Investors

Annual Report and Accounts 2004/2005

IT Human Resources PLC's core business is the provision of Information Technology, Communications and e-business Human Capital solutions to Blue Chip Clients both Nationally and Internationally. This past year ITHR has provided contract resourcing, permanent recruitment and consulting services to Clients in some 27 countries worldwide. Our aim is to innovate our marketplace 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 seventh year of trading it is my pleasure to present IT Human Resources PLC's 6th annual set of accounts for the year ended 31st March 2005.

FY2004/05 was yet another record breaking year for ITHR, and indeed our 6th consecutive year of growth since our inception. Turnover increased some 35% to just under £8.5m in the year, a performance at the top end of our expectations and forecasts. This has been no mean feat in a market sector whilst comparatively buoyant compared to previous years, is still fiercely competitive and has never recovered to the levels achieved in the Y2K and .com boom years of the late 1990’s and early 2000’s.

Although operating profits only advance some 16.5% in the year this is more of a reflection of our investment in our people and systems which have driven our growth. Nonetheless the profit performance has stood the test of the many challenges facing the industry and I believe that this is another indicator that our focus on quality and service is critical to our long term growth and success.

There were many highlights during this past year, but without a doubt the highlight was our award and listing in the Sunday Times Virgin Atlantic Fast Track 100 survey. The Fast Track 100 (www.fasttrack.co.uk) ranked Britain's hundred fastest-growing unquoted companies by 2000-2003 sales growth. This listing is the definitive guide to the fastest growing privately owned companies in the UK and we are quite rightly proud of this recognition and award. We intend to feature in future listings of this survey.

Whilst there is still some uncertainty in the growth of the UK economy our International operations have increased significantly during the past year and we intend to build further upon these operations. In addition we intend to further invest heavily in our UK focussed management and sales force in order to sustain and enhance our market share and brand profile as a professional provider of Human Capital Solutions.

Our new financial year (2005/06) has once again started strongly and indeed revenues have increased some 40% in the first quarter. It will be a challenge to maintain this growth but we are confident it can be achieved. We have therefore set ourselves a target revenue in the region of £10.5m (a 23% growth) in the coming year, with £11.5m (a 35% growth) at the upper end of our expectations. We anticipate a profits growth consistent with this set of accounts and in line with turnover growth.

Sean Gallagher
Managing Director