MPS Group, Inc. (MPS)

MPS Group is a leading provider of business services, particularly in specialty staffing, consulting and business solutions. It has presence across 200 offices throughout the United States, Canada, United Kingdom and Europe, delivering its services to government entities and businesses in the disciplines of technology, finance and accounting, law, engineering, and healthcare. Professional Service and IT Service divisions generated 56% and 44% of revenues respectively for 2006.


As per a staffing industry report, the finance and accounting staffing industry is expected to grow from $10.7 billion in 2005 to $13.7 billion by 2007, with demand for professionals driven by changes in the regulatory environment, increases in corporate governance, and increases in the complexity of required accounting procedures. The demand for IT professionals in the US continues to soar as companies continue to invest in infrastructure and is likely to grow by $17.4 billion in 2005 to $20.1 billion by 2007.


The company’s strategy is to grow inorganically by acquisitions and thereby increase its geographical presence and increase its service offerings. This is evident from the fact that the company has acquired 16 new companies over the past three years, thereby adding $178 million in revenues. Very recently MPS acquired The Paladin Companies, provider of specialty staffing, consulting and business solutions focused exclusively on marketing, advertising and creative needs, places talent for temporary and direct-hire positions. This acquisition provides its clients, high value by adding diversity to its service offerings. With demand for professional services growing faster than IT services, this stock offers good opportunity for long-term investors.