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Savile Group (SAVG:LSE), the AIM quoted Human Resources consulting group, specialising in outplacement, career transition and talent management today announce that the group expects a pre-tax profit at the lower end of market expectations for the year ended 30 June 2010. Whilst the benefits of the board's review of costs undertaken in the year had an impact on the financial year just ended, the group does not anticipate that the full effect of these changes will be reflected in the current financial year, which they enter with a significantly reduced cost base.
Savile trades under the brands Cedar Talent Management, Fairplace, IDDAS and Ashbourne.
Although the trading environment for the group's services remains challenging, the group commences its new financial year with a balance sheet, in excess of 3.5 million Pounds in cash (equivalent to 24 pence per share), and is positioned to provide its range of services to both the public and private sectors.
Not surprisingly, given downsizing in the Public Sector, the board is looking to invest there as evidenced by the recent appointment of David Bolger as Head of Public Sector. Savile Group is also sponsoring a session introduced by Sir Gus O'Donnell, Head of the Civil Service, at this week's Civil Service Live conference, on 'Downsizing in the Public Sector'.
Given the opportunities for the group, and its realigned cost base, the board expects a continued improvement in performance for the year to 30th June 2011. The board intends to continue its policy of paying dividends to shareholders which reflect the trading performance of the group and proposes to cancel the treasury shares currently held and to seek authority at the next AGM to purchase up to a further 10% of shares in issue.
The group's preliminary results will be released in September 2010.
In early trading Savile's shares were down by -2.94% to 33 Pence.