Ambition Group publishes trade update
Business confidence has been subdued in Australia, even post the federal election and the appetite for hiring has been muted. Whilst there is some evidence of an anticipated improvement in conditions next year, a common approach from our clients over recent months has been cost containment and headcount control or even reduction. There are some positive signs: the London market is recovering and the growth of our Asian businesses is reducing the dependency on the Australian market.
Restructuring charges of approximately $1.0 million have been incurred throughout the year associated with seniormanagement changes.
We have also made several significant investments in Asia as part of our strategy which are yet to produce material revenues. Our Malaysia business will launch in Kuala Lumpur in January and we are pleased to advise the opening of a Tokyo office this month, capitalising on Japan’s substantial white collar recruitment sector and a market which has an acute skills shortage. Both new offices are consistent with our briefing to shareholders at our Annual meeting in May this year.
As such, the financial performance of Ambition is weaker than we would have anticipated and we expect to post a pre-tax loss for the year in the range of $1.0 – 1.5m.
The profile of our brands remains very positive, we have no debt and our cash balance is strong.