‘We have moved through the first phase of our strategy – to turn the business round – and we've also signalled our intent to be a high growth business, both organically and through buy-and-build.' So says Simon Grinstead, the former Adecco man who was drafted in to chair the much restructured recruitment business, BNB Resources, last May.

In 2004, City-based BNB moved back into profit with a pre-tax tally of £300,000 on turnover up 23 per cent to £151.7 million. That represented an emphatic swing from the £5.6 million loss posted in 2003. The year saw strong organic profits growth within BNB's recruitment solutions and recruitment consultancy operations.

BNB, which moved down from the main board to AIM in December 2001 to effect some hefty restructuring in the face of a dire market for recruiters, now looks to be moving in the right direction. Boasting MP John Redwood and Active Value co-founder Julian Treger as non-executive directors, this business has far more strings to its bow than the average recruiter.

Through its respected brands such as Hamlin Knight, Norman Broadbent, Apollo and Garfield Robbins, BNB offers clients recruitment consultancy and HR outsourcing services. That means advising clients on how best to strengthen their competitiveness, impact and productivity through superior attraction, recruitment and retention programmes.

On the 'solutions' side, BNB can turn its hand to media planning and buying, recruitment advertising, branding strategies, and even candidate assessment and management testing. On the 'consultancy' side, the firm finds everyone from board level executives to interim managers and temporary staff.

Blue chip names, on what has become an exceptionally well-spread roster of clients, include the likes of Manpower, Boots, the Ministry of Defence, Centrica and even Microsoft.

BNB's prospects were transformed by three key acquisitions last year. The Apollo group of businesses, with operations in six Western European countries including Switzerland and Italy, took BNB overseas for the first time. The other acquisitions were recruitment solutions play TCS and the award-winning executive search firm MGMS.

Grinstead is encouraged by the 'fair winds' that still prevail in the much-improved UK market, where he expects plenty more growth in 2005. However, he admits recovery in Europe remains 'patchy'.
For 2005, house broker Shore Capital suggests adjusted profits of £1.4 million and earnings of 0.66p per share. But there should be a sharp jump the following year – to £3.4 million and 1.48p per share. That would drop the earnings multiple from 25.4 to 11.3 for 2006. BNB has plenty of growth to go for, and 2005 has started well. Buy.