Investors

Annual Report and Accounts 2002/2003

IT Human Resources PLC's core business is the provision of Information Technology Human Capital solutions to the UK and European marketplace on both a permanent and contract basis. Our aim is to innovate the professional IT recruitment industry with total professionalism whilst being flexible enough through our independence not only to meet but exceed our Clients' expectations.

Now in our fifth year of trading it is my pleasure to present IT Human Resources PLC's annual set of accounts for the year ended 31st March 2003.

It is widely accepted that the UK economy, and in particular the UK IT services and recruitment sector in general has experienced it’s most challenging conditions in my 18 years in the industry and certainly since the early 1990’s. With the widely anticipated recovery in the UK’s economic climate failing to materialise I am happy to report a modest 2.5% increase in revenues for the year – our fourth consecutive year of growth.

One of our key objectives for the year was to increase our revenues from overseas Clients, diversifying and providing alternative revenue streams away from and decreasing our reliance on our core UK Client base. This resulted in a 350% increase in our revenues from Clients’ in Europe, Africa, USA and Asia Pacific, underpinning the slowdown in UK turnover. A strategic objective of the coming year will be to further build on this growth.

Having reported the downside of a year that has once again seen many of our competitors report falling revenues and further organisational contraction I am optimistic that the IT recruitment services sector in the UK is on the verge of the much predicted recovery. As a proudly independent provider of professional services to a Global Blue Chip Client base, wholly owned and with a strong Balance Sheet I believe that we are ideally placed to take full advantage of any economic recovery and that revenues and profitability will continue to grow in the coming year. Revenues, in the first half of FY2003/04 are already in excess of 20% ahead of the same period of these audited accounts and further growth is forecast.

With this knowledge I am confident that our business base is stable and will continue to grow in the second half of the year. Our forecast for the coming full year is a minimum of £5.5m in revenues with a target of £6-6.5m at the upper end of our expectations, combined with a substantial increase in net operating profit.

Sean Gallagher
Managing Director