Demanding trading conditions saw profits at specialist built-environment recruiter Prime People fall by 70%.

For the year ending 31 March 2009, profits before tax were £730,000 compared with £2.43m in 2008.

Net fee income (NFI) was 25.8% lower at £10.4m compared with £14m the previous year.

The company’s UK-based permanent business represented 44.7% of NFI compared with 58% in 2008. Freelance recruitment activity,  (wholly UK based) represented 24.7% of NFI compared with 17.8% in 2008. Prime People’s overseas offices contributed 30.7% compared with 24.2% the previous year. 

Peter Moore, managing director of Prime People, says: “Our lower profitability this year reflects continuing demanding trading conditions in our sector but our early recognition of the challenges ahead finds us with our market leading teams well focused and the company ready to exploit cyclical opportunities as they arise.

“Our strong cash position and experienced management team can be expected to provide the opportunity of an overall increase in future market share.”

Robert Macdonald, Prime People’s executive chairman, adds: “We expect that the worldwide global recession will continue to have a significant impact on our business. However, the dedication and performance of our market leading teams can be expected to provide the opportunity of an overall increase in future marketshare.”