Wed, 14 Nov 2012

> More articles on the HOT 100

Around 14 technical specialists – mainly engineering and scientific candidate sectors – are included in Recruiter’s 2012 HOT 100, with the past year seeing a tremendously strong performance from these technical recruiters through their mix of overseas and UK placements. 

The November 2012 print issue of Recruiter features the annual HOT 100 survey of the 100 UK recruitment companies who have balanced their people costs with productivity and delivered the most efficient performances in terms of net fee income. The HOT 100 is researched on behalf of Recruiter by Agile Intelligence and sponsored by Microdec.

It is not the number of technical recruiters making the HOT 100 but their overall improvement in the rankings, which stands out together with their net fees growth rate.  

The Hot 10 comprises four very large recruitment firms and five relatively small ones, with Coyle Personnel taking the middle ground on size. This year Swift Technical Group and Air Energi are included as the sector is so cross-border from the UK that it is no longer practical to exclude overseas operators. 

In the UK large infrastructure projects, rail, nuclear and defence all contribute to the sector prospects but increasingly more niche scientific sectors are playing their part. Oil & gas is clearly a major driver for several companies with truly global demand for talent and the UK an important hub.

• The 2011 Hot 10 Technicals represent £1.832bn sales turnover but only around £189m in gross profit (GP) in this highly competitive sector with companies – often combining a traditional recruitment model or managed services with a project solutions or consulting business.

• Net fees rose an impressive 23.1% year-on-year, with GP/head growth of 10.9% alongside an 11% increase in headcount. 

• New leader Swift, included for the first time, does have very substantial overseas business but is a major player clearly in the acquisition of technical talent in the UK, predominantly contractors, for the global oil & gas industry. Air Energi at 5th is also an oil & gas specialist.

• The typical technical mix of power, rail, other infrastructure, oil & gas, aerospace, automotive are well represented by NES and Fircroft Engineering Services while the smaller companies such as NRL, Shorterm and First Technical offer different skill variants. 

• Last year’s leader, CBSbutler, drops to 7th place possibly indicative of a slight shift away from permanent towards contractor but also with weaker growth rates reflecting its relatively high dependence upon the UK market from which it derives about 80% sales.  

• Eurostaff again grew quickly, still predominantly with European business and has further developed its mix of financial and technical roles. It has moved its energy business into a separate brand – Earthstaff – where it has an expanding position.

• Eight out of the Hot 10 increased their GP/head and an impressive eight companies also increased both employee numbers and productivity simultaneously. Nine out of 10 firms increased their gross profit. 

Turning to gross margin trends: 

• Average weighted gross margin for the 2012 Hot 10 was unchanged at 10.3%. Furthermore, only four of the Hot 10 have gross margin below 10% versus six in the 2011 Hot 10. 

• Three Hot 10 companies reported material increases in gross margin – Swift, NRL and First Technical.

• Three more showed modest rises or unchanged gross margin while four companies saw margin decline.

• The high contractor/low permanent mix ensures gross margin is barely above the temporary margin but some companies do operate in-house project management or consulting.

• Eurostaff remains the most permanent-orientated firm at around 60% of GP, followed perhaps by Coyle and CBSbutler.

Hot 10 Technicals

1 Swift Technical Group Holdings 

2 NES Holdings 

3 NRL

4 Eurostaff Group 

5 Air Energi Group 

6 Fircroft Engineering Services 

7 CBSbutler 

8 Shorterm Group

9 Coyle Personnel

10 First Technical Recruitment

• Do you work for a Recruiter Hot 100 company? Why not tell the world about it - click 'I work for a Recruiter Hot 100 Company!'