PRP.L Regulatory News (PRP)

19 November 2021

Prime People Plc

Interim Results

Prime People Plc ("Prime People" or the "Group"), a global group of specialist recruitment businesses operating in depth, across the Real Estate & Built Environment sectors, announces its unaudited interim results for the six months ended 30 September 2021.

CHAIRMAN'S STATEMENT

Overview

Despite Covid-19 restrictions continuing for part of the period to 30 September 2021, in all of the markets in which the Group operates, I am pleased to report an improvement in trading, which we see as a combination of general market recovery and a backlog of client demand positively impacting performance.

The Group's cash collection has been robust and, consequently, the Board made the decision to accelerate repayment of £1m (50%) of the CBILS loan prior to the period end.

Financial Results

Group Revenues were £10.58m (H1 2021: £8.66m), up 22.2% compared to the prior year.

The Group's Net Fee Income ("NFI"), which is Management's key focus, increased to £7.36m (H1 2021: £5m), an increase of 47.2% over the prior year; NFI for the UK business was £3.36m (H1 2021: £2.15m). Our overseas performance was comprised of Asia NFI of £2.83m (H1 2021: £2.67m) and the Rest of World NFI £1.17m (H1 2021: £0.17m).

During the period contract NFI represented 4.0% of Group NFI (H1 2021: 7.12%).

Administrative costs for the Group in the period were £6.28m (H1 2021: £4.87m).

Profit before taxation amounted to £1.06m (H1 2021 £0.10m).

The charge for Group taxation of £0.20m (H1 2021: £0.02m) is based on the expected annual effective tax rate of 19% in the UK (H1 2021: 19%), 19% in Hong Kong (H1 2021: 16.50%), and 19% in Singapore (H1 2021: 17%).

Basic earnings per share for the period were 7.39p (H1 2021: 0.95p).

Cash Flow

At the start of the current financial year the Group had cash of £3.98m. At the period end the Group had available cash of £2.89m and net cash, after the CBILS loan, of £1.94m (H1 2021: £2.15m).

Dividend

The Board will not be declaring an interim dividend this year (H1 2021: Nil).

Outlook

Although our markets are not fully back to pre-pandemic levels, we are encouraged by the recovery we have experienced in the six month period to 30 September 2021. We believe that the Group is well positioned to respond quickly as markets strengthen, but we remain cautious, as any reimposition of Covid related restrictions are likely to be negative for our business.

Our cash position is sound, all Government taxes deferred due to Covid will be fully paid by January 2022 and we intend to redeem our remaining CBILS loan, which is now bearing interest.

Our management team and staff have adapted positively and quickly to the new operating backdrop necessitated by Covid, and we are looking forward to achieving long term positive returns for all our stakeholders.

The information communicated in this announcement contains inside information for the purposes of Article 7 of the UK version of the EU Market Abuse Regulation (2014/596) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time.

Robert Macdonald

Executive Chairman

18 November 2021

For further information please contact:

PRIME PEOPLE PLC

UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 September 2021

The above results relate to continuing operations.

The notes below form an integral part of this unaudited condensed consolidated interim report.

PRIME PEOPLE PLC

UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

As at 30 September 2021

The notes below form an integral part of this unaudited condensed consolidated interim report.

PRIME PEOPLE PLC

UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 September 2021

PRIME PEOPLE PLC

UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOW

For the six months ended 30 September 2021

The notes below form an integral part of this unaudited condensed consolidated interim report.

PRIME PEOPLE PLC

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM REPORT

For the six months ended 30 September 2021

1. General information

Prime People Plc ('the Company') and its subsidiaries (together 'the Group') is an international recruitment services organisation with offices in the United Kingdom, the USA, Germany, the Middle East and the Asia Pacific region from which it serves an international client base. The Group offers both permanent and contract specialist recruitment consultancy for large and medium sized organisations.

Prime People Plc is the Group's ultimate parent company. The Company is a limited liability company incorporated and domiciled in the United Kingdom. The address of Prime People Group's registered office and its principal place of business is 2 Harewood Place, London, W1S 1BX, England. Prime People Group's shares are quoted on the AIM Market of the London Stock Exchange ("AIM"). The registered number of the Company is 1729887.

This unaudited condensed consolidated interim report for the six months ended 30 September 2021 (including comparatives) is presented in GBP '000 and was approved and authorised for issue on behalf of the Board of Directors on 18 November 2021.

Copies of the interim results are available at the Company's registered office and on the Company's website - www.prime-people.co.uk.

This unaudited condensed consolidated interim report does not constitute statutory accounts of the Group within the meaning of section 434 of the Companies Act 2006. The financial information for the year ended 31 March 2021 has been extracted from the statutory accounts for that year, which have been filed with the Registrar of Companies. The auditor's report on those accounts was unqualified and did not contain a statement under section 498 of the Companies Act 2006.

2. Basis of preparation

The unaudited condensed consolidated interim report for the six months ended 30 September 2021 has been prepared using accounting policies consistent with International Financial Reporting Standards ("IFRSs") and in accordance with 'IAS 34, Interim financial reporting', in conformity with the requirement of the Companies Act. The condensed consolidated interim report should be read in conjunction with the annual financial statements for the year ended 31 March 2021 which were prepared in accordance with IFRSs as adopted by the European Union.

The Group was profitable for the period and has financial resources comprising £2.89m of net cash as at 30 September 2021. After making enquiries, the Directors have formed a judgement, at the time of approving the six months results, that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, a period of not less than 12 months. For this reason, the Directors continue to adopt the going concern basis in preparing the condensed set of financial statements.

These financial statements have been prepared under the historical cost convention.

3. Segment reporting

(a) Revenue and net fee income by geographical region

All revenues disclosed by the Group are derived from external customers and are for the provision of recruitment services. The accounting policies of the reportable segments are the same as the Group's accounting policies. Segment profit before taxation represents the profit earned by each segment after allocations of central administration costs.

(b) Revenue and net fee income by classification

(c) Profit before taxation by geographical region

(d) Segment Assets and Liabilities by Geographical Region

The analysis above is of the carrying amount of reportable segment assets and liabilities. Segment assets and liabilities include items directly attributable to a segment and include income tax assets and liabilities.

4. Income tax expense

The charge for taxation on profits for the interim period amounted to £202k (2020: £15k) an effective rate of 19.00% (2020: 15%).

5. Dividends

6. Earnings per share

Earnings per share (EPS) are calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the period.

Fully diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares by existing share options assuming dilution through conversion of all existing options.

Earnings and weighted average number of shares from continuing operations used in the calculations are shown below:

7. Reconciliation of profit before tax to cash flow from operating activities

8. Reconciliation of net cash flow to movement in net funds

9. Trade and other receivables

10. Trade and other payables

11. Treasury Shares

At 30 September 2021, the total number of ordinary shares held in Treasury and their values were as follows: