Consultancy and recruitment company Computer People Group Plc has announced increased revenues and profits for the first six months of the year, but chairman Rupert Bayfield saw fit to warn that the worsening economic climate in the UK and US will mean that this growth will be temporarily nipped in the bud in the second half of the year – possibly as a result of this warning, Computer People shares dropped 16 pence from the weekend close of 251 pence. Bayfield was quick to affirm, however, that longer term prospects remained excellent. London WC2-based Computer People incurred an extraordinary charge of UKP636,000 related to the closure of the New York bureau service previously owned by 1988 acquisition Sterling Software. The closure follows the departure of the one client the facility was originally set up to serve. As a whole, US revenues rose a healthy 32%, indicating that the acquisitions of the last two years are on their way to being fully digested. Computer People had revealed at last year’s results (CI No 1,393) that margins in the consultancy business that makes up over 90% of revenues had been eroded – Bayfield can now take heart that they have been restored to their previous level, mainly thanks to reduced overheads.
