Hat Pin, owner of media and communications recruitment firm Kendall Tarrant, said it had enjoyed another year of growth in 2005, and 2006 had started well.

Turnover rose to £5.12m, from £4.2m. Pre-tax profit rose to £786,000, from £522,000.

Kendall's UK and Europe business generated £3.1m of turnover. The firm has invested in hiring new consultants for three new practice areas: corporate marketing, corporate affairs and Public Relations and Media.

In the Americas, its sales rose 60% to £1.3m. It said salary inflation in the digital sector in marketing in this region was “extreme” due to a dearth of talent.

“Increasingly, marketers are searching for experienced practitioners in non-agency environments such as Yahoo and Viacom," said the company.

It pointed to strong demand in Asia for both permanent and freelance creative directors. Hat Pin said it was being asked by network firms globally to assist in entering the Chinese market.

Acquisitions, though too late to affect the results, led chief executive Angela Campbell-Noe to describe 2005 as “transformational” for Hat Pin.

In December, Hat Pin acquired 70% of executive search firm Saxton Bampfylde Hever. Clients include BP and Tesco. It bought Stoltkin & Partners, another communications specialist, earlier this year.

Kendall clients include advertising giant WPP.

Louise Richardson of Arden Partners, house broker to Hat Pin, said the shares continue to look very attractive and has maintained its “buy” recommendation for “this very exciting growth stock”.