Feeds

Stepstone needs more money

Anti-recruitment

  • alert
  • submit to reddit

Internet Security Threat Report 2014

In its broadest hint yet, Stepstone says it can "see a need for further capital before the company reaches profitability".

Looking at its cash burn (after a restructure), one can see why: the company only has EUR46.9m left in the bank - enough to cover maybe four months of losses at the current rate.

Stepstone's operating expenses in Q2 were E47.8m, against revenues of E17.1m. In Q1, the company announced plans to trim E20m a quarter by Q3 from operating expenses, which were then 48m a quarter. Accordingly headcount - mostly from back office rather than the sales floor - has been trimmed back from
1,258 in Q1 to 1,078 in Q2. Stepstone says it will cut back even further, reducing staff numbers to 850 (does this make it an anti-recruitment company?).

It will need to do rather more than this, if it is to avoid extending the begging bowl to its shareholders.
With the slowdown in recruitment across Europe, Stepstone will not find it easy to trade its way out of losses - it will simply not win enough market share quickly enough. And with operations in 15 countries its cost base is far greater than that of most rivals.

The online recruitment firm cites current recruitment market conditions for its need for a fresh capital injection. But equity market conditions will mean that any rights or new share issue will get away only at a deep discount.

Stepstone expresses confidence in the future - it
says it has the full backing of its three biggest shareholders and that it remains on course to turn cash positive in 2002.

The company turned cash positive in Germany in Q2, 2001 and reports that its Danish operations have been profitable - before interest - for the third quarter in a row. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.