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Public Recruitment

Companies: PRG   
17/06/2004

Public sector recruiter PRG announced the award of some 'highly contested' contracts with schools and education authorities. One deal in particular, as preferred bidder for a managed supply teacher service contract with Warwickshire Education Services, should be worth £5m a year to the company and generate at least £200,000 worth of operational profits. Bossed by recruitment industry guru Andrew Goodman, PRG raised £10m of new money in April, and supplies doctors and teachers to the state sector, offering investors a play on the UK scarcity of these professionals. In a short space of time, PRG has taken up top positions in both education and healthcare recruitment, and is eyeing up a move into high-value social services professionals in the very near future. These markets are fragmented and are crying out for a quoted, well-funded consolidator. PRG is worth backing, because businesses built by chief executive Goodman have been sold to BNB Resources and Harvey Nash, for £8m and £49m respectively. Last year PRG made £1m on sales of £23.6m, lifted from £800,000 and £21.1m in 2002. And for December 2004, Paul Compton at broker Collins Stewart predicts a £1.6m pre-tax profit on £46m sales, excluding any acquisitions. The plan is to grow revenues to £100m across healthcare, education and social services.

Market cap: £28.8m
PE Forecast: n/a
Share price: 130.5p

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