NAK.L Regulatory News (NAK)

28 Jul 2009 07:00



For release at 0700 on 28 July 2009

Highams Systems Services Group plc 

("Highams" or "the Group")

The AIM quoted recruitment consultancy and a leading niche provider of business, technology and professional services to the insurance and financial services sectors.

Preliminary Results

for the year ended 31 March 2009

Chairman's Statement

Introduction

Following the Board restructuring and capital reorganisation undertaken last October, Highams has continued to reduce overheads in line with the challenging climate within the recruitment sector. We have made significant cost savings across the Company and will continue to ensure that our overheads are tightly controlled. The second half to March 2009 showed reduced losses at £110k compared to £260k in the first half to September 2008.

We continue to focus in our niche market within the insurance sector and in maintaining the quality of service and delivery associated with our brand.

Although the results for the year are disappointing overall, we have probably endured in the second half of the year arguably the most difficult conditions seen by the recruitment sector as a whole. The current outlook remains uncertain, but we are pleased to report that in the first quarter of this financial year the business has produced a small profit at EBITDA level, and we continue to focus on finding higher value business through our niche networks. 

Since the year end, further cost savings have been made. The strategy is to seek profits, whilst maintaining the quality of our offering and the Directors currently expect an improved performance in the current financial year.

Financial Results 

Group revenue fell by 22.6 per cent. to £10.5m (2008: £13.6m) as contractor numbers declined during the last quarter of the financial year.

Gross profit was therefore reduced at £1.76m (2008: £2.1m). This represents 16.7 per cent. of revenue, which is slight improvement when compared to 15.6 per cent. in 2008.

Group loss before taxation and impairment was £370,000 (2008: loss of £851,000). The Directors are not recommending the payment of a final dividend for the year to 31 March 2009 (2008: nil).

Executives and Staff

We remain a strong team of very knowledgeable long serving staff; and whilst we are in a challenging market their loyalty and commitment to the group remains positive for which we are extremely grateful.

Enquiries:

Consolidated income statement

For the year ended 31 March 2009

Administrative costs

Loss per share 

All of the above relate to continuing operations

Consolidated statement of recognised income and expense

For the year ended 31 March 2009

Consolidated balance sheet

At 31 March 2009

  Consolidated cash flow statement

For the year ended 31 March 2009

1. Loss per share

The weighted average number of shares excludes 183,953 (2008 183,953) shares held by the Employee Share Benefit Trust. 

There is no difference in either 2009 or 2008 between the basic and diluted loss per share. 

2. Reconciliation of movements in equity

3. The financial information in this preliminary announcement does not constitute the company's statutory accounts for the years ended 31st March 2009 or 31st March 2008 but is derived from those accounts. The statutory accounts for 2008, prepared in accordance with IFRSs as adopted by the EU have been delivered to the Registrar of Companies and those for 2009; will be delivered following the Company's annual general meeting. The auditors' reports on the accounts for both years were unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their reports and did not contain statements under the Companies Act 1985 s237(2) or (3).

4. Copies of the statutory accounts for the year ended 31 March 2009 will be posted to all shareholders. Additional copies will be available from the Company Secretary, Highams Systems Services Group plc, Quadrant House, 33/45 Croydon Road, Caterham, Surrey, CR3 6PB and will be available to download from the investor relations section on the Company's website www.highamsrecruitment.com