Headhunter axes jobs
THE owner of Manchester headhunter Armstrong Craven today revealed it is axing staff as it issued a profits warning.
The news sent shares in Work Group into freefall, down 61% or 12p to 7.5p in early trading.
Work Group said since reporting its results in September business, particularly at Armstrong Craven, had continued to weaken.
The company’s net fee income over the third quarter was down 11% on the same period last year and trading is expected to slow further over the final quarter. It said that pre-tax profits for the year ending December 31, 2008 will be materially below current market expectations.
To reduce costs the group said it is axing further jobs before the end of the year. It expects these actions to achieve annualised cost savings of approximately £1m.
Armstrong Craven was founded by managing director Sue Craven with a £1,200 loan from her father. In 2005, 15 years after it began life in a hut, it was sold to Work Group in a deal believed to be worth £6.5m.
On a brighter note Work Group added: “Despite volatile and challenging markets, the company continues to win projects and clients.
“It is financially sound and the board remains confident that the company can gain market share and be well positioned for when conditions improve.”
