PRP.L Regulatory News (PRP)

23 Nov 2007 07:01

Prime People PLC23 November 2007 23 November 2007 Prime People Plc Interim Results for the six months ended 30 September 2007 Prime People Plc ("Prime People" or the "Group"), the international real estate,infrastructure and commercial property recruitment specialist, today announcesits interim results for the year half ended 30 September 2007. Highlights: ---------------------- ----------- ----------- -------- Gross fee income £11.97m £9.29m + 29%Net fee income £7.11m £4.91m + 45%Pre-tax profit £1.02m £0.78m + 31%Fully diluted earnings per share 5.63p 4.40p + 28%Interim dividend* 1.35p 1.25p + 8%---------------------- ----------- ----------- -------- \* The interim dividend will be paid on 21 December 2007 to shareholders on theregister on 7 December 2007 Peter Moore Managing Director of Prime People, commented: "I am very pleased with this set of results, which reflect continued growth inthe UK and excellent progress on our international expansion strategy. Demandfor our services remained solid through the period, driven by the ongoingpipeline of major UK infrastructure projects and, in commercial propertyinternationally, by the demand for increasingly sophisticated expertise inproperty management and investment. We anticipate that there will continue to beopportunities for good organic growth both in the UK and internationally. "Looking forward, our order books are at record levels, but we are mindful ofthe current macroeconomic environment and will manage our operations as futurecircumstances may require. However, I have confidence that our continuedcommitment to the globalisation of our business and our market leading positionwill provide access to further opportunities for good growth." -Ends- For further information please contact:Prime People 020 74935689Robert Macdonald, Executive ChairmanPeter Moore, Managing Director Hogarth Partnership 020 7357 9477James Longfield Arbuthnot Securities 020 7012 2000Andrew FullertonIan Williams Prime People plc Interim Results for the six months ended 30 September 2007 Chairman's Statement Introduction I am pleased to report the results for Prime People for the half year ended 30September 2007, with continuing good progress made in our core UK market as wellas on our international expansion strategy. Our principal business activity isthe provision of recruitment services to the UK and international real estate,infrastructure and commercial property sectors. This activity is operatedthrough our main trading subsidiary, Macdonald & Company. Reflecting the positive conditions in the half year within the markets the Groupserves, gross fee income increased 29 per cent to £11.97 million (2006: £9.29million). This translated to net fee income ("NFI") for the half year of £7.11million, a 45 per cent increase on the previous year (2006: £4.91 million). Pre tax profit for the half year was £1.02 million, which is a 31 per centincrease on the pre tax profit for the previous half year of £0.78 million.Fully diluted earnings per share for the period have increased by 28 per cent to5.63p from 4.40p in 2006. In the UK, demand for property professionals remained strong in the period beingreported. The people we place are involved in the investment, development andmanagement of all types of property asset. Our main revenues are generated fromplacing permanent and contract staff who are specialists in disciplines such asfund management, investment, development and financing, project management,quantity surveying and building surveying, facilities management, town andcountry planning, architecture and social housing. With a steady pipeline ofdevelopment, infrastructure and regeneration projects already committed to inthe UK and in the Middle and Far East, we currently continue to see strongdemand for candidates. Our recently established architecture and social housingbusinesses have strengthened our offering and provide good opportunities forfuture revenue growth. The fulfilment of our plans to broaden the Group's business overseas in theMiddle and Far East, Australasia and Africa have made a substantial contributionto our half year outcome and our overseas offices, accessing areas of continuinghigh economic growth, are expected to provide strong support to performance inthe second half. In the period being reported, the four overseas officescontributed 21 per cent of Group NFI (2006: 6 per cent). We expect NFI derivedfrom these offices to continue to increase as a proportion of total NFI in theyears ahead. Chairman's Statement (continued) Dividend The Board declares an interim dividend of 1.35p per ordinary share (2006:1.25p).This will be paid on 21 December 2007 to shareholders on the register on 7December 2007. Results summary The net fee income split is: --------------------- ------------ ----------- ---------Permanent -UK 4,358 3,352 +30% -International 1,519 310 +390% --------------------- ------------ ----------- --------- 5,877 3,662 +60%Temporary (UK only) 1,063 1,065 -Other 172 182 -5%--------------------- ------------ ----------- ---------Total 7,112 4,909 +45%--------------------- ------------ ----------- --------- Longer-term growth opportunities In pursuing our overall growth strategy, we continue to focus on organicexpansion - adding new consultants in existing and complementary areas in the UKand internationally. The opening of further offices in new overseas locations isbeing investigated. Outlook The performance of the Group in the year to date has been encouraging and inline with our expectations, with both our international and UK operationscontinuing to perform well. Whilst our order books and business are at record levels, we are mindful of thecurrent macroeconomic environment and will manage operations as futurecircumstances may require. However, we have confidence that our continuedcommitment to the globalisation of our business and our market leading positionwill provide access to further opportunities for good growth. R J G Macdonald Executive Chairman 23 November 2007 Consolidated income statement for the six months ended 30 September 2007 (unaudited)________________________________________________________________________________ Notes Six months Six months Year ended ended ended 30 September 30 September 31 March 2007 2006 2007 £000 £000 £000Continuing operations Gross fee income 11,966 9,289 20,179 Direct costs (4,854) (4,380) (9,344) ---------- ---------- --------- Net fee income 7,112 4,909 10,835 Administrative expenses (6,044) (4,088) (8,748) ---------- ---------- --------- Operating profit 1,068 821 2,087 Interest receivable andsimilar income 1 5 18Interest payable andsimilar charges 2 (49) (50) (96) ---------- ---------- --------- Profit before taxation 1,020 776 2,009 Taxation 3 (306) (247) (665) ---------- ---------- --------- Profit for the period 714 529 1,344 ---------- ---------- --------- Profit attributable toequity shareholders 714 529 1,344 ========== ========== ========= Earnings per share 5 - Basic 5.94p 4.56p 11.38 - Diluted 5.63p 4.40p 10.93p ========== ========== ========= Consolidated statement of changes in shareholders equity for the six months ended 30 September 2007 (unaudited) Called up Share Shares to be Share premium Other reserve Share option Retained Total capital issued account reserve earnings £'000 £'000 £'000 £'000 £'000 £'000 £'000 -------- ------- -------- ------- ------- -------- ------- At 1 1,084 1,000 6,214 173 - 1,816 10,287April2006 ===Newshares 119 (1,000) 881 - - - -issuedProfitfor the - - - - - 529 529periodShareoption - - - - 23 - 23chargeEquitydividends - - - - - (120) (120) -------- ------- -------- ------- ------- -------- ------- At 30September 1,203 - 7,095 173 23 2,225 10,7192006 Profitfor the - - - - - 815 815periodShareoption - - - - 55 - 55chargeEquitydividends - - - - - (151) (151) -------- ------- -------- ------- ------- -------- ------- At 31March 1,203 - 7,095 173 78 2,889 11,4382007 Profitfor the - - - - - 714 714periodShareoption - - - - 26 - 26chargeEquitydividends - - - - - (271) (271) -------- ------- -------- ------- ------- -------- ------- At 30September 1,203 - 7,095 173 104 3,332 11,9072007 ======== ======= ======== ======= ======= ======== ======= Consolidated balance sheet at 30 September 2007 (unaudited) As at As at As at 30 September 30 September 31 March 2007 2006 2007 £'000 £'000 £'000AssetsNon-current assets - Intangible assets 9,769 9,769 9,769 - Property, plant and equipment 341 281 316 - Deferred tax asset 141 70 91 ---------- ---------- ---------- 10,251 10,120 10,176 ---------- ---------- ---------- Current assetsTrade and other receivables 5,907 3,838 4,601Cash and cash equivalents 260 35 304 ---------- ---------- ---------- 6,167 3,873 4,905 ---------- ---------- ---------- Total assets 16,418 13,993 15,081 ---------- ---------- ---------- --- --- LiabilitiesCurrent liabilities --- ---Financial liabilities - borrowings 916 394 308Trade and other payables 2,353 1,654 2,034Current tax liabilities 542 246 461 ---------- ---------- ---------- === === 3,811 2,294 2,803 ---------- ---------- ---------- === ===Non current liabilities ===Financial liabilities - borrowings 700 980 840 ---------- ---------- ---------- 700 980 840 ---------- ---------- ---------- Total liabilities 4,511 3,274 3,643 ---------- ---------- ---------- Net assets 11,907 10,719 11,438 ========== ========== ========== --- ---Capital and reserves === ===Called up share capital 1,203 1,203 1,203Share premium account 7,095 7,095 7,095Other reserve 173 173 173Share option reserve 104 23 78Retained earnings 3,332 2,225 2,889 ---------- ---------- ---------- === ---Equity shareholders' funds 11,907 10,719 11,438 ========== ========== ========== Consolidated Cash Flow Statement for the six months ended 30 September 2007(unaudited) Notes Six months Six months Year ended ended ended 30 September 30 September 31 March 2007 2006 2007 £'000 £'000 £'000 Cash flows from operatingactivitiesCash generated by operations 6 177 270 1,266Corporation tax paid (275) (300) (525) --- ---------- ---------- ---------- Net cash (used)/fromoperating activities (98) (30) 741 ---------- ---------- ---------- Cash flows from investingactivitiesInterest received 1 4 18Interest paid (49) (50) (96)Disposal of investment heldfor resale - 178 178Net purchase of property,plant and equipment (95) (70) (164) ---------- ---------- ---------- Net cash (used)/frominvesting activities (143) 62 (64) ---------- ---------- ---------- Cash flows from financingactivities ---Repayment of borrowings (140) (140) (280)Capital element of hire purchaseobligations (3) (4) (7)Dividends paid to shareholders (271) (120) (271) ---------- ---------- ---------- Net cash used in financingactivities (414) (264) (558) ---------- ---------- ---------- === === === ===Net (decrease)/increase in cashand cash equivalents (655) (232) 119 ===Cash and cash equivalents at startof period 279 160 160 ---------- ---------- ---------- === ===(Net debt)/cash and cashequivalentsat end of period (376) (72) 279 ========== ========== ========== === === === Notes to the Interim Financial Statements for the six months ended 30 September 2007(unaudited) 1. Accounting Policies The consolidated interim financial statements are for the six months ended 30September 2007. They have been prepared in accordance with InternationalFinancial Reporting Standards (IFRS) using the same accounting policies as thoseused in the preparation of the accounts for the year ended 31 March 2007. 2. Interest Six months Six months Year ended ended ended 30 September 30 September 31 March 2007 2006 2007 £'000 £'000 £'000Interest expense:Interest payable on bank borrowings 49 49 95Interest payable on finance leases - 1 1 ---------- ---------- ---------- 49 50 96 ========== ========== ========== 3. Taxation on profit on ordinary activities Taxation has been provided by applying the standard rate of corporation tax inthe UK. 4. Dividends Six months Six months Year ended ended ended 30 September 30 September 31 March 2007 2006 2007 £'000 £'000 £'000 Final dividend for 2006 of 1.00 penceper share - 120 120Interim dividend for 2007 of1.25 pence per share - - 151Final dividend for 2007 of2.25 pence per share 271 - - ---------- ---------- ---------- 271 120 271 ========== ========== ========== An interim dividend for 2008 of 1.35 pence per ordinary share will be paid on 21December 2007 to those shareholders whose names are on the register on 7December 2007. Notes to the Interim Financial Statements (continued) for the six months ended 30 September 2007 (unaudited) 5. Earnings per share Earnings per share (EPS) has been calculated in accordance with IAS 33 "Earningsper share" and is calculated by dividing the profit attributable to ordinaryshareholders by the weighted average number of ordinary shares in issue duringthe period. Earnings and weighted average number of shares used in the calculations areshown below: Six months Six months Year ended ended ended 30 September 30 September 31 March 2007 2006 2007 £'000 £'000 £'000 Retained profit for basic earningsper share 714 529 1,344 ========== ========== ========== Number Number Number '000 '000 '000Weighted average number of shares usedforbasic and continuing earnings pershare 12,029 11,593 11,810Dilutive effect of share options andsharesto be issued 653 434 483 ---------- ---------- ---------- Diluted weighted average number ofshares ---------- ---------- ----------used for diluted earnings per share 12,682 12,027 12,293 ========== ========== ========== Pence Pence PenceBasic diluted earnings per share 5.94p 4.56p 11.38pDiluted earnings per share 5.63p 4.40p 10.93p Notes to the Interim Financial Statements (continued) for the six months ended 30 September 2007 (unaudited) 6. Reconciliation of operating profit to net cash inflow from operatingactivities Six months Six months Year ended ended ended 30 September 30 September 31 March 2007 2006 2007 £'000 £'000 £'000 Operating profit 1,068 821 2,087 Depreciation 69 49 108Share option reserve movement 26 23 78Increase in debtors (1,306) (505) (1,268)Increase/(decrease) in creditors 320 (118) 261 ---------- ---------- --------- Net cash inflow from operatingactivities 177 270 1,266 ========== ========== ========= 7. Nature of the financial information The interim financial information for the six months ended 30 September 2007,was approved by the board on 23 November 2007. The financial information set out above does not constitute full accounts withinthe meaning of Section 240 of the Companies Act 1985. The comparative resultsfor the year ended 31 March 2007 have been extracted from the Group's financialstatements for that period which have received an unqualified audit report andhave 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 This information is provided by RNS The company news service from the London Stock Exchange