Roebuck Food Regulatory News (RFG)

11 Nov 2005 07:00

Embargoed until 7.00 am on 11 November 2005 RDF Group Plc ("the Group") Interim Results for the six months ended 30th September 2005 Introduction and ResultsI am pleased to report significantly improved results for the six months ended30 September 2005. Turnover for the period has more than doubled to ‚£9.19million, (2004: ‚£4.23 million) resulting in a profit before tax of ‚£555,000(2004: ‚£227,000). Post tax profits for the period are ‚£369,000 (2004: ‚£147,000)with earnings per share 3.55p (2004: 1.41p). Your Board is proposing thepayment of an interim dividend of 0.75 pence per share, payable on 16 December2005, to those shareholders on the register at close of business on 25 November2005. The shares will be declared ex-dividend on 23 November 2005.Business ReviewThe first six months of this financial year have seen strong growth in both ofthe Group's core businesses, namely "Managed Service" bespoke softwaredevelopment, support and maintenance and "Recruitment Services", offeringhigh-value contract and permanent staff recruitment.Your Directors are pleased to report that existing business gains have beenmaintained and, in most cases, developed further to contribute to the increasedrevenues. The Group's investment in an expanded sales force is now driving newsales throughout the UK and progress is being made in selling higher valueservices to our clients. The Group continues to receive strong levels ofbusiness from all of its major clients.The Group's premises in Brighton and Livingston are being fully utilised andthis, combined with continuing tight control of costs and optimal staffinglevels, has provided improved profit margins.Current TradingYour Board is confident that the second half of this financial year will seecontinued growth in demand for its services, with confirmed commitment levelson retained business being matched by an expected further growth in newbusiness. Your Directors will continue to seek to invest in sales and marketingopportunities, to increase revenues and to improve marginsYour Directors are focussed on expanding the number of Managed Service clientsthrough new sales initiatives and cross-selling these higher value services toother clients. In addition, your Board is looking at a number of initiatives toincrease the range of IT-related services we can offer to our clients.I should like to take this opportunity to thank all management and staffthroughout the Group for their efforts in successfully building on thesignificant progress made last financial year. I should also like to thank myBoard colleagues and our advisers for their continued advice and support.Subject to unforeseen circumstances, your Board is confident of continuingbusiness growth in the second half of this year.George KynochChairman11 November 2005Group profit and loss account for the six months ended 30th September 2005 Unaudited six months Audited to 30th September twelve months to 31st March 2005 2004 2005 ‚£'000 ‚£'000 ‚£'000 Turnover 9,193 4,227 9,390 Cost of sales (7,285) (3,210) (7,126) Gross Profit 1,908 1,017 2,264 Operating expenses Administrative expenses (1,333) (778) (1,729) Operating profit 575 239 535 Net interest payable (20) (12) (20) Profit on ordinary activities before 555 227 515taxation Taxation on profit from ordinary activities (186) (80) 191(note 2) Profit for the financial period 369 147 324 Dividends (52) - (52) Retained profit 317 147 272 Earnings per share (note 3) Basic 3.55p 1.41p 3.12p Diluted 3.44p 1.40p 3.00p All disclosures relate only to continuing operations.There are no recognised gains or losses other than the profit for the period.Group balance sheet at 30th September 2005 Unaudited Audited 30th September 31st March 2005 2004 2005 ‚£'000 ‚£'000 ‚£'000 Fixed assets Tangible assets 198 187 167 Current assets Debtors 3,481 1,685 2,846 Cash at bank and in hand 255 209 51 3,736 1,894 2,897 Creditors: amounts falling due within one (2,460) (1,042) (1,907)year Net current assets 1,276 852 990 Total assets less current liabilities 1,474 1039 1,157 Provisions for liabilities and charges Deferred tax (11) (18) (11) 