Corporate Services Group, owner of the Blue Arrow recruitment chain, has reported its first operating profit since 2000.

CSG reported an operating profit of £195,000 for 2005, against a loss of £12.8m in 2004. However, the company still has net debt of £45m and finance costs of £5.2m pulled it into the red. Its net loss for the year was £4.7m, a narrower loss than the £12.8m it reported in 2004.

Revenue rose 2.5% to £524m. The commercial staffing division in the UK enjoyed a pick-up in the second half of the year.

The company said trading in the first eight weeks of 2006 had been in line with its expectations.