HRnetGroup reports record FY18 earnings of $52.4 mil

SINGAPORE (Feb 22): HRnetGroup reported record earnings of $52.4 million for the FY ended Dec 31 2018, an increase of 12.9% year-on-year.

Revenue crossed the $400 million milestone for the first time, registering 9.3% growth from $392.0 million to $428.5 million.

Gross profit grew by 14.2% to $155.3 million from $136.0 million, partially attributable to the acquisitions of REForce, HRnet Rimbun and Career Personnel which were completed in second half of the year. These new business units contributed $4.4 million in revenue and $2.9 million in gross profit.

In its Professional recruitment divisi0n, revenue grew 19.1% to $103.3 million and gross profit by 19.0% to $103 million, mainly attributable to the strong performance of its existing business units in North Asia (particularly in Mainland China and Hong Kong) and Singapore.

HRnetGroup said it placed 9,448 talents as compared to 8,216 in the last year. Average gross profit increased by 3.5% to $10,894 per placement.

In its Flexible Staffing division, revenue grew by 6.7% to $322.2 million while gross profit grew by 7.6% to $50.1 million, largely led by its business units in Singapore and Hong Kong.
The monthly average of contractor employees managed increased by 8.4% to 12,112.

The board has recommended a dividend of 2.8 cents per ordinary share.

In the face of expected economic headwinds, HRnetGroup said it is in an even stronger position now to do well in 2019.

Shares in HRnetGroup closed 0.5 cent higher at 78 cents on Thursday.