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Australia – ICT recruiter HiTech expects profit slump

31 May 2013

In a brief trading statement today, Australian ICT staffing company HiTech Personnel (HIT:ASX) said it expects net profit after tax (NPAT) for the 2013 financial year to range between AUD 100,000 and AUD 200,000, depending on the May and June results. This is well below the NPAT of AUD 556,699 last year.

Unaudited revenue in the period was about 11% lower compared to the previous corresponding year. The company will update the market following the audited results announcement in due course.

The firm saw a -7% plunge in revenues during the six months to December 2012. Sales revenue fell to AUD 4.2 million due to both a decline in the temporary and permanent recruitment business.

According to a recent benchmarking report by the Australian association for ICT contract and recruitment companies (ITCRA).  ICT recruiters have reported tougher market conditions with many seeing a fall in profits.

Julie Mills from ITCRA said “it is important to remember that ICT is essential to the infrastructure of business and the economy. Even in a weakening labour market, skilled ICT professionals are highly valued by employers, and if they are no longer needed in an employer’s business model, will soon be engaged elsewhere, including overseas.”

HiTech provides recruitment services for permanent and contract staff to the information and communication technology sector. It supplies staff from its database of over 190,000 ICT professionals and has a client base of 445 corporate clients in the public and private sector.

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