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NES Group Results

NES Group Limited has announced its results for the year ended 31 October 2008.

Financial Highlights

Turnover 252.8m (2007: 217.1m) up 16%
Net Fee Income 31.3m (2007: 26.4m) up 19%
Adjusted operating profit * 12.0m (2007: 9.7m) up 24%
Operating profit 9.5m (2007: 6.7m) up 42%
Net assets increased by 0.8m
Operating profit cash conversion of 96% (2007:106%)
Conversion of group net fee income to adjusted operating profit of 38% (2007: 37%)

* 2007 and 2008 adjusted operating profits exclude operating exceptional items and goodwill amortisation

Operating Highlights

*Strong organic growth across both the UK and Global Technical business units
*Global Technical revenues increasing from 33% to 41% of Group revenues, with the Global business now producing 43% (2007: 36.5%) of Group profits
*New offices opened in Australia, China, India and Nigeria
*Further offices opened since year end in Angola, Canada, USA, UK, Australia and Papua New Guinea. The Group now has 26 offices across 16 different countries and will continue to open new operations in the forthcoming financial year.
*Continuing focus on the core strategic area of engineering and technical staffing, with a deliberate reduction in our exposure to the UK IT sector, which now only forms 7.5% (2007: 14.7%) of Group profits.
*Improved performance on permanent placement NFI of 5.6m (17.7% of net fee income), compared to 4.2m (16.0% of net fee income) in 2007, but still maintaining the strategic intention of being a 75% to 80% contract NFI operation across the world.
*Further significant investment in Group IT support systems and engineering/technical recruitment consultants, with capital expenditure of 461k and staff numbers growing from 279 to 344
*Increasing number of contract placements featuring candidates who move from project to project, and country to country, whilst maintaining contractual loyalty with NES.

Commenting on the results, Neil Tregarthen, Chief Executive of NES said: Last year I commented that, our strategy is clear and has at its heart the intention of being ever more global and specialist. Our performance in 2008 has been further evidence that this strategy is correct and our increasing portfolio strength of geography and sectors, positions us well to react to changes in global markets brought about by current economic uncertainty. Whilst we are mindful of these external factors, we intend to keep our nerve and continue to invest in the areas of our business that are performing well, such that our increasing client base can be confident of first class service and support, wherever they need it from us across the world.


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