Penna expects stronger H2 profits while revenues have fallen, according to its interim unaudited results for the six months ended 30 September 2010.

The group’s results reveal:

· revenue down 6.8% to £45.1m (2009: £48.4m)

· pre-tax profits before exceptional costs £0.1m (2009: £3.5m)

· cost reduction programme completed in first half will result in annualised savings of £4.6m at a cost of £0.95m

· loss before tax £0.8m (2009: profit £2.5m)

· cash at period end £3.6m (31 March 2010: £5.3m); no bank debt

Stephen Rowlinson, chairman, says: “We continue to anticipate stronger profit performance in the second half and consequently expect to deliver a full-year result in line with market expectations.

“We have restructured our cost base to align it with current levels of demand and a higher level of activity of outplacement and restructuring services is reflected in the trend of revenue and work in progress in the first weeks of the second half year.”