Outplacement services provider Penna Consulting is trying to make its business less cyclical.
Revenues fell from £80.2m to £68.5m in the year to March 2012 but there was a more than quadrupled underlying profit of £1.8m. The cost base has been reduced.
Net cash was £2.18m at the end of March 2012. The final dividend is unchanged at 1p a share, although the total for the year was halved at 2p a share.
Penna is developing a recruitment business to balance the cyclicality of the outplacement business. The new recruitment business cut its loss but demand is expected to remain subdued.
House broker Charles Stanley forecasts flat revenues for the year to March 2013, but the profit is expected to improve to £2.4m. That is slightly lower than the previous forecast. Net cash should improve to £3.8m.
At 76p a share, Penna is valued at £19.7m. The shares are trading on 11 times 2012-13 prospective earnings.
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