Hot Group has recorded an operating loss of more than £15m in the 16 month period to 31 December 2004 following heavy administrative costs of several business acquisitions.

The firm had to spend over £2.3m on reorganisation costs, which included rent and rates on surplus property, staff redundancy and the write off of certain fixed assets in companies acquired.

Hot Group recorded an organic profit growth of 40% in the last year following their purchase of six online businesses, including Workthing, JobsFinancial.com and Gisajob.com.

In all, the firm reported an operating loss after goodwill amortisation, exceptional items and interest of £15.7m.

Tony Reeves, chairman and chief executive officer of Hot Group, said: “We have substantially integrated all of our acquisitions and we are currently seeing encouraging revenue growth and cost reductions coming from the acquired businesses.

“Growth in our online operations continues to exceed expectations, and confirms our belief that the internet is fundamentally transforming the UK’s recruitment market more rapidly than ever before. I look forward to the next 12 months with confidence.”