Explain Market Research managing director David Shiel (right) and Mark Easby (left) from brand agency Better

A RESEARCH specialist is set to pass the £1m turnover mark for the first time after picking up new public sector and financial services contracts despite the widespread cuts.

Newcastle-based Explain Research said revenues in the first quarter of the year – which are based on fees – leapt by 44%, largely on the back of contracts with the Yorkshire and Skipton Building Societies.

The independent market research firm, which has around 30 staff, also won work from the North East Strategic Health Authority, even though the NHS is currently slashing its budgets to meet Government cuts.

Managing director David Shiel said: “To be honest, the year has started exceptionally well for us. The first quarter has turned out to be the best ever.

“One or two of the sectors that had been quiet with the banking crisis – financial services – picked up again.

“Even people we thought we’d lose – the NHS, particularly with the changes going on. But the PCTs (Primary Care Trusts) and some of the health authorities are still spending money on things like obesity, alcoholism and teenage pregnancies. We haven’t lost as much as we’d expected.

“July is maintaining a 40% increase and projection for the first half of the year is a rise of just over 40%. The demand for core research is very, very strong.”