PRP.L Regulatory News (PRP)

12 November 2010

Prime People Plc

Unaudited Consolidated Interim Results for the six months ended 30 September 2010

Prime People Plc ("Prime People" or the "Group"), the international real estate, infrastructure and customer insights recruitment specialist, today announces its interim results for the half year ended 30 September 2010.

Highlights:

·; Group net fee income ('NFI') increased by 30% to £3.95m (2009: £3.05m)

·; Permanent NFI increased by 50% to £3.22m (2009: £2.14m)

·; Profit before tax of £0.41m (2009: loss of £0.16m)

·; Interim dividend of 1.75p per share

·; Adjusted earnings per share of 2.24p (2009: loss per share of 1.10p)

·; Our Customer Insights business experiencing substantial growth

·; Start up in Environmental & Energy sector showing encouraging early signs

Peter Moore Managing Director of Prime People, commented:

"I am pleased with these results which show a very positive performance. I am particularly encouraged with the results from the UK offices. Our prospects for the second half are good and I am looking forward to implementing our plans for growing our established overseas offices as well as further developing our new revenue lines".

-Ends-

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CHAIRMAN'S STATEMENT

Results

I am pleased to report that Prime People Plc has delivered a strong performance in the half-year ended 30 September 2010.

Group Net Fee Income ('NFI') for the six months ended 30 September 2010 increased by 30% to £3.95m (2009: £3.05m). Whilst the increase in NFI is substantially due to the improved macro-economic trading conditions it also reflects the results of the changes in management and organisation structure that we made to the business in 2009. Our permanents businesses performed well with the UK increasing NFI by 73% and the international businesses increasing NFI by 23% compared to the comparable period last year. Our temporary business, which, for the most part, recruits into the Public Sector, has suffered from government cut backs and experienced a 23% decline in NFI. Our professional training business traded profitably on stable revenues.

The net fee income split is:

Profit

The combination of increasing NFI and an efficient cost base resulted in a profit before taxation for the period of £407,000, which compares favourably with the loss of £162,000 recorded for the comparable period last year.

Basic earnings per share for the period are 2.41 pence against a loss per share in the comparable period in 2009 of 1.1 pence.

CHAIRMAN'S STATEMENT

Net cash

Net cash inflow of £561,000 (2009: inflow of £14,000) was generated from operating activities during the period, which after tax payments of £58,000 (2009: net tax receipt of £34,000) resulted in a net cash inflow from operating activities of £503,000 (2009: inflow of £48,000)

At the end of the period the net cash position was £2.50m (2009: £1.81m)

Dividend

Given the improved trading seen in the first half of 2010 and the strong net cash position of the business the Board intend to pay a dividend of 1.75 pence on 3 December 2010 to those shareholders whose names are on the register on 26 November 2010.

Outlook

The UK permanent recruitment business is expected to perform in the second half in line with NFI levels achieved in the first half. As indicated above we are not anticipating any meaningful growth in our temporary business in the foreseeable future.

Prime Insight, our London based insights recruitment consultancy, which serves the market research industry, is now two years old and making a valuable contribution to NFI. We see the business as having considerable potential.

Encouragingly, the start-up Environmental & Energy recruitment business, which has a dedicated staff in both London and UAE offices, is showing early promise.

The relatively long established offices in Hong Kong (since 2006) and the UAE (since 2006) and our office in Johannesburg (since 2008) provide solid platforms to access areas of substantial GDP growth and we are targeting meaningful medium term revenue uplift from these overseas operations.

Whilst, we currently expect that the business will show further improvements in turnover and profit, we are conscious of the continuing level of uncertainty in our markets.

R J G Macdonald

Executive Chairman

12 November 2010

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 September 2010

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 September 2010

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 September 2010

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOW

For the six months ended 30 September 2010

NOTES TO THE INTERIM FINANCIAL STATEMENTS

For the six months ended 30 September 2010 (unaudited)

1. Accounting Policies

The consolidated interim financial statements are for the six months ended 30 September 2010. They have been prepared in accordance with International Financial Reporting Standards (IFRS) using the same accounting policies as those used in the preparation of the accounts for the year ended 31 March 2010. The accounting policies have been applied consistently throughout the group for the purposes of the preparation of these interim financial statements.

2. Interim Results

(a) Revenue and gross profit, by geography

(b) Revenue and gross profit, by classification

For management purposes, the Group is organised into two business segments:

- Recruitment into the property, customer insight and environmental & energy sectors

- Training provided through bespoke sales, marketing and management training and coaching programmes

NOTES TO THE INTERIM FINANCIAL STATEMENTS

For the six months ended 30 September 2010 (unaudited)

3. Finance Expense

4. Taxation on profit on ordinary activities

The charge for taxation on profits for the interim period amounted to £0.12m (2009: credit of £0.03m) an effective rate of 30%.

5. Dividends

The proposed interim dividend for 2011 of 2.25 pence (2010 special interim dividend of 2.00 pence paid on 31 March 2010) was approved by the board on 12 November 2010 and will be paid on 3 December 2010 to those shareholders whose names are on the register on 26 November 2010.NOTES TO THE INTERIM FINANCIAL STATEMENTS

For the six months ended 30 September 2010 (unaudited)

6. Earnings per share

Earnings per share (EPS) has been calculated in accordance with IAS 33 "Earnings per share" and is calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the period.

Earnings and weighted average number of shares used in the calculations are show below:

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Company has only one category of dilutive potential ordinary shares: share options. For the year ending 31 March 2010 the basic and diluted loss per share is the same, as the exercise of share options would reduce the loss per share and is, therefore, anti-dilutive.

NOTES TO THE INTERIM FINANCIAL STATEMENTS

For the six months ended 30 September 2010 (unaudited)

7. Reconciliation of operating profit to net cash inflow from operating activities

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

9. Nature of the financial information

The interim financial information for the six months ended 30 September 2010, was approved by the board on 12 November 2010.

The financial information set out above does not constitute full accounts within the meaning of the Companies Act 2006. The comparative results for the year ended 31 March 2010 have been extracted from the Group's financial statements for that period which have received an unqualified audit report and have been filed with the Registrar of Companies.

A copy of the interim results will be available on the company's website www.prime-people.co.uk