Vedior is experiencing growth in both the professional/executive and traditional parts of its business. We are convinced of the merits of our strategy and have confidence in the strength of our market position. We will continue to seek improved operating efficiency while investing in new and profitable niche markets both organically and through acquisition. We will benefit from the continuing strong recovery in the Dutch market as well as growth in other parts of continental Europe, including Spain and Germany. The established US and Australian markets continue to be buoyant while newer markets such as India, Latin America, Japan, Eastern Europe and the Middle East are also expanding rapidly and will increasingly contribute to the Group’s results. In France, we expect the gradual recovery to continue supported by government initiatives to improve labour market flexibility. In the UK, economic forecasts indicate an improving environment. Our companies have been positioned to capitalise on market opportunities. Pricing pressure will remain a feature of some markets during 2006 driven by procurement initiatives in larger accounts and excess supply in certain sectors. However, this is partly cyclical in nature and improved business sentiment leading to increased demand should improve the situation in the higher skilled segments. Vedior will continue its policy of exiting low margin business. Consensus GDP forecasts for 2006 are at a higher level than for 2005 in most of Vedior’s major markets or, as is the case in the US, still at a relatively positive level. A healthier economic environment combined with continuing structural growth driven by demographic changes, deregulation and increasing skill shortages will enable Vedior to take advantage of its leading market position in professional/executive recruitment and its diverse global network. Given market trends, our firm priority in 2006 will be to build on the progress already made towards reaching the Group’s margin targets. As markets improve, Vedior will invest for future growth and establish a stronger platform for improved long-term profitability. Investment will be targeted primarily in the following areas:-
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Acquisition of fast-growing professional/executive recruitment companies in line-with our stated strategy focusing on North America, Germany, Japan and emerging markets in Asia and Latin America. |
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New start-up initiatives and development of existing brands worldwide including further expansion into the Middle East. |
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Continued roll-out of permanent placement activities in France and other markets. |
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Upgrade and expansion of infrastructure (technology, personnel and offices) particularly in continental Europe. |
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Enhancement of eBusiness functionality. |
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Improvement of managed service capability. | Amsterdam, 1 February 2006
Board of Management |