Earnings of professional services firm HRnetGroup was down by 9.2% to $49.8 million in FY2020 ended December, from $50.9 million in the year before.
On a fully diluted basis, this translates to earnings per share of 4.67 cents in FY2020 versus 5.11 cents in the year before.
The decline is despite what the group calls a “record high” revenue of $433.0 million. This is up 2.4% from the $423.1 million logged in FY2019.
With an 82% contribution, the bulk of the revenue came from flexible staffing services; 17% was from professional recruitment while the remaining 1% was from other services.
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In terms of geography, revenue from Singapore accounted for 55%, while that from North Asia was 42% and the rest of Asia was 3%.
HRnetGroup is present in 30 countries including China, Taiwan and Malaysia.
Across these markets, the company helps employers with recruitment for professional services and flexible staffing, operating different brands such as HRnetOne, Recruit Express, PeopleSearch and RecruitFirst for different markets and different segments
Gross profit for FY2020 edged down by 11.1% to $129.3 million following a 9.4% decrease in sub-contractor expenses.
Of the contributions to gross profit, 66% came from professional services, 43% was from flexible staffing while the remaining 1% was from others.
Meanwhile, FY2020 also brought a decrease in HRNetGroup’s expenses. The strongest declines were seen in selling expenses which was down 25.4% to $3.5 million, while the other expenses category was down by 23.3% to $3.2 million.
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Against this backdrop, the group’s cash and cash equivalents stood at $332.2 million in end December, up $66.0 million from $266.1 million in end FY2019.
HRnetGroup has declared a full year dividend of 2.5 cents down from 2.8 cents in FY2019.
At this level, the group will have a dividend yield of 4.4%.
Shares in HRnetGroup closed down 1 cent or 1.75% at 56 cents on Feb 26, before the results announcement.
