11 Nov 2008 07:00
Work Group plc
Trading update
Work Group plc ("Work Group" or the "Company") is today issuing an update on trading for the year ending 31 December 2008.
At the time of its interim results, on 22 September 2008, the Company reported that "the trading environment for many of our clients has become less certain and we are also currently experiencing slower project flow and sign-off as well as project deferrals".
Since that time the Company's markets have continued to weaken, particularly at Armstrong Craven where a large part of the business is assignment led. The Company's net fee income (gross profit) over its third quarter was down 11 per cent. on the same period last year and, with trading expected to slow further over the final quarter, the Board now anticipates that pre tax profits (before one-off costs) for the year ending 31 December 2008 will be materially below current market expectations.
The Board are taking steps to reduce costs; in particular headcount has been reduced and will reduce further before the year end. The Board expect these actions to achieve annualised cost savings of approximately £1m, with the associated one-off costs being charged in the current year.
Despite volatile and challenging markets, the Company continues to win projects and clients. The Company is financially sound and the Board remains confident that the Company can gain market share and be well positioned for when conditions improve.
www.workgroup.plc.uk
Further enquiries:
| Work Group Simon Howard, Executive Chairman Michael Warren, Finance Director | Tel: +44 (0)20 7492 0000 |
| Altium Tim Richardson Sam Fuller | Tel: +44 (0)20 7484 4040 |
About Work Group
Work Group is a marketing services company which offers a range of solutions which enable employers to win the war for talent. It focuses on providing services in "talent acquisition and talent development" which enable employers to more effectively recruit and retain key staff.
Work Group's approach is to help employers reduce their traditional reliance on third-party recruiters such as head-hunters and recruitment firms through helping them establish and maintain a direct relationship between employer and prospective employee. It also helps employers reduce attrition costs through better employee engagement and retention of key talent.
Work Group currently operates through two divisions; Communications and Talent Management, providing services from its six locations in the UK and offices in New York and Hong Kong.