The REC achieved £5.6m in turnover in 2006, a £700,000 increase from 2005, according to financial reports released last week.

At the trade body's annual general meeting, REC board chairman Gary Irvine also announced that the organisation suffered a £201,644 deficit due to exceptional expenditures last year. The expenditures included professional fees of £113,447 in the REC's successful effort to win VAT concessions for the recruitment industry and costs related to closing down the REC's short-lived technology subsidiary, Re-source.uk.com, which pro- vided an internet database.

"We tested it; the technology worked, but the uptake wasn't there," Irvine said of Re-source at a press briefing.

At the end of 2006, the REC had a cash balance of £1.4m and more than £700,000 filled the reserves.

The trade body's annual wrap-up of the past year's activities and achievements also revealed that its membership grew last year, with an increase in corporate memberships significantly outpacing the percentage of new individual members. Corporate membership increased by 11% to include 3,492 head offices and 4,630 branches. Individual membership increased by 2%, to 5,583.

REC membership now represents more than 50% of the industry, Irvine said, adding "but we've still a lot to do".

For details of the new REC board see www.recruiter.co.uk