Work Group plc (LSE - AIM: "WORK"), a London-based recruitment firm, reported its results for the year ending 31 December 2016 following the sale of its business and subsidiaries to Capita PLC in December 2015.

The company has been operating as a non-trading entity following the sale and, accordingly, full-year revenue was £8,000, down from £7.1 million the year previously. The group also saw its loss after tax narrow to £500,000 from £900,000 the year previously.

The group has been in talks to buy a business under a reverse takeover since August last year. In December, Work Group said it had entered into a memorandum of understanding over a potential acquisition in the business services sector, which would constitute a reverse takeover under AIM rules.

The company said it has entered into exclusive negotiations regarding a suitable acquisition in 2016 and, despite some unforeseen delays, is optimistic that the transaction will be announced shortly.

“The first half of 2016 was spent managing the legacy assets and liabilities of our UK subsidiary, and ensuring the businesses passed to Capita plc as contracted,” Simon Howard, Chairman of Work Group, said.

“As stated previously we believed that it was in the interests of shareholders to find a future for the group which would deliver the greater value to shareholders as opposed to liquidation,” Howard said. “Having reviewed a number of reverse takeover opportunities we entered into exclusive negotiations regarding a suitable acquisition in the Autumn of 2016, and despite some unforeseen delays, we are optimistic that the transaction will be announced shortly after publication of this Annual Report.

Shares in Work Group have been suspended since December pending publication of the acquisition details.