Outplacement and human resources services provider Penna Consulting reported flat interim profit.
Net revenues improved from £18.9m to £19.5m, while profit edged up from £813,000 to £827,000.
Recruitment solution moved into profit and this was offset by higher central costs. The interim dividend was unchanged at 1p a share.
The second half tends to be busier. There are signs of improving demand and large contracts have been won from banks. The recruitment solutions division should remain in profit in the second half, compared to a £500,000 loss in the previous second half. Cost cutting will help to improve overall profit.
House broker Charles Stanley expects full year profit to improve from £1.8m to £2.4m on flat revenues in 2012-13, and a further improvement to £3.2m in 2013-14. Net cash should improve to £2.8m at the end of March 2013. Charles Stanley reckons that net cash could be £7.2m at the end of March 2015.
At 70p a share, Penna is valued at £18.2m. The shares are trading on 10 times prospective 2012-13 earnings.
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