PageGroup reported gross profits of £205.6 million in the fourth quarter of 2019, down 2.6% (down 0.4% in constant currency) from £211.0 million in the fourth quarter of 2018. Gross profit in the Americas totaled £32.6 million, up 2.2% (5.0% in constant currency) from £31.9 million on a year-to-year basis—driven by a 10.0% gain in the U.S. The Americas continued to be the company’s fastest-growing region. Gross profit totaled £151.3 million for permanent placement, down 4.9% (down 3.0% in constant currency) from £159.1 million in the year-ago quarter, and £54.3 million for temporary placement, up 4.6% (7.5% in constant currency) from £51.9 million.

For all of fiscal year 2019, PageGroup reported gross profits of £856.0 million, up 5.0% (5.0% in constant currency) from £814.9 million in fiscal year 2018. Gross profit in the Americas totaled £139.1 million, up 14.9% (14.0% in constant currency) from £121.0 million on a year-to-year basis. Gross profit totaled £644.5 million for permanent placement, up 3.7% (3.4% in constant currency) from £621.7 million, and £211.5 million for temporary placement, up 9.5% (10.2% in constant currency) from £193.2 million.

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TSR Inc. reported revenue of $15.2 million for the second quarter ended on Nov. 30, 2019, down 7.1% from $16.4 million in the same quarter in 2018. The company reported net income of $62,000, compared with a net loss of $97,000 in the year-ago quarter.

Christopher Hughes, chief executive officer, said, “The revenue decrease was due to a decrease in average billing rates for information technology consultants on billing with customers resulting from a shift in business mix with fewer placements for high end skills across the customer base.” Selling, general, and administrative expenses decreased by $496,000 due to a decrease in professional and advisory fees of $393,000 in connection with the settlement of various lawsuits and the contested proxy solicitation relating to the company’s 2018 annual meeting, which had been rescheduled and was held on Oct. 22, 2019.

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Kellermeyer Bergensons Services LLC, a provider of technology-enabled, integrated facility management services, has acquired Atlanta-based Hospitality Staffing Solutions LLC, a provider of outsourced housekeeping and related services to the hospitality sector. HSS was previously owned by Littlejohn Capital in partnership with Caymus Equity Partners. KBS was acquired by an affiliate of Cerberus Capital Management L.P. in November 2019. This transaction represents its first strategic acquisition completed in partnership with Cerberus.

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Small business optimism in December was historically strong, with a reading of 102.7, down two points from November. Seven of 10 components declined, two improved, and one was unchanged. More small business owners reported better business conditions and expect higher nominal sales in the next three months. Although frequency of plans to raise compensation dropped two points, it remains one of the highest readings in the survey’s 46-year history. Small businesses continued to hire and create new jobs, with actual job creation matching November’s reading—the highest since May.

Although the NFIB Uncertainty Index rose eight points in November to 80, owners expecting better business conditions increased three points to a net 16%. A seasonally adjusted net 19% plan to create new jobs, down two points. Finding qualified workers remains the top issue for small business owners, with 23% reporting this as their No. 1 problem. A net 29%, seasonally adjusted, reported raising compensation (down one point) and a net 24% plan to do so in the coming months, down two points.

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CTG, a provider of information technology solutions and services in North America and Western Europe, has received a new unsolicited proposal from Assurance Global Services LLC to acquire the company for $7 per share in cash. Consistent with its fiduciary duties, CTG’s board of directors, in consultation with its advisors, will carefully review and evaluate the new proposal in the context of CTG’s strategic plan to determine the course of action that it believes is in the best interests of the company and its stakeholders. Members of CTG’s board and senior management team have held a number of discussions with AGS over the past several months to better understand its views.

CTG’s board and management team have continued to successfully execute a strategic plan to bolster profitable growth by transforming CTG to a more solutions-centric, higher-margin business.

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The core consumer price index advanced less than anticipated in December, restrained in part by a deceleration in shelter costs and underscoring the U.S. Federal Reserve’s perspective that price pressures are muted. The core CPI, which excludes food and energy costs, ticked up 0.1% in December from November, the smallest increase in three months, according to the U.S. Department of Labor. Economists surveyed by Bloomberg had forecast a 0.2% increase. Compared with a year ago, the core CPI climbed 2.3%, in line with forecasts. The broader CPI rose 0.2% from November and 2.3% from December 2018, both below expectations.

DOL’s CPI tends to run higher than the U.S. Department of Commerce’s personal consumption expenditures price index, which the Fed officially targets. The core PCE index softened in November, climbing 1.6% from a year earlier. Core PCE has held below the 2% objective for most of the last seven years. Although inflation remains relatively contained, the 2.3% full-year increase in the core CPI gauge was the fastest for a calendar year since the 2.4% rise seen in 2007.

A separate DOL report released today showed average hourly earnings, adjusted for price changes, increased 0.6% in December from a year earlier after 1.1% the previous month. The monthly jobs report last week had already revealed an unexpected deceleration in nominal wages.

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An elite group of companies this year received national recognition for their innovative and effective work-based learning programs designed specifically for temporary and contract employees. In the latest issue of Staffing Success magazine, get a look at these outstanding initiatives—all recipients of 2019 ASA Elevate Awards.

Access the current issue and back issues of Staffing Success, and other ASA digital publications, at americanstaffing.net/digital.

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