Final Results

PENNA CONSULTING PLC

("Penna" or "the Group")

Preliminary Unaudited Results for the year ended 31 March 2015

9 June 2015

Penna Consulting Plc (PNA: AIM), the international human resources consulting group, today announces its preliminary unaudited results for the year ended 31 March 2015.

FINANCIAL HIGHLIGHTS

· Revenue +22% to £84.4m (2014: £69.0m)

· Net revenues +24% to £44.7m (2014: £36.1m)

· Pre tax profits +70% to £4.6m (2014: £2.7m*)

· Diluted earnings per share +131% to 15.1p (2014: 6.5p*)

· Net cash at year end +148% at £2.3m (31 March 2014: £0.9m)

· Final dividend +166% to 4.0p (2014: 1.5p)

· Total dividend per share for the year +100% to 6p (2014: 3p)

*Prior year comparatives show 2013/14 results for continuing businesses before non-recurring exceptional items

OPERATIONAL HIGHLIGHTS

· Impressive profitable growth in Recruitment

· Major penetration into Retail / FMCG sectors in Outplacement

· Increased number of long term contracts

· Successful integration of Savile Group

· Continued investment in infrastructure and people

 Commenting on the results and outlook, Stephen Rowlinson, Chairman, said:

"Penna produced an excellent set of results for the year to 31 March 2015 with pre tax profits up 70% to £4.6 million and diluted earnings per share more than doubled to 15.1p per share. The business is well balanced and all three divisions made considerable progress. As the UK economy continues to grow strongly we are seeing a significant rise in clients' expenditure on recruitment and other HR projects. Penna continues with impressive momentum."

ENDS

For further information please contact:

Stephen Rowlinson, Chairman 0771 00 23699

Gary Browning, Chief Executive 020 7332 7993

David Firth, Finance Director 020 7332 7993

Charles Stanley Securities

Marc Milmo 020 7149 6000

Karri Vuori 020 7149 6000

Penna Consulting Plc

Chairman's Review

I am delighted to present an excellent set of results for the Year to 31st March, 2015.

Net Revenues were up 24%, Pre tax profits up 70% and Diluted earnings per share (EPS) more than doubled to 15.1p per share ( 2014: 6.5p). Penna continues to generate cash and we are recommending a doubling of the Dividend for the Year.

Our Recruitment Solutions business expanded strongly in the year and grew net revenues by 30%. Pre tax profits nearly tripled to £3.0 million (2014: £ 1.1m).

At thesame time Career Services (CS) which includes our market leading Outplacement consultancy achieved Net Revenue growth of 18% and solid operating profit growth that was 7% above last year at £3.2 million (2014: £3.0m) while completing and absorbing the final costs of the Savile integration. The performance of CS demonstrates that demand for career transition support will be maintained in a post recessionary environment.

We have seen steady progress through the year in our Talent Practice (TP) group with Net Revenue growth year on year of 28%. At Interim stage we reported TP's loss of £340,000 in the first half. In the 3rd quarter there was a much reduced deficit of £90,000 and break even in the 4th quarter.

The strong performance of the Group in the year reflects the benefits of our strategy to establish Penna as the provider of the UK's broadest range of HR services. We work with clients on every aspect of the management of their most vital resource - their people. We are now a well balanced business. During the year our two major divisions both produced Net Revenue of around £20 million and Pre tax profits of over £3 million to achieve a margin of 16%. Our smaller TP division, which provides a number of key services of growing importance in the market, has grown by nearly a third in the year and has eliminated its early losses.

During the year we made significant investments in building our professional teams and in providing them with an outstanding working environment and leading edge technology.

The business has considerable momentum and if the UK economy continues to grow strongly we expect to see a dramatic rise in volumes and in expenditure per HR project.

Penna's businesses generate cash and we ended the year with £2.3 million (2014: £0.9m) and no debt having invested £1m in new facilities, paid dividends of £0.9m and purchased over £0.4m of our own shares.

Therefore, in an environment where investor returns are challenged, I am pleased to report that we remain committed to a progressive dividend policy and the Board is recommending a final dividend of 4.0 pence (2014: 1.5 pence) to make a total dividend of 6.0 pence (2014: 3.0 pence) for the year. If approved at the Annual General Meeting, the final dividend will be paid on 19 November 2015, to shareholders on the register on 23 October 2015.

Penna's key strengths are the quality, dedication and motivation of every member of our team which is led by an outstanding group of managers who have together delivered these excellent results. We take great pride in a whole range of industry awards and in our appearance for the 7th year running in the Sunday Times list of the 100 Best UK Companies to Work For.

