Skilled Group Ltd (ASX: SKE) released the results for its first-half operations this morning revealing a flat profit result but a decent uptick in sales revenue.
While investors were clearly impressed with the result to begin with, bidding it as much as 13.4% higher early in the session, the excitement has clearly eased off with the stock now sitting just 3.4% higher for the day.
So What: Skilled Group is Australia's biggest workforce provider, providing staffing solutions to the country's public and private sectors. Over the first half, sales rose 10.6% to just over $1 billion while its net profit after tax (NPAT) lifted just 0.8% to $21.2 million. Investors will need to watch out for the company's net debt situation which rose 66.1% over the year to $220.6 million.
While the company's Workforce Services and Technical Professionals divisions both experienced a decline in earnings, its Engineering and Marine Services division lifted earnings by an impressive 61%. Skilled Group expects this division to continue growing strongly in the second half of the year.
Meanwhile, Skilled Group's CEO Angus McKay highlighted a continued focus on cost cutting and efficiency programs which should help deliver at least $15 million of savings in the 2015 financial year. The company declared an interim dividend of 7.5 cents per share, which is unchanged since last year.
