Outsourcing and recruitment solutions provider Servoca has seen revenues fall as “uncertainty and pressures” have taken their toll on the public sector, according to the group’s preliminary announcement of results for the year ended 30 September 2010.

The results reveal:

• Revenue £50.2m (2009: £57.6m, including £2.5m from closed businesses)
• Gross profit £14m (2009: £16.8m)
• Profit before taxation (excluding amortisation and share based payment charges) £2m (2009: 2.2 m)
• Profit after tax £1.99m (2009: £2.03m)
• Net debt reduced from £3.4m at September 2009 to £3m at September 2010
• Cash generated from operations in the year was £2.4m (2009: £3.2m)

The statement says: “As cautioned in our interim statement for the six months ended 31 March 2010, the uncertainty and pressures regarding public sector spending have continued to impact on the business in the second half.

“At the half year we reported a reduction in revenue from our education recruitment activities and this has become a full-year reduction of over £5m. The second half has also seen deterioration in trading conditions in our healthcare recruitment businesses though the impact has been felt more in some areas than others.

“A brighter note has been struck in the corporate security company within our security operations, where we have seen an improved trading environment in a business largely focused on the private sector.

“Action taken towards the end of last year ensured the security business entered the year positioned for improved profitability. We have also achieved growth in our Domiciliary Care business which bodes well for further development.

“In light of the challenging trading conditions in our public sector recruitment activities we have continued to drive down the group’s overheads, which have reduced by £2.5m compared to the previous year.”