A record number of new deals has boosted the profits of the HR division of software and outsourcing company Northgate by 13%.
Six contracts worth more than £1m, including a shared services payroll and HR deal for Thistle Hotels and a five-year pensions administration deal with Alliance Boots, has led to profits in the division of £35.5m, according to the company’s annual report.
Northgate chief executive Chris Stone said: “There has been a sharp rise in the size of contracts we have secured, worth more than £1m, as our clients sign up for large outsourcing contracts over longer periods of time instead of smaller systems or service contracts.”
Northgate also grew its profits through a number of acquisitions. The company bought a controlling stake in international HR services group Arinso in May 2007.
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Stone added: “We have made a number of important acquisitions to build our presence and skills within our HR and public services markets. The [Arinso] acquisition has transformed Northgate into a global provider of HR systems and services.”
Revenues for the year increased by 6% to £351.7m, with post-tax profit up 18% to £25.1m.
