IT recruitment specialist posts revenue rise despite “tough business conditions”
Recruitment firm Bright Purple Resourcing has posted a drop in pre-tax profits despite revenues growing seven per cent.
The Edinburgh-based IT recruitment specialist said “tough business conditions” had impacted on margins which pushed pre-tax profits down 61 per cent from £1.37 million a year ago to £530,735.
Revenues for the year to March 31, 2012, rose from £36.7 million a year ago to £39.3 million.
However, cost of sales rose from £32.7 million a year ago to £35.3 million and administrative expenses rose from £1.46 million last year to £3.34 million.
The group said it paid a total of £159,845 setting up new subsidiaries in Singapore and Lithuania.
Cash inflow from operating activities rose to £4.46 million against a net outflow of £1.31 million last year.
The company said the biggest threat to its business in the year ahead is continued uncertainty in the current economic climate which may delay decisions on major IT project investments.