Strong growth in recruitment in the Republic and Britain has contributed to a sharp increase in profits at Marlborough International. In the 12 months to the end of February 1999, the Republic's largest recruitment group reported a 50 per cent increase in pre-tax profits from £3.07 million (€3.9 million) to £4.6 million (€5.84 million).
The group, which listed on the Dublin and London stock markets last year, has also announced the purchase of the Belfast-based secretarial services company, Sylvia Gray, for £150,000 sterling (£178,570). Marlborough will pay a further £25,000 sterling in cash, once it is satisfied with the accounts of the business for the period to the end of April, 1999, according to managing director Mr David McKenna.
The acquisition will strengthen the group's presence in the Northern Ireland economy and will be managed by Marlborough's senior management staff.
Marlborough's gross fee income increased from £16.9 million to £38.8 million in the 12month period and includes an 11-month contribution from the Britishbased Walker Hamill, acquired last year.
The bulk of its fees was earned in the Republic, rising from £16.9 million to £21.7 million on the back of continuing strong demand for recruitment services. Its Australia-based operations also made a contribution, bringing in total fees of £786,000.
The Walker Hamill acquisition raised operating profits from £2.9 million to £6 million. After tax the group's profits increased from £1.95 million to £3.2 million and its basic earnings per share rose from 8.7p to 10.27p.
The group's margins fell during the 12-month period, 37 per cent to 35 per cent. The decline is due to absorbing costs involved in the conversion to a publicly-quoted company, Mr McKenna stated. In 1999 he expects that the current level of margins will be maintained across the group.
"The Irish economy and market conditions remain buoyant and we are confident that our Irish operations will continue to make solid progress," he said. It has now assembled a management team which is actively looking for suitable acquisitions in the Republic, Britain, Europe and the US to expand its activities, according to Mr McKenna. It has not yet found any suitable acquisition targets and is concentrating on organic growth of its existing businesses.
