Revenues have dropped at public sector resourcing and outsourced services provider Servoca, according to an interim report for the six months ended 31 March 2010.

The report reveals:

• Revenue down 14.8% to £25.6m (March 2009 £30.1m, including £2.28m from closed businesses)
• profit before tax (excluding share based payments and amortisation) up 10.5% to £0.95m (March 2009 £0.86m). Profit before tax of £0.71m (March 2009 £0.86m)
• administrative expenses down 20.2% (excluding share based payments and amortisation) to £5.92m (March 2009 £7.42m)
• net debt reduced to £1.90m (March 2009 £2.50m)

The interim report adds: “Despite a positive first half performance, it is increasingly clear that uncertainty regarding public sector spending and in particular a reduction on historically high levels of permanent recruitment fees in education, will mean that it is unlikely the group will deliver against its full year expectation.

“Despite the uncertainty surrounding public sector spending the board believes the key markets of healthcare and education still hold relatively resilient long term prospects and we also continue to pursue our activities in the private sector.”