Recruitment company sees revenue grow 30%

RECRUITMENT company Saongroup.com enjoyed revenue growth of 30% and a mild profit increase for 2010, according to its latest accounts.

Profit before tax increased from €2.6 million in 2009 to €2.8m in 2010.

Saongroup’s invoiced revenue grew from €22.9m to €29.7m in 2010, a year-on-year increase of 30%.

Group revenue was €28.7m, compared with €25m in 2009.

Owned by Denis O’Brien and chairman Leslie Buckley, the IrishJobs.ie parent company now has a presence in 17 countries across four continents. In 2010, Saongroup strengthened its position in China, whose 460 million internet users make up 33% of the population.

Saongroup entered the Chinese market in 2006, attracted by the country’s low internet penetration and high GDP growth. By the end of 2010, the firm was operational in 20 Chinese cities. It has set itself a target of 100 cities by the end of 2012.

Saongroup chief executive, Ciaran McCooey, said: “We are looking at all markets with low internet penetration and high GDP growth. We are seeing growth in both online traffic, and from companies who are paying to be on the site.

“We are seeing growth across all markets. We are benefiting from a movement towards online recruitment. Whether it’s China, Ireland or El Salvador, people are recruiting via the internet. It is the most cost-effective way of recruiting,” he added.

Mr McCooey said Saongroup is predicting double-digit growth for 2011, and is optimistic about the recruitment sector generally.

One exception is Europe, where uncertainty about monetary union is causing a resistance to recruitment.

Saongroup is also expanding in emerging markets such as Costa Rica, El Salvador, Guatemala, Honduras and Panama, which have a combined population of close to 40 million. Central America has internet penetration of around 21%.

Mr Buckley said: “Our strong year-on-year revenue growth is testament to our proven ability to develop and nurture new business.

“Decisions on acquisitions and expansion have been highly successful and we have generated profits by virtue of the fact that a number of those businesses now require reduced levels of investment as performance increases,” Mr Buckley added.