DPA achieves a 33% profit increase

• The turnover has grown by 34% to € 46.4 million compared to the first six months of 2006.
• The gross margin for the first six months was 26% compared to 23.5% for the first half-year of 2006.
• The gross margin development showed an upward trend in the second quarter.
• An increase in the trading profit (EBITDA) of 21% to 2.3 million.
• A restructuring of the internal organisation was carried out for which a reserve of EUR 750,000 was taken at the expense of the profits of the first half-year.

Peter Smit, CEO: "Our turnover growth is in line with our expectations. We even grew more than the sector average.  Our margin is developing in a positive way and costs will decrease.  DPA has achieved an upward trend - prospects are positive and I am very pleased about that."

 

 

 

Normalised pro forma figures of the combination including Geos IT Professionals (recurring EBIT).

 

• Turnover DPA Netherlands increased by 12.1% to € 35.5 million.
• Turnover DPA Supply Chain People increased by 103.2% to € 3.3 million.
• Turnover Geos IT Professionals increased by 10% to € 6.1 million.
• Turnover in Spain increased by 16.6% to € 1.6 million.

The turnover increase amounted to 15%. With this growth percentage DPA performed better than the sector average in the first half-year of 2007 (14%, source: ABU). Thus the growth in turnover is still in line with the growth opportunities provided by the market. The turnover over the first six months of 2007 compared to 2006 has been positively influenced by a higher number of seconded staff, the higher average hourly tariff and improved productivity.

 

The business units DPA Supply Chain People, Geos IT Professionals and Spain contributed 7%, 13% and 3% respectively to the group turnover.

 

The following table gives the margin and the margin share for the various groups of interim professionals. These include the group of interim professionals permanently or temporarily employed by DPA, the group of interim professionals employed elsewhere and seconded by DPA (third parties) and the group of self-employed interim professionals who can be seconded the client. For the last group, DPA fulfils the role of broker for the customer concerned.

 

Margin of DPA Flex Group N.V.

 

Margin of DPA Netherlands per turnover group

 

As can be seen from the table above, the margin for DPA personnel has increased by 200 basic points. The margin for the group of interim professionals via third parties has decreased, although when compared with 2006 (the entire year) the margin has increased by 240 basic points.

 

Margin distribution of DPA Netherlands per turnover group

 

The running costs compared to the turnover have slightly increased, 21.3% in 2007 compared with 20.4% in 2006. This can be mainly attributed to the higher marketing expenses in the first half-year. As a result of the cost saving restructuring started in June, personnel costs will decrease during the year by approximately € 400,000.

 

After normalising, the trading profit before deductions (EBITDA) is 24% higher than in the first half-year of 2006. Reduction of internal costs, further growth in the average invoice rate and reduction of the variation of contracted interim professionals are the most important performance indicators on which a stronger focus will be made during the second half-year. The measures taken in the area of personnel costs, becoming effective in 2008, must result in savings of at least € 1 million on a yearly basis.

 

The profit per share has risen by 25% compared with the first half-year of 2006. The profit per share amounts to € 0.15 over the first half-year of 2007 compared to € 0.12 over 2006.

 

DPA has kept to its pronounced expectations for 2007. On the basis of the figures for May and June and the approach of the traditionally best part of the year, DPA expects a continuation of the upward trend in turnover, gross margin and trading profit. The financial consequences of the decision to divest Spain are not yet known and are not included in the pronounced expectations.

 

To further stimulate the improved profits, DPA has raised its visibility using TV and radio commercials and a more professional image on its web site. The message targets potential interim professionals considering a career move - DPA must be top-of-mind in this consideration. The fact is that the shortage in the labour market will further increase. Finding qualified and experienced interim professionals will be a challenge also in the second half-year and will receive our utmost attention.

 

DPA is investing in sustainable capacity for long-term growth, meanwhile striving for a solid balance. Both autonomous growth and growth by means of acquisitions are desired. Growth in existing and new markets is necessary to remain at the top of the secondment market, but it must not be at the cost of focus and gross margin. Newly purchased companies are either carefully integrated or fitted in as independent business units within the existing structure. This method of working is no different from the first half-year, but the increased focus on Financial and IT services however is different. DPA has specialised in Finance and IT and wants to have a more pronounced profile and more recognition with customers and (potential) interim professionals. The combination of Finance and IT forms the distinctive strength of DPA.

Certain statements in this document relate to forecasts regarding the future of the financial condition and profits from activities by DPA Flex Group N.V. and certain plans and objectives. Naturally such forecasts include risks and a degree of uncertainty, because they involve events in the future and are dependent on circumstances that will then apply. Many factors could cause actual profits and developments to deviate from the forecast as described in this document. Such factors could be: general economic conditions, shortages in the labour market, changes in the demand for (flexible) personnel, changes in the labour regulations, future currency and interest changes, future takeovers, acquisitions and divestments and the speed of technological developments. The forecasts are thus only valid on the date on which this document was drawn up. No audit or assessment has been made on these figures

 

 

DPA Flex Group N.V. is a specialist secondment provider listed on Euronext.

 

The operating companies that trade under the names DPA Flex Professionals, DPA Supply Chain People and Geos IT Professionals, meet the demand within companies and institutions for temporary knowledge and expertise in the areas of Finance, IT and Procurement & Logistics.

 

DPA Flex is an ambitious and leading knowledge provider of value-creating flex professionals.

 

For more information please visit www.dpaflex.com

 

 

 

DPA

020-5151560 / 06-53462244