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Adecco gross profit up 5% at Y/E 2015 as Penna acquisition confirmed

Adecco Group has announced revenues of EUR 22bn and a 5% increase in organic gross profit for 2015 as it released its fourth quarter and full year results for 2015.


It also confirmed its subsidary company, Olsten Holdings, has had its acquisition offer for Penna Consulting accepted.


For Q4 2015 the Group reported revenues were up 5% organically. It stated it achieved a gross margin of 19.2% and its gross profit was up 6% organically.


SG&A excluding one-offs was up 4% organically and EBITA excluding one-offs was EUR 310 million, up 9% organically. The Group also confirmed its EBITA margin excluding one-offs was 5.5%, up 20 bps.


For the full year 2015 revenues were EUR 22.0 billion, up 4% organically. Gross margin 19.0% and gross profit was up 5% organically. SG&A excluding one-offs was up 3% organically. EBITA excluding one-offs was EUR 1,147m. EBITA margin excluding one-offs 5.2%, was up 40 bps. There was a proposed 2015 dividend of CHF 2.40 per share, up 14% compared to last year.


The Group confirmed Olsten Holdings has had its recommended cash offer of 365p per share for Penna Consulting Plc accepted. Penna's chief executive officer, Gary Browning has confirmed he will leave the business, alongside chief financial officer David Firth, following a period of transition after the acquisition.


Alain Dehaze, CEO of the Adecco Group, commented, "We are very pleased to have reached this agreement with Penna. Adecco and Penna have a long history of working together and Penna represents an excellent strategic fit for Adecco in UK HR services, expanding the breadth and depth of services Adecco is ale to offer to its clients. The acquisition of Penna also offers meaningful synergy potential for Adecco in the UK."


Speaking of the latest results, Dehaze, said, “In Q4 2015 and for the full year, the Adecco Group delivered a strong operating performance, thanks again to the efforts of our more than 32,000 colleagues and roughly 700,000 associates around the world. In 2015, we drove excellent operating leverage from our organic revenue growth of 4% and we achieved a strong margin of 5.2%. The Board of Directors’ proposal for a 14% increase in dividend per share reflects the Group’s continued good cash flow and strong balance sheet.


“At the start of 2016, our underlying revenue momentum has continued. In January and February combined, Group revenue growth was 4% organically and adjusted for trading days. In January 2016, we announced our strategic priorities and new financial targets. The Group’s focus now is to implement these strategic priorities across the organisation and to balance revenue growth, profitability and cash generation, driving shareholder value creation in 2016 and in the long-term.”




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