Heavy investment fails to dim Encore profits
Encore Personnel, the Leicester-based recruitment firm, has seen profits fall after a year of heavy investment that has seen the firm expand rapidly.
Whilst revenues were up 9% to £58.4m for the year ending, operating profits were “subdued”, falling from £1.7m to £800,000.
The firm spent heavily last year to set up a subsidiary business, The Training Procurement Company, to provide a service to employers to access public funding for recruitment.
Encore also opened an office in Derby and set up an aviation division.
A statement in the firm’s annual accounts by Greg Latham, managing director, warned against the affects of Brexit on the industry, but said: “The investment in new support functions, the creation of the training procurement subsidiary and expansion of the branch network will ensure a stronger service to clients which will enable more contract wins and increased turnover.
“The start of 2017 suggests this is starting to pay off with four new managed service contracts and four more in the pipeline for Q2. Sales are up 14% on the same period last year.”