1,463 1021 1,146 Capital and reserves Called up share capital 208 208 208 Share premium account 103 103 103 Profit and loss account 1,152 710 835 Equity shareholders' funds 1,463 1021 1,146 Group cash flow statement for the six months ended 30th September 2005 Unaudited six months Audited to 30th September twelve months to 31st March 2005 2004 2005 ‚£'000 ‚£'000 ‚£'000 Net cash inflow from operating activities 485 417 282 Returns on investments and servicing of finance Interest paid (20) (12) (20) Net capital expenditure and financial (55) (5) (11)investment Equity dividends paid (52) - (52) Taxation UK corporation tax - - (18) Net cash inflow before financing 358 400 181 Financing Increase in invoice discounting - - 61 Net cash inflow from financing - - 61 Increase in cash in the period 358 400 242 Reconciliation of operating profit to net cash flow from operating activities Operating profit 575 239 535 Depreciation charges 24 26 52 (Increase) in debtors (635) (11) (1,173) Increase in creditors 521 163 868 Net cash inflow from operating activities 485 417 282 Reconciliation of net cash flow to movement in net funds/(debt) Opening net debt (133) (191) (314) Increase in cash in period 358 400 242 Cash inflow from changes in debt - - (61) Closing net funds/(debt) 225 209 (133) Analysis of funds/(debt) At 1st At 30th April September 2005 2005 ‚£'000 ‚£'000 Cash at bank and in hand 51 255 Overdrafts (184) (30) Total (133) 225Notes to the interim results1. Basis of PreparationThe financial information for the six month period ended 30 September 2005 isunaudited and does not constitute statutory accounts within the meaning of theCompanies Act 1985. The financial information contained in this statement hasbeen prepared using accounting policies consistent with those set out in theGroup's statutory accounts for the year ended 31 March 2005 and should be readin conjunction therewith.The financial information for the year ended 31 March 2005 has been extractedfrom the statutory accounts of RDF Group PLC which contained an unqualifiedaudit report and which did not contain a statement under section 237(2) or 237(3) of the Companies Act 1985 and which have been filed with the Registrar ofCompanies.2. Tax Unaudited six months to Audited twelve 30th September months to 31st March 2005 2004 2004 ‚£'000 ‚£'000 ‚£'000 United Kingdom Corporation Tax On ordinary activities (186) (81) (200) Deferred tax movement - 1 9 (186) (80) (191)The tax charge provided at the half year is based on the estimated effectivetax rate for the Group applicable to the year ending 31 March 2006 as appliedto the pre-tax profits for the period.3. Earnings per shareThe calculation of basic earnings per share of 3.55 pence (30 September 2004:1.41 pence, 31 March 2005: 3.12 pence) is based on the profit on ordinaryactivities after taxation of ‚£369,000 (30 September 2004: ‚£147,000, 31 March2005: ‚£324,000) and on the weighted average number of shares in issue duringthe period and throughout the previous year of 10,400,000.The fully diluted earnings per share amounting to 3.44 pence (30 September2004: 1.40 pence, 31 March 2005: 3.00 pence) has been calculated on the basisof adding 321,111 (30 September 2004: 106,353, 31 March 2005: 409,685) to theweighted average number of shares to take account of the dilutive effect ofoutstanding share options to give 10,721,111 (30 September 2004: 10,506,353, 31March 2005: 10,809,685) shares in issue assuming that options where theexercise price is lower than fair value are exercised. 4. Dividends In respect of the current period, the directors propose that a dividend of 0.75pence per share will be paid to those shareholders on the register at close ofbusiness on 25 November 2005 on 16 December 2005. The proposed dividend is notincluded as a liability in the interim statement in accordance with FRS 21.5. Copies of reportThe interim statement will be posted to all shareholders and will be availableon request from the Company Secretary, 2 Bartholomews, Brighton, BN1 1HG.Enquiries:RDF Group PlcDavid Wood/Paul Jewell Tel: 01273 200100John East & Partners LimitedSimon Clements Tel: 020 7628 2200ENDRDF GROUP PLC