Frank Recruitment halves sales team and falls to loss in 'challenging year'
Technology talent specialists Frank Recruitment Group has fallen to a loss and halved its international sales team after what it described as a “challenging year” for the recruitment sector. The Newcastle-based firm, which employs more than 1,800 people in 23 offices around the world, has released accounts for the year ending November 30 2023 in which its revenues fell from $592.5m (£459.8m) to $524.6m (£407.1m). And though the firm reported an operating profit of $5.7m (£4.4m), that was less than half last year’s figure and translated to a loss after tax of $2.4m (£1.9m). The accounts also reveal significant changes in the firm’s staffing, with numbers of sales staff being more than halved to 1,058, though that was mitigated by a significant rise in support staff from 287 a year earlier to 743. Read more:Hadrian's Tower put up for sale Go here for more North East business news Frank Recruitment, which was founded with a city centre office in Newcastle in 2006, operates in niche technology recruitment, with brands specialising in staff for programmes such as Salesforce, Azure, ServiceNew and NetSuite. It operates as part of Tenth Revolution Group, across several different brands, which include Jefferson Frank, Nigel Frank International, Mason Frank International, Washington Frank, Anderson Frank and Nelson Frank. The company has a number of offices in North America, as well as a significant presence in Europe, Japan and Australia. In the accounts, chief financial officer Lewis Miller says: “FY 2023 proved to be a challenging year for the recruitment sector as a whole, with the continuation of the macro-economic headwinds that emerged in the back end of FY22. In addition, the technology sector was impacted by broad over hiring in FY22 which also weighed on demand in FY23. “These two factors meant that overall demand for technology professionals was lower in in FY2023 than it was in FY2022 and this resulted in a decline in revenue from $592.5m to $524.6m. Trading performance stabilised in the final quarter of FY 2024 and this more stable and consistent trading has, as expected continued into FY24. “Putting the short term trading conditions aside, the long term trend of accelerating adoption of cloud technologies by businesses across the globe is robust and this will result in continued growth of the technology ecosystems, the group systems and growth in demand for technology talent.”
Pebble Beach Systems anticipates growth with strong sales pipeline despite market hurdles
Tech firm Pebble Beach Systems is optimistic about the coming year as it reported a "strong sales pipeline" against the backdrop of challenging market conditions. The company, an expert in playout, content management and IP control solutions for the broadcast and media tech sectors, has seen a 21 percent surge in Service Level Agreement (SLA) revenue, climbing to £3.1m from £2.5m in the previous year. For the half-year ending 30 June 2024, the group's overall revenue dipped marginally to £5.3m, down from £5.5m in 2023. However, profit before tax for the AIM-listed company rose to £0.3m, an increase from £0.2m, as reported by City AM. The adjusted EBITDA remained steady at £1.4m. Additionally, an "improved" EBITDA margin of 27 percent was reported, thanks mainly to the rise in SLA revenue. John Varney, non-executive chairman of Pebble Beach Systems, commented on the results: "The group continues to demonstrate resilience with increased order intake in spite of ongoing challenging external market conditions causing customers to continue delaying decisions on upgrades." He further stated that Pebble Beach Systems Group is entering the latter half of the year with a "strong sales pipeline alongside improved visibility and value of recurring revenues." Given "historical trends and a strong order book," Varney expressed the boards anticipation of heightened project orders in the upcoming six months.
Tech revenues soar at HR software specialist Talos360 as LDC-backed business plans acquisitions and further growth
An HR software firm backed by LDC is planning more acquisitions after seeing revenues grow 10% last year – driven by the success of its technology arm. Warrington-based Talos360 reported revenues of £11.6m for 2023 - up on £10.5m a year earlier despite a “challenging backdrop”. It said technology sales rose 55% to £5.1m, up from £3.3m a year earlier, with tech sales now representing a record 44% of Talos360’s total revenue. It reported a pre-tax loss for the year of £447,000, a substantial improvement on the £4.5m the previous year. And it reported an adjusted operating profit of £800,000, an improvement on a loss of £263,000 in 2022. The group says it now plans to “accelerate growth through complementary acquisitions, product innovation and further investment in its award-winning culture”. Talos360 offers software-as-a-service solutions connected with recruitment and HR and works with more than 800 businesses. Its management team, led by CEO Janette Martin, was backed by private equity investor LDC in October 2022. Since then it has driven growth in sectors including retail and hospitality, care, education, manufacturing and professional services. Ms Martin said: “2023 was a landmark year for us. We continue to invest in our market leading talent solutions to solve all our customers’ hiring challenges, helping them to attract, recruit and retain their top talent. Technology is firmly at the forefront of our brand, and we’re excited to continue investing in our offering and build momentum by actively pursuing complementary acquisitions with LDC’s support. “It’s also my passion to achieve growth whilst providing a supportive and inclusive workplace culture. We’re proud to offer exciting careers in tech to people across the North of England and will continue to help our people progress in their careers.” John Clarke, partner at LDC, added: “When we started working with Janette and the team it was clear that there was no limit to their ambition. The human capital management solutions space is increasingly technology-driven and Talos360 has positioned itself as a market leader in software through a commitment to innovation and a recognition that investing in employee wellbeing and development is a critical component of any successful growth strategy. I’m confident 2024 will be another stellar year for the business.”
