In the year ending 31 March 2009 profits after tax fell to £537,000 compared to £1.6m in 2008.

Net fee income (NFI) fell by 25.8% to £10.4m from £14m in 2008.

Temporary NFI was hardest hit, with a 33% reduction. Permanent NFI held up better, with a 2.7% decline.

In a statement Robert MacDonald, Prime People’s executive chairman, says: “In all our markets we experienced a marked decline in demand for permanent placements and a weakening demand in out UK freelance business.

“These results reflect the challenging operating conditions we face and the impact of costs associated with ensuring that the company is the correct size for the business it expects to do in 2009/10.”