Profits dip following investment

Brightwork sales up after hiring spree

derek-maySales at Brightwork, the Glasgow and Edinburgh based recruitment business, rose last year although profits dipped after the company invested in hiring staff.

Pre-tax profit fell from £860,000 in 2014 to £767,000 last year on a rise in sales from £32.6m to £34.9m.

The company invested £500,000 investment programme over the year, including the hiring of 17 consultants. 

Derek May (pictured), who was promoted from finance director to chief executive, said: “We are committed to growing our market share in a highly competitive sector and our substantial investment in expanding consultant numbers, IT, marketing and training and development will generate future fee growth.

“We are well-placed also to grow by acquisition and are constantly surveying the market for potential opportunities which complement our existing operations,” he said. 

The year saw growth in all its divisions except in manufacturing, warehouse and distribution where there was a slight sales decline.

Gross margin was up by 5.8% and the gross margin was constant at 12%. Margin per fee earner was down by 10% at £101,557, reflecting the company’s investment in greater consultant numbers. 

“We strive to be recognised for the way we do business rather than how we do business,” said Mr May. “Corporate social responsibility is a key component.”

In 2015 Brightwork become the first company in its sector to be accredited as a Living Wage service provider.

It also participates in the Movement to Work scheme and the Modern Apprenticeship scheme which gives vocational opportunities to 16-21 year olds to achieve NVQ qualifications while in full time employment.

Brightwork staff participate voluntarily in a number of community initiatives throughout Scotland.

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