Randstad to benefit from structural and cyclical growth
Randstad to benefit from structural and cyclical growth trends in all segments
Current trading remains robust: 17% organic growth in October
Topics analyst day Randstad Holding nv hosts its analyst & investor conference in London today. In the morning session CEO Ben Noteboom will provide an update on our strategic agenda. CFO Robert-Jan van de Kraats will elaborate on the financial strategy. Thereafter Chris Heutink, general manager Randstad the Netherlands, and Kees Stroomer, general manager Tempo-Team the Netherlands, will provide an update on these key Dutch businesses. Eckard Gatzke, general manager Randstad Germany, will elaborate on the way forward in this fast growing market. Robbin Brugman, managing director Group professionals concept, will show what we have done to develop the professionals concept, what the recent successes are, and how we plan to move forward in this segment. Yesterday, executive board member Brian Wilkinson presented the progress we are making in further building our UK businesses.
Strategic agenda capture the structural and cyclical growth in all segmentsOur strategic agenda is straightforward. We are active in a structural growth market, which has cyclical characteristics as well. The economic backdrop is currently positive. We recognize several structural growth drivers. To start, the global labor force continues to grow. Secondly, demographics will create more job security going forward and thus more mobility. Thirdly, ageing will require higher participation and our industry is suited well to help organize this. In addition, global competition enforces our clients to become ever more efficient. The HR services industry can help to increase productivity. We aim to benefit from these trends.
Recovery in our industry is shaping up in classical patterns. The industrial segments move first, followed by growth in administrative segments and specialties, which then is followed by growth in the professionals segment. Randstad is placed well to benefit from all growth stages.
Our unique inhouse business should allow for continued outperformance in the large scale industrial segment. Renewed focus on field steering should enable outperformance in staffing, both in the industrial as well as in the administrative segments. In addition, we will actively copy-paste specialties over the global footprint. The professionals concept has been developed. With evidence that the best practices help to improve the existing professionals businesses, we will now also use them to organically expand our professionals offering, across segments and across geographies. The main financial targets remain in place. We continue to strive for a 5-6% EBITA margin through the cycle and we are fully committed to realize enhanced returns in 2011.
Current trading Growth remains robust. The trends that have been discussed in our Q3 2010 presentation have continued into Q4 2010. In October revenue per working day increased by 17% (year on year, organically) and so far we see no changes in the main patterns in November. This means that growth in early moving businesses as US staffing and inhouse (22%) as well as Germany (32%) is gradually slowing down against a more challenging comparison base. At the same time, growth gradually strengthened in for instance Italy, Poland, Australia, US professionals and the Netherlands. Our combined Dutch Randstad & Tempo-Team businesses grew by 6%. Randstad the Netherlands was close to market in October, Tempo-Team was still somewhat behind the market. In France the organic growth rate was stable at 19%.