THE North East's biggest recruitment agency says it is on target for a return to profit growth this year after winning big contracts in the strongest areas of the region’s private sector.
Newcastle-based NRG had seen its earnings and revenues slide since it delisted from the stock market in 2008 as the recession dawned and heralded three years of job-cutting and a recruitment freeze across the UK.
But now chief executive Lorna Moran, who founded the firm 35 years ago, is confident that the business is bouncing back despite the UK’s continuing economic doldrums which have seen most of its larger rivals shrinking or battling for survival.
She says she has found new business to fill the hole left by the decline of the public sector which used to account for more half NRG’s income but now makes up only 20%.
“I have to say it is a very much better year than last year and we will see substantially better profits. I left the stock market because I could see a recession coming and I am glad I did considering what’s been happening to smaller companies who stayed on the market,” she said.
“We had to change the business model to reduce our dependence on the public sector before the spending cuts.
“We are more focused now in the stronger areas of the public sector such as the universities and the Local Enterprise Partnership.”