IT recruiter InterQuest Group said it has seen a significant increase in Q4 permanent placements and expects its full-year results to be in line with market expectations in a trading update for the year ended 31 December 2009.

InterQuest reports strong cash management and expects operating cashflow to exceed earnings before interest, tax and amortisation (EBITA) for the year, while net debt has been cut and is expected to be less than £3m at year end, down from £5.5m at the start of 2009 amid indications of renewed strength in the IT recruitment market.

InterQuest adds that there are signs that various sectors, such as the financial services market, are beginning to reinitiate their recruitment programmes.

The group also announced a dividend of 2p per ordinary share to be paid on 19 February 2010 to shareholders on the share register on 22 January 2010. 

Gary Ashworth, executive chairman of InterQuest, says: “While the recession has clearly impacted the flow of revenues into the business in 2009, we have remained a profitable company and enter 2010 with a strengthened balance sheet and an enlarged business. Although long-term visibility remains uncertain, market conditions appear to be improving and we look to the future with confidence.”