World Careers Network

E-recruitment outfit WCN, which claims to be Europe’s leading supplier of applicant tracking systems, continues to show strong profits progress.

Figures for the year to July were encouraging despite a less buoyant second half of the year, predicted by management at the interim. Pre-tax profits burgeoned to £602,000 (£344,000) on turnover lifted from £1.9m to £2.85m. Earnings per share sparked up from 3.62p to 5.35p and investors are also being treated to an improved 2.5p (1p) dividend.

Managing director Charles Hipps insists the group’s e-recruitment technology trims costs, administration and ‘time-to-hire’ for blue chip clients ranging from Lloyds TSB, JP Morgan and Jaguar. ‘An exceptional inflow’ of new business meant first half pre-tax profits tumbled in at over £316,000, versus only £285,000 for the second, although this less impressive figure still beats profits for the latter half of 2004.

2005 sales growth arose on increasing adoption of WCN’s online tests and e-recruitment software and, despite a ‘very fast-changing and testing’ market, Hipps predicts further growth in the current year with more employers plumping for e-recruitment solutions. WCN is now consistently profitable, looking to buy back shares and boasts £1.7m cash on the balance sheet at year-end, up from £1.45m a year earlier. It’s well worth holding, although the historic p/e of 18.7 is certainly not budget.