11th Sep 2009 07:00
RTC Group Plc ("RTC" or "the Company")
Interim results for the six months ended 30 June 2009
RTC Group Plc, a support services group, which provides recruitment, training and conferencing services, is pleased to announce its interim results for the six months ended 30 June 2009.
HIGHLIGHTS
Turnover reduced by 22% to £9.8m (2008: £12.5m).
Operating loss of £1.2m (2008: profit £0.3m).
Loss per share of 13.26p (2008: earnings of 2.19p).
No interim dividend declared (2008: 1.5p).
No borrowings at half year, invoice discounting facility unused.
Commenting on the results Bill Douie, Chairman, said:
"We are now leaner and fitter as an organisation. The trading outlook, although precarious, does not look as dangerous as in Q1 2009 and we are optimistic of a materially improved performance in the second six months"
10 September 2009
ENQUIRIES:
RTC Group Plc Tel: 01332 263 122
Bill Douie, Executive Chairman.
Andy Pendlebury, Group Chief Executive.
Evolution Securities Limited Tel: 0207 071 4300
Jeremy Ellis / Chris Clarke
CHAIRMAN'S STATEMENT
I am pleased to present the interim report of the Company for the six months to 30 June 2009.
Trading
General
As presaged in our Report and Accounts in March and in our trading update in July, trading conditions have been extremely difficult. Accordingly, as expected, material losses have been incurred in the first six months of 2009. During the period a programme of actions, initiated in 2008 to reduce costs as far as possible in line with available flows of revenue, continued and certain costs associated with this programme have been borne in arriving at the figures released today.
Recruitment
Divisional revenue has fallen by 22% to £7.782m and a profit of £610,000 in 2008 has turned to a loss of (£609,000). Although indirect overheads are not easily reduced in a nationwide branch network, costs have been cut wherever possible and only the highest quality personnel remain, albeit generating net fee income at a reduced level.
Training
In spite of Governmental pressure to accelerate new projects, demand in the first six months has been at a seriously reduced level and turnover has fallen further by 22% to £1.450m During the period staffing levels have been reduced by 25% and certain attendant costs have been absorbed. As a consequence of these two factors losses have increased to (£424,000).
Conferencing
The Derby Conference Centre Limited, after strong increases in revenues in 2008, has concentrated on a major efficiency drive and has, in spite of suffering a 25% fall in revenues, managed to reduce trading losses by 9% to (£163,000). This has been achieved mainly through material increases in gross margins and leaves the business well placed for further progress into profits as market conditions improve.
Dividends
Your Directors consider that it would be inappropriate to declare an interim dividend.
Outlook & Strategy
In spite of having anticipated for a number of years that a major Global setback was inevitable there can be no doubt that the scope and severity of the recession we are now in have exceeded even our worst case scenario. Although we have acted both in a timely manner to respond to those forecasts and the emerging situation, and continue to do so as required, it has not been possible to avoid painful losses in the first half of 2009.
Although we are now leaner and fitter than in the final months of 2008, present levels of turnover remain at a low ebb. There are some signs that, for now at least, conferencing and recruitment have stabilised but, although we have been successful in gaining a preferred supplier contract covering the supply of contract labour from Network Rail, there is as yet no indication of satisfactory upwards moves in turnover. Training will continue to struggle until activity rises and, although there are more positive noises coming from the Railway Industry, there are no tangible signs at this time.
The trading outlook, although precarious, does not look as dangerous as in Q1 2009 and we are optimistic of a materially improved performance in the second six months.
W.J.C.Douie, Chairman. 10th September 2009
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
6 Months |
6 Months |
12 Months |
|||||
|
to 30 Jun 2009 |
to 30 Jun 2008 |
to 31 Dec 2008 |
|||||
|
(unaudited) |
(unaudited) |
||||||
|
Notes |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Revenue |
2 |
9,766 |
12,487 |
25,848 |
|||
|
Cost of sales |
(8,540) |
(9,918) |
(20,664) |
||||
|
Gross Profit |
1,226 |
2,569 |
5,184 |
||||
|
Administrative expenses - normal |
(2,422) |
(2,307) |
(4,651) |
||||
|
Operating (loss)/ profit before exceptional items |
2 |
(1,196) |
262 |
533 |
|||
|
Administrative expenses - exceptional impairment of goodwill |
- |
- |
(250) |
||||
|
Operating (loss)/profit after exceptional items |
(1,196) |
262 |
283 |
||||
|
Financing income |
- |
4 |
12 |
||||
|
(Loss)/profit on ordinary activities before taxation |
(1,196) |
266 |
295 |
||||
|
Income tax expense |
3 |
- |
(80) |
(157) |
|||
|
Net (loss)/profit attributable to equity holders of the parent |
(1,196) |
186 |
138 |
||||
|
Total comprehensive (expense)/income for the period |
