Recruitment firm HRnetGroup CHZ announced that its earnings for FY2022 ended Dec 31, 2022, has increased by 3.1% y-o-y to $67.5 million from $65.5 million in FY2021.
While revenue sported a 3.6% y-o-y gain to $611.8 million from $590.5 million, sub-contractor expenses saw a larger increase of 5.3% y-o-y to $437.6 million. Hence, gross profit saw a slight 0.4% decline to $174.2 million.
The revenue growth was led by higher contribution from the group’s business in North Asia (China, Taiwan, Hong Kong, Japan and South Korea) and Rest of Asia (Malaysia, Thailand and Indonesia), but partially offset by lower contribution from the Singapore market.
Comparing the group’s business segments, flexible staffing revenue grew to achieve another record high of $510.1 million, up 3.6%. The scale back of Covid-related staffing volume in the Singapore healthcare sector was substantially made good by general business volume increases across most parts of Asia which resumed normalcy during the year, said the group.
Revenue from professional recruitment segment also reached a record high of $97.0 million, up 2.4%, as the group channelled its resources toward higher value assignments as it rode on the economic recovery and wage inflation wave.
Revenue from the others segment increased by 47.5% y-o-y to $4.6 million. This segment involves HR complementary businesses, including payroll outsourcing, talent mapping, HR solutions and training.
As at Dec 31, 2022, cash and cash equivalents stood at $284.6 million.
The board has declared a final dividend of 1.87 cents per share. Along with the 2.13 cents interim dividend previously paid out, the group’s total FY2022 dividend come up to 4.0 cents per share.
On the outlook, the group is upbeat on the structural shifts in professionals, managers, executives & technicians (PMETs) among employed residents and the rising median income in Singapore. “These shifts represent tailwind for our business,” says the group.
For China, it sees a strong recovery in sight with the lifting of the Zero Covid Policy, while Taiwan’s tech sector remains strong.
Shares in HRnetGroup closed at 82 cents on Feb 23.
