A recruitment firm fell into the red after the loss of a FTSE 100 client nearly halved turnover.

RHL, which is a subsidiary of nationwide recruiter HRGO, made a pre-tax loss of more than £100,000, having made a surplus of £391,000 a year earlier.

It suffered a £10 million drop in turnover to £12.6 million after the cancellation of the contract with a “household name”.

The deal was terminated after its bank cancelled insurance cover for RHL’s commercial agreement with the client, which worked on a “pay-when-paid” basis.

It meant the Ashford-based business made an operating loss of £91,000 in 2015 compared to an undelying profit of £443,000 in 2014, according to its most recent accounts.

Founded in 1977, RHL finds candidates for companies in the energy, life science, manufacturing, rail, engineering and refrigeration sectors.

Managing director Greg Wall said: “We fell foul of a decision by the bank to terminate those contracts across the group.

“We fell foul of a decision by the bank to terminate those contracts across the group..." - Greg Wall, RHL

“In addition to the contract with the FTSE 100 client, we suffered from a number of falling contracts with oil and gas businesses.

“It certainly caused commercial frustration but we still have a good relationship with the bank.”

Mr Wall said profitability in 2016 is expected to be up 200% on last year.

Turnover is expected to reach £9 million once all its income from its major contract has disappeared.

The company took on six staff in December and is hiring more in the early part of this year. It employs more than 30 people.

In addition, its parent company HRGO, which has its head office in Ashford, is marking its 60th anniversary.

Mr Wall said: “From where our position was in 2015 to where we are this year is a major turnaround.

“This is an exciting period for us. We are pushing hard for continued growth and looking forward to the rest of 2017.”