Our Results >
Pinnacle Staffing Group plc ("Pinnacle"), the specialist temporary healthcare recruitment group announces its interim results for the six months ended 6 July 2008.
| Unaudited 6 months ended 6 July 2008 £000's |
Unaudited 6 months ended 30 June 2007 £000's |
Audited 53 weeks ended 6 January 2008 £000's |
|
|---|---|---|---|
| Turnover | 19,907 | 22,077 | 43,466 |
| Gross profit | 3,725 | 4,192 | 8,167 |
| EBITDA* before exceptional items | 101 | 192 | 264 |
| Operating (Loss)+ | (6,118) | (133) | (461) |
| Basic (loss)per share (pence) | (7.14) | (0.25) | (0.80) |
+ Includes amortisation and impairment of goodwill and other intangible assets of £6,072k
Operating highlights
- EBITDA* of £101k is in line with the Board's expectations
- Demand remains strong and is still exceeding our ability to supply
- New computer network infrastructure and hosted application project successfully completed in Q2 2008
- Cashflow remains positive with closing net borrowings at the period end amounting to £1.89m (2007: £1.91m)
Commenting on the results, Tom Charlton, Executive Chairman said:
"As stated in the update on trading issued on 25 July 2008, the limited availability of temporary staff due to erosion of the historical pay rate differentials in the NHS between temporary and permanent posts, arising from the NHS Framework Agreements has meant that demand has exceeded our ability to supply. Further, it was expected that NHS Trusts would look to work more closely with the Framework agencies to reduce the proportion of shifts filled by higher cost non-Framework suppliers. Progress has been slower than the Board anticipated and in consequence, although first half performance has met the Board's expectations, we are now unlikely to see any substantial improvement until 2009.
Our focus, following the recently announced changes to the Board, is now on delivering the Group's strategy more effectively. Action is being taken to tackle the underperforming parts of the business and reduce central overhead costs. The British Nursing Association ("BNA") is the most important part of our business, yet has suffered from a lack of investment in its branch infrastructure. In addition, the Medical Services division has seen a significant volume drop following the announced withdrawal from a major contract. The Board is now addressing these issues as part of a wide ranging programme of measures to revitalise the business."