BGSF Inc. (NYSE: BGSF) reported second-quarter revenue rose 9.1% year over year to $80.8 million. The Plano, Texas-based company reported growth in both its professional staffing and real estate divisions.
Gross margin also improved.
BGSF provides workforce solutions to a variety of industries through its various divisions in IT, cyber, finance and accounting, and real estate.
Revenue for the professional segment included a sales lift from recent acquisitions: Horn Solutions for the full quarter and Arroyo Consulting for a portion of the quarter. In addition, BGSF experienced strong momentum in managed services that was somewhat pressured by softness on the contract side, according to Beth Garvey, chair, president and CEO.
“Our strategic acquisitions provided greater cross-selling and go-to-market opportunities this quarter as well as valuable nearshore and offshore IT demand,” Garvey said in a press release.
“Although we remain cautiously optimistic given market challenges, we are enthusiastic about our strategic growth plans to deliver professional and IT consulting, managed solutions and unique capabilities with high value, innovative solutions to solve our client’s needs,” Garvey said. “We continue to maintain a relentless focus on execution to grow revenues, improve profitability and generate cash flow.”
Results included an on-cash charge of $22.5 million related to the impairment of trade name intangible assets from the rebranding to BGSF for all entities.
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Share price
Shares in BGSF were up 5.87% to $9.92 as of 11:11 a.m. Eastern time today; they were 12.09% above their 52-week low, according to FT.com.