The IT recruitment company Spring has predicted a substantial increase in revenue and operating profit for the firm in 2004.

The company’s chief executive officer Richard Barfield said the group was set to live up to the market’s high expectations.

He said: “We have reported tentative signs of improvement in our markets. This tentative upturn has continued and we have seen an increased level of activity.”

Vacancies, billing rates, numbers of contractors and the amount of temporary workers on assignment had all grown, he said.

He added: “Our new business pipeline remains strong and we expect to announce significant revenue growth in this business for the first half and full year in 2004.”

The group will announce its half-year results in September.