Half Yearly Report

19th Nov 2009 07:00



19 November 2009 

Prime People PlcInterim Results for the six months ended 30 September 2009

Prime People Plc ("Prime People" or the "Group"), the international real estate, infrastructure and commercial property recruitment specialist, today announces its interim results for the half year ended 30 September 2009.

Highlights:

	Six months ended 30 September 2009	Six months ended 30 September 2008
Gross fee income	£7.07m	£12.09m
Net fee income	£3.05m	£6.68m
Operating (loss)/profit before non-recurring costs Pre-tax (loss)/profit	£(0.05)m £(0.16)m	£1.01m £0.99m
Diluted (loss)/earnings per share	(1.10)p	5.36p

Peter Moore Managing Director of Prime People, commented: 

"On the basis that the worst outcome of the global financial crisis has been averted Prime People with its strong UK position and established overseas offices is ready and able to capitalise on the opportunities that the coming months may offer".

-Ends-

For further information please contact:

Prime People	020 7318 1785
Robert Macdonald, Executive Chairman
Chris Heayberd, Finance Director
Cenkos Securities	020 7397 8900
Nick Wells Elizabeth Bowman
Julian Morse

  Prime People plcInterim Results for the six months ended 30 September 2009

Chairman's Statement

Results

I am able to report the results for Prime People Plc for the half-year ended 30 September 2009.

The first half shows an operating loss of £46,000 before deduction of non-recurring items of £116,000. Whilst this contrasts unfavourably with the operating profit of £1.013 million produced in the comparable period last year, it contrasts well with the immediately preceding half year when the group recorded operating losses of £263,000. 

During the period being reported the Group has continued to rationalise its management and organisation to reflect the level of business it expects to do in the remainder of the current financial year and is now positioned to be profitable in the second half of the year on the basis of the budgeted level of net fee income. The results reflect the challenging global market conditions in all our markets during the period being reported and the impact of redundancy costs of £116,000 associated with ensuring that the Group is the right size for the immediate future.

The net fee income split is:

		Six months  ended 30 September 2009		Six months ended 30 September 2008
		£'000		£'000
Permanent - UK - International		1,337 953		3,336 2,207
Temporary (UK only)		2,290 760		5,543 1,137
Total		3,050		6,680

Net cash

The Group retains a strong net cash position of £1.81million (2008: £1.07million) and is positioned to be able to exploit both cyclical opportunities that may present themselves and the upturn in its markets when they come. 

Dividend

The Board has decided not to declare an interim dividend for the six months ended 30 September 2009 but will give consideration to recommending a final dividend once the outcome for the full year is known. 

Outlook

In recent months trading in all offices has reached a level at which revenues appear to be stabilising and from which good progress can be made.

The Group's overseas offices continued to contribute significantly to Group NFI providing 31 per cent of Group NFI (2008: 33 per cent). 

Freelance (temporary placement) activity also continues to provide a material part of the Company's revenue mix contributing 25 per cent of Group NFI (2008: 17 per cent) in the period.

Prime Insight, the Company's business which specialises in the placement of insight professionals and which we started in October last year, continues to make steady progress. This start-up and incubation provides a business model from which to grow new recruitment businesses and we are actively looking for similar opportunities. 

With signs of a general, if modest, economic recovery in global activity and an increased interest in property as a yielding asset class noticeable in the UK and Far East I hope to report improved performance in the second half of the year.

R J G Macdonald 

Executive Chairman

19 November 2009

Consolidated income statement

for the six months ended 30 September 2009 (unaudited)

	Notes		Six months ended 30 September 2009		Six months ended 30 September 2008		Year ended 31 March 2009
			£'000		£'000		£'000
Continuing operations
Gross Fee Income			7,071		12,089		20,668
Direct costs			(4,021)		(5,409)		(10,255)
Net fee income			3,050		6,680		10,413
Administrative expenses			(3,212)		(5,667)		(9,663)
Operating (loss)/profit			(162)		1,013		750
Finance income			5		6		14
Finance expense	2		(5)		(25)		(37)
(Loss)/profit before taxation			(162)		994		727
Taxation			31		(301)		(190)
(Loss)/profit after tax attributable to equity shareholders			(131)		693		537
Earnings per share	5
Basic			(1.10)p		5.76p		4.47p
Diluted			(1.10)p		5.36p		4.18p

Consolidated statement of changes in shareholders equity at 31 March 2009

for the six months ended 30 September 2009 (unaudited)

 

	Called up share capital	Capital redemption reserve	Share  premium account	Other reserve	Share option reserve	Foreign currency translation	Retained earnings	Total
	£’000	£’000	£’000	£’000	£’000	£’000	£’000	£’000
At 1 April 2008	1,203	-	7,095	173	136	(15)	4,087	12,679
Currency translation difference	-	-	-	-	-	130	-	130
Profit for the period	-	-	-	-	-	-	693	693
Adjustment in respect of share schemes	-	-	-	-	29	-	-	29
Equity dividends	-	-	-	-	-	-	(289)	(289)
At 30 September 2008	1,203	-	7,095	173	165	115	4,491	13,242
Currency translation differences	-	-	-	-	-	371	-	371
Loss for the period	-	-	-	-	-	-	(156)	(156)
Adjustment in respect of share schemes	-	-	-	-	11	-	-	11
At 31 March 2009	1,203	-	7,095	173	176	486	4,335	13,468
Currency translation differences	-	-	-	-	-	(82)	-	(82)
Loss for the period	-	-	-	-	-	-	(131)	(131)
Adjustment in respect of share schemes	-	-	-	-	(107)	-	113	6
Shares purchased for cancellation	(9)	9	(18)	-	-	-	-	(18)
At 30 September 2009	1,194	9	7,077	173	69	404	4,317	13,243

