HRnetGroup posts net profit of S$46.9m for FY20

RECRUITMENT company HRnetGroup posted a net profit of S$46.9 million for its full-year ended Dec 31, 2020, down 9.2 per cent from the year-ago period.

Meanwhile, revenue increased 2.4 per cent to S$433 million in FY2020. This is a record high for the group, it said in a bourse filing on Tuesday.

Revenue from the healthcare sector grew by 28 per cent to constitute 14.4 per cent of total revenue, while the government sector grew by 68.2 per cent to constitute 17.3 per cent of total revenue.

Additionally, the group added that flexible staffing recorded an all-time high of 14,347 contractor employees in its December payroll, indicating an increase of 13.7 per cent against the same month the previous year.

The group also helped 42,998 people secure employment in contract and temporary roles in FY2020, up from 40,410 in FY2019.

For the full year, earnings per share stood at 4.67 Singapore cents, compared with 5.13 Singapore cents the previous year.

A final cash dividend of 2.5 Singapore cents was proposed for FY2020, for shareholders' approval at an upcoming annual general meeting. The date payable will be announced at a later date. In FY2019, a final cash dividend of 2.8 Singapore cents was paid out.

"In sharp contrast with the negative 2020 GDP growth rates in most of the countries/regions that the group operated and invested in, all the positive economic forecasts for 2021 suggest the possibility of a macro recovery," said HRnetGroup. It added that the group is "cautiously optimistic of the outlook for 2021 and remains vigilant to make necessary adjustments to thrive in the new norm".

Shares of HRnetGroup closed at S$0.585 on Tuesday prior to the results announcement, up S$0.005 or 0.86 per cent.