Spring Group reported a pre-tax profit of £5.4m for 2006, compared with a loss of £5.5m for 2005.
Revenue fell to £407.3m, compared with £454.7m a year ago.

Peter Searle (pictured), chief executive, said: “During 2006, Spring successfully returned to profit, whilst undergoing significant corporate change. The Group has addressed its loss-making areas, reduced its overhead burden and retains a healthy balance sheet.”

He added: “Demand for our services remains strong in our core markets and I anticipate that the existing favourable market conditions will continue throughout the current year.”

The company says its strategy will be built upon the “strong foundations” of IT staffing and recruitment process outsourcing.