InterQuest looks forward to 2011

IT staff recruiter InterQuest Group says there is much more visibility to its business than there was in the middle of 2011. AIM-quoted InterQuest continued to trade strongly in the second half of 2010 even though it was cautious at the interim stage. Financial services customers are spending more money on IT and that is boosting demand for InterQuest's staff, especially in areas where there is a shortage of skills. This improvement has come at just the right time because public sector demand has fallen. Revenues rose 15% to £112.2m, while gross profit was 18% ahead at £14.7m. Pre-tax profit was one-quarter higher at £2.2m, or £3.2m excluding amortisation. The total dividend was one-quarter higher at 2.5p a share. The recruitment process outsourcing business has won two large contracts and this should become increasingly important to the group. Smaller businesses are now also looking to outsource their staffing needs to specialists so the market is increasing. The IQ Equity start-up operations, where management has stakes in the businesses, lost money in 2010 but they should move into profit in 2011. House broker FinnCap is maintaining its 2011 profit forecast at £4.3m - based on a modest rise in revenues. InterQuest is looking to make acquisitions now that the staffing market is turning up. It is also considering opening an office in Asia.