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View All NewsUK – Recruitment revenue up by a third at Servoca
Specialist recruitment and outsourcing firm Servoca (SVCA: LSE) reported revenue for the six months ending 31 March 2015 of £28.1 million, an increase of 25.6% compared with £22.4 million during the same period last year.
| H1 2015 | H1 2014 | Change | |
| Revenue | £28.1 million | £22.4 million | +25.6% |
| Gross Profit | £7.8 million | £6.3 million | +24.8% |
| Operating Profit | £997,000 | £375,000 | +165.9% |
Andy Church, CEO of Servoca, commented: “The Group has experienced a great start to the year with results significantly ahead of the same period last year. Strong sales growth has helped to increase pre-tax profits by over 150% and the business is well positioned for continued progress.”
“Our Education and Healthcare recruitment operations have performed exceptionally well and carry good momentum into the second half of the year. Trading conditions across these key markets continue to remain positive and full-year profitability is once again expected to significantly benefit from the pivotal September period for our Education business,” he added.
The Group is also benefitting from an improved management focus on those areas the Board believes hold the greatest growth potential. The Group sold its Doctors recruitment business to existing management during November and made a small bolt-on acquisition of an Education recruitment business towards the end of February. Neither transaction was material but the Board believes profitability will continue to benefit from this focus.
The company operates two primary business segments: Outsourcing, which is subdivided into Domiciliary Care and Security; and Recruitment, which is subdivided into Education, Healthcare, and Police.
Revenue for the period was broken down as follows:
| H1 2015 | H1 2014 | Change | |
| Recruitment | £20.5 million | £15.3 million | +33.4% |
| Outsourcing | £7.7 million | £7.1 million | +8.5% |
Looking forward, the company stated: “Our Education and Healthcare recruitment businesses have enjoyed a great start to the year and carry strong momentum into the second half. As ever, full-year profitability is expected to significantly benefit from the pivotal September period for our Education businesses.”
In trading today, the company’s share price fell by 3.3% to £0.22, an increase of 66% compared with a year ago. Based on its current share price, the company has a market value of £29.4 million.