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UK recruiter Savile Group (SAVG:LSE) today announced that revenue increased by +6% to £3.8 million in the six months to December 2012, but the firm made losses and reported tough market conditions.
Savile acquired Career Management Consultants Limited (CMC) last May. Since then the firm has reviewed all areas of the CMC, Fairplace and Cedar businesses which merged their brands and led to increased reorganisation costs.
In the six months to December, the company made a total loss of £790,000, compared to a loss of 952,000 at the same time last year. It encountered reorganisation costs of around £351,000, mainly related to a work programme to fully integrate the operations of CMC and improve efficiency.
The six-month period has “been extremely challenging for the Group,” said Chairman David Harrel. “As noted in our recent trading update, like for like income, excluding the CMC acquisition was around 20% below the same period in 2011 (6% above last year including CMC).” He said that demand had been low in the six months as customers delayed committing to projects.
“The poor trading and losses incurred in the 6 month period to 31 December 2012 has impacted the Group's cash at bank,” said Mr Harrel.
“2013 has started on a more positive note and if this continues it will result in an improved performance in the second half of the year to 30 June 2013 compared to the first half. The trading environment remains challenging but we believe the restructured Group is taking steps to meet these challenges.”
In early trading, the company’s share price remained flat at 7.75 pence. Savile operates two main business segments, career transition services and talent management. Based on its stock price, the firm has a market value of £1.12 million.