Troubled IT staff agency (ITSA) and would-be location intelligence software provider Triad has had another tough year. Cuts in public sector spending contributed to a 14% decline in revenue for the year to 31 March to £23.3m. Pre-tax losses worsened to £0.92m (2010: £0.61m) and gross profit as a percentage of revenue slipped to 15.6% from 17.4% the previous year.
The resourcing business was the worst affected by public sector cuts. Expiring contracts were not replaced leading to a 50% decline in public sector revenue compared to the previous year. Luckily the private sector resourcing business increased revenue by 2% supported by ‘encouraging’ growth from a preferred supplier relationship with a large retail bank. As a result, despite reductions in public sector demand, the Resourcing, Consultancy and Solutions business did at least manage to break even.
The same cannot be said of Zubed, Triad’s nascent location intelligence business, which fell short of expectations with revenues of just £281k (2010: £503k) and an operating loss (after exceptionals) of £770k (2010: £487k loss). Costs have been cut and Zubed - which Triad had hoped would be its saviour (see Will Zubed help Triad find its way?) - will now be wrapped into the Consulting and Solutions business. Meanwhile, Triad confirmed it has no immediate plans to replace its CEO following his emigration to Australia last year. As things stand, it’s difficult to be optimistic about the future of the company, an ITSA which once held the coveted Holway Boring Award.