A global recruitment group headquartered in Newcastle has posted a 33% lift in sales following heavy investments in new employees.
Frank Recruitment Group (FRG), which specialises in providing technology experts in permanent and freelance roles, saw turnover lift from £94.9m to £126.5m in the year ended November 30 2016.
Operating profit fell from £14.1m to £5.7m, however, following a year of investment which saw staff numbers across its worldwide offices increase by 61%, from an average of 505 employees to 815.
That workforce figure is set to rise again by the end of the current financial year following the launch of a recruitment drive earlier this year to fill 150 new jobs at its Newcastle headquarters.
The recruitment drive came as the group moved staff from across Newcastle into St Nicholas Building, where it sealed one of the biggest office lettings of the year by taking up 19,000qsft of space over two floors in the grand building through an 11-year lease.
FRG, which was established in 2007 with the launch of the original Nigel Frank brand, has made a name for itself in the niche, enterprise software market, and now has offices on Tyneside and in London, Melbourne, New York, San Francisco and Singapore.
Operating profit was affected by a sharp rise in the firm’s wages bill, which soared from £25.1m to £40.6m on the back of the rise in employee numbers, as well as the remuneration packages for the directors, which rose from £609,000 to £3.6m.
In a report accompanying the accounts, directors said:
Through a stable of brands the business focuses on niche product markets exhibiting strong growth andsupply shortages in which it can become the recognised brand leader.
The model is to grow its own consultants and management by recruitment, training, motivating and retaining the best talent and giving them an oportunity to develop their careers in a professional and rewarding environment.
Having a few large hub offices that cover expansive geographic areas assists in creating one global process, with the same training, systems, database and management structure but most importantly one global culture.