30th Sep 2014 11:13
LONDON (Alliance News) - Consulting business Work Group PLC Tuesday said progress by its UK arm has been slower than expected, despite narrowing its losses in the first-half.
The company, which pledges to help recruiters cut costs by helping find new staff online or through social media rather than advertising in traditional media or using agencies, posted a pretax loss of GBP132,000 for the six months to June 30, compared with a GBP526,000 loss a year earlier, even though revenue fell to GBP4.0 million from GBP5.7 million.
AIM-listed Work Group said that while it was encouraged by its progress, the turnaround in the UK has been slower than expected and its results reflect this.
Last year, the company made the decision to move away from low-margin communications work and focus on higher margin work, particularly in the UK.
Nevertheless, US revenue grew almost 60% to GBP493,000 compared with GBP366,000 a year earlier. Furthermore, both the US and Hong Kong returned to profitability with a combined operating profit of GBP109,000 compared with a GBP191,000 loss in the previous year.
Over the past three months, Work Group has reorganised the company to create a UK trading subsidiary, appointed a UK managing director and created a partnership in order to enter the lucrative temporary recruitment market.
"We remain committed to returning all regions to profitability and to explore all avenues for the maximisation of shareholder returns," Chairman Simon Howard said in a statement.
Work Group shares were untraded Tuesday afternoon, quoted at 5.15 pence per share.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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