THE ARGYLL CONSULTANCIES PLC
August 12, 2008
Argyll reports its results for the year ended
March 31, 2008
The Argyll Consultancies PLC today announced its financial results for the year ended March 31, 2008. Turnover declined by 28% on the previous year to £2.3m (2007: £3.2m). There was an operating loss for the period, pre-exceptional items, of £271k. The exceptional cost of writing off the remainder of the lease on former offices in Crowthorne increased the operating loss by a further £104k to £375k (2007: profit £172k). Cost-saving measures helped to minimise the operating loss, pre-exceptional items, in the second half, reducing it from £192k in H1 to £79k in H2. The business showed a return to profit in the last quarter of 07/08 as revenue from new clients augmented the impact of the cost savings.
Balance sheet
In order to improve efficiency the Company replaced its servers and PCs at the beginning of the financial year, the cost of which was met by a finance lease. The Company’s remaining motor vehicles were disposed of during the year.
Financial year 08/09
The operating profit that was generated in Q4 of 07/08 has been maintained and improved upon in Q1 of 08/09 as a result of a targeted new business drive and tight control of costs. In particular, staff costs have been reduced from April 2008 as a result of recent board changes. Although it is an increasingly tough economic climate, the directors’ focus is to deliver sustained profit in the current and future years.
Dividend
In light of the disappointing trading result in 07/08 the Board is not recommending the payment of a dividend.
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