10th Mar 2015 09:09
LONDON (Alliance News) - InterQuest Group PLC saw its shares hit a near two-month higher early Tuesday, after its 2014 pretax profit more than doubled on the back of its acquisition of ECOM and as the recruiter focused on filling difficult specialist roles that command higher margins.
Its pretax profit rose to GBP2.9 million in 2014, from GBP1.4 million in 2013, as revenue jumped to GBP150.6 million, from GBP114.9 million, and its net operating margin rose to 21.1% from 14.4%.
It said ECOM, which it bought in November 2013, performed ahead of its expectations.
"ECOM, the UK's leading digital technology recruitment company, which we acquired in November 2013, has made an outstanding contribution to InterQuest and our programme of cross-selling digital skills to the group's existing customer base has enhanced its contribution," InterQuest Chief Executive Mark Braund said.
InterQuest's permanent recruitment fees rose to GBP7.3 million, from GBP5.4 million, while contract recruitment fees were up by a third at GBP16.0 million, from GBP12.0 million in 2013.
It added that the average margin derived from contract recruitment activities, excluding payroll services, increased to 12.6% in 2014 from 12.5% in 2013 and 11.5% in 2012. The percentage of contract net fee income derived from what its terms "professional" roles - those with a gross margin greater than 12% - increased to 64% in 2014, from 59% in 2013.
Net cash generated from operating activities rose to GBP5.4 million, from GBP1.3 million in 2013, while its net debt stood at GBP8.3 million at the end of 2014, from GBP9.0 million a year earlier.
InterQuest shares were up 8.7% at 100.00 pence Tuesday morning, one of the best-performing stocks in the AIM All-Share index.
By Steve McGrath; [email protected]; @stevemcgrath1
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