Significant investment drives Staffgroups growth
The Eurostaff brand which celebrated its 10 year anniversary in 2013 as well as establishing itself in Berlin continues to grow steadily and be a partner of choice for businesses of all sizes looking for technology professionals. Staffgroup’s gross profit rose by 16% to £10.8m on the previous year whilst profit before tax now stands at £2.5m (a 15% increase).
Mark Znowski, managing director of Staffgroup sees a positive outlook for the Group in light of the results. He said, “We have seen plenty of evidence of positivity in economies that we operate in and are well positioned to take advantage of this. The past two years has seen us invest significantly in our infrastructure to support the sales efforts, having the short term negative impact on profitability we believe is necessary to develop our business towards our longer term aim of growing to £100m turnover and £5m of profit.”
The Eurostaff business, with its focus on the key economies of mainland Europe has received significant levels of investment and the opening of the Berlin office and subsequent expansion into larger premises underlines Staffgroup’s strategic commitment to the German market which now accounts for 29% of turnover.
Znowski added, “There have been notable achievements across the business but the team in Berlin has exceeded all expectations and were operating at a profit within 10 months which is very rare in the industry. We opened bigger and better offices this year which gives us the platform for growth throughout Germany.
"The Earthstaff business has deliberately positioned itself as suppliers of highly specialised skillsets in countries where first mover advantage can be gained and has purposely avoided the high-volume, low-margin route that dominates the market. This, along with a focus on high profit margins and entering new regions (as we did in Kurdistan in 2013), stands us in good stead moving forward.
"We are proud of being a group of recruitment businesses that has grown in a primarily organic way. To ensure that we can maintain this, we continue to invest in the Learning and Development programme that saw our 2013 & lsquo;Rookie Intake’ break every company record going and we are excited about what we are going to achieve in 2014 - which has started well ahead of expectations.”