💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

UPDATE 1-Randstad sets up balance sheet safety net

Published 08/18/2009, 02:54 AM
Updated 08/18/2009, 03:03 AM
RAND
-

* Staffing firm securitises 125 million eur of receivables

* Standby facility is "insurance" buffer

* Can be activated at any time

(Adds detail, company comment, background)

AMSTERDAM, Aug 18 (Reuters) - Dutch staffing company Randstad NV has set up a 125 million euro safety net for its balance sheet using money it is owed by customers.

The buffer is in the form of a standby facility for the securitisation of receivable accounts, the company said on Tuesday.

The facility, launched with Fortis Commercial Finance, can be activated at any time and will run for at least 18 months, Randstad said in a statement.

"Randstad considers the facility as an insurance policy to be able to strengthen the balance sheet if needed," said the world's second-largest recruitment company by sales.

Randstad reported last week net debt at the end of June of 1.52 billion euros and said it expects to reduce this by 200 million euros in the third quarter.

Randstad and other recruitment companies have been hit by weak demand for professional staffing services in a sluggish global economy. Its sales fell by a third in the second quarter from a year earlier to 3 billion euros.

(Reporting by Reed Stevenson; editing by John Stonestreet)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.