A series of acquisitions and structural changes has paid off for BNB Resources and there could be further purchases in the pipeline, according to executive chairman Simon Grinstead (pictured).

“There has been a change in the way we work with our clients, our strategy model, our internal resourcing and our ambition,” he told Recruiter as the firm announced its annual results last week.

BNB, whose brands include Barkers, Norman Broadbent and Garfield Robbins, recorded a £6m growth in pre-tax profit excluding exceptional items in 2004.

Turnover increased by 23% to £151.7m, boosted to some extent by the three major acquisitions made last year: Apollo Group (March), TCS (July) and MGMS International (November).

It’s hoped this ‘buy and build’ strategy will continue, according to Grinstead. So far, BNB’s acquisitions have enabled it to improve presence in the private sector, enter new international markets and boost its brand in the north of England. This is all part of a strategy to diversify the business and make it less prone to changing economic cycles.

But Grinstead has tough criteria for potential new acquisitions. “If we go down a path of discussions with a company about acquiring them, we have to be sure they’re right,” he said.

Since 2001, the business has restructured operations by disposing of non-core divisions and revising headcount. The result is that BNB now employs more client-facing consultants than non-client facing. This has increased revenue per head at the organisation by 30%.

The firm has also improved profit margins by upgrading its technology platform and introducing a performance management system to track all employees.