Capita shares reached their highest in several years after the company's first-half results beat forecasts.

The company reported pre-tax profit of £85.1m for the six months to June, up from £70.1m a year earlier. Turnover rose to £845m, from £687.3m.

Among the contracts boosting the results was a deal with the BBC to support certain recruitment, payroll and HR functions. A centralised HR services centre in Belfast is on schedule to go live in September. Capita's recruitment businesses include those supplying teachers and social workers.

Rod Aldridge was making his last announcement as chairman. He will step down next week, and be replaced by Eric Walters.

In other news: In a trading statement covering the six months to June, Healthcare Locums said it is benefiting from the NHS preferring to use bigger players, "able to meet stricter regulatory requirements".

The company also said it was enjoying strong overseas growth, especially in Australia, New Zealand, the US, Europe and the Middle East.

Chief executive Kate Bleasdale said: "Our competitive position as an NHS approved supplier, combined with our focus on the higher margin segment of recruitment, will enable us to continue to grow market share throughout this year."

Locums said the integration of BBL, acquired in March 2006, was now complete. Regional offices in Wembley, Manchester and Southampton were closed and operations consolidated into the principal office in Loughton, Essex. The firm achieved contract wins of more than £18m for the first half of 2006. The company announced the resignation of executive director Stephen Oswald, "who is to pursue other business interests".

Brighton-based FDM Group said profit for the first half would be ahead of previous expectations and that the IT recruitment market was strong. New clients in the first half of the year included Reuters, Virgin Mobile and banking group BNP Paribas. As at 30 June 2006 the company had 572 contractors on billing (against 469 as at 30 June 2005). It also has 'Mounties', the name given to graduate staff it trains. The majority work off their training fees, although those who leave without working off the training fee will pay about £20,000. At 30 June, it had about 138 Mounties (against 91 as at 30 June 2005). Chief executive Rod Flavell, who owns about 12% of the firm, told Recruiter demand for Java and .net skills was especially buoyant.

Outsourcing and research specialist Work Group made its first trading statement since floating on Alternative Investment Market this year. It said strong trading, as described in its AIM admission document, had continued throughout the remainder of the first half. Simon Howard, executive chairman, said: "Work is performing in line with the expectations set out at the time of our admission to AIM. The board remains confident about the group's prospects.

UBS analysts have produced a valuation of £7.8m for Pinnacle, which will float on AIM this summer after being spun out of Nestor Healthcare (Recruiter, 12 July).

The flotation of Hydrogen Group looks set to be delayed, due to recent volatility in the market.