Investors

Annual Report and Accounts 2003/2004

IT Human Resources PLC's core business is the provision of Information Technology Human Capital solutions to the UK and European and International 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.

IT Human Resources PLC is a proudly independent organisation, wholly funded, owned and managed by the Directors and Employees of the Company. All growth since our inception in 1999 has been achieved organically and has been driven by our quality ethos in all of our business dealings; be they with our customers, candidates or suppliers and by our desire to succeed in a spirit of true partnership.

Now in our sixth year of trading it is my pleasure to present IT Human Resources PLC's 5th annual set of accounts for the year ended 31st March 2004.

This last year as without a doubt been one of the most exciting ITHR’s history; a year in which we not only achieved our forecast revenues but performed at the upper end of our expectations. Turnover increased some 35% and with careful cost management net operating profit before tax returned to more normal levels by increasing some 1,700% after an extremely challenging FY2002/03. All business areas (and in particular International operations) performed robustly - our fifth consecutive year of growth.

In addition to a strong financial performance other notable achievements in the year included the award of ISO9001:2000 quality certification for our service delivery, underpinning our professional approach to customer service excellence and once again being nominated as a finalist in the National Online Recruitment Awards in 2003. Another highlight was being named as the 47th fastest growing private company in the UK in the “Hot 100” survey conducted on behalf of Vantis and published in the Real Business magazine.

FY2003/04 also saw us extend our EMI share option scheme to include top performing key members of the sales team and further rewarding senior management for excellent performance, a crucial component of our talent retention strategy of widening the potential for employee ownership in our Company. Further option grants are envisaged in the coming year for star performers.

With the UK economy well and truly back in growth mode and, perhaps, the “war for talent” returning as an industry catchphrase I am confident that the recent increase in demand for innovative and quality driven solutions in the IT Human Capital Services sector is sustainable. This coupled with a continued focus on growth of our International operations and a recently implemented 3 year strategy for growth will yield further revenue growth in the coming year.

Our financial year 2004/05 has started strongly and armed with this knowledge we have set ourselves a target revenue in the region £7.5 million (a 20% growth) in the coming year, with £8.5 million (a 35% growth) at the upper end of our expectations. Net operating profit will almost certainly remain around the mark reported in this set of audited accounts, representing the short term cost of our investment in future growth in line with our 3 year business plan.

Sean Gallagher
Managing Director