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
“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
The number of professionals under contract fell sharply: from 1,092 at
Selling, general and administrative expenses decreased by 6.0% to
Segment breakdown
For 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 segment In 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 position
The net cash flow from operating activities amounted to a positive
Days sales outstanding (average accounts receivable in days) equalled 28 at
The net debt position stood at
DPA had two financing agreements with
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
(on an FTE basis) | 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.
Outlook
DPA 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
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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
Disclaimer
This 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.
Attachment
- Persbericht H1 2021
DPA Group N.V. tabellen
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