Annual Report to July 2011
Financial Highlights
Turnover up in all three divisions and by 14% overall
Operating Profit also up 14% despite significant investment in people and premises
Reserves restored to optimum level
Chairman’s Statement
“Welcome to my report on another year of solid growth for the Bridge, and all the more gratifying for having been achieved in the face of continuing global economic uncertainty.
The 12 months to July 2011 have witnessed more sharp changes in customer hiring trends, variations that are perhaps becoming the norm for our sector. Just as the previous year saw considerable growth in demand for contract recruitment services in Information Technology, so this year has witnessed a remarkable swing in the opposite direction. Contract revenues have continued to grow, if at a steady pace, but the big story is the 55% increase in permanent placement revenues across our two sectors of IT and Energy. Surprisingly IT has seen the biggest leap in demand. Nevertheless, in growing revenues more than 30%, Oil and Gas has been no slouch.
As predicted in last year’s statement, dividend payments have been restrained after a period of tax planning brought on by the new tax regime and reserves have returned to their normal level, representing a year’s profits held in reserve. This is our standard and preferred position.
In May of 2011 we concluded a highly successful office move to premises offering two and a half times the accommodation of our previous building and the project was remarkably successful, for which I’d like to thank our partners Absolute Interiors and Highcross. The extra space incorporates enhanced facilities and several meeting rooms along with an improved technical infrastructure. Already five new faces have joined the team and there is room for many more.
A new corporate identity was introduced in the spring to an overwhelmingly positive reception. The new look underlines clear distinctions between our products but equally reinforces the values shared between them. Values of focus, quality and determination.
I’d like to congratulate Kieron Hinchliffe for his elevation to the board and thank him for the outstanding contribution he’s made from the day he joined the Bridge. His performance is an example to all our people of what can be achieved with the right determination and support and I hope others will follow his lead in due course.
And a big ‘thank you’ to all our team. I can’t think of a single employee who hasn’t pulled their weight this year. A fact reflected in the inflation-busting pay reviews enjoyed at the year end. We want our employees to achieve more. And earn more.
What of the coming year?
We will be seeking a return to higher margins in contract IT recruitment as a greater number of large companies launch enterprise-critical projects in a race to lead their markets after the financial crisis. We expect a corresponding flattening of demand for permanent employees in IT after this year’s spectacular growth so will be aiming for consolidation here. Where we anticipate the highest growth is in Oil and Gas, a team which has doubled in size over the past year from its original core. After a steep learning curve results now suggest we are well placed to exploit our understanding of the market and the reputation we have earned for quality and attention to detail. Percentage growth will be substantial and the contribution made to the bottom line will be equally significant.
The threat of a second crisis emanating from Europe is not lost on us but it would be shock to find those employers who have best weathered the first recession being skittled by a second, should it arise. There will be more ups and downs, and the world is leaner and meaner today, but businesses will always need the best people to thrive. The Bridge is ready when they do.”
Julian Goddard, Director
