PRP.L Regulatory News (PRP)

9 Dec 2005 07:02

Prime People PLC09 December 2005 9 December 2005 PRIME PEOPLE plc O Unaudited results for the nine months ended 30 September 2005 O Payment of dividend of 0.125p per Ordinary Share O Proposed reverse take-over of Macdonald & Company Group Limited ("Macdonald") Chairman's Statement At the time of the interims released in August, the Board announced that it hadsignificantly increased the intensity of its effort to achieve its stated shortto medium term strategic aim of identifying acquisitions, which will provideplatforms to generate profitable growth and shareholder value. I am pleased that as a result we have today announced the proposed reversetake-over of Macdonald. As a result of the transaction the year end of PrimePeople plc will change to 31 March to align with that of Macdonald. Accordingly,we are today publishing second interim financial statements for the 9 months to30 September 2005. Prime People plc reports a loss on ordinary activities before taxation of£115,400 for the nine-month period ended 30 September 2005 compared to a profitof £713,696 in the nine months to 30 September 2004. The profit before tax forthe corresponding period in 2004 included an operating profit contribution of£165,767 from Portfolio International Limited, and a profit of £609,844 on thedisposal of Portfolio, which took place on 5 August 2004. Harper Craven continues to trade in line with expectations and generated aprofit before tax of £27,897 (2004: £27,769). Our associate, Cameron Kennedy, isinvesting in its business in the year to date with the recruitment of newconsultants, the payment of higher bonuses and the cost of moving to newpremises being incurred. Our share of losses was £20,825 compared to a profit of£49,549 in the corresponding period in 2004. Of the administrative expensescharged to the period under review some £237,112 related to the head office andpublic company costs of Prime People. A dividend of 0.125p per Ordinary Share will be paid on 21 December 2005 toordinary Shareholders on the register on 1 December 2005. Peter HearnNon-executive Chairman Consolidated Profit and Loss Accountfor the nine months ended 30 September 2005 Nine months Nine months Year ended ended ended 31 December 30 September 30 September 2004 2005 2004 Unaudited Unaudited Audited Notes £ £ £Turnover- Continuing operations 490,049 544,039 708,653- Discontinued - 1,585,895 1,585,895operations ----------- ----------- ----------- 490,049 2,129,934 2,294,548 ----------- ----------- -----------Cost of sales- Continuing operations (141,304) (139,041) (179,571)- Discontinued - (7,240) (7,240)operations ----------- ----------- ----------- (141,304) (146,281) (186,811) ----------- ----------- -----------Gross profit 348,745 1,983,653 2,107,737Administrative expenses (533,982) (1,964,926) (2,197,259) ----------- ----------- -----------Group operating loss- Continuing operations (185,237) (174,994) (283,243)- Discontinued - 193,721 193,721operations ----------- ----------- ----------- (185,237) 18,727 (89,522) Share of operating (loss)/profit (20,825) 49,549 87,133in associateAmortisation of goodwill (9,000) (9,000) (12,000) ----------- ----------- -----------(Loss)/profit on ordinaryactivities before interest (215,062) 59,726 (14,389)Profit on disposal of - 609,844 609,844subsidiaryInterest receivable andsimilar 100,760 44,576 79,530incomeInterest payable and similarcharges (1,098) - (487) ----------- ----------- -----------(Loss)/profit on ordinaryactivities before taxation (115,400) 713,696 674,498Tax on (loss)/profit onordinary 2 - (2,112) (2,112)activities ----------- ----------- -----------(Loss)/profit on ordinaryactivities after taxationtransferred to reserves 5 (115,400) 711,584 672,386 ======= ======= =======(Loss)/earnings per ordinaryshare- Basic 4 (0.31)p 1.93p 1.82p- Diluted (0.31)p 1.93p 1.82p ======= ======= ======= Consolidated Balance Sheetat 30 September 2005 30 September 30 September 31 December 2005 2004 2004 Unaudited Unaudited Audited Notes £ £ £Fixed assetsTangible assets 35,717 38,564 44,028Investment in associate 381,851 377,092 411,676 ----------- ----------- ----------- 417,568 415,656 455,704 ----------- ----------- -----------Current assetsDebtors 290,183 135,176 262,052Cash at bank and in hand 2,722,309 2,968,156 2,835,981 ----------- ----------- ----------- 3,012,492 3,103,332 3,098,033 Creditors: Amounts fallingdue (198,249) (125,081) (200,903)within one year ----------- ----------- -----------Net current assets 2,814,243 2,978,251 2,897,130 Creditors: Amount fallingdue (6,874) (14,372) (12,497)after one year ----------- ----------- -----------Net assets 3,224,937 3,379,535 3,340,337 ======= ======= =======Capital and reservesCalled up share capital 368,467 368,467 368,467Share premium account 5 909,925 909,925 909,925Merger reserve 5 173,077 173,077 173,077Profit and loss account 5 1,773,468 1,928,066 1,888,868 ----------- ----------- -----------Shareholders' funds 6 3,224,937 3,379,535 3,340,337 ======= ======= ======= Consolidated Cash Flow Statementfor the nine months ended 30 September 2005 Nine