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Technology recruitment specialist Networkers International is focusing on international expansion after lifting interim pre-tax profits 27.8 per cent to £2.9 million.

Bromley-based Networkers, where serial investor Nigel Wray holds a key stake, increased net fee income a modest 4.8 per cent to £12.7 million in the six months to June. Chief executive officer Spencer Manuel says revenues in the UK have ‘fallen slightly’ in a slowing economy since June, but maintains the AIM-quoted company’s UK contracting business remains ‘stable’, while international business ‘continues to show solid growth’.   

He says Networkers managed to increase margins by continuing to shift its focus to upper end, higher-value and higher-margin business in the UK and by expanding overseas. Meanwhile, reducing net borrowings by £3.7 million led to a 38 per cent fall in financing charges.

Networkers, which has opened offices in Malaysia and Mexico during the past six months, saw its international business increase from 34 to 41 per cent of the total during the first half year. The emerging markets of Africa, the Middle East, Asia Pacific and Latin America now represent 56 per cent of the company’s international income.

Floated at 26p eight years ago, Networkers International shares fell from 45p in mid-2007 to 15p last month. They are now 18.5p and value the company at £17 million.

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Networkers International	AIM	£7.84m	8.50p	-0.75p
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Networkers chairman buys a further 500,000 shares			26/10/2007
Networkers a steal on single digit multiple			12/10/2007