WORK.L Share News (WORK)

LONDON (Alliance News) - Work Group PLC Friday said it narrowed its losses in the full-year, despite a drop in revenue after a loss of some important clients.

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 pretax loss of GBP1.2 million compared with losses of GBP5.4 million, even though revenue dipped to GBP10.4 million from GBP14.3 million a year earlier.

During the period the company sold its Work Business Units and Armstrong Craven which were both in markets which it said had been changing over the years and been diverging. Workspace said there was "little synergy to be exploited between the two businesses."

The UK operations of the Work Business Units lost three of its top five clients during the first size months of 2013. All three were the subject of contractual reviews following relationships spanning several years and in only one case were we in a position to re-tender.

"This is a reflection of the changing client market, both in the fact that they were not high margin clients, and that there was no opportunity to replace at a similar expenditure level," Work Group said.

The firm said these problems contributed to the fall in revenue.

Headcount across the group decreased by 36% to 89 from 139. This net reduction was mainly a direct result of the disposal of the Armstrong Craven segment. Net fee income declined to GBP8.1 million from GBP11.6 million.

Looking ahead the firm said it is "now concentrating on the continuing opportunity we see to help employers take greater control of their resourcing activities, through a blended offering of our principal digitally-based communications offerings and recruitment process outsourcing services."

"2014 will be a year of consolidating these activities and we have seen good progress thus far in 2014," Executive Chairman Simon Howard said in a statement.

The stock was trading at 9.20 pence Friday, up 0.70 pence or 8.2%.

By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews

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