LONDON (Alliance News) - Triad Group PLC Friday posted a decline in pretax profit in the year to end-March, as a rise in revenue was offset by slightly higher costs.
Triad provides IT recruitment, and software consultancy and delivery.
Triad posted a pretax profit of GBP11,000, down from GBP28,000, as revenue rose to GBP19.7 million from GBP18.9 million, although this was offset by slightly higher cost of sales and administrative expenses.
In the company's Resourcing business, revenue rose to GBP17.0 million from GBP16.0 million.
Triad discontinued its dedicated permanent staffing team during the year, instead shifting its consultants to focusing on both non-permanent and permanent recruitment activities. Triad continued to acquire new clients during the year, including orders from the UK government's Ministry of Justice and Home Office departments.
Triad said it has been included in the government's inaugural Digital Services Framework, which is designed to give the public sector access to suppliers for the design of public services. The company said it expects the framework to build momentum during the new year.
Growth in Resourcing offset a slight decline in the company's Consulting and Solutions business, where revenue declined to GBP2.7 million from GBP2.9 million, as a strong second half partly offset a "disappointing" first quarter.
Triad has focused on improving the utilisation levels of its consultants, and raising the average fees per consultant. As a result of this, the company has seen higher levels of larger, longer deals, and fewer smaller, shorter projects.
In this business, the company successfully won a contract with the Ministry of Justice for a 13-month consultant deal for Agile software development.
Outside of the government, it won business with a large visitor attraction group, a driving school and an automotive consultancy.
Triad said it is looking to build on the momentum of the second half into the first quarter of the new year, focusing on increasing the number of fee earners in its consultancy business, and strengthening the client base in its Resourcing business.
"Whilst the signs of economic recovery are encouraging, the board remains cautiously optimistic," Triad said in a statement.
Shares in Triad were trading up 5.4% at 10.80 pence Friday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Triad (TRD)