SINGAPORE (May 9): Recruitment and staffing firm HRnetGroup reported 1Q18 earnings of $16.3 million, 46% higher than the 1Q17 earnings of $11.2 million.

This was a result of the implementation of 88GLOW Plan in June 2017 which saw the acquisition of certain co-owners’ stakes.

Revenue rose 12.2% or $11.6 million to $107 million led by flexible staffing and professional recruitment.

Revenue and gross profit from flexible staffing grew 12.8% and 15.1% respectively, due to continued business momentum.

Revenue and gross profit from professional recruitment grew by 9.9% and 9.8% respectively from stellar performance in North Asia, particularly in Hong Kong and Mainland China.

Other income rose by $2.0 million mainly due to $0.8 million gain on revaluation of marketable securities, $0.6 million increase in interest income and $0.5 million increase in Singapore government subsidies received.

As at end March, the group’s assets increased by $15.7 million to $388.9 million.

HRnetGroup says all its 10 cities of operations are profitable. RecruitFirst Hong Kong, which was started business in January 2017, has turned profitable.

It expects PT HRnet Rimbun in Jakarta to start operations as soon as the licence applications are approved.

The group says it continues to look for M&A opportunities for synergistic business expansion and potential opportunistic investments for value accretion.

Shares in HRnetGroup closed 2.6% higher at 78 cents on Wednesday.