IT recruitment specialist InterQuest has reported a sharp increase in sales, thanks to new clients such as US banking giant Citigroup and professional services firm KPMG.

Turnover was £27.6m for 2005, up 13% on 2004, and chairman Gary Ashworth said the company's UK business had benefited from fast growth in the online retail sector.

SBS, its public sector specialist unit, enjoyed strong contract revenue growth in the second half of the year.

Insight, which focuses on voice and data communications and PC support, had higher sales, mainly due to growth from the existing customer base.

Group pre-tax profit rose to £1.37m from £926,000. The company said net fee income for the first quarter of this year would be ahead of the same period in 2005.

The firm floated on the Alternative Investment Market in May. In January, it acquired Yorkshire-based PeopleCo Worldwide for £5.4m.