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InterQuest to double total dividend as core business strengthens in Q4

In a year end trading update, IT focused recruitment firm InterQuest Group (AIM: ITQ) announced they are doubling their full year dividend to 2 pence per share as its expects to report full year results in-line with market expectations. The company reported a stronger final quarter in its core businesses, with permanent placement fees increasing significantly.

"Whilst the recession has clearly impacted the flow of revenues into the business in 2009, we have remained a profitable company and enter 2010 with a strengthened balance sheet and an enlarged business”, InterQuest executive chairman Gary Ashworth said, “Although long-term visibility remains uncertain, market conditions appear to be improving and we look to the future with confidence."

InterQuest said it has undertaken strong cash management throughout the year and expects operating cashflow to exceed earnings. The recruiter has substantially reduced net debt, which is expected to be less than £3m at year end, compared to £5.5m previously.

In terms of the outlook going forward, InterQuest said that various sectors are showing signs that they are reinitiating their recruitment programmes. During 2010 the group will continue to invest in their five new IQ Equity businesses.

Disclosure: The author holds no positions in the company