16 April 2019 – final results
The staffing group has announced its results for the year to 31 December 2018 and these have revealed a 2.7% increase in revenues to £86.1m although adjusted pre-tax profits declined by 48.7% to £0.85m. The fall in profit was largely due to the non-renewal of a large consultancy contract. Despite this net debt has fallen to £1.1m (2017: £1.6m). Earnings per share fell to 0.41p (2017: 2.15p) due to the decline in profitability and the benefit of a deferred tax credit in 2017 and no dividend is proposed. Although the results are disappointing, there have been changes to the senior management team and a change in strategy with a restructuring of the Consultancy Services business. We continue to believe that these actions will bear fruit and we continue to rate the shares as a BUY.