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UK recruiter and outsourcing specialist Servoca (LON:SVCA) said trading remained “challenging” as revenue fell -11% to £42.5 million in the year ended 30 September 2012, the company reported on Thursday.
Gross profit in the year dropped by -10% to £12.0 million. Profit after tax plummeted -94% to £0.1 million, compared to £1.7 million a year earlier.
The firm operates in the healthcare and education recruitment market where it has come under pressure.
“Trading conditions have been most challenging in our healthcare-related activities which saw revenues fall by over £6 million due to a severe cut back in NHS spending,” said Servoca. Healthcare revenues were down by -26% year-on-year and gross profits dropped by -31%. The company has cut back on overheads to drive profitability.
Although the education staffing market is showing signs of improvement, revenues fell -7% in the full year. Gross profit was down -4%. Servoca expects business in the education market to pick up in the coming year.
Servoca is ranked among the 60-largest staffing firms in the UK, according to research by Staffing Industry Analysts.