IT and generalist recruiter Lorien has defied difficult market conditions and returned to profitability.

For the 53 weeks ending 30 November 2001, Lorien made an operating profit of £2.7m, compared with an operating loss of £0.2m in 2000.

Figures for 2000 were hit by one-off costs of around £2.2m, caused mainly by disposals.

Pre-tax profits for 2001 were £2m, compared with pre-tax losses of £2.7m the year before.

However, the company’s trading performance deteriorated as the year progressed – as the economic slowdown caused a steady decrease in demand.

The company introduced ‘cost-saving measures’ in late 2001, which chairman Bert Morris claimed will allow the company to continue to grow in 2002.

He said: ‘I anticipate we will deliver further growth in our continuing operations in 2002, based on a material improvement in activity levels, which are currently 8% below year-end levels in our core resourcing business.

‘Although I still see the market remaining depressed for 2002, I consider Lorien is fitter and leaner and should benefit when market conditions recover.’

John Wallace has replaced David Boyle as non-executive director. Boyle left the Lorien board after five years because of ‘additional time-consuming commitments’.