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Vedior NV (0J9M)


Thursday 26 July, 2007

Vedior NV

Interim Results

Vedior NV
26 July 2007

Amsterdam, The Netherlands

                         Strong operational performance
                          continues in second quarter
                     For release at 7.00am on 26 July 2007

Highlights for Q2 2007
Amounts in € million                 Q2 2007        Q2 2007     Q2 2006      Increase      Organic Growth
                                                 adjusted(1)               adjusted(1)
Sales                                2,121.5        2,121.5     1,925.0          +10%               +10%
Gross Profit                           491.7          421.8       355.7          +19%               +17%
 Gross Margin                          23.2%          19.9%       18.5%
Operating Income                       150.2          101.9        72.2          +41%               +37%
 Operating Margin                       7.1%           4.8%        3.8%
Net Income                              94.2           62.5        44.4          +40%
Net Income per share (in Euro)          0.54           0.36        0.26          +38%

(1) Excluding the retroactive effect (1 January 2006 to 31 March 2007) of the
French social security recalculation, which contributed net income of €31.7
million and EPS of €0.18.  For further analysis, see page 5.

(2) All growth percentages quoted in this media release have been calculated on 
an organic basis which excludes the impact of currency effects, acquisitions and 
•    28% increase in permanent placement fees

•    Increase in gross margin to 19.9%

•    Improved operating efficiency
•    Organic growth in operating income 37%
     -    Traditional staffing 51%
     -    Engineering staffing 51%
     -    Education staffing 15%

•    Acquisition of specialist recruitment businesses in the US, UK and

CEO's Statement

Zach Miles said, 'We continue to see a positive operating environment in
continental Europe and an improving UK market. Our operations in Australia,
Canada and new emerging markets have, once again, made excellent progress. Our
US business is growing despite slower market conditions.

We are approaching our operating margin targets in all geographic regions.'

Q2 2007 Review

Sales increased 10% with increases in all of our major markets. Gross profit was
up 17% and operating income increased by 37%.

Demand for permanent placement increased during the quarter resulting in a 28%
organic improvement in placement fees with strong growth in France, the UK and
the Netherlands. Permanent placement now represents 4.0% of Group sales and 20%
of gross profit.

On an adjusted basis, our gross margin improved to 19.9% from18.5% and our
operating margin (operating income as a percentage of sales) was 4.8% (Q2 2006:

Our conversion ratio (operating income divided by gross profit) increased to
24.2% from 20.3%. As a percentage of sales, costs were 15.1% (Q2 2006: 14.7%)
reflecting organic investments and changes in our business mix.

          Country/                Gross Profit        Operating Income          % of Group
           Region               Organic Increase      Organic Increase       Operating Income

France  (See note)                       + 27%                   +53%                   38%
UK                                        +13%                   +15%                   18%
Netherlands                               +10%                   +31%                    5%
Belgium                                   +13%                   +17%                    7%
Spain                                     +20%                   +74%                    3%
Other Europe                              +14%                   +76%                    7%

US                                         +4%                    -2%                   10%
Australia & New Zealand                   +15%                   +20%                    6%
Canada                                    +38%                   +90%                    4%
Latin America, Asia, Middle               +29%                   +91%                    2%
East, and Africa

Note: Figures for France in the above table exclude the retroactive effect (1
January 2006 to 31 March 2007) of recalculating social security charges, but
includes the benefit for the quarter ended 30 June 2007.

The development of our French permanent placement business continued to gain
ground with an 82% increase in fees. Good growth in sales and operating income
was experienced in both the traditional and professional/executive parts of our
business. Stripping out the effect of social security recalculations completely,
French gross profit increased by14% and operating income increased by 21%
compared to Q2 2006. The impact of recalculation in Q2 added €8.8 million in
operating income and €12.8 in gross profit.

In the UK, we saw further growth in the education sector, marking a continued
recovery in this highly profitable area of our business. Our brands operating in
the engineering/technical, accounting/finance, interim management and legal
sectors all performed strongly. Healthcare also achieved positive growth.

In the Netherlands, traditional staffing achieved strong increases in operating
income, with our Dactylo brand in particular showing good growth. Permanent
placement activities helped to contribute to our positive results. Sales and
operating income in the professional/executive sector also improved this

Our businesses in Spain have, once again, yielded strong results in terms of
both sales and operating income, with growth continuing in all areas of our

Businesses in other parts of Europe achieved strong increases in operating
income. Significant contributors were Belgium, Italy, Switzerland, Portugal and

In the US, sales increased by 3% but operating income declined slightly. Our
legal staffing operations performed exceptionally well, with strong growth in
both sales and operating income. Our US traditional business remained slow.

