Since the end of H1, the flexibility achieved in staff costs has been mirrored in property costs. In early November, Argyll moved from its Oxford Street office to managed offices off Chancery Lane that are much more in keeping with the company's Smart, Inspiring and Successful tagline.
Rosemary Brook, Chairman of Argyll, said: "The results for the first half confirm that the decision taken last year to restructure the business has improved the performance of Argyll. Our focus is now on sustaining profitability and attracting a wider client base of blue chip companies by innovating our services. The strength of our senior team and the move to our new offices will both play a part in this".
The Board is not recommending the payment of an interim dividend.
ARGYLL REPORTS ITS RESULTS FOR THE FIRST HALF ENDED 30th SEPTEMBER 2006
The Argyll Consultancies PLC today announced its unaudited financial results for the half year ended September 30, 2006. Income at GBP1.59m increased by 1.3% over the figure for the previous 6 months, but declined by 2.3% over the same period in the previous year, producing a profit before tax of GBP90k. This compares to a loss before tax of GBP273k in H1 of 05/06 and a loss of GBP38k in H2 of 05/06.
With income remaining steady between H2 05/06 and H1 06/07, the improvement in H1 06/07's profit performance resulted from the strict cost control. In particular, the largest category of expenditure, staff costs, as a percentage of revenue, reduced from 67% in H2 05/06 to 61% in H1 06/07 (the average for 05/06 was 69%).
In addition, greater flexibility in staff costs was achieved through the use of contract staff when appropriate, particularly for project work.
The reorganisation of Kaizo's client base into three focused divisions was underpinned by the recruitment of Cheryl Burnett to head up the Corporate practice. In addition, Rachel Taylor was promoted to Associate Director in the Consumer practice and Richard Cook was promoted to Senior Account Director in the Tech/B-to-B practice. Kaizo is also seeking to recruit a new MD.