The generalist staffing agency Northern Recruitment has announced that economic conditions have dented half year pre-tax profits and turnover.

However, chief executive Lorna Moran said that the company’s increase in underlying costs will enhance its growth in the long term.

Turnover dropped from £10.7m in the last six months of 2000 to £9.7m in the same period in 2001. Half-year pre-tax profits also dropped, from £566,000 in 2000 to £225,000 in 2001.

Chief executive Lorna Moran said the company’s strategy has been to selectively increase its resources over the last year.

She added: ‘Despite the increase in our cost base, the business gains we have already secured mean that we expect to make real progress in the second half [of this year].’

New clients gained included the Inland Revenue, for which Northern Recruitment will recruit permanent staff for three new call centres as part of a nationwide five-year contract.