PRP.L Regulatory News (PRP)

2 Mar 2005 07:00

Prime People PLC02 March 2005 PRIME PEOPLE PLC PRELIMINARY RESULTS FOR THE YEAR ENDED DECEMBER 31, 2004 KEY POINTS • Profit on ordinary activities before taxation of £0.67m compared to a loss of £0.53m in 2003 • Sale of principle subsidiary, Portfolio International, realised a profit on disposal of £1.25m before writing off goodwill of £641,006 which had previously been deducted from reserves • Sales from continuing operations £0.71m (2003 £0.71m) • Diluted earnings per share has increased from a loss per share of 1.21p to earnings per share of 1.82p • Our share of the profit of our associate business for the year is £87k against a loss of £205k in 2003 • The balance sheet remains strong with net funds of £2.8m, equivalent to 7.6p per share • No dividend payment as the company wish to conserve cash for any potential acquisition • The company has implemented the move from the Official List to AIM Commenting on the results, chairman Richard Lee said, "Following the successfuldisposal of Portfolio International and the move from the Official List to AIM,we will now be broadening the base of the group's operations through acquisitionwhen a suitable opportunity arises." Press enquiries: Richard Lee, chairman 0161 832 6644Chris Heayberd, finance director 020 7831 5297 PRIME PEOPLE Plc Chairman's statement________________________________________________________________________________ Introduction I am pleased to report on the results of Prime People Plc for the year to 31December 2004. Results Turnover from continuing operations during the year remained very similar to theprevious year showing a slight improvement to £708,653 (2003 - £705,220),although the resulting operating loss from continuing operations was £283,243,as they now bear the group operating costs, compared to a profit of £62,800 inthe previous year. Harper Craven Associates Our training business, having had a strong first quarter, closed withdisappointing results reporting a fall in profit before tax from £39,940 to£17,101. Whilst sales have remained flat, costs have increased. The future for the business remains difficult to predict, and whilst we willmonitor costs closely the main focus centres on the need to improve sales. Cameron Kennedy Resources Our associate business, Cameron Kennedy, reported a return to profit and ourshare of their operating profit for the year of £87,133 is a significantimprovement on the previous year's operating loss of £205,343. Disposal of Portfolio International Limited On 4 August 2004 we sold the entire share capital of our recruitment businessPortfolio International Limited to PSD Group Plc. This sale has realised aprofit on disposal of £1,250,850 before writing off goodwill of £641,006 whichhad previously been deducted from reserves and which we are now required todeduct from the profit on disposal. The overall effect on the net asset positionof the company as a consequence of the accounting entries relating to goodwillis nil. Head Office Costs Following the disposal of Portfolio International we have undertaken a review ofour head office cost base and we have taken the necessary steps to reduce headcount. We will continue to monitor costs closely. Earnings per share Diluted earnings per share has increased from a loss per share of 1.21p toearnings per share of 1.82p. Alternative Investment Market As advised in our Interim Announcement the company has implemented the move fromthe official list of the London Stock Exchange to AIM. As a consequence, ourshares are no longer eligible to be held in PEPs or ISAs and shareholders withsuch arrangements are again advised to consult their financial advisors. Prospects We do not anticipate any significant changes to the performance of the trainingbusiness in the coming year. Our associate business continues to reportimproved sales activities and we are reasonably optimistic that the businesswill continue its positive performance. We continue to look at new businesses and our ambition is to broaden thebusiness base of the company, through acquisition, in the short to medium term. We will not be making a dividend payment this year as we wish to conserve cashfor any potential acquisition. Net cash at the year end was £2.8m , equivalent to 7.6p per share. Richard E M LeeNon Executive Chairman 1 March 2005 PRIME PEOPLE Plc Consolidated profit and loss account for the year ended 31 December 2004________________________________________________________________________________ Continuing operations Discontinued operations Total Note 2004 2003 2004 2003 2004 2003 £ £ £ £ £ £ Turnover 708,653 705,220 1,585,895 2,384,662 2,294,548 3,089,882 Cost of sales (179,571) (149,174) (7,240) (11,305) (186,811) (160,479) ________ ________ ________ ________ ________ ________ Gross profit 529,082 556,046 1,578,655 2,373,357 2,107,737 2,929,403 Administrativeexpenses (812,325) (493,246) (1,384,934) (2,773,940) (2,197,259) (3,267,186) ________ ________ ________ ________ ________ ________ Group operating (loss)/profit (283,243) 62,800 193,721 (400,583) (89,522) (337,783) Share of operating profit/(loss) in associates 87,133 (205,343) - - 87,133 (205,343) Amortisation of goodwill (12,000) (12,000) - - (12,000) (12,000) 75,133 (217,343) - - 75,133 (217,343) ________ ________ ________ ________ ________ ________ (Loss)/profit on ordinary activities before interest (208,110) (154,543) 193,721 (400,583) (14,389) (555,126) Profit on disposal of subsidiary 609,844 -Interest receivable andsimilar income (group) 79,530 29,382Interest payable andsimilar charges (487) - ________ ________(Loss)/profit on ordinary activities before taxation 674,498 (525,744)Taxation on (loss)/profiton ordinary activities (2,112) 82,576 ________ ________(Loss)/profit on ordinary activities after taxation and transferred to reserves 672,386 (443,168) ________ ________ Earnings (loss) per share- Basic 2 1.82p (1.21)p- Diluted 2 1.82p (1.21)p ________ ________ All recognised gains and losses are included in the profit and loss account. PRIME PEOPLE Plc Consolidated balance sheet at 31 December 2004________________________________________________________________________________ Note 2004 2004 2003 2003 £ £ £ £ Fixed assets Tangible assets 44,028 61,656 Investments: Investment in associate 411,676 336,544 ________ ________ 455,704 398,200 Current assets Debtors 262,052 1,122,697 Cash at bank and in hand 2,835,981 996,494 ________ ________ 3,098,033 2,119,191 Creditors: amounts falling duewithin one year 200,903 490,446 ________ ________ Total assets less current assets 2,897,130 1,628,745 Creditors: amounts falling dueafter more than one year 12,497 - ________ ________ Net assets 3,340,337 2,026,945 ________ ________ Capital and reserves Called up share capital 368,467 368,467 Share premium account 909,925 909,925 Merger reserve 173,077 173,077 Profit and loss account 1,888,868 575,476 ________ ________ Equity shareholders' funds 3,340,337 2,026,945 ________ ________ PRIME PEOPLE Plc Consolidated cash flow statement for the year ended 31 December 2004________________________________________________________________________________ Note 2004 2004 2003 2003 £ £ £ £ Net cash outflow from operatingactivities 3 (93,986) (233,078) Dividend from associated undertaking - 83,700 Returns on investment andservicing of finance Interest received 79,530 29,382 Interest paid (487) - ________ ________ 79,043 29,382 Taxation 74,350 (107,873) Capital expenditure and financialinvestment Purchase of tangible fixed assets (37,592) (28,375) Sale of tangible fixed assets 1,800 17,388 ________ ________ (35,792) (10,987) Acquisitions and disposals Sale of subsidiary undertaking 1,905,284 - Net cash disposed with subsidiary (53,986) - ________ ________ 1,851,298 - ________ ________ Net cash inflow/(outflow) beforemanagement of liquid resourcesand financing 1,874,913 (238,856) Management of liquid resources (Purchase)/sale of deposits (1,647,000) 104,000 Financing Issue of ordinary share capital - 30,000 Capital element of finance leases (2,501) - ________ ________ Increase/(decrease) in cash 4 225,412 (104,856) ________ ________ PRIME PEOPLE Plc Notes to the preliminary announcement for the year ended 31 December 2004________________________________________________________________________________ 1 Accounting Policies The final results have been prepared on the same basis and using the same accounting policies as those used in the preparation of the accounts for the year ended 31 December 2003. 2 Earnings per share The earnings per share is calculated based on a weighted average number of shares of 36,846,692 (2003 - 36,680,025) and the profit of £672,386 (2003- loss £443,168), giving a profit per share of 1.82p (2003 - loss per share 1.21p). The effect of all potential ordinary shares in anti-dilutive. 3 Reconciliation of operating profit to net cash outflow from operating activities 2004 2003 £ £ Group operating loss (89,522) (337,783)Depreciation 33,784 83,709Loss/(profit) on sale of tangible fixed assets (1,800) 8,071Decrease in debtors (155,561) 187,274Decrease in creditors 119,113 (174,349) ________ ________ Net cash outflow from operating activities (93,986) (233,078) ________ ________ PRIME PEOPLE Plc Notes to the preliminary announcement for the year ended 31 December 2004________________________________________________________________________________ 4 Reconciliation of net cash outflow to movement in net funds 2004 2004 2003 2003 £ £ £ £ Increase/(decrease) in cash in the year 225,412 (104,856)Cash outflow from decrease in debtand lease financing 2,501 -Cash outflow/(inflow) from(increase)/decrease in liquid resources 1,647,000 (104,000) ________ ________ Increase/(decrease) in net funds resulting from cash flows in the year 1,874,913 (208,856)New finance leases (22,496) - ________ ________ Increase/(decrease) in net funds in the year 1,852,417 (208,856) Opening net funds 947,770 1,156,626 ________ ________ Closing net funds 2,800,187 947,770 ________ ________ 5 Nature of the financial information The financial information does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The financial information for the year ended 31 December 2004 is extracted from the group's financial statements to that date which received an unqualified auditors' report and will be filed with the Registrar of Companies. The financial information for the year ended 31 December 2003 is extracted from the financial statements to that date which received an unqualified auditors' report and have been filed with the Registrar of Companies. This information is provided by RNS The company news service from the London Stock Exchange