DPA delivers solid results despite clear drop in revenue in H1 2021
19 Août 2021 - 07:30AM
DPA delivers solid results despite clear drop in revenue in H1 2021
DPA delivers solid results despite
clear drop in revenue in H1 2021
Highlights of first half
year:
- Revenue: 64.4 million euro (H1 2020: 71.4 million) due to a
decreasing number of professionals (-11%)
- Gross profit/gross margin: 21.1 million euro; 33.3% (H1 2020:
20.3 million; 28.4%)
- Cost base was low in H1 2021 due to an explicit focus on cost
control in 2020
- Further increase in labour market tightness; significant
investments needed to attract new professionals
- EBITDA/EBITDA margin: 10.1 million euro; 15.9% (H1 2020: 8.6
million; 12.1%)
- One-off transaction costs: negative impact of 1.1 million euro
on EBITDA
- Lower travel and transport costs than in 2020: positive impact
of 0.6 million euro on EBITDA, primarily realised in Q1 2021
- Number of working days equal to H1 2020 (124)
Condensed income statement1 |
H1 2021 |
H1 2020 |
in millions of euro or percentages |
|
|
|
|
|
Net
revenue |
63.4 |
71.4 |
Cost of
sales |
42.3 |
51.1 |
|
|
|
Gross
profit |
21.1 |
20.3 |
Gross
margin |
33.3% |
28.4% |
Selling,
general and administrative expenses excluding depreciation,
amortisation and impairments |
11.0 |
11.7 |
|
|
|
EBITDA |
10.1 |
8.6 |
EBITDA
margin |
15.9% |
12.1% |
|
|
|
Depreciation
and amortisation |
-3.2 |
-11.3 |
|
|
|
Operating result (EBIT) |
6.9 |
-2.7 |
EBIT
margin |
10.8% |
-3.8% |
|
|
|
Financial
income and expenses |
-0.2 |
-0.2 |
Result of
associates |
0.0 |
0.0 |
Profit
before tax |
6.7 |
-2.9 |
|
|
|
Tax on
profit |
-1.7 |
-1.1 |
Net
profit/loss |
5.0 |
-4.0 |
- The results for the first six months of 2020 and 2021 have not
been audited.
Commenting on the half-year results, DPA CEO
Arnold van Mameren said:“There are two sides to
these figures. On the one hand DPA showed that it is able to
achieve solid financial results in a very challenging labour
market. Demand for DPA professionals remains high and also results
in great new projects. The Legal & Public cluster posted nice
growth due to the allowances project for the Dutch tax authority
(Belastingdienst) and the TOZO scheme projects for municipalities.
The Banking cluster, on the other hand, has had to deal with a very
challenging banking sector that is seeing a shift from the demand
from junior to mid-level/senior professionals. This group of
professionals is even scarcer than the more junior
professionals.
On the other hand, we are noticing the structural tightening of
the labour market, mainly driven by the increasing shortage of
specialised, highly educated professionals. Further investments are
needed in our internal organisation and in marketing in order to
grow in the second half of the year. DPA will continue to invest in
the organisation and competencies of our employees with a view to
attracting and retaining good professionals.”
Development of first-half 2021 results Revenue
fell by 11.2% in the first half of 2021 to 63.4 million euro (H1
2020: 71.4 million euro). Direct costs fell by 17.2% to 42.3
million euro (H1 2020: 51.1 million). Gross profit increased by
3.9% to 21.1 million euro (H1 2020: 20.3 million). The gross margin
rose from 28.4% in the first half of 2020 to 33.3% in the first
half of 2021. The number of professionals under contract fell
sharply: from 1,092 at 30 June 2020 to 973 at 30 June 2021.
Selling, general and administrative expenses decreased by 6.0%
to 11.0 million euro (H1 2020: 11.7 million). As a percentage of
revenue, these costs rose to 17.4% (H1 2020: 16.4%). Part of these
selling, general and administrative expenses are transaction costs
of 1.1 million euro related to Gilde's public offer for all
outstanding DPA shares. The profit margin is good due to a lower
cost base as a result of cost cuts initiated in 2020 and a 0.6
million euro reduction in fuel, travel and accommodation expenses
for professionals compared to the first half of 2020. Most of this
was realised in the first quarter as the effects of the COVID-19
pandemic only began to be felt in March 2020. In the first half of
2020 EBITDA was negatively affected by the restructuring costs of
1.1 million euro due to the pandemic. EBITDA increased to 10.1
million euro in the first half of the year (H1 2020: 8.6 million),
while the EBITDA margin rose to 15.9% (H1 2020: 12.1%).
