Workforce service provider Skilled Group announced on Thursday that it expected its overall earnings to be low.

Greg Hargrave, chief executive and majority shareholder of the labor provider, will resign after the evaluation of the firm.

A representative of Skills Group said its earnings went down due to unsolved problems on non-staffing services units and its lower recovery earnings.

"While Skilled Group's performance in late 2009 indicated signs of improvement and recovery from the global financial crisis, it has now become apparent that overall earnings will be below market expectations for the 2010 year," the company told media on Thursday.

In 2009 alone, the company made a fruitful net profit of $28.25 billion to 28.2 per cent.

However, its earnings for the year until June 30, 2010 shrunk bank to $60 million, which is lower than its predicted output of $71 million from a median analyst. It does not include earnings before interests, taxes, depreciation, and amortization (EBITDA).

Skills' restructuring cost will be about $4 million higher, which is above the reported EBITDA.

The company will possibly gain a net profit at $10 million to $14 million and the underlying profit will reach $17 million to $21 million.

Non-staffing services was evident due to the poor performance by the company's offshore businesses - Marine Services, ATIVO, Excelior, and Origin Healthcare.

The Unsatisfactory performance which created negative impact of the group, the board will innovate new strategies to revamp its business portfolio, performance, and prospects.

Skills Group recently nominated Goldman Sachs JBWere to review its proposals, which could take months to complete.

Mr. Hargrave will aid in reviewing the conjunction with JBWere. He currently holds a 30 per cent stake of the company.

He said he will resign once the company implements any recommendations.

"I take responsibility for this performance and want to ensure that all options available to the company are canvassed fully, with the interests of all shareholders paramount," Mr. Hargrave said.

Shares of Skills Group went down to 10 cents or 7.35 per cent to $1.26 on Thursday.