Servoca’s first-half year profits have been ahead of management expectations, according to the interim report from the specialist outsourcing and recruitment solutions provider for the six months ended 31 March 2011.

The group’s results reveal:

• Revenue £25.23m (March 2010 £25.64m)
• Gross profit £6.85m (March 2010 £6.92m)
• Profit before tax (excluding share based payments and amortisation) £0.80m (March 2010 £0.95m)
• Outsourcing revenues up 93% to £8.03m (March 2010 £4.16m)
• Recruitment revenues down 20% to £17.20m (March 2010 £21.49m)
• Administrative expenses before share based payments and amortisation £5.99m (March 2010 £5.92m)
• Net debt £2.58m (March 2010 £1.90m, September 2010 £2.96m)

The statement says: “First half profitability is ahead of management expectations though the group believes the full-year outturn is more likely to be broadly in line with market expectations.

“As ever, the final month of the financial year is critical to the Group’s performance with the key month of September pivotal to our education recruitment profits. The pressures on permanent recruitment fees and longer-term temporary assignments mean we must exercise a note of caution given the inherent uncertainty present in this market.

“In the majority of our other recruitment activities performance is expected to keep pace with full year expectations.”