In Australia and New Zealand, all our businesses performed well led by education
and accounting and finance.

In Canada, we achieved strong growth in the IT and engineering/technical sectors
following on from good performances in the first quarter of 2007.

India and Latin America also reported good growth.

Business Development

In Q2 2007, we completed the acquisition of Calibre International, a leading
hospitality staffing specialist in the UK and HR Partners, an Australian HR
search and selection consultancy. In July, we acquired Think, a specialist
provider of engineering and technical professionals in the US.

During the quarter, we also continued active organic growth in a number of
markets, including expansion of existing operations in the Middle East and our
recruitment process outsourcing business in the US and Canada. Compared to the
same quarter last year, the Group's network has been extended by 134 offices to
a total of 2,505 offices worldwide.

Management Outlook

Healthy demand driven by skill shortages should lead to strong results for the
remainder of 2007.

Our business in France continues to improve its profitability and, despite
slower market growth in June and July, we remain confident about its prospects
for the second half.  Our performance is expected to improve further in the
Netherlands in Q3.  The outlook for our specialist businesses in the UK remains
favourable. We expect positive trends in other markets to continue.

For further information on these results, please join today's conference call
starting at 9.00am (CET). Details can be found on our website at

Zach Miles, Chief Executive
Frits Vervoort, CFO
Jelle Miedema, Company Secretary

Investor Information at:

Company Profile

Vedior is one of the world's largest recruitment companies and is a full-service
recruitment provider with a diversified portfolio of brands targeting a broad
range of industry sectors.

From its global network of offices spanning Europe, North America, Australasia,
Asia, South America and Africa, Vedior offers temporary and permanent
recruitment as well as a number of complementary employment-related services
such as outplacement, HR outsourcing, payrolling and training.

Vedior has a leading market position in the provision of professional/executive
recruitment in sectors such as information technology, healthcare, accounting,
engineering, education and legal. We also have a significant global network
providing administrative/secretarial and light industrial recruitment.

Financial Agenda

25 October 2007         Publication of third quarter results
7 February 2008         Publication of annual results 2007
25 April 2008           Publication of first quarter results and AGM
24 July 2008            Publication of second quarter results
23 October 2008         Publication of third quarter results
5 February 2009         Publication of annual results 2008

Safe Harbour

This media release includes forward-looking statements that reflect our
intentions, beliefs or current expectations and projections about our future
results of operations, financial condition, liquidity, performance, prospects,
growth, strategies, opportunities and the industry in which we operate.
Forward-looking statements include all matters that are not historical fact. We
have tried to identify these forward-looking statements by using words including
'may', 'will', 'should', 'expect', 'intend', 'estimate', 'project', 'believe',
'plan', 'seek', 'continue', 'appears' and similar expressions or their negative.

These forward-looking statements are subject to a number of risks,
uncertainties, assumptions and other factors that could cause our actual results
of operations, financial condition, liquidity, performance, prospects or
opportunities, as well as those of the markets we serve or intend to serve, to
differ materially from those expressed in, or suggested by these forward-looking
statements. Important factors that could cause those differences include, but
are not limited to our financial position and our ability to implement our
business strategy and plans and objectives of management for future operations,
our ability to develop, balance and expand our business, our ability to
implement our long- term growth strategy (including through organic growth and
acquisitions), our ability to make improvements to our capital structure,
industry and market trends and volumes, including the speed and strength at
which the staffing services industry and the sectors in which we operate,
rebound from economic slowdowns and recessions, the effects of regulation
(including employment and tax regulations), our ability to improve the
efficiency of our operations and to reduce expenses in our operating companies
and their network of offices, litigation and our ability to take advantage of
new technologies.

In light of these risks, uncertainties, assumptions and other factors, the
forward-looking events described in this media release might not occur.
Additional risks that we may deem immaterial or that are not presently known to
us could also cause the forward-looking events discussed in this media release
not to occur. Except as otherwise required by applicable law, we undertake no
obligations to update publicly or revise publicly any forward-looking
statements, whether as a result of new information, future events, changed
circumstances or any other reason after the date of this media release.

                      This information is provided by RNS
            The company news service from the London Stock Exchange                                                                                                                                 

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