A rash of mergers and acquisitions has fuelled confidence that the industry is back on its feet.

AIM-listed Public Recruitment Group acquired social work agency Action First for an initial payment of £11.3m, plus an additional £5.2m if the company hits its profit targets by 2006. The deal is the company’s third acquisition since it went public in April this year.

Another public firm, PDS Group, bought hotel and leisure recruitment company Portfolio International for £2m in cash.

In addition, LSE-listed payroll and staffing company Supporta announced it would acquire the remaining elements of recruitment outsourcing firm Parys Snowdon Group it doesn’t already own, as well as care-worker recruitment group Quality Care.

A handful of privately owned companies also got involved. Public sector recruiter The Principle Partnership purchased Newman Personnel, an office support agency specialising in HR, finance and marketing, for £4.85m, while the south-west recruitment company Smart Group Recruitment Solutions also expanded, adding Pearcy Personnel to its existing network.