Strong recruitment demand drives up revenue at Network Group
RECRUITMENT Network Group Holdings has announced a 9.5% increase in interim revenue to £27.5m based on strong demand from the IT, health, social care and construction sectors.
The Warwickshire group said pre-tax profit had risen 86.2% in the first six months of the year to £1.2m (2010: £0.5m), while earnings per share rose to 0.9p (2010: 0.5p).
In an interims results statement the firm said: “The group has experienced increased revenue and profitability in the first six months of the year significantly exceeding performance for the corresponding period last year.
“The recruitment division, particularly those businesses operating in the IT, health and social care, and construction sectors, has shown good revenue growth and margins have been maintained.”
The period also saw the group significant enhance its portfolio with a series of strategic acquisitions.
In April, it acquired Sheridan Maine Recruitment Ltd, specialising in accountancy and finance recruitment. Following the half year end date the group’s shareholding has been diluted to 75.1% following the issue of equity to the management. Also in April the group acquired Options Network Ltd, specialising in construction and engineering recruitment. The group is currently diluting its shareholding to 25.1% through an issue of equity to the management.
In May the group acquired 75.1% of Network Professional Recruitment Ltd, specialising in recruitment in the financial services and insurance sectors. Also in May the group acquired a majority stake in Procurement People Recruitment Ltd, a recruitment company specialising in procurement professionals.
The group also increased its shareholding in existing subsidiary Network Catering Ltd during the period.
Following the half year end date in August the group acquired 51% of SSR Contract & Technical Ltd and 51% of SSR General & Management Ltd, recruitment companies specialising in the security and allied sectors.
Tim Watts, group chief executive, said the group remains focussed on growth through acquisition and organic means.
“The group made four acquisitions during the period and has made a further two since. The group’s principles of sharing ownership with management and allowing management to convert the shareholdings in their businesses into NGH shares remain core and it is the board’s strong belief that these principles will continue to attract quality people to the group.
“Finally, I would like to thank my business partners and all of our employees for their continuing effort during the period and for the remainder of the financial year.”
