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Wednesday, 24 November 2010

Public Sector Jobs Website in administration.

Pearson Advertising & Marketing Ltd, the Stockton-based recruitment and marketing business, has appointed administrators at KPMG after a sudden fall in sales.

The business was heavily exposed to public sector recruitment as it ran the public sector jobs site at www.sector1.net

As such, the administrators at KPMG said due to the spending cuts next year the business was not viable going forward and could not be sold as a going concern. All 60 staff have been made redundant, except one who is assisting the administrators.

Turnover in 2009 was £15.4m but fell to £10.3m in the year to the end of March 2010. Pre-tax profits more than halved to £74,000 from £164,000 in the same period.

This latest failure is not a great surprise, given the spending cuts, but as we have said before recruitment is vulnerable at the moment as many companies have relied heavily on public sector contracts.

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