Prime People profits slump

AIM-listed recruitment firm Prime People (LON:PRP) saw its pre-tax profits fall by 37.3% to £1.19 million for the year ended 31st March, despite a slight improvement in revenues. The drop in profits was largely driven by acquisition costs, investment in CRM systems, and increases in staff costs at the company’s Hong Kong offices. A relatively strong UK performance helped prop up results as international operations struggled.

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Managing Director Peter Moore said that current trading was encouraging. Shares in Prime People were 76p at 14:30 BST, down by 4.73% from this morning’s opening price.