Agencies profit from demand for temps
10:13, 06 May 2011
by business editor Trevor Sturgess
Soaring demand for temporary workers has helped a recruitment and business services group notch up record sales.
HR GO, an Ashford-based company with operations across the UK, boosted group turnover by 26.4 per cent to £92.6m (2009 - £73.25m).
Pre-tax profits rose to £1.58m (£1.32m). The board approved a 0.75p per share dividend.
The improved performance was due to increased demand for temporary and permanent labour, and tight cost control.
The supply of temps earned the company most of its revenue, generating £86.2 million, 25 per cent up on the previous year.
It placed a record 5,600 workers in December alone. Permanent recruitment revenue went up by 22 per cent to £3.2m.
The group recently opened six new branches and plans to open more across the UK over the coming months.
It has also invested heavily in IT infrastructure and improved its back office functions.
"I am delighted that the results are so good," said managing director Chris Harvey.
"It is thanks to our 53-year heritage and the efforts of my talented colleagues who have worked so hard with their clients and candidates.
"I am confident we have laid solid foundations to expand even further and look forward to continuing growth in 2011."
The company has grown by establishing partnerships with recruitment firms across the UK and the company is continuing to look for potential acquisitions
Non-executive chairman Jack Parkinson, whose mother Betty founded the business in Dartford more than 50 years ago, said: "Whilst we consider the economic recovery to be fragile, we remain optimistic about the future and expect that the initiatives we have undertaken in the past two years will enable us to further grow both our turnover and our bottom line profit."