Savile Group forecasts 'significant loss' in half-yearly results; shares fall

Shares in AIM-listed human resources consulting group Savile fell sharply as the group reported a difficult trading period in the six months to December 31st.

The group stated that it had experienced "difficult trading conditions" in the first half of 2012, with like-for-like income, excluding its acquisition of CMC, approximately 20% below the corresponding period in 2011.

The group stated that demand in the first quarter had been particularly slow due to the effect of the Olympics.

This continued into the second quarter, with customers delaying committing to projects. In addition, the group stated that reorganisation costs had added to the loss.

Accordingly, the board stated that it expected to report a "significant loss" for the six months ending December 31st.

The group stated that the poor trading and losses incurred in the six month period to December 31st had impacted the group's cash at bank.

Optimistic outlook for 2013In spite of a difficult period in 2012, the board stated that the new year had begun on a "more posuitive note" adding that the directors expected improved performance in the second half of the year to June 30th, compared to the first half.

Savile Group's share price was down 11.11% to 8.0p at 09:39 on Tuesday morning.

MF