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View All NewsUK – Prime People full year revenue down 5.3%, profits hit by admin costs
UK-based recruitment firm Prime People reported revenue for the year ended 31 March 2018 of £22.92 million, a decline of 5.3% compared to £24.21 million last year.
| (£ millions) | FY 2018 | FY 2017 | Change |
| Revenue | 22.92 | 24.21 | -5.3% |
| Net Fee Income | 13.15 | 13.10 | 0.3% |
| Operating Profit | 1.19 | 1.90 | -37.3% |
Revenue fell by 5.3% in the year primarily due to a lower level of contract business as contractors realigned to PAYE status under IR35 legislation, according to Prime People.
After taking account of increased administration costs including acquisition costs and higher staff costs, the business reported a reduced operating profit of £1.19 million, down from £1.90 million last year.
In October 2017, Prime People announced that its Hong Kong subsidiary MacDonald and Company Limited acquired 60% of the equity of Command Recruitment Group Limited a recruitment group focussed in the Architecture, Design, construction and engineering sectors. Prime People said CMD is trading in line with the group’s expectations.
“Overall the year ended 31 March 2018 was a good one for us in the UK where our permanent business performed well, and UK contract business held up in the face of IR35 realignments,” Robert Macdonald Executive Chairman, Prime People, said. “However, in contrast, our international business fell below the performance levels that we were hoping for making a lower contribution than in the previous year.”
Revenue by region was broken down as follows.
| (£ millions) | FY 2018 | FY 2017 | Change |
| UK | 17.52 | 18.56 | -5.6% |
| Asia | 5.06 | 5.08 | -0.4% |
| Rest of World | 1.19 | 1.90 | -41.3% |
“We have continued to advance our overseas strategy by extending our reach in Asia and expect an increase in contribution from this area in 2019.,” MacDonald said. “While the Board is alert to macro-economic uncertainties, such as the effects of the UK’s departure from the EU and possible turbulence in our overseas markets, the group will continue to react swiftly to market conditions.”
Prime People specialises in recruitment for professional and technical staff working in the Real Estate & Built Environment, Energy & Environmental and Insight & Analytics sectors.
As of last trade Prime People PLC (PRP:LSE) traded at £77.00, down 8.88% on the day and 4.05% above its 52-week low of £74.00, set on 4 May 2018. Based on its current share price the company has a market value of £9.96 million.