to Synergie, France's conversion of the CICE (crédit d’impôt pour la compétitivité et l’emploi) competitiveness and jobs tax credit into lower social security contributions with effect from 1 January 2019 unfavourably impacted current operating profit by €2.3 million (employee profit-sharing impact) and tax expense by €6.7 million, for an overall negative impact on the group's net profit of €9 million.

Synergie’s consolidated current operating profit came to €52.1 million, compared with €53.6 million in the first six months of 2018.

Current operating profit for France came to €33.4 million, compared with €35.5 million in the first six months of 2018, reflecting a €2.3 million erosion of the favourable impact of turnover growth by the CICE tax credit's conversion.

Current operating profit from International came to €18.8 million, compared with €18.2 million in the first six months of 2018, showing stout resilience in a tighter economic environment in Germany and the UK, which saw structural cost cutting in the first half.

Financial expense excluding the €0.4 million impact of IRFS 16 came to €0.6 million, a similar level to 2018. Taking this into account as well as a €23.4 million tax expense (reflecting the impact of the CICE tax credit’s withdrawal for €6.7 million), net profit came to €27.2 million, compared with €36.6 million for the first six months of 2018.

Synergie said the investments of recent years ‘bore fruit’, with the creation of specialised agencies and recruitment of consultants, digitisation and the development of IT tools and targeted training programmes.

During the period, Synergie announced that it signed an agreement to acquire Australian temporary employment firm Entire Recruitment.

Synergie Group stated that it intends to continue its development in the second half-year, targeting full-year 2019 turnover of nearly €2.7 billion and an increase in net profitability from the first six months of the year.

In trading yesterday Synergie shares closed at €27.10, down 1.45% on the day. Based on its current share price the company has a market value of €661.42 million.

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