Profits have fallen sharply at Nottingham-based 360 Recruitment despite turnover climbing above \u00a320m.<\/p>\n
The recruitment company reported turnover of \u00a320.5m for the year to January 31, 2026, up 16% from \u00a317.7m a year earlier.<\/p>\n
But pre-tax profit fell to \u00a3643,366 from \u00a3752,420, while profit after tax dropped to \u00a3455,737 from \u00a3529,624.<\/p>\n
The company said growth had been hit by a slowdown in the construction sector and pressure on margins, despite stronger performances elsewhere in the business.<\/p>\n
Its strategic report said revenue increased to \u00a320.5m, reflecting a “stable overall performance”, with growth in the FMCG market helping offset difficulties in construction.<\/p>\n
Gross profit rose to \u00a33.3m from \u00a33.2m, but gross profit margin fell from 18.2% to 16.2%.<\/p>\n
Directors said: \u201cThe addition of the London office is very much in its infancy, however, is showing encouraging signs within its first six months.<\/p>\n
\u201cWe expect to see strong growth in permanent placements from this office as we develop.\u201d<\/p>\n
The company said its FMCG operation remained a particularly strong part of the business and had helped support performance during the year.<\/p>\n
However, directors said increased competition and challenging conditions in construction had contributed to lower margins.<\/p>\n
The strategic report said: \u201cThe construction market remained difficult, with capital red reversals increasing from 6.25% in 2025 to 6.37% in 2026, driven by the continuing changes in sales mix between blue and white collar and significant increased contribution from both the construction and FMCG divisions.\u201d<\/p>\n
Administrative expenses remained broadly flat at \u00a32.6m, although the company said inflationary pressures continued to affect the cost base.<\/p>\n
It added that an increase in National Insurance contributions from April 2025 had resulted in an additional cost of around \u00a376,000 during the year.<\/p>\n
Signing off the annual results, directors said the business had taken steps to control costs, including reducing overheads and consolidating teams.<\/p>\n
They added: \u201cThe business is well positioned for sustainable long-term growth, underpinned by a strong commitment to reinvesting in its future development.<\/p>\n
\u201cWith a robust operational platform firmly established, it is well placed to expand into additional regions, creating new opportunities whilst maintaining operational strength and long-term resilience.\u201d<\/p>\n
Average employee numbers fell from 49 to 24 during the year, although total staff costs increased from \u00a32.90m to \u00a33.43m.<\/p>\n
The company paid dividends of \u00a3201,778 during the year, down from \u00a3298,215 in 2025.<\/p>\n
Cash at the bank fell from \u00a31.43m to \u00a31.30m, while net assets increased from \u00a32.62m to \u00a33.07m.<\/p>\n
360 Recruitment said it expected to continue investing in its operations during 2026 and 2027.<\/p>\n","protected":false},"excerpt":{"rendered":"
Company blames construction slowdown and rising costs as margins came under pressure<\/p>\n","protected":false},"author":25,"featured_media":2116846,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[127684],"coauthors":[95],"class_list":["post-2116845","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-recruitment","tag-featured-story","tag-nottinghamshire"],"yoast_head":"\n