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NES Global Talent, the leading global manpower specialist, is pleased to announce its results for the year ended 31 October 2012.

Financial Highlights:

  • Turnover £492.4m (2011: £380.2m) up 29.5%
  • Net Fee Income £60.4m (2011: £43.7m) up 38.2%
  • Adjusted EBITDA * £24.3m (2011: £16.8m) up 44.6%
  • Operating profit £22.2m (2011: £14.1m) up 57.4%
  • Operating profit cash conversion of 70% (2011: 111%)
  • Conversion of group turnover to adjusted EBITDA of 4.9% (2011: 4.4%)
  • Conversion of group net fee income to adjusted EBITDA of 40.3% (2011: 38.4%)

* 2011 and 2012 adjusted EBITDAs exclude operating exceptional items

Operating Highlights:

  • Sale of NES Global Talent to AEA Investors LP completed in October 2012 for £234m.
  • Strong organic growth across the global technical business unit.
  • New offices opened in Denver, Darwin and Melbourne.
  • The group now has 32 offices across 21 different countries and will continue to open new operations in global locations in the forthcoming financial year.
  • Bank refinancing with a syndicate of three banks completed in the year providing £105m committed funding for five years.
  • Continued focus on cash generation and working capital, with overdue receivables reducing by 84.6% despite trade receivables increasing by 36.3% to £76.2m.
  • Continuing focus on the core strategic area of engineering and technical staffing, with a deliberate reduction in exposure to the UK IT sector, which now only forms 2.7% of group profits.
  • Improved performance on permanent placement net fee income (NFI), but still maintaining the strategic intention of being a 70% to 75% contract NFI operation across the world.
  • Further significant investment in group IT support systems and engineering/technical recruitment consultants, with capital expenditure of £998k and staff numbers growing from 352 to 439 (24.7%).
  • Increasing number of contract placements featuring candidates who move from project to project and country to country, whilst maintaining contractual loyalty with NES Global Talent.

Commenting on the results, Neil Tregarthen, Chief Executive of NES Global Talent, said: "2012 was probably the most exciting year in the company's history. Not only did we grow EBITDA to £24.3m, a record increase over prior year of 45%, we also concluded the sale of the business to new sponsors, AEA Investors LP. A large part of the equity return for that transaction went to over one hundred of our staff and it is a great feeling as Chief Executive, to see the people who have been at the heart of our success since I joined eight years ago, doing very well from the sale. All members of staff, including myself, have reinvested circa 50% of our proceeds back into the business and I can think of no better sign of our confidence for the future. That in turn, will ensure our wider stakeholders, including clients, contractors and candidates, continue to receive the best in class service that they have a right to expect. The global team and I have now agreed a new vision, that of being a £100m profit business by the year 2020 and with the support of our new investment partners AEA, we look forward to delivering against that plan, just as we have done continually since 2004."

The spread of COVID-19 is affecting all of us. But as a global staffing company, NES would like to reassure our customers that we are fully operational across all our locations and are working closely with clients to ensure essential projects stay on track at this difficult time. For regular updates, please see our COVID-19 Support Hub.