Financial Results 2024

 

Revenue


£992.9m

2023: £871.3m

Gross profit


£70.8m

2023: £64.2m

Underlying operating profit1



£10.1m

2023: £7.2m

 

Gross sales value2



£1,122.3m

2023: £988.8m
 

Net cash (pre-IFRS16)3


£9.6m

2023: £5.8m

 

 

  • Strong performance with underlying operating profit exceeding market expectations4

  • £12m disposal of PeoplePlus to create pure-play recruitment platform, underpinning further share buybacks and providing working capital for growth

  • 14.0% increase in revenue due to market share gains and the increase in the National Living Wage

  • 10.3% increase in gross profit driven by strong performances across both Recruitment GB and Recruitment Ireland

  • Permanent fees increased 4.7% in Recruitment GB and 38.2% in Recruitment Ireland in contrast to the declining recruitment market

  • 40.3% increase in underlying operating profit to £10.1m (2023: £7.2m)

  • Conversion ratio of gross profit to operating profit improved to 14.3% (2023: 11.2%) through tight control of costs

  • Net cash (pre-IFRS 16) significantly ahead of expectations at £9.6m (2023: £3.8m) due to debtor day reduction and tight control of working capital following peak trading during Q4

  • Strong cashflow facilitated a £2.5m share buyback programme during FY 2024

Notes:

  1. Underlying results exclude goodwill impairment, amortisation of intangible assets arising on business combinations, reorganisation costs and other non-underlying charge
  2. Gross sales value represents the fair value of the consideration received or receivable for the supply of services, including agency sales, (excluding fees) which are subject to an IFRS 15 agency adjustment, net of value added tax, rebates and discount
  3. Presented on a pre-IFRS16 basis which excludes lease liabilities and also excludes refinancing costs
  4. Company-compiled consensus for FY 2024 underlying operating profit, and net debt (pre-IFRS 16), based on the mean average of two analyst estimates, stands at £10.1m and £(0.6)m, respectively.