HRnetGroup H2 profit rises 7.1% to S$35.3 million on strong profit margin

MAINBOARD-LISTED HRnetGroup : CHZ 0% posted a 7.1 per cent rise in net profit to S$35.3 million for the second half of 2023, from S$32.9 million in the previous corresponding period.

This was mainly due to factors including a strong profit margin, partially offset by lower revenue, the recruitment and consulting company said in a regulatory filing on Thursday (Feb 22).

Revenue for H2 2023 fell 4.7 per cent to S$283.7 million, from S$297.6 million a year earlier. This was due to tough economic conditions and sector-wide profit downgrades.

Earnings per share stood at 3.58 Singapore cents for the half-year ended Dec 31, up from 3.3 Singapore cents the previous year.

A final dividend of 2.13 Singapore cents per share was proposed for 2023, up from 1.87 Singapore cents the year before, subject to shareholders’ approval at the group’s upcoming annual general meeting in April. The date payable will be announced later.

For the full year ended December 2023, net profit was down 5.9 per cent to S$63.6 million, and revenue was down 5.4 per cent to S$578.5 million.

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HRnetGroup’s two key business segments are flexible staffing, in which it provides temporary manpower solutions to companies, and professional recruitment, in which it sources permanent staff for corporate clients.

Revenue trends were patchy across the nine geographic regions in which the company operates, said HRnetGroup. Singapore, its largest market, contributed 66.7 per cent of its revenue in 2023, up from 64.9 per cent in 2022.

On the other hand, the group’s professional recruitment business in mainland China “bore the brunt of the weak economic performance”, it said.

Shares of HRnetGroup closed up 1.4 per cent or S$0.01 to S$0.72 on Thursday, before the results were announced.