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UK – Work Group sees gross profit drop in “challenging” market

18 July 2012

Ahead of its close period, the British staffing firm Work Group (WORK:LSE) announced today that gross profit in the first half of the year dropped by -4% to £6.2 million due to “challenging” market conditions.

In a message sent to shareholders this morning, the firm said that “the market generally for recruitment services has been challenging, with the Group experiencing a slow first quarter in particular. Despite this, the Group made a small operating profit for the period and remains debt-free with net cash in excess of £0.5 million.”

This follows news from earlier this week when the UK staffing firm SThree also reported of difficult trading conditions in the first half of the year although it boosted gross profit by +11% to £99.9 million.

Last year Work Group saw revenue drop by -5% to £21.7 million from £22.8 million in 2010 although gross profit was up by +5% to £13.1 million. The Group will announce its full results for the period on 18 September 2012. Work Group specialises in recruitment services, talent management and communication services.

The stock market responded negatively to the news this morning with the share price hitting a new low of 9.75 pence in early trading, seeing a decline of -41.30% from a year ago. This means the firm is valued at £3.70 million. 

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