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UK – Work Group posts loss amid buyout approaches

03 December 2012

UK-based staffing specialist Work Group (WORK:LSE) expects both full-year revenue and profits to be below current market expectations due to the “recruitment services market being generally challenging.”

The firm reported on Monday that it is experiencing a slow final quarter and therefore anticipates making a small loss for the year.

It also mentioned the possibility of selling all or parts of the Group.

“The Board has previously received approaches from third parties who were interested in either individual parts of the business or the business as a whole but no agreement was reached with any of these parties,” Wise Group said in a brief trading update.

“In light of the expected results and the challenging economic environment the board continues to consider all viable strategic opportunities to maximise value for shareholders.”

In September, the company reported that revenue in the first six months of the year dropped by -9% to £9.4 million from £10.3 million a year ago. Gross profit was also down -4% to £6.2 million, but the gross margin increased to 65.7% from 62.2%.

Work Group operates through two main businesses, Armstrong Craven (executive search) and Work Communications (recruitment in the sub-£80k salary bracket), operating in the UK, US and Asia.


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