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HIRE Technologies says demand for flexible work remains 'steady' as it reports record 3Q results

Published: 09:13 01 Dec 2020 EST

HIRE Technologies Inc. - HIRE Technologies says demand for flexible work remains “steady” as it reports record 3Q results
In August, the group closed a private placement of unsecured convertible debentures to raise gross proceeds of $2,419,000

HIRE Technologies Inc (CVE:HIRE) said Tuesday that it posted record third-quarter results that saw operational improvements anchor the company as it continued to see “demand for flexible work remaining steady.” 

In a statement accompanying the numbers, HIRE Technologies CEO Simon Dealy said: "Our clients continue to trust HIRE for their staffing and placement needs in light of ongoing uncertainty surrounding COVID-19, with demand for flexible work remaining steady.”

“While headlining this quarter was the acquisition of The Headhunters, our operational improvements allowed us to break even on an adjusted EBITDA basis. This was a record quarter in the short history of our company and we are now better positioned than ever to meet the changing demands of our clients and partners," he added.

READ: HIRE Technologies acquires The Headhunters Recruitment

For the period ended September 30, 2020, the Toronto-based staffing company posted an adjusted EBITDA loss of $56,477, compared to an EBITDA loss of $145,862 for the same period a year earlier. The company chalked up the improvement to restructuring activities and the immediate accretion from acquiring The Headhunters Recruitment, a top Canadian recruitment company. “The results demonstrate the company's resilience during COVID-19,” said Hire Technologies.

For the third quarter ended September 30, 2020, HIRE posted a 16.1% drop in group revenue to $2,549,339, compared to $3,040,243 for the same period in 2019.

“Lower revenue was driven by a combination of overall market weakness due to COVID-19 impacting staffing levels, particularly in the contract space across all verticals, and lower year-over-year results on permanent placements in the accounting and finance vertical,” said the company. On the other hand, the group said that "unfavourable variances" were tempered by “robust activity” in Western Canada.

Despite lower year-over-year revenue, HIRE said gross margin improved by 34.6% to $883,317 in the quarter, from $736,458 in 2019. “The improvement in gross margin was a result of higher permanent placements relative to contract placements,” said the company.

The group’s adjusted net loss for the third quarter was $100,181, or loss per share of $0.00, compared to an adjusted net loss of $206,335, or net loss per share of $0.01 for the same period in 2019.

In August, the group closed a private placement of unsecured convertible debentures to raise gross proceeds of $2,419,000.

In terms of outlook, the group said that while uncertainty lingers with the “COVID-19 pandemic, the company is operationally well-positioned to meet the needs of its current and future partners.”

Contact the author Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive

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