One of the North East’s most hotly-tipped companies saw its first drop in revenues during the pandemic, but believes the coronavirus outbreak will ultimately present opportunities for growth.
Newcastle tech recruitment company Frank Recruitment Group has posted accounts for the year ending November 30 2020 which show that revenue fell from $378.8m (£237.7m) to $345.1m (£249.3m). Over the same period, the company reported an operating loss of $3.8m (£2.8m), having posted an $18.1m (£13.1m) profit a year earlier.
The company – also known as Tenth Revolution Group (TRG) – said the loss was attributable directly to the pandemic, which led to a widespread stalling on recruitment by companies around the world.
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But it said activity had picked up at the end of the year, and the pandemic would ultimately provide a boost to the firm by driving more firms to look for talent in the technology sector in which it specialises.
The accounts have been released just a few days after Frank Recruitment said it would be hiring 1,500 people around the world in the next year to take advantage of an upturn in demand. The company is about to take on its 2,000th employee.
In the accounts, chief financial officer Lewis Miller said: “Covid-19 has had a huge impact on the global economy and in turn this has reduced the hiring activity of business worldwide. For TRG, this meant, for the first time in trading history, a reduction in revenues over the prior year.
“The year over year downturn experienced is entirely down to the permanent market sector due to the lack of full time roles being made available during this period. The contract business however held up well during the crisis and revenues were flat over the prior year.
“Whilst the downturn was significant, it was temporary and trading began to pick up again during Q4.
“The new financial year 2021 has started off well and there continues to be a very strong recovery in demand. We have seen a return to pre-Covid levels of profitability by the end of H1 2021. The long-term outlook remains very strong, with the expectation that the pandemic results in the acceleration of adoption of cloud technologies, which in turn will be very positive for our business.”
Frank Recruitment was started in Newcastle city centre in 2006 with just three employees. In 2016 it was backed by equity group TPG Growth, which has also backed Airbnb, Uber and Spotify.
The firm is set to have 22 offices worldwide with the opening of a site in Toronto, Canada, though its headquarters are still in Newcastle city centre.