HR consulting group Savile Group says it expects pre-tax profit to be at the “lower end” of market expectations, in a trading statement for the year ended 30 June 2010.

The statement adds: “Although the trading environment for the group’s services remains challenging, the group commences its new financial year with a strong balance sheet - in excess of £3.5m in cash (equivalent to 24p per share) - and is well positioned to provide its range of services to both the public and private sectors.

“Given the opportunities for the group, and its realigned cost base, the board expects a continued improvement in performance for the year to 30 June 2011. The board intends to continue its policy of paying dividends to shareholders which reflect the trading performance of the group and proposes to cancel the treasury shares currently held and to seek authority at the next AGM to purchase up to a further 10% of shares in issue.”

Savile Group’s preliminary results will be released in September.