29th May 2014 11:06
LONDON (Alliance News) - Recruitment firm Prime People PLC Thursday said it plans to return GBP1.8 million or 15 pence per share to shareholders by way of a capital reduction as it reported an increase in profit for the full-year, driven by a strong performance in the UK and Asia.
The company, which specialises in real estate and energy, posted pretax profit of GBP1.0 million for the period ended March 31, up from GBP784,000 a year earlier, as revenue rose to GBP14.4 million from GBP13.0 million.
Profit increased despite a mixed performance geographically. Market conditions in the UK improved during the year, which pushed revenue up to GBP11.4 million from GBP10.3 million, while net fee income rose to GBP5.3 million from GBP4.9 million a year earlier. The improved net fee income performance was primarily achieved by more experienced consultants which resulted in higher than usual commissions.
In Asia, revenue rose to GBP2.2 million from GBP1.7 million a year earlier, while net fee income also rose to GBP2.2 million from GBP1.7 million. Prime People said Asia is its fastest growing region and now represents 27% of group net fee income. The region is covered by offices in Hong Kong and Singapore.
However, the rest of the world struggled, with revenue down to GBP800,000 from GBP1.0 million a year earlier, with net fee income also down to GBP800,000 from GBP1.0 million. The firm said its Dubai business had a number of "distractions" over the year which included the process of organising a move to a "free zone" to simplify trading licence renewals in the future.
"This was a challenging process as it necessitated a complete change in the corporate structure of the business, which has now been completed," Prime People said.
In a separate note, the firm said it started the year with net cash of GBP2.3 million which increased to GBP3.0 million at the end of the year, a large proportion of which the company considered to be surplus cash.
Prime People said it has enough cash to complete current growth plans and now plans to return cash to shareholders by way of a reduction in capital amounting to 15 pence per share.
The firm maintained its final dividend at 3.09 pence, making a total dividend of 4.09 pence unchanged from a year earlier.
Looking ahead the firm said it is cautiously optimistic about the current year.
"Global economic conditions are strengthening and there are clear signs of growth in a number of recruitment sectors," Chairman Robert Macdonald said in a statement. "The group continues to enjoy strong client relationships which will allow it to capitalise on opportunities as they arise.
Prime People shares were quoted up 12.4% at 100.00 pence Thursday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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