The group made a loss of £7.01m for the year ending 4 January 2009 compared to £704,000 in 2007.

Revenue fell to £38m from £43m in 2007 year, a decrease of 12%.

EBITDA (earnings before interest tax depreciation and amortisation) was a loss of £362,000, compared to a profit of £186,000 in 2007.

David Hope, chief operating officer and finance director of Pinnacle, says: “Since the demerger from Nestor Healthcare Group in September 2006, Pinnacle has struggled to take full advantage of the assets at its disposal, in particular its national branch network and its historic database of over 40,000 healthcare workers.

“These have traditionally been the key to the success of its brands. The legacy of under investment, lack of focus on internal processes and the contraction of its branch network has meant that Pinnacle has found it difficult to keep pace with an ever changing healthcare market.

“I am confident, however, that by better utilising the group’s assets, and by continuing to invest in our branches and staff, we will see a return to profitability in the short to medium term.”