Meitec's net sales grow nearly 5%
Non-consolidated results showed similar trends net sales rose 3.8% to £174.6 million or ¥28,150 million, operating income was £14.8 million or ¥2,392 million, ordinary income was £17.3 million or ¥2,791 million, and net income was £10.8 million or ¥1,745 million.
Earnings trends have not changed substantially since the previous fiscal year.
Earnings remained solid in the Temporary Engineers Staffing Business, which accounts for roughly 95% of consolidated net sales. Earnings were nearly flat in the Engineering Solutions Business, which provides engineering services, and the Global Business, which engages in job placement in China. The Recruitment & Placement Business, which specializes in engineers, continues to grow in sales and profits.
In the six months ended September 30, 2013, the company booked an operating income of £18.0 million or ¥2,907 million, which is ¥15 million higher than the £17.9 million or ¥2,891 million it posted a year earlier.
The main positive catalyst was sales growth but this was almost completely offset by an increase in cost of sales. Cost of sales was pushed up by a rise in personnel expenses at Meitec and Meitec Fielders, which saw growth in the headcount due to the hiring of newly graduated engineers. However, the assignment of engineers who recently graduated, the catalyst that boosted cost of sales, was nearly completed in the first half. In light of this Meitec anticipate higher full-year profits, as it expects the growth in sales to outpace the rise in cost of sales in the second half.