Shares in recruitment and labour hire company Humanis Group (ASX:HUM) fell nearly 7% in Monday's trading as the company forecast a wider loss for FY11.
The company said restructuring and capital management costs associated with the integration of the various Humanis businesses is believed to have pulled the company to a greater loss than the nearly $3.1 million it reported in FY10.
But Humanis is forecasting earnings growth - including a swing to profitability - in FY12 as a result of the restructuring.
Humanis also announced it had appointed Joseph Diez as the group's new CFO, following the resignation of Joe Pannuzzo.
Diez is a 20-year veteran of the recruitment industry, having held positions with companies including Ecco Personnel, Adecco, IPA Personnel and Employment Services Holdings.
Humais appointed a new CEO, Rabieh Krayem, in April.
Company chairman Craig Ransley said that since Humanis merged with ResCo in December last year, “the board have worked tirelessly to rejuvenate Humanis, culminating in a 99% change out of the senior executive team.”
He said the company aimed to be in a position to deliver its first return to shareholders at the end of FY12.
Humanis was created with the merger of TSS (Total Staffing Solutions) and Westaff, in a deal which closed in December 2009.
HUM shares fell 6.67% in Monday's trading to $0.280.