For the 12 months to the end of April 2007, Northgate reported net profit of 25.1m pounds ($50.6m), up from 21.3m pounds ($43.0m) in the previous fiscal year, on revenue that grew 5.7% to 351.7m pounds ($709.2m). Organic revenue growth was 3.3%, compared to 0.4% in fiscal 2006.

Northgate’s HR outsourcing division outperformed the company’s other business units, growing sales by 10.8% to 126.1m pounds ($254.3m) through a mixture of acquisitions, including Link Group Consultants, Edis, and Engage, and organic growth of 6.2%. Over the course of the fiscal year, Northgate HR signed six contracts worth over 1m pounds ($2.0m) and added a record number of new clients.

The expansion of Northgate HR has continued since the end of the fiscal year. In May, the company struck a deal to acquire a 60.4% stake in HR outsourcing provider Arinso International for about $311m. This acquisition was approved by Northgate’s shareholders last month, leaving the way clear for the company to launch a bid for the outstanding Arinso shares. The takeover is now expected to conclude in September.

Of Northgate’s other business units, the managed services operation reported revenue growth of 4.6% to 122.2m pounds ($246.4m), largely as the result of a strong finish to the year. The division has enjoyed notable success in the UK education space, winning deals in Bristol and Northern Ireland, and has been named as preferred bidder for a contract with Leicester City Council valued at 27m pounds ($54.5m).

Progress was slower in Northgate’s public services business, which provides consultancy, training, and business process outsourcing services to local government agencies. Revenue grew by only 1.3% to 103.4m pounds ($208.5m), reflecting the operation’s continuing struggles in the criminal justice market.

Northgate said the next stage of its development would see it move from being a domestic UK company to a global force operating in much higher growth markets. The acquisition of Arinso is clearly a large part of this strategy, as it has a presence in 27 countries worldwide, including the US, Argentina, Brazil, the Philippines, Poland, South Africa, Finland, France, and Germany.