Work Group plc announces maiden Interim Results

Work Group plc, the UK recruitment services provider, announces its Interim Results for the six months ended 30 June 2006.

Headlines

Financial

- Gross profit up to 6.5m (2005: 4.0m)
- Operating profit before goodwill amortisation (EBITA) up to 1.1m (2005: 0.5m)
- Operating profit up to 0.9m (2005: 0.4m)
- Profit before tax up to 0.8m (2005: 0.3m)
- Diluted EPS up to 2.1p (2005: 1.2p)
- Strong cash flow with cash at period end of 1.1m

Business

- Strong profit contribution from Armstrong Craven, acquired in October 2005
- Operating profit increases in all three divisions
- Continuing successful migration of Adcomms income from advertising to fee-based services
- Successful flotation on AIM in March 2006
- Increasing joint-selling across the Group

Simon Howard, Chairman, said:

ìThis is our first report since admission to AIM in March 2006 and we are delighted that the Group continues to make real progress.

ìDuring the first half of the current year we have maintained positive growth, both in gross profit and margins, across all three operating divisions. Last yearís acquisition of Armstrong Craven has proved a particular success and has materially strengthened our ëdirect resourcingí positioning within the recruitment services market. In the Work Adcomms and Managed Resourcing businesses the positive trend away from lower margin media-based income has continued, with a 32% rise in fee-based activities over the same period last year.

ìWe continue to see pleasing trends in our current trading and are confident of our ability to meet expectations for the full year.î