Shares in the Newcastle-based recruitment firm Northern Recruitment have jumped after the company claimed profits had risen.

Chairman Hamish Leslie Melville said results for the year so far are ahead of those recorded in 2002.

He added: "We are seeing signs of improving demand in our major markets and we have an encouraging forward pipeline of new business prospects."

Permanent recruitment in public and private sectors is progressing well and demand for temps is still strong.

"Our national response handling facilities are making an increasing contribution to our success including a recent major extension of business with an existing client," he said.

Northern Recruitment shares jumped to around 91.5p each following the announcement.