Rail specialist ATA suffered a slump in profits in 2005 but the recruitment division was a strong performer and now accounts for more than two thirds of total revenue.

Turnover in the division rose to £12.22m from £9.38m. Total group turnover rose to £18.3m, from £17.1m.

Pre-tax profit fell to £512,000, from £1.38m. The Bristol-based company cut its dividend for the year to 3p a share from 6.4p.

Clive Chapman, the company’s chief executive and founder, died in January.

Executive chairman Bill Douie said ATA’s Ganymede Tracklayers division had “continued to build” on its contracts with Network Rail and Tube Lines.

However, Catalis Rail Training, another ATA subsidiary, has suffered from the transfer of signal engineer training for the National Rail Network to National Rail.

The unit enjoyed “reasonable levels” of business from Tube Lines and Metronet, a consortium working on the London Underground. Overall, however, turnover in the training division was about half that of last year.