months Nine months Year ended ended ended 31 December 30 September 30 September 2004 2005 2004 Unaudited Unaudited Audited Notes £ £ £Net cash (outflow)/inflowfrom 7 (218,102) 64,164 (93,986)operating activities Return on investment andservicing of financeInterest received 100,760 44,576 79,530Interest paid (1,098) - (487) ----------- ----------- ----------- 99,662 44,576 79,043 Taxation - 74,350 74,350 Capital expenditure andfinancial investmentPurchase of tangible fixed (3,774) (28,059) (37,592)assetsSale of tangible fixed 900 800 1,800assets ----------- ----------- ----------- (2,874) (27,259) (35,792)Acquisitions and disposalsSale of subsidiary - 1,905,284 1,905,284undertakingNet cash disposal with - (53,986) (53,986)subsidiary ----------- ----------- ----------- - 1,851,298 1,851,298Net cash (outflow)/inflowbefore (121,314) 2,007,129 1,874,913management ofliquid resources andfinancing Management of liquidresourcesSale/(purchase) of deposits 154,464 (1,944,000) (1,647,000) FinancingCapital element of finance (5,623) (625) (2,501)leases ----------- ----------- -----------Increase in cash 8 27,527 62,504 225,412 ======= ======= ======= Notes to the Interim Financial Statementsfor the nine months ended 30 September 2005 1. Accounting policies The interim results have been prepared on the same basis and using the sameaccounting policies as thoseused in the preparation of the accounts for the year ended 31 December 2004. 2. Taxation on profit on ordinary activities Group ---------------- 2005 2004 £ £UK corporation tax - 2,112Share of associate's tax - - ----------- ----------- - 2,112 ======= ======= 3. Dividends A dividend of 0.125p per Ordinary Share will be paid on 21 December 2005 toshareholders on the register on 1 December 2005. 4. Loss per share The loss per share is calculated based on a weighted average number of shares of36,846,692 (2004:36,846,692) and the loss of £154,400 giving a loss per share of 0.31p (2004:earnings per share of 1.93p). Outstanding share options are not considered to bedilutive in view of the loss in the period. 5. Reserves Share Merger Profit and Premium Reserve Loss Account Account £ £ £At 1 January 2005 909,925 173,077 1,888,868Transfer from Profit and LossAccount - - (115,400) ----------- ----------- -----------At 30 September 2005 909,925 173,077 1,773,468 ======= ======= ======= 6. Reconciliation of movement in shareholders' funds 30 September 30 September 31 December 2005 2004 2004 Unaudited Unaudited Audited Notes £ £ £(Loss)/profit for the period (115,400) 711,584 672,386Goodwill eliminated ondisposal - 641,006 641,006of subsidiaryOpening shareholders' funds 3,340,337 2,026,945 2,026,945 ----------- ----------- -----------Closing shareholders' funds 3,224,937 3,379,535 3,340,337 ======= ======= ======= 7. Reconciliation of operating (loss)/profit to net cash (outflow)/inflow fromoperating activities Nine months Nine months Year ended ended ended 31 December 30 September 30 September 2004 2005 2004 Unaudited Unaudited Audited £ £ £Group operating (loss)/profit (185,237) 18,727 (89,522)Depreciation 11,096 29,715 33,784Loss/(profit) on sale of tangiblefixed assets 90 (800) (1,800)Increase/(decrease) in debtors (28,131) (28,685) (155,561)(Decrease)/increase in creditors (15,920) 45,207 119,113 ----------- ----------- -----------Net cash (outflow) / inflow fromoperating activities (218,102) 64,164 (93,986) ======= ======= ======= 8. Reconciliation of net cash outflow to movement in net funds Nine months Nine months Year ended ended ended 31 December 30 September 30 September 2004 2005 2004 Unaudited Unaudited Audited £ £ £Increase in cash in the period 27,527 62,504 225,412Cash outflow from decrease in debtand lease financing 5,623 625 2,501Cash inflow/(outflow) fromdecrease/(increase) in liquid (154,464) 1,944,000 1,647,000resources ----------- ----------- -----------(Decrease)/increase in net fundsresulting from cash flows (121,314) 2,007,129 1,874,913New finance leases - (22,496) (22,496)Opening net funds 2,800,187 947,770 947,770 ----------- ----------- -----------Closing net funds 2,678,873 2,932,403 2,800,187 ======= ======= ======= 9. Analysis of net funds At Cash flow At 1 January 30 September 2005 2005 £ £ £Cash at bank and in hand 192,981 40,793 233,774Bank Overdraft (15,799) (13,266) (29,065) ----------- ----------- ----------- 177,182 27,527 204,709Liquid resources 2,643,000 (154,464) 2,488,536Finance leases (19,995) 5,623 (14,372) ----------- ----------- ----------- Total 2,800,187 (121,314) 2,678,873 ======= ======= ======= 10. Nature of the financial information The interim financial information for the nine months ended 30 September 2005,was approved by the board on 8 December 2005. The financial information set out above does not constitute full accounts withinthe meaning of Section 254 of the Companies Act 1985. The results for the yearto 31 December 2004 are extracts from the published accounts for that year whichhave received an unqualified audit report and have been filed with the Registrarof Companies. This information is provided by RNS The company news service from the London Stock Exchange