Candle announces record 2005 results - still majority ICT recruiter

Stan Beer
Wednesday, 24 August 2005 06:00

IT Industry - Listed Tech

Candle Australia Limited (ASX:CND), which now describes itself as a "white collar" recruiter reported strong results for the year ended June 2005.

The results include 57% growth in net profit to $7.15 million and a 29% increase in revenues to $231.9 million.

"These record financial achievements demonstrate Candle Australia's focus on the business fundamentals across the group. We are very pleased with a 57% lift in profits which comes after a solid 29% profit growth last year. All of the company's business lines performed well and on a combined basis showed solid margin growth," said managing director Robert Collins.

While Candle has long been considered a specialist ICT recruiter, the company has in the past two years made major moves to diversify into other high value areas such as executive search and finance and accounting. However, 60% of Candle's business still comes from its technology recruitment business.

"Candle remains a leader in the ICT recruitment market," Collins said. "We can no longer be considered solely as an ICT recruitment business. While we will remain focused and strong in ICT recruitment, we now have substantial income flows from areas outside of this sector. At the gross margin level, around 40% of our income comes from our businesses outside of ICT. While remaining strong in the ICT market, which is showing marked signs of improvement, we have reduced risk by creating a better business mix," Collins added.