2013 HOT 100: HOT 10 IT & telecoms recruiters revealed

The November issue of Recruiter will feature the 2013 Recruiter HOT 100, the eighth edition of the benchmark league table of the UK recruitment sector’s most efficient companies, as measured by gross profit (GP) per head, or net fee income.
Wed, 13 Nov 2013The November issue of Recruiter will feature the 2013 Recruiter HOT 100, the eighth edition of the benchmark league table of the UK recruitment sector’s most efficient companies, as measured by gross profit (GP) per head, or net fee income.

Conducted on Recruiter’s behalf by Agile Intelligence, the 2013 HOT 100 is sponsored by Flo Software Solutions and supported by RBS.

Today we reveal the fourth of our HOT 10 breakouts, the HOT 10 IT & Telecoms recruiters from this year’s HOT 100 list. You can find our earlier HOT 10 breakouts, for public sector, technical and professional recruiters, published on recruiter.co.uk.

HOT 10 IT & Telecoms recruiters
We revert to a standard 10 companies in the HOT 10 for IT since SThree is now entered as one group business. There are again at least 33 IT & Telecoms specialists in the HOT 100 (a real increase of three from last year, given the group inclusion of SThree), offering a mix of contractors and permanent placement business.

The status quo has shifted further towards contractors vs permanent placements, but some firms still buck the trend. IT is a late-cycle sector, but increasing economic activity should begin to encourage decision-making on projects that may have been delayed.

Key facts about the HOT 10:

•    The 2013 HOT 10 represents around £937m in turnover and generated £140m in net fees.
•    Net fees grew by 10.8% but average GP/head fell 3.8%, as employee numbers rose sharply by 15.2%.
•    HOT 10 newcomers are Vector Resourcing, WA Consultants, Penta Consulting, Opus Recruitment Solutions, Premier Group UK and Gravitas Recruitment.
•    Four constituents remain from last year: Henderson Scott, G2V Resourcing, LA International and Harvey Nash – the latter two with sizeable international interests.
•    Every company added to its employee numbers but only half of the HOT 10 simultaneously managed to increase its GP/head.  
•    Vector Resourcing is the new leader as it increased turnover, GP and employee numbers, although its GP/head did dip slightly. During the year it launched a permanent division. It operates from East Sussex and Wiltshire, with plans to open a third office within two years. At close to 21%, its gross margin reflects, it seems, both the client mix and a growing permanent operation, although recent investments in internal organisation and IT infrastructure are taking their toll on the bottom line.
•    WA Consultants in Exeter ranks second, despite a slight decline in GP in 2012 as it expanded its base. Around one-third of its sales are generated overseas. This firm, together with G2V and Gravitas, increased headcount by around a quarter, while their larger and more diversified peer, Harvey Nash, also grew by around 17%. Gravitas was the only one of the four to increase its GP/head, helped by rising permanent business and its mix of IT and actuarial specialisations. It has the highest permanent percentage in the HOT 10, although closely followed by Henderson Scott.
•    Diversification continues from ICT into newer sectors, usually with cross-disciplinary benefits, such as engineering, oil & gas, life sciences and energy or power. The larger players, not necessarily in this HOT 10, are taking this expansionary route and adding teams accordingly.
•    SThree as a group did not make the HOT 10, including as it now does all the UK and overseas operations across all brands.
•    LA International is in the HOT 10 yet again, expanding sales, GP and employee numbers, and improving its GP/head productivity, all from its single UK location. It operates eight specialist divisions in its niche for security-cleared IT staff, servicing demand in the UK and 23 other countries.

Turning to gross margin trends, which depend not only on temporary pricing but also on the mix of business between spot, volume contract and permanent:

•    Weighted average gross margin of this HOT 10 fell just 20 basis points to 14.9%, nevertheless reflecting the low margin/contractor-biased pitch of LA International and Harvey Nash with their heavy weighting in the group. The mix was diverse, with six reducing and four increasing margin.  
•    Underlying temporary margin appears to have seen only modest pricing pressure.

The HOT 10 IT & Telecoms recruiters are:
1.    Vector Resourcing
2.    WA Consultants
3.    Henderson Scott
4.    LA International
5.    Penta Consulting
6.    G2V Recruitment Group
7.    Opus Recruitment Solutions
8.    Premier Group UK
9.    Harvey Nash Group
10.    Gravitas Recruitment


Microsoft teams up with SThree to improve operations

SThree, the leading STEM-specialist staffing group, has announced a collaboration with Microsoft that is intended to power its industry-leading Technology Improvement Programme.

Contracts 26 March 2024

NEW TO THE MARKET: 25-30 MARCH 2024

This week’s new launches include: ID Crypt Global, Indeed, N2S.Global, Quesam, Talmix

New to Market 26 March 2024

Businesses must use AI in ‘all its formats’ says Martin-Fagg

UK businesses need to use technology such as AI to increase productivity, emphasise a ‘customer first’ attitude and grow by increasing market share.

22 March 2024

HeadFirst and Impellam groups join forces

HeadFirst Group and Impellam Group have joined forces to become one of the world’s leading STEM talent and managed service providers.

Contracts 22 March 2024
Top