Operational Review

Penna offers a broad range of HR services to clients, spanning the employment lifecycle from recruitment activities, through assessment and development services to career transition and career development. The ability to combine transactional HR services into talent solutions for our clients enables us to add value and differentiates us from others in the sector.

In the year ended 31 March 2015 we were organised under three service groups, namely Recruitment Solutions, Career Services and Talent Management, each led by a managing director reporting directly to the Chief Executive.

*Prior year comparatives show 2013/14 results for continuing businesses before non-recurring exceptional items

Recruitment Solutions combines our expertise in resourcing (attraction communications, advertising, managed recruitment and assessment), executive search and executive interim. By combining these services we offer clients the tailored solutions for their recruitment needs.

Revenues grew significantly during the year as the economy continued to improve and earlier investments in consultants contributed to increasing revenues and margins. Revenues ended 23% up on the prior year at £58.3 million (2014: £47.2 million). Net revenues were up 30% at £19.4 million (2014: £14.9 million) as higher revenues also produced stronger margins. This increase translated into a significant improvement in profitability to £3.0 million (2014: £1.1 million). Net revenues increased by 19% in H2 compared to the first half of the year and profits were 25% higher in the second half compared to the first half. The trend of increasing recruitment revenues and profitability throughout the year has continued since the year end.

Career Services includes our market leading outplacement consultancy together with the newer career development and redeployment services.

Net revenues in the year in Career Services increased by 18% to £19.7 million (2014: £16.6 million) primarily as a result of significant restructuring in the Retail sector and continued change in the Financial Services sector. Operating profits were up 7% at £3.2 million (2014: £3.0 million). As anticipated, revenues in H2 showed an improvement on the prior year of 12%, a satisfactory performance as the labour markets continued to improve with UK unemployment falling to 5.5% by the end of the year.

The company has made significant inroads into the Retail / FMCG market, specifically supporting a number of major retailers in the supermarkets sub-sector. Market disruption in this sector from several of the large supermarket discounters has, as was well reported on in the press, created the need for major structural changes with a number of our clients who called upon Penna Career Services to provide Outplacement and Transition support throughout the period. These projects continue into 2015-16.

Whilst Global Financial Services continues to be the largest market for Penna's market leading Outplacement offering (29% by revenues), Retail/FMCG grew in the year by 46% to account for 19% of revenues (2014: 13%). The Savile group which was acquired in December 2013 was fully integrated in the year and further enhanced the group's reputation as the leading provider of Outplacement services across the commercial sector

Talent Practice consists of a portfolio of talent assessment and development services, through which we provide clients with solutions supporting them to identify and develop their people. These include coaching, management and leadership development, and assessment.

Net revenues in the year in the Talent Practice increased by 28% to £5.0 million (2014: £3.9 million). The practice incurred a loss of £0.4 million (2014: £0.4 million). The losses reduced consistently during the year and throughout the final quarter the Talent Practice was trading at breakeven.

Statement of Financial Position

The Group's net assets at 31 March 2015 were £19.9 million (2014: £17.3 million) including cash balances of £2.3 million (2014: £0.9 million). The Group has no debt but has in reserve working capital facilities of £5.5 million.

Cash flow

Cash generated by operations amounted to £4.5 million (2014: £1.9 million). Capital expenditure amounted to £1.1 million (2014: £0.4m) largely represented by investment in our London offices. We bought in £425,000 of the Company's own shares. Dividends paid in the year amounted to £0.9 million (2014: £0.6 million).

Outlook

As the UK economy continues to grow strongly we are seeing a significant rise in clients' expenditure on recruitment and other HR projects. Penna continues with impressive momentum and we remain confident of the outlook for the Group.

Stephen Rowlinson

Chairman

9 June 2015

Consolidated statement of comprehensive income

for the year ended 31 March 2015 (unaudited)

Penna Consulting Plc

Consolidated statement of changes in equity

at 31 March 2015 (unaudited)

Penna Consulting Plc

*Restated as set out in note 2

Penna Consulting Plc

Consolidated statement of cash flow

for the year ended 31 March 2015 (unaudited)

Penna Consulting Plc

Notes to the preliminary announcement

for the year ended 31 March 2015 (unaudited)

Diluted earnings per share cannot result in a lower loss per share than basic earnings per share, therefore the diluted earnings per share for the prior year is the same as the basic earnings per share.