NES Group Limited is pleased to announce its results for the year ended 31st October 2007.
Financial highlights
| Turnover £217.1m (2006: £181.8m) |
up 19% |
| Gross profit £26.4m (2006: £21.7m) |
up 22% |
| Adjusted operating profit £9.7m (2006: £7.6m)* |
up 28% |
| Operating profit £7.9m (2006: £4.3m) |
up 84% |
| Profit before tax to £5.8m (2006: £2.3m) |
up 152% |
| Net assets £8.4m (2006:£6.2m) |
up 35% |
|
Conversion of group gross profit to operating profit of 37% |
|
* 2006 and 2007 adjusted operating profits exclude operating exceptional items and goodwill amortisation.
Operating highlights
- Strong organic growth across both the UK and Global technical business units
- Global technical revenues increasing from 30% to 33% of group revenues, with the Global business now producing 36.5% of group profits
- New offices opened in Indonesia and Australia
- Greater focus on permanent placements in both the UK and Global business units.
- Significant investment in new IT support systems and recruitment consultants, with capital expenditure of £734k and staff numbers growing from 249 to 272
- Increasing number of contract placements featuring candidates who move from project to project, and country to country, with NES
- IT operating profits down 5% on revenues down 14% due to a strategic decision to focus on higher margin business.
Commenting on the results, Neil Tregarthen, chief executive at NES said: “From operating profits of circa £4m only three years ago, this is another set of results that our staff should be proud of. Our strategy is clear and has, at its heart, the intention of being ever more global and specialist. We believe that this focus, together with our portfolio effect of geography and sectors, will position us and our new investors, Graphite Capital, well for continued profit growth and cash generation.”