Northern Recruitment Group (NRG) reported pre-tax profit of £1.96m for the year to June, down from £3.7m a year ago.

The Newcastle-based firm said the results reflected lower returns from temporary recruitment. Total revenue fell to £18.3m, from £21.7m.

NRG made a profit warning in May due to clients delaying major orders.

But chairman Les Finn said: "We have made a good start to the current year. The market for permanent recruitment remains strong. We have a significant number of further bids and tenders in the pipeline."

NRG Call Centre Solutions enjoyed "another successful year", extending relationships with Barclays and npower into other regions.

At NRG Connect, which delivers recruitment campaigns, the company pointed to a important new project for the Immigration and Nationality Directorate.

Therese Liddle, finance director, told Recruiter the contract was to recruit 300 posts. She said part of the problem in the temporary market was caused by clients converting to permanent.