Profits at multi-sector recruiter HR GO were boosted by the sale of Human Engineering, one of its subsidiary companies during the year.

Although after tax profits for the year ending 31 December 2008 rose to £1.58m compared with £715,000 in 2007, after taking receipts from the sale of Human Engineering into account, operating profits actually declined from £1.59m in 2007 to £496,000.

The company says the performance of the business started to decline in the third quarter as permanent recruitment suffered a serious decline.

Turnover across the group also rose to £91m from £88m in 2007, but again this was boosted by the sale of Human Engineering. 

The company says that “sadly it was necessary to re-assess” its staffing levels, with 45 jobs lost during the last quarter of 2008, and the first quarter of 2009.

Gross margin for the year was 23.8% compared to 24.6% in 2007.

In a statement accompany its results, Jack C Parkinson, HR GO’s chairman, says the company expects to see “a substantial improvement” in the first half of 2009.