Penna Consulting has seen a healthy return to profit, combined with an increase in turnover after its financial struggles last year.

The six months to 30 September 2005 saw a rise in turnover of 8% to £22m, compared with the corresponding period last year.

Penna hopes that its recent profit announcement will also signal a change in fortunes. The firm recorded a profit of £1.18m before tax, compared with a £37,000 loss for the same period in 2004.

Cost savings of an estimated £3.6m have played a key part in Penna’s recovery. Ten smaller offices have been decommissioned, while total headcount has been reduced by 35 since December 2004.

However, it is not all good news for shareholders. Though the company has returned to profit, net debt has increased to £6m.

As a result, the board is not recommending an interim dividend for the second year running. It expects to reinstate the dividend only when the level of debt has

been reduced.

“The company has returned to profit and has made good progress in implementing its new operating structure,” said Penna chairman Stephen Rowlinson (pitured).

“We are looking forward to a satisfactory outcome for the year as a whole.”

Approximately 5% of the group’s turnover comes from Penna’s European offices in Dublin, Paris, Stockholm, Madrid and Munich.