Profit slump at Skillsgroup

Profit fell at Skillsgroup last year as customers cut back on training and services in the run-up to the millennium.

Profit fell at Skillsgroup last year as customers cut back on training and services in the run-up to the millennium.

The VAR posted pre-tax profit down from £14.4m to £11.4m for the year ended 30 November as clients postponed large IT projects and businesses, particularly in the finance and IT services sectors, cut back on spending.

Turnover fell from £208.4m to £198.7m.

Trading suffered mixed fortunes across Skillsgroup's three separately branded divisions. QA Group, the training and staffing unit, turning in sales of £104.9m, Pontis Consulting posted turnover of £13.3m, while turnover for enterprise solutions arm Acuma jumped from £62.6m to £80.5m on the back of strong hardware sales in the first half of the year.

Skillsgroup made four acquisitions during the year which cost £81.7m.

David Southworth, executive chairman of Skillsgroup, said: "Following restructuring and integration in 1999, our businesses are very strongly positioned to exploit growth opportunities."

Skillsgroup will invest between £8m and £10m in its Internet plan in the next year, he added.