BNB Recruitment is enjoying a booming public sector market, but its annual results have failed to inspire investors.
The company’s shares are still trading below the year high of 18.25p in September, and well below the 150p-plus levels of 1998.

The company, owner of the Barkers recruitment advertising and Norman Broadbent brands, is valued at only £22m on the stock exchange, despite turnover of £175.8m in 2005. This is up from £151.7m in 2004, with most of the growth coming from acquisitions such as search firm MGMS and advertising firm TCS.

After a period of downsizing following heavy losses, BNB is growing again and its headcount topped 800 at the year-end. However, operating profit rose to just £1.8m from £733,000.
The company is still spending about £100m a year in advertising. Barkers chief executive Robert Bain said most of this was still in print form, but online was taking a bigger share.

BNB recruited about 200 people for the immigration service last year. Bain said other public sector work, for the NHS and local government, would “act as a hedge against recession” if the private sector work declined.  
Norman Broadbent chief executive Krista Walochik pointed to major contract wins such as insurer Royal & Sun Alliance, a deal worth £5m over three years. She emphasised BNB’s role in added services, such as career counselling and performance monitoring, that went beyond recruitment.

“Some things have nothing to with the attraction process and everything to do with improving the performance of people already there,” she said.
BNB executive chairman Simon Grinstead is on an extended leave of absence because of ill health.