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UK recruitment firm Savile Group (SAVG: LSE) announced that it expects to incur a significant loss in the first quarter of the new year ending 30 September 2013, due to a downturn in business activity at its corporate transition business, Fairplace. The company is taking steps to reduce costs and raise additional funds.
Fairplace represents approximately 70% of group sales. Business was reported to be unusually quiet during July and August 2013, and the expected pick-up in September after the summer break was slower and delayed. As a result of which the group expects that it will incur a significant loss during these months.
The board will monitor the progress in Fairplace carefully in the coming months and they are taking immediate steps to align costs with lower activity levels and is exploring other steps to reduce costs. The reduction in sales and the losses incurred have had a commensurate adverse impact on the Group’s cash reserves. The board in also examining options to provide additional funding to the Group.
At the beginning of June 2013 it was announced that company Chairman, Helen Pitcher, would leave the board, effective from the 30 June 2013. The current company chairman is David Harrell.
In trading today the company’s share price dropped dramatically by -43.48% to £0.07. Based on its current share price, the company has a market value of £940,000.