Networkers International has reported a decline in pre-tax profit for the six months to 30 June from £2.1m, compared with £2.2m a year earlier.

On an adjusted basis, profit increased to £1.49m or 1.59p per share from £1.15m or 1.24p per share last year. Adjusted results excludes amortisation costs, share-based payments and profit on disposal of business.

Revenue for the first half increased to £71.9m from £69.19m in the previous year. The company said that it has seen an improvement in recruitment activity during the period. Net fee income (NFI) grew by 5.2% on 2009.

Gross margin improved to 16.8% from 16.6% last year, mainly due to a shift in the sales mix towards permanent recruitment, which now represents more than 18.5% of NFI, compared with 13.5% for the same period in 2009.

Chief executive Spencer Manuel said: “Networkers has delivered a pleasing set of results … demonstrating the strength and geographical diversity of the group’s business model.”

However, he warned that there are some risks that market conditions may not follow the current benign period, especially in the UK.

The company said it has decided to pay an interim dividend of 0.324p per share.