ICT recruitment company HiTech Group Australia (ASX:HIT) has a positive outlook for FY12, despite a 43% slump in profit during the first quarter.
The company is forecasting profit for the year - assuming similar economic conditions to FY11 – of between $500,000 and $750,000.
This compares to profit of $648,000 in FY11, and of $137,000 in FY10.
In an address to shareholders, chairman Ray Hazouri expressed optimism for the financial year ahead, dependent on the prevailing economic conditions.
He said Q1 profit had fallen to $130,000 during the first quarter, as a result of the impact of the recent market slump on the company's investments in listed companies.
But operating revenue grew 31% during the period, with earnings from high-margin permanent job placements increasing 24%.
In FY11, operating revenue was $8.8 million – up 59% from the prior year. But most of the growth came from lower-margin contracting revenue.
While HiTech has seen signs of an improvement in the ICT recruitment sector, Hazouri said the company plans to continue to diversify into non-ICT areas.
HIT shares remained flat on Friday at $0.041.
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