HRnetGroup's net profit down 31.9% on revaluation of assets

RECRUITMENT firm HRnetGroup saw its net profit sink 31.9 per cent to S$20.99 million for its half-year ended June 30, mostly on the back of an unrealised loss of S$3.6 million on revaluation of financial assets.

Revenue fell 1 per cent to S$210.34 million as contributions by the professional recruitment segment declined.

Earnings per share stood at 2.09 cents, down from 3.06 cents previously.

There was no dividend declared for the period.

In its review for the half-year, the group noted that its flexible staffing revenue grew by 7.1 per cent, with all its markets achieving growth with the exception of Hong Kong. Its Singapore business contributed 87.1 per cent of gross profits as it supported clients in providing manpower for essential services during the circuit breaker period, said the group.

However, the circuit breaker affected its Singapore professional recruitment business, which declined by 30.5 per cent. Hong Kong continued to bear the brunt of the US-China trade war and local protests, in addition to pandemic woes, which led gross profits for Hong Kong to fall by 55.8 per cent. Gross profits for China and Taiwan in the professional recruitment segment fell by 18.8 per cent and 16 per cent respectively.

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In its outlook, HRnetGroup said that as recovery appears to be a protracted journey at this juncture, the group will continue to exercise caution and vigilance in credit control, operating expenditure and investment to preserve cash and resources to survive this pandemic.

HRnetGroup closed at 47 Singapore cents on Tuesday, down 0.5 cents or 1.05 per cent.