Computer People Group Plc, the London W2-based consultancy and recruitment company, has suffered another challenging period during the six months to June 30, as pre-tax profits plummeted 69% to UKP669,000 on revenues off 11% at UKP35m. The UK’s revenue contribution was 57% of the total in the first half, down from 62% for the same period last time, as consultancy business declined by 14% and recruitment revenues fell 51%. In the US, turnover grew by 10%, though profits were down significantly due to increased overheads. To dress for recession, Computer People has reorganised its management structure and cut staff levels – in the UK, 90 jobs have been shed over the last year, representing 36% of the workforce; in the US, staff levels fell by 6% to 95. By the end of the current year, reports chairman Rupert Bayfield, overheads will have been reduced by over UKP3m; next year these are targeted to be cut by a further UKP1m, though this isn’t expected to involve more redundancies. Net gearing was cut to 34% from 45% at year end, and net debts were down to UKP1.7m. Not discouraged by the interim figures, Bayfield is confident that Computer People is well-placed to benefit when the UK and US consultancy markets start to pick up.
