Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ADECCO SA-REG. We currently have 10 research reports from 1 professional analysts.
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Strong year-end performance
03 Mar 17
In the financial year 2016, revenues increased 3.2% to €22.71bn and the gross margin declined from 19% to 18.8% due to price and mix effects in temporary staffing. EBIT grew 2.1% to €1.06bn and the EBIT margin remained stable at 4.7%. The EBITDA margin declined marginally from 5.3% to 5.2%. EBITA grew 2.1% to €1.06bn. Net income on a comparable basis (excluding the one-off impairment of goodwill in 2015) declined 3.3% to €725m. Revenues in Q4 16 increased 3.5% to €5.87bn and EBITA grew 11.5% to €292m mainly driven by lower corporate expenses. An unchanged dividend of CHF2.40 per share was proposed by the board of directors. In addition, management is planning to buy back shares for a total volume of €300m.
M&A strategy difficult to understand
14 Dec 16
Adecco has sold its subsidiary Beeline, which offers software solutions for sourcing and managing an extensive workforce. Beeline has its headquarters in Jacksonville, Florida. Around 450 work for the company. Its major customers are the top Fortune 500 companies, of which over 135 have installed the VMS (vendor management system) software solutions. In 2014, Adecco acquired OneForce, the online staffing management platform and merged it with Beeline. GTCR, a private equity company, has acquired the majority stake in Beeline from Adecco. GTCR also has a stake in the software company IQNavigator which will be merged with Beeline. Adecco received US$100m in cash plus a US$30m note. According to our estimates, the total deal size will be around €400m and Adecco will own 25% of the new company. IQNavigator is the leading independent provider of non-employee workforce management solutions.
Performance driven by cost discipline
17 Nov 16
In Q3 16, revenues increased 2.4% to €5.81bn. Permanent placement grew by 5%, temporary staffing by 3% and outplacement revenues by 8%. By business line, revenues of professional staffing remained stable, however the business unit Medical & Science experienced the strongest growth rate of 10.2% to €108m. The gross margin declined from 18.9% to 18.7%. EBITDA dropped 10% to €315m and the EBITDA margin from 6.2% to 5.4%. EBIT also declined by 9.5% to €285m mainly due to additional restructuring charges of around €26m. The EBIT margin declined from 5.6% to 4.9%. Net profit reached €173m compared to a loss of €513m due to a goodwill impairment of €740m. In the first nine months, revenues grew 3.1% to €16.84bn. The gross margin declined from 18.9% to 18.8% and the EBITDA margin from 5% to 4.8%. EBITA declined marginally by 1.8% to €804m. France and North Americas contributed 54.1% to total EBITA and 42.3% to total revenues.
Q2 16 growth trend continued in July
10 Aug 16
The company reported solid Q2 16 results. Revenues increased 2% (organically 4%) to €5.7bn (estimate: €5.4bn) and EBIT improved 10.5% (organically 11%) to €273m (estimate: €258m). The EBIT margin increased from 4.4% to 4.8% and the gross margin improved from 18.6% to 18.8%. Net income improved 7% from €177m to €190m (estimate €181.6m). The two major markets France and North America contributed 42% to total revenues and 51.4% to EBITA. In the first half year, revenues increased 3.4% to €11.03bn. EBIT improved 3.6% to €492m and the EBIT margin remained unchanged at 4.5%. Also net income remained stable at €334m (-0.9%).
Adding value will be key!
05 Jul 16
IBM announced it is selling part of its customer support service business (CSS) to Adecco. The business is located in Erfurt and Leipzig with around 650 employees, of which 500 people are contract workers. Since the beginning of the year, IBM’s management has reduced the workforce in Germany by around 1,250 people. In total, a reduction in the German workforce of up to 3,000 people from 16,500 is planned up to 2017.
N+1 Singer - T. Clarke - Strong conclusion to FY16, record order book
28 Mar 17
After significant upgrades at the time of the full year update (PBT forecast +43% FY16; +14% FY17), today’s results are c.4% ahead of our expectations at the PBT level and show strong growth on the prior year (PBT +48%). All regions achieved positive growth in revenue. The outlook statement refers to a still growing order book (£350m at the end of February vs. £330m at the year end) and the strength of recent trading, with London & the South East and Scotland said to be particularly positive. The Group has reiterated its ambitions to improve margins, but we have not incorporated this into our forecasts at this stage. We have nudged up our FY’17 forecasts (PBT +5%) and introduced FY’18 forecasts that imply 2% PBT growth. Despite the well justified bounce in the share price, the shares still trade at a significant discount to the peer group (7.6x FY17 PE, 4% yield).
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017
28 Mar 17
ClearStar* (CLSU): Building a background for growth (CORP) | Sound Energy (SOU): TE-8 results (HOLD) | LiDCO* (LID): 2017 should be a transformative year (CORP) | Proteome Sciences* (PRM): FY 2016 in line. Moving towards breakeven (CORP) | Fulcrum (FCRM): Significant market potential, rising margins and a strong balance sheet (BUY) | Mortgage Advice Bureau (MAB1): Strong and growing intellectual property (BUY) | 7digital* (7DIG): Open offer result (CORP)