The profits of the HR division of software and outsourcing company Northgate have been boosted due to record number of new deals.

Six new contracts worth over £1m, including a shared services payroll deal, has led to profits reaching £35.5m, according to the company's annual report.

To add to this, Northgate also grew its profits through recent acquisitions. The company bought a controlling stake in international HR services group Arinso in May 2007.

Revenues for the year increased by 6% to351.7m, with post-tax profit up 18% to £25.1m.