Recruitment and training firm Penna Consulting has posted pre-tax profits of £1.8 million, turning around a loss of £4.2 million the previous year.
In preliminary results for the year to 31 March, the firm said that this turn around came despite reduction in revenues, from £80.2 million in 2011 to £68.5 million this year.
Penna said it had reduced its fixed cost based by £3.9 million, and improved its operating margins.
The group’s outsourcing division HR Consulting grew its revenue, from £26.1 million last year to £26.9 million in 2012. However, this was offset by a reduction in revenue from its recruitment arm, Recruitment Solutions, where revenue fell from £54.1 million to £41.6 million.
The group reported that full-year dividend will be 2 pence, down from 4 pence in the previous year.
In a statement, Penna’s chair Stephen Rowlinson said: “Penna's strategy is to have a highly flexible business model and to be able to respond quickly and adapt to changes in market conditions. This is not merely an aspiration. We have a proven track record and are proud of our ability to achieve a six-fold increase in profits while suffering a 15% drop in gross revenue.”