Servoca's annual profits and revenues rise

29th Jan 2014 09:30

Outsourcing and recruitment firm Servoca reported a rise in annual profits, driven by strong revenue growth in the Education recruitment business. Pre-tax profit came to £0.81m in the year through September 2013, up from £0.21m in 2012.Group revenue rose to £43.06m from £42.48m the prior year as the Education division benefitted from investments made in internal capabilities and improved trading conditions. Operating profits improved in Healthcare related businesses, reflecting efforts towards the end of the previous financial year to reduce overheads. The Police and Security related businesses also delivered increases in revenues and gross profits over prior year.Total group operating profit for the year was £0.88m, compared to £0.27m in 2012, and gross profit jumped to £12.26m from £11.98m.Net debt decreased from £3.27m at the end of September 2012 to £3.07m at the end of September 2013. Cash generated from operations in the year was £0.68m, up from £0.07m a year earlier."We are very pleased to have returned to growth after a challenging period," said Chief Executive Andy Church. "We now have a solid cash generative and profitable platform from which to drive the business forward, both organically and through suitable acquisitions."Shares fell 9.09% to 7.50p at 10:06 on Wednesday.RD