Servoca confident after posting £2m profits

Tue, 26 Jan 2010

Education, healthcare and security recruiter Servoca made profits of £2m after tax for the year ending 30 September 2009.

This compares with a loss of £7.2m in 2008.

The group recorded that:

- Group revenues grew 37.1% to £57.6m (2008: £42m)

- Gross profit up by 32.3% to £16.8m (2008: £12.7m)

- Net debt reduced from £7.5m in 2008 to £3.4m in 2009

- Cash generated from operations £3.3m (2008: cash utilised £2.2m)

In its announcement to the Stock Exchange, the company says:

“For the year ended 30 September 2009, Servoca is pleased to report its maiden set of full-year profits.

“As reported in our Interim Statement for the six months ended 31 March 2009 the business implemented a major restructuring and cost reduction exercise in the first half of the year. This involved the appointment of a new group chief executive, the exit from poorly performing businesses and a reduction in overhead expenditure. 

“The focus on improved operational management and profit maximisation from existing businesses has delivered strong organic growth and is reflected across all areas of the group’s financial performance, with the results for the year ended 30 September 2009 being comfortably ahead of expectations.”

In January 2009 Windsor Recruitment & Training was put into administration due to poor trading conditions, and in February 2009 Salus Recruitment was also put into administration.

In November 2008 Andrew Church was appointed as chief executive, taking over from Darren Browne, who resigned.

The company says it holds “attractive market positions in resilient sectors and that the focus will be on further developing the potential within the group”, including possible acquisitions.

Owing to its diversified range of services, and exposure to a number of different markets, the company says it is “confident of the year ahead”.