Change Recruitment Group has seen revenue jump by £1 million in its latest annual results, seeing the “modest” rise as an “encouraging sign of things to come” after a sizeable outlay to revamp its business.
The recruiter, which operates from Edinburgh and Glasgow, reported a 5.8 per cent year-on-year jump in turnover for 2015/16 to £18m, boosted by investment in core areas such as accountancy and finance, investment and risk, as well as IT and digital.
The rise in revenue is an encouraging sign of things to comeMark McFall
“These sectors, along with business services, will continue to be the group’s star performers over the coming months,” said Change, which took on its current branding in 2000, having started out in 1970 as Douglas Llambias Associates.
Revenue was also boosted by increased focus on short-term work, doubling the total of temps and contractors compared with the previous year.
“Margins remain tight, therefore the positive impact of this is not as high as in previous years,” the firm added.
It said that the impact of the “prolonged” downturn in oil and gas recruitment “continued to influence the financial performance of the business in 2015”, but this was mitigated by investing in new areas and boosting its domestic and global customer base.
Change said that for its previous financial year, revenues fell from £19.7m to £17m, weighed down by a drop in turnover in the oil and gas market of almost 70 per cent.
Regarding the latest figures, group managing director Mark McFall said: “Last year, we took a hit as a result of the market challenges, and a strategic overhaul of our business – investment in people, office space and infrastructure didn’t come cheap, but it was necessary to lay the groundwork for the next ten years.
“This year, the decks are clear, and the modest rise in revenue is an encouraging sign of things to come.”
He added: “Getting our house in order has been a priority. We are now leaner and ready to face the future with renewed vigour, with a focus on increasing our market share by winning new clients, investing further in the business and expanding our international reach.”
The firm added that a change to its financial reporting will result in an annual £651,500 accounting burden being cut from its results from 2017.