Recruitment group Marlborough International has reported pre-tax profits of £3.07 million in its first year as a publicly quoted company, nearly five times the previous year's profits of £647,000.
The group, which floated on the Developing Companies Market (DCM) last October and has since acquired a full listing on the London and Irish Stock Exchanges, said turnover - or gross fee income - rose by 57 per cent to £16.95 million. Net fee income - after salaries for contracting staff are deducted - posted a 73 per cent increase to £8.04 million in the year ended February 28th, 1998.
"This year's record performance was achieved through the strong performance of the company in Ireland," said the managing director, Mr David McKenna.
He said there was strong growth in all of the group's divisions. Marlborough Group (Ireland) recorded gross fee income of £14.4 million, a 66 per cent increase on the year earlier. It now has operations in Dublin, Cork, Galway, Limerick, Waterford and Athlone. It has just signed a lease on a Sligo office and plans to open a new regional office in Dundalk.
Meanwhile, Professional Placement Group, which recruits for middle and senior technical and managerial positions, reported an 18 per cent rise in gross fee income of £2.6 million.
Overall, net fee income as a percentage of gross fee income - a measure of the margin the company earns on staff placement - rose to 47.46 per cent from 42.9 per cent, due mainly to the high quality margin mix achieved in the contracting business and an increased proportion of permanent placement fees compared to contract fees.
Marlborough expects contracting and out-sourcing to increase and aims to focus on high quality margin business. Earnings per share rose to 8.77p from 2.10p. The board of directors do not intend to declare a dividend for the period. However, they will review dividend policy after the publication of results for the year ended February 28th, 1999.
The company said it should continue to benefit from the strong Irish economy, while the recent acquisition of British recruitment firm, Walker Hamill, has given it a foothold in the British and Australian markets. In addition to growing its existing businesses, Marlborough plans to expand by acquisition. The company is targeting firms with strong management, operating in niche markets with strong growth potential and that are capable of integrating with the existing management culture.
Mr McKenna said Marlborough was looking for acquisitions in mainland Europe, although it was not interested in countries with restrictive labour legislation such as France and Germany.
"We see eastern Europe as potentially very large in years to come," he said.
In Australia, Walker Hamill's Sydney office has expanded from two to six employees. Originally set up to recruit accountants to work in Britain, it is now placing people in the Australian market.
