Spencer Ogden 2015 diversification sees NFI rise 3%
Spencer Ogden has released its 2015 financial results, revealing the company achieved positive results through diversifying its business streams.
In its sixth year of trading the company saw turnover increase 25% to £98m from £78m and Net Fee Income increase 3% to £29.6m from £28.7m
Spencer Ogden worked on 19,900 jobs, sent 55,400 CVs and conducted 15,200 interviews generating 984 permanent placements and the mobilisation of 2,550 contractors globally.
The company increased its job app downloads to over 15,000 and its LinkedIn followers to over 100,000, was listed in both The Sunday Times Fastrack 100 and International Track 200 for the second year running and swept the board in recruitment awards in Asia.
Commenting on the results, CEO David Spencer-Percival, said, "It was an interesting year. In Q1 after news of the oil price crash the company acted swiftly by cutting operating costs and its upstream Oil and Gas perm capability and focused on contract revenue and as a result increased the contractor base threefold to a constant 1,000 mobilised in the field which now represents 70% of net fees up from 30% the previous year.
“As a result of this contract focus and sector diversification, at year end the Oil and Gas division represented just 35% of fee revenue down from 72% in 2014.
"The company drove this diversification programme further and de risked the business by launching complimenting engineering and infrastructure sectors, including Rail, Construction and Automotive whilst taking advantage of the lull in global energy capital spend to work for 6 months training its 40 core global management team to be a world class management team and furthermore strengthened the Board.
"Spencer Ogden is now structurally stronger, more efficiently run and a more diversified business not just in sector but geographically with 40% of its fees coming from the Americas, 30% from EMEA and 30% from AsiaPac.
"Even with a formidable sector headwind and increasing fluctuation in foreign exchange we saw turnover increase rapidly to close to £100m although our net fees remained broadly flat which meant a solid if not stellar result.
"However the sheer effort involved by the entire company to deliver this result, given the extraordinary market turmoil has meant we ended the year stronger than when we started it. I'm very proud to run a company who's employees and shareholders rose to this market challenge as let's face it - anyone can deliver in a good market - you only test your mettle in a challenging one.
"We now start the new year mission ready and poised for further growth after resetting and communicating our exciting new 3 year plan to the business to include adding 100 new staff this year, to double the size of the business over three years in terms of all three key metrics; turnover, fee's and profit and to continue to focus on our long term objective to become a dominant global Energy, Engineering and Infrastructure staffing business"