Grafton losses increase six fold to €2.2m
These losses came despite the successful realignment of the company’s operating model but the global downturn has affected company operations in all markets, according to accounts just filed.
“The market for recruitment services remains highly competitive in the current economic climate. The directors are confident that appropriate steps have been taken to ensure the company is competitive and profitable going forward.
“The company seeks to manage the risk of losing customers to key competitors by the provision of added value services to customers and by maintaining strong relationships and local representations with key customers,” the accounts read.
The directors said they are confident that appropriate action has now been taken and that the company will return to profit in the current year.
They did not recommended a dividend in the year.
The deficit for the year amounting to €2.2m will be set against the balance of reserves brought forward from the previous year, the accounts read.
Turnover dropped 21% due primarily to the significant drop in permanent placement fees.
Gross profit was down from €4.2m to €2.5m.
The number of staff employed by the firm has fallen from 53 to 44 and staff costs dropped from €3.2m to €1.9m as a result.
The accounts note that the cost of restructuring the company in the year was €329,159.
The company also notes that the board of directors made a decision to close a number of branches as part of a consolidation of geographical operations. A provision of £325,740 (€362,221) was made in the year for restructuring costs likely to be incurred by the company in the next financial year.
Grafton Recruitment was established on Grafton Street in 1982. It now has 72 offices in 18 countries which include Belgium, Chile, China, Russia and Singapore.
In 2005, Grafton acquired Dublin recruitment firm Mary B Cremin in a deal estimated to be worth up to €5m. The takeover added four offices to Grafton’s existing Irish network.