Ignite Accelerator seeks cohort for final North East programme
Start-up accelerator Ignite is appealing for applicants to join its final North East programme taking place this summer. The renowned support organisation first launched in the region in 2011 and has since delivered support for founders across the country and on home soil. Now it is accepting applications for its final two-month accelerator programme in the North East, spanning August and September and featuring mentoring, workshops, and connections with experienced entrepreneurs and investors. The programme is open to those fundraising or on the cusp of doing so and is the last to be delivered through the Digital Pipeline project, funded by the North of Tyne Combined Authority. But the team behind Ignite are understood to be working on continued support for entrepreneurs in the region. Read more: Two global media giants set to launch North East bases after Quorum Park office deal Go here for more technology news from BusinessLive Manufacturing software business SQCDP and marketing tech firm Polybox were both participants in the 2023 Accelerator Programme and recently secured £200,000 and £500,000 pre-seed funding respectively. And 2022 alumnus Gridfinder, the esports start-up launched by motorsports fans, was sold in a multimillion-pound deal announced earlier this year. Founders and teams in this year’s cohort will also go on a fully-funded trip to San Francisco - the global epicentre of tech businesses - where they will get the chance to meet potential investors. And start-ups will receive credits and discounts from companies such as Amazon Web Services, Google and Stripe. Jo York, CEO of Ignite, said: "We are looking for ambitious founders ready to advance their fundraising efforts and start scaling their businesses. The quality of applications to our previous programmes has been outstanding, and we expect the same level this year. “Over the last three years we’ve seen multiple companies go from the very early stages of traction, to securing significant investment and even go onto exit within a couple of years of taking part in the programme. We’re looking for startup founders with the same level of ambition to join the final programme as part of the North East Digital Business Pipeline project." Tom Bunten, CEO of Gridfinder, said: "Ignite taught us to think globally. Gridfinder is a regional business, but it has access to an international market. This realisation transformed our business strategy and empowered us to access a whole host of incredible opportunities, ultimately growing Gridfinder to a successful exit." Stephen Mitchell, co-founder and CEO of SQCDP, said: "We’ve seen that we can solve problems for manufacturers close to home here in the North East and are now in a position to start to scale. We learned loads through the Ignite programme and in raising our pre-seed round. The investment will help us start onboarding new customers remotely and grow the team."
THG opens new office in London's prestigious Square Mile
THG, a global technology platform specialising in e-commerce and direct-to-consumer solutions, has announced the opening of its new office in London's prestigious Square Mile, further cementing its presence in the UK's business hub. This move reflects THG's ongoing growth and ambition to drive industry innovation. The new office at 107 Cheapside provides THG with a central hub in one of the world's key financial districts. This relocation will unite THG's brands in the capital under one roof. For the first time, City AM will join other THG brands such as Arrow Films and Cult Beauty in an office space designed for collaboration and digital content creation. The Square Mile, synonymous with the City of London, is known for its concentration of financial institutions, global corporations, and thriving tech businesses. THG's new location places the company at the heart of this ecosystem, enhancing its ability to serve clients, attract top talent, and foster crucial business relationships, as reported by City AM.
South Tyneside's Consultiv Utilities creates 50 jobs amid head office expansion
A Tyneside utilities business is creating more than 50 new jobs after expanding its head office. Hebburn-based Consultiv Utilities offers energy, waste, water and telecommunications services to businesses around the UK, and it has seen significant growth since it was launched by founder and managing director Paul Smith in 2017. The company now has more than 170 employees, having seen a rise in business last year, prompting bosses to take additional office space in its Monkton South Business Park headquarters, to make way for the new staff members who are joining over the course of this year. The latest recruitment drive is under way to fill sales and business support roles and, so far, 27 of the 50 job vacancies have been filled. Consultiv Utilities – named as the best company to work for in utilities on the 2023 Best Companies to Work For List – has leased an additional floor at Merchant House on Monkton South Business Park from property owners, Central Space, providing an extra 8,000 sqft of office space and almost doubling its footprint. Read more: Leisure firm Lane7 to launch subterranean gaming centre Read more: North East property finance firm GB Bank launches new London office Founder Mr Smith said: “We’re delighted to be expanding operations here at Merchant House and making room for new team members within the business over the coming years – all of whom will be able to access our extensive training and professional development opportunities. We pride ourselves on providing an enjoyable and rewarding working environment and we’ve taken the time to ensure that the new office is both conducive to getting work done but also a welcoming and sociable space. “In securing the second floor of Merchant House, our landlords at Central Space have made the process easy for us. We’re now looking forward to settling in and building on the momentum that has enabled us to reach this point.”