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Singapore – HRnetGroup revenue rises slightly, but profits tumble

13 August 2019

Singapore-based recruitment firm, HRnetGroup, reported second-quarter revenue of SGD 108.5 million (USD 78.1 million), up 0.5% compared to the same period last year.


(SGD millions) Q2 2019 Q2 2018 Change Q2 2018 (USD millions)
Revenue 108.5 108.0 0.5% 78.1
Gross Profit 38.1 39.8 -4.3% 27.4
Net Profit After Tax 12.6 13.9 -8.8% 9.0


The group also reported revenue for 1H19 marginally decreased by 1.2% to SGD 212.5 million (USD 153.1 million) with gross profit softening by 3.6% to SGD 73.5 million (USD 52.9 million). Net profit stood at SGD 32.8 million (USD 23.6 million) for first half 2019, an improvement of 5.5% year-on-year.

HRnetGroup said its results were weighed down by its businesses in Singapore where gross profit contracted by 10.8% in H1 2019 as Singapore’s GDP growth slowed to the lowest in a decade. This decrease was offset somewhat by the group’s businesses in North Asia, where both Hong Kong and China registered double-digit gross profit during the H1 period. Acquisitions also contributed to growth.

The group’s permanent recruitment business reported 4.2% fewer placements while the monthly average number of contractor employees on the flexible staffing front rose by 0.8%.

On 31 July 2019, the group acquired a 25.02% stake in Staffline Group, which is now an associate company of HRnetGroup.  The company acquired 11.7 million shares in Staffline Group PLC at 180 pence each.

“Pushing ahead with the staffing business is necessary given the uncertain business environment and political upheavals,” the company stated. “The acquisition of the stake in Staffline provides welcome geographical diversification with a well-established company.”

Adeline Sim, Executive Director of HRnetGroup, commented, “The continuing uncertainty over the trade disputes has led to muted hiring particularly in Singapore. We are pushing ahead with the flexible staffing business which performs the role of a natural hedge in times of volatility.”

“We will also continue to capitalise on growth opportunities across product offerings and geography,” Sim said. “Internally, we relentlessly pursue improvements in our technologies and operational frameworks in order to delight our customers, clients and employees, locking in loyalty even in down cycles.”

In trading today HRnetGroup shares closed at SGD 0.66 (USD 0.48), down 2.9% on the day. Based on its current share price the company has a market value of SGD 659.98 million (USD 475.3 million).


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