Adzuna falls into the red amid hiring slump
Jobs website Adzuna has fallen into the red as its sales were slashed by a third after battling a “turbulent” economy and a fall in hiring activity.
The London-headquartered business has reported a pre-tax loss of £276,797 for the 12 months to 30 June, 2024, after it achieved a pre-tax profit of £1.5m in the prior year.
In new accounts filed with Companies House, Adzuna said its turnover fell from £30.7m to £20.5m because of a “turbulent macro-economic environment and reduced recruitment advertising activity”.
The company added that its latest turnover figure was an “excellent result in a challenging environment”.
Adzuna was founded in 2011 by Doug Monro and Andrew Hunter.
‘Competition remains as intense as ever’
A statement signed off by the board said: “The beginning of 2023 saw reduced hiring activity as the cost-of-living crisis, rising interest rates and [the] Russia-Ukraine war impacted economic sentiment, compounded by reduced competition for candidates amongst advertisers, and these effects continued through the rest of our 2024 financial year.
“We were profitable, however, at EBITDA [earnings before interest, taxes, depreciation and amortisation] level for the financial year, thanks to strong cost control and upward management of our gross margins, and continue to hold a strong cash position and look for acquisition opportunities as we look to capitalise on market recovery.”
Adzuna added: “Competition remains as intense as ever in our market with a number of small and large players across the world.
“Despite the macro challenges faced in 2024, we have continued to invest in people, in our technology, as well as in research and development on a world class product that serves jobseekers and employers alike.”
How does Adzuna compare to its rivals?
Last month, Morning Wire reported that recruitment giant Hays had posted another drop in profit as it struggles amid a long-running in the sector.
Group net fees, a key performance indicator in the recruitment sector, dropped 13 per cent in the six months ending 31 December.
Operating profit fell 56 per cent to £25.5m, while profit before tax fell 66 per cent to £9.1m.