Work Group concerned about demand

AIM-quoted recruitment services provider Work Group has expressed concern about overall recruitment demand and says it expects the market to remain uncertain for the remainder of the current year. Half-year losses narrowed after a reduction in the cost of sales with pre-tax losses of £0.08m, versus a loss of £0.14m in the first half of 2010. Revenue fell from £11.3m to £10.3m, while net fee income edged up to £6.43m from £6.01m the year before. The group's Work Communications business achieved a 2% increase in net fee income while the Armstrong Craven (Search & Intelligence services) increased net fee income by 17%.The company said: "Despite our concerns, with costs having been reduced within the Work Communications business in the UK and better pipelines for the two businesses as a result of increased sales efforts, we believe the second half of 2011 should positively reflect the impact of these changes."Net cash was down from £1.1m to £0.6m. During the period the group purchased 673,335 of its own shares for £108,000. "Business conditions continued to be very uncertain during the period, and the group achieved an adjusted break-even position before taxation with net cash of £0.6m at the period end," the company added. The shares were unchanged on the results.NR