Singapore – HR services provider HRnetGroup posted a net profit before tax of S$20.1 million for the six months ended 30 Jun 2026, a 9.4 per cent year-on-year (YoY) increase, supported by an improved gross‐to‐operating profit conversion rate and lower operating expenses.

Revenue slipped 1.1 per cent YoY to S$292.2 million, while gross profit inched up 1.5 per cent to S$62.1 million as the group lifted its gross‐profit margin to 21.3 per cent from 20.7 per cent a year earlier. Operating profit represented 32.4 per cent of gross profit, up from 30.0 per cent in 1H2025.

Earnings per share were not disclosed. The board declared an interim dividend of 2.2 Singapore cents a share, unchanged from the prior-year period. On a trailing-12-month basis, total dividends amounted to 4.4 cents, translating into a 5.9 per cent yield. The interim payout represents 103 per cent of first-half net profit after tax.

Performance was underpinned by the group’s “twin engines” of Professional Recruitment (PR) and Flexible Staffing (FS). PR executed 2,311 placements in the half while FS managed an average of about 17,253 contractors each month, providing a largely recurring revenue stream. Geographically, Singapore contributed 61 per cent of revenue, North Asia 32 per cent and the rest of Asia 7 per cent. Sector exposure remained diversified, with information technology & technology accounting for 22 per cent of turnover, followed by financial & insurance at 20 per cent and healthcare & life sciences at 15 per cent.

Cost discipline supported margins: selling, general and administrative expenses fell 1.9 per cent to S$42.0 million, helped by a 40.5 per cent drop in other expenses, mainly lower foreign-exchange losses. Other income declined to S$5.4 million from S$15.8 million, reflecting reduced government subsidies and smaller investment gains, but these were offset by the stronger underlying operating performance.

HRnetGroup ended June with a net cash position of about S$330 million, comprising cash, credit-linked notes, Singapore Treasury Bills and gold holdings, and no borrowings. The company reiterated its disciplined capital-return framework, signalling continued dividends and opportunistic share buy-backs while preserving funds for bolt-on mergers and acquisitions.

Looking ahead, management cited ongoing cyclical pressure in the global recruitment market, where several listed peers have reported softer growth and restructuring. HRnetGroup plans to leverage its balanced PR and FS portfolio to pivot towards pockets of demand, while accelerating expansion in recurring HR services such as employer-of-record, payroll outsourcing and the Octomate human-capital platform. The group also highlighted leadership succession progress, with 43 business leader co-owners and 20 high-potential executives in its pipeline, supporting expansion across 19 Asian cities.