Consolidated balance sheet

at 30 September 2009 (unaudited)

		As at 30 September 2009		As at 30 September 2008		As at 31 March 2009
		£'000		£'000		£'000
Assets
Non-current assets
Intangible assets		9,769		9,769		9,769
Property, plant and equipment		298		376		379
Deferred tax asset		79		66		49
		10,146		10,211		10,197
Current assets
Trade and other receivables		2,863		4,673		3,351
Cash and cash equivalents		2,237		1,780		2,499
		5,100		6,453		5,850
Total assets		15,246		16,664		16,047
Liabilities
Current Liabilities
Financial liabilities - borrowings		288		290		429
Trade and other payables		1,575		2,179		1,848
Current tax liabilities		-		533		22
		1,863		3,002		2,299
Non current liabilities
Financial liabilities - borrowings		140		420		280
Total liabilities		2,003		3,422		2,579
Net assets		13,243		13,242		13,468
Capital and reserves
Called up share capital Capital redemption reserve		1,194 9		1,203 -		1,203 -
Share premium account		7,077		7,095		7,095
Other reserve		173		173		173
Share option reserve		69		165		176
Currency translation differences		404		115		486
Retained earnings		4,317		4,491		4,335
Equity shareholders funds		13,243		13,242		13,468

Consolidated Cash Flow Statement

for the six months ended 30 September 2009 (unaudited)

	Notes	Six months ended 30 September 2009		Six months ended 30 September 2008		Year ended 31 March 2009
			£'000		£'000		£'000
Cash inflow from operating activities
Cash generated by operations	6		14		1,953		3,187
Corporation tax received /(paid)			34		(248)		(631)
Net cash from/(used) in operating activities			48		1,705		2,556
Cash flows from investing activities
Interest received			5		6		14
Interest paid			(5)		(25)		(37)
Net purchase of property, plant and equipment			(12)		(163)		(290)
Net Cash used in investing activities			(12)		(182)		(313)
Cash flows from financing activities
Repayment of borrowings			(140)		(140)		(280)
Dividends paid to shareholders			-		(289)		(289)
Shares purchased for cancellation			(18)		-		-
Net cash used in financing activities			(158)		(429)		(569)
Net (decrease) / increase in cash and cash equivalents			(122)		1,094		1,674
Cash and cash equivalents at 1 April 2009			2,350		676		676
Cash and cash equivalents at 30 September 2009			2,228		1,770		2,350

Notes to the Interim Financial Statements

For the six months ended 30 September 2009 (unaudited)

 

1. Accounting Policies

The consolidated interim financial statements are for the six months ended 30 September 2009. They have been prepared in accordance with International Financial Reporting Standards (IFRS) using the same accounting policies as those used in the preparation of the accounts for the year ended 31 March 2009.

 

2. Finance Expense

	Six months ended 30 September 2009		Six months ended 30 September 2008		Year ended 31 March 2009
		£'000		£'000		£'000
Bank interest:		5		25		37
		5		25		37

 

3. Taxation on profit on ordinary activities 

Taxation has been provided by applying the standard rate of corporation tax in the UK.

 

4. Dividends

	Six months ended 30 September 2009		Six months ended 30 September 2008		Year ended 31 March 2009
		£'000		£'000		£'000
Final dividend for 2008 of 2.40 pence per share		-		289		289
		-		289		289

Notes to the Interim Financial Statements (continued)

for the six months ended 30 September 2009 (unaudited)

 

5. Earnings per share

Earnings per share (EPS) has been calculated in accordance with IAS 33 "Earnings per share" and is calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the period.

Earnings and weighted average number of shares used in the calculations are show below:

	Six months ended 30 September 2009		Six months ended 30 September 2008		Year ended 31 March 2009
		£'000		£'000		£'000
Retained (loss)/profit for basic earnings per share		(131)		693		537
		Number		Number		Number
Weighted average number of shares used for basic and continuing earnings per share		11,941,500		12,028,899		12,028,899
Dilutive effect of share options and shares to be issued		841,510		902,621		835,156
Diluted weighted average number of shares used for diluted earnings per share		12,783,010		12,931,520		12,864,055

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Company has only one category of dilutive potential ordinary shares: share options. The basic and diluted loss per share is the same, as the exercise of share options would reduce the loss per share and is, therefore, anti-dilutive.

		Pence		Pence		Pence
Basic (loss)/earnings per share		(1.10)p		5.76p		4.47p
Diluted (loss)/earnings per share		(1.10)p		5.36p		4.18p

 

6. Reconciliation of operating profit to net cash inflow from operating activities

			Six months ended 30 September 2009		Six months ended 30 September 2008		Year ended 31 March 2009
			£'000		£'000		£'000
	Group operating (loss)/profit		(162)		1,013		750
	Depreciation		93		100		224
	Share option reserve movement		6		29		40
	Effects of exchange rate changes		(82)		130		501
	Decrease in debtors		487		1,078		2,400
(Decrease)/increase in creditors			(328)		(397)		(728)
Net cash inflow from operating activities			14		1,953		3,187

 

7. Nature of the financial information

The interim financial information for the six months ended 30 September 2009, was approved by the board on 19 November 2009.

The financial information set out above does not constitute full accounts within the meaning of Section 240 of the Companies Act 1985. The comparative results for the year ended 31 March 2009 have been extracted from the Group's financial statements for that period which have received an unqualified audit report and have 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

ENDIR ILFELLRLTLIA

---

Related Shares:

PRP.L