Segment breakdownFor reporting purposes the six
DPA clusters are combined into three segments:
- Finance & Banking with the Finance and Banking
clusters
- Legal & Public with the Legal & Public cluster
- IT, Supply Chain & Logistics & Participations with the
IT, Supply Chain & Logistics and Participations clusters
Revenue and gross profit by segmentIn millions of
euro and % |
H1 2021 |
H1 2020 |
Revenue |
Gross profit |
Margin % |
Revenue |
Gross profit |
Margin % |
Finance & Banking |
34.2 |
10.2 |
29.8% |
41.5 |
11.7 |
28.1% |
Legal &
Public |
14.0 |
6.4 |
45.6% |
10.6 |
4.0 |
37.8% |
IT, Supply
Chain & Logistics & Participations |
15.2 |
4.6 |
30.1% |
19.4 |
4.6 |
23.8% |
Total |
63.4 |
21.1 |
33.3% |
71.4 |
20.3 |
28.4% |
Financial positionThe net cash flow from
operating activities amounted to a positive 6.5 million euro (H1
2020: positive 17.3 million). It should be noted that the
government support received in 2020 (which was repaid in August
2020), amounting to approximately 8 million euro, had a major
one-off impact on the first half of 2020.
Days sales outstanding (average accounts receivable in days)
equalled 28 at 30 June 2021 (30 June 2020: 25). The overall
debtor position and sales yet to be invoiced stood at
22.0 million euro (30 June 2020: 22.0 million). The net cash
flow from investment activities amounted to a negative 2.5 million
euro (H1 2020: positive 0.4 million). The net cash flow from
financing activities was a negative 2.9 million euro (H1 2020:
8.0 million negative). This difference is partly caused by the
repayment of the long-term loans and the current account credit
facility in the first half of 2020.
The net debt position stood at 3.2 million euro (30 June 2020:
4.1 million euro). DPA had two financing agreements with
Rabobank at 30 June 2021– a credit facility and an acquisition
financing agreement. The credit facility is for a maximum of 25.0
million euro. The permitted maximum amount is determined based on
the balance of 70% of the total amount of ‘revenue yet to be
billed’ plus 70% of the total amount of legally pledged claims. The
acquisition financing had already been repaid in full at the end of
2021 (30 June 2020: 1.2 million euro).
Employees After the decline in the number of
professionals in 2020 due to the COVID-19 pandemic, the current
tight labour market is now causing the number of professionals to
stabilise in 2021. It is a challenge to achieve further growth. At
30 June 2021 DPA had 973 professionals (30 June 2020: 1,092)
and 142 internal employees (30 June 2020: 160) under contract. An
important ratio is the ratio of direct/indirect staff
(professionals under contract/internal employees). This ratio fell
from 7.1 at 31 March 2021 to 6.9 at 30 June 2021. At 30 June
2021 DPA had 144 self-employed professionals under contract on a
full-time basis (30 June 2020: 160).
(on an FTE
basis) |
30-6-2020 |
30-9-2020 |
31-12-2020 |
31-3-2021 |
30-6-2021 |
Professionals |
1,092 |
1,014 |
982 |
987 |
973 |
Self-employed
professionals |
160 |
159 |
143 |
160 |
144 |
Internal
employees |
160 |
143 |
132 |
139 |
142 |
Because DPA deploys its employees as flexibly as possible and
demand for professionals is high, only a limited number of them
were left ‘on the bench’ and productivity remained high. At the
same time DPA continues to work on developing its professionals
through personal coaching, courses and training. Due to
unprecedented scarcity in the labour market, further investment is
needed to be able to grow again.
OutlookDPA continues to monitor market
developments closely. Current shortages in the labour market mean
that DPA will have to invest heavily in order to continue to meet
the high demand from our clients for our professionals.
Post balance sheet events On 27 July 2021 DPA
was provided with a new current account financing facility for up
to 2.5 million euro.On 30 July 2021 DPA expanded its stakes in DPA
Supply Chain, DPA Privacy and DPA Tax to 100% by exercising call
options. DPA already had decisive control over these subsidiaries,
which meant that they were already consolidated.
Public offer by New HorizonsOn 1 March 2021 DPA
and Gilde Equity Management Benelux Partners B.V. (Gilde) jointly
announced that they agreed on a recommended public offer, with
committed financing, by an entity of Gilde for all issued and
outstanding ordinary shares of DPA at an offer price of 1.70 euro
(cum dividend) per share in cash. Following the post-acceptance
period New Horizons Holding B.V. holds 93.0% of the issued and
outstanding capital, i.e. 43,679,894 shares.
DPA Group N.V.DPA connects organisations with
professionals who have the right knowledge and know-how. Under thes
motto ‘improving your performance’ the company gives its employees
room to be driven about their profession and continuously work on
their professional and personal development. This enables them to
help clients realise improvements and innovations. DPA is listed on
Euronext Amsterdam. Further information can be found at
www.dpa.nl
Further information
For more information please contact Sharon Hulkenberg at
sharon.hulkenberg@dpa.nl or on +31 (0)6 5141 1647.
DisclaimerThis press release contains
forward-looking statements about future events. The press release
is a reflection of the plans, objectives and ambitions of DPA based
on the current insights and assumptions of the Management Board.
Such statements are not established facts and are subject to known
and unknown risks, uncertainties and other factors, many of which
may be beyond DPA’s control. As a result, actual results or
developments may differ materially from future results or
developments either implied or expressly stated in the
forward-looking statements. DPA does not assume any obligation to
update or revise any information in light of changes in policy,
developments, expectations, etc. This press release may contain
‘inside information’, as defined in Article 7 of the Market Abuse
Regulation (EU) No 596/2014.
- Persbericht H1 2021 DPA Group N.V. tabellen