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UK-based international human resources consulting firm, Penna Consulting (PNA: AIM), reported revenue for the six months ending 30 September 2013 of £31.9 million, a slight drop of -2.8% from £32.8 million last year.
The company reported an operating profit for the six months of £1.08 million, an increase of +5.9% from £1.02 million in 2012. Net income for the period rose by +47.2% to £864,000 from £587,000, year-on-year.
Stephen Rowlinson, Chairman of Penna, commented: “I am pleased to say that our first half results demonstrate that Penna’s earnings are growing steadily. Following the usual seasonal pattern profits for the period are modest but show substantial gains on the same period of last year. Prior year’s figures include losses from our Swedish operation, which was closed at a later date.”
“Revenue overall was stable. Growth from Recruitment was offset by a reduction from Career Transition, which was as expected given the improved economic outlook. The most important trend to emerge from these results is the continuing progress of Recruitment Solutions. This part of Penna's business broke even in H1 2011/12, produced an operating profit of £100,000 in H1 2012/13 and has now delivered an operating profit of £600,000 in the first half of 2013/14. The current level of profit is, of course, a fraction of what can potentially be achieved in the long term within a UK market for recruitment services of over £2 billion. However, the Penna recruitment services team has proved its ability to produce profitable growth even in an exceptionally challenging environment,” he concluded.
Penna’s HR Consulting segment reported net revenue for the six months of £10.4 million, a fall of -16% from £12.4 million in 2012. The company’s Recruitment Solutions division also reported a year-on-year fall in net revenue, dropping by -4.2% to £6.9 million from £7.2 million last year.
Looking forward, Mr Rowlinson added: “The UK economy is now growing and we are seeing benefits from this and from a series of important client contract renewals and new client wins. We intend and expect all of our service lines to capitalise on this improving economic outlook to expand both by organic growth and by carefully planned acquisitions.”
Penna Consulting announced today that it will acquire UK-based recruitment firm Savile Group. For full details of the acquisition, please click here.
In trading today, the company’s share price, remained unmoved at £0.90, an increase of +31.7% compared with a year ago. Based on its share price, the company has a current market value of £23.17 million.