Recruitment Profits in 2003

The recruitment industry was the best performing sector in 2003 according to this years annual business survey by Cattles Invoice Finance, in which an incredible 60% of recruitment companies reported increased profits over the previous year, compared with the haulage sector where just 24% of companies reported an improved business performance.

The study, which involved in-depth interviews with 300 business owners from a number of industry sectors in the UK, found that Government legislation was deemed to be restricting expansion for recruitment companies and a lack of skilled staff was the other major barrier to business growth.

The main concern on a day to day basis for recruitment companies in 2003 was winning new customers, which was seen as more important than retaining existing clients. Last years main concern, working capital, was way down the list in seventh position for the sectors cash rich companies, far less of a worry than staff performance and staff recruitment.

Commenting on this finding, group managing director of Cattles Invoice Finance, Doug Crawford, said: As confidence returns to the recruitment marketplace, companies will start to worry less about their cash flow. However, this is a time when they should keep an eye on their working capital as new business opportunities could lead to overtrading, particularly for those companies supplying temporary staff who get paid weekly with clients paying monthly.


This performance has led to recruitment chiefs being very bullish about the year ahead, with 79% of business owners expressing real optimism for 2004, compared with 54% in the much less confident textile industry.

However, Tony Blair need not bother looking to recruitment for his next job just 2% of recruitment companies questioned would choose him in the role of non-executive chairman for their company Richard Branson topped the poll followed by Sir John Harvey-Jones.

Commenting on the overall findings, Crawford continued: Last year was tough for a number of business sectors, but the recruitment industry has managed to thrive by increasing client numbers and controlling costs. However, the sector will need to invest time and resources into its own staff recruitment and development if it is to continue to enjoy this healthy increase in profits.