Northern Recruitment Group, the Newcastle-based recruitment firm, has announced pre-tax profits of £1.66m for the six months to December 31.

The company's turnover for the period rose to £11.1m, an increase of 63%.

Gross profit from permanent and temporary recruitment both increased by 6.5% and 1% respectively.

However, chief executive Lorna Moran, pictured, admitted that the firm was hit by the loss of its Samsung contract after the electronics giant closed its Teesside plant in April 2004.

Shares in Northern Recruitment fell 11.5p to 219.5p after the news.