THE ARGYLL CONSULTANCIES PLC
December 21, 2007
Argyll reports its results for the first half ended September 30, 2007
The Argyll Consultancies PLC today announced its unaudited financial results for the half year ended September 30, 2007. Income at £1.19m (2006: £1.59m) decreased by 25.1% over the same period in the previous year, producing a loss before tax of £192k (2006: profit £90k).
As signalled in August 2007, high employee churn in the second half of 06/07, which continued in H1 of 07/08, resulted in the loss of some clients and a significant increase in recruitment and employment costs. At that time the Board announced that they were forecasting a loss for the first half of 07/08. Expenditure on marketing and business development has increased as the Directors have attempted to rebuild income. The Directors have also made cost savings in an attempt to minimise the loss.
The Directors have continued to take steps to reduce costs further in line with reduced revenue. The Company is not budgeted to return to profit until the financial year 08/09.
In the light of current trading conditions the Board is not recommending the payment of an interim dividend.
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