(1,196) |
186 |
138 |
||||
|
(Loss)/earnings per share (pence) |
5 |
(13.26) |
2.19 |
1.58 |
|||
There were no discontinued operations in either the current or comparative periods. There is no dilutive impact of share options.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
|
As at 30 Jun 2009 (unaudited) £'000 |
As at 30 Jun 2008 (unaudited) £'000 |
As at 31 Dec 2008 £'000 |
|
|
Assets |
|||
|
Non current |
|||
|
Goodwill |
674 |
924 |
674 |
|
Property, plant & equipment |
748 |
729 |
757 |
|
Deferred tax asset |
73 |
55 |
73 |
|
1,495 |
1,708 |
1,504 |
|
|
Current |
|||
|
Inventories |
12 |
9 |
8 |
|
Trade and other receivables |
3,011 |
4,601 |
5,420 |
|
Cash and cash equivalents |
1 |
945 |
108 |
|
3,024 |
5,555 |
5,536 |
|
|
Total assets |
4,519 |
7,263 |
7,040 |
|
Liabilities |
|||
|
Current |
|||
|
Trade and other payables |
(1,558) |
(2,385) |
(2,810) |
|
Tax liabilities |
(2) |
(322) |
(75) |
|
Total Liabilities |
(1,560) |
(2,707) |
(2,885) |
|
Net Assets |
2,959 |
4,556 |
4,155 |
|
Equity |
|||
|
Called up share capital |
90 |
90 |
90 |
|
Share premium account |
2,117 |
2,117 |
2,117 |
|
Capital redemption reserve |
50 |
50 |
50 |
|
Share based payment reserve |
33 |
25 |
33 |
|
Retained earnings |
669 |
2,274 |
1,865 |
|
Total equity |
2,959 |
4,556 |
4,155 |
CONSOLIDATED STATEMENT OF CASHFLOWS
|
6 Months to 30 Jun 2009 (unaudited) |
6 Months to 30 Jun 2008 (unaudited) |
12 Months to 31 Dec 2008 |
||
|
£'000 |
£'000 |
£'000 |
||
|
Operating activities |
||||
|
Operating (loss)/profit |
(1,196) |
262 |
283 |
|
|
Employee equity settled share options |
- |
- |
8 |
|
|
Depreciation of property, plant & equipment |
148 |
152 |
311 |
|
|
Profit on sale of property, plant & equipment |
- |
- |
(4) |
|
|
Impairment of goodwill |
- |
- |
250 |
|
|
Change in inventories |
(4) |
(1) |
- |
|
|
Change in trade and other receivables |
2,409 |
381 |
(505) |
|
|
Change in trade and other payables |
(1,252) |
(280) |
145 |
|
|
Taxes paid |
(73) |
- |
(275) |
|
|
Interest received |
- |
4 |
12 |
|
|
Net cash inflow from operating activities |
32 |
518 |
225 |
|
|
Investing activities |
||||
|
Purchases of property, plant & equipment |
(139) |
(143) |
(334) |
|
|
Proceeds from sale of property, plant & equipment |
- |
- |
8 |
|
|
Net cash used in investing activities |
(139) |
(143) |
(326) |
|
|
Cash (outflow)/inflow before financing |
(107) |
375 |
(101) |
|
|
Financing activities |
||||
|
Capital element of finance lease rental payments |
- |
(4) |
(4) |
|
|
Issue of ordinary share capital including premium |
- |
308 |
308 |
|
|
Equity dividends paid |
- |
- |
(361) |
|
|
Net cash from/(used) from financing activities |
- |
304 |
(57) |
|
|
Net (decrease)/increase in cash and cash equivalents |
(107) |
679 |
(158) |
|
|
Cash and cash equivalents at the beginning of the period |
108 |
266 |
266 |
|
|
Cash and cash equivalents at the end of the period |
1 |
945 |
108 |
NOTES TO THE INTERIM STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
1. ACCOUNTING POLICIES
a) General information
RTC Group Plc is a public limited company incorporated and domiciled in England whose shares are publicly traded. The registered office address is The Derby Conference Centre, London Road, Derby, DE24 8UX. The company's registered number is 02558971. The principal activities of the Group are described in note 2.
b) Basis of preparation
The unaudited interim group financial statements of RTC Group Plc are for the six months ended 30 June 2009 and do not comprise statutory accounts within the meaning of S.435 of the Companies Act 2006. The unaudited interim group financial statements have been prepared in accordance with the AIM rules. This report should be read in conjunction with the Group's Annual Report and Accounts for the year ended 31 December 2008, which have been prepared in accordance with IFRS's as adopted by the European Union.
These unaudited interim group financial statements were approved for issue on 10 September 2009. No significant events, other than those disclosed in this document, have occurred between 30 June 2009 and this date.
c) Comparatives
The comparative figures for the year ended 31 December 2008 do not constitute statutory accounts within the meaning of S.435 of the Companies Act 2006, but they have been derived from the audited financial statements for that year, which have been filed with the Registrar of Companies. The report of the auditors was unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
d) Accounting policies
The accounting policies adopted are consistent with those described in the annual financial statements for the year ended 31 December 2008. There have been no significant changes in the basis upon which estimates have been determined, compared to those applied at 31 December 2008 and no change in estimate has had a material effect on the current period.
This interim announcement has been prepared based on IFRS's which are in issue that are effective or available for early adoption at the Group's annual reporting date as at 31 December 2009.
2. SEGMENTAL ANALYSIS
The Group operates Recruitment, Training and Conferencing business activities. Segmental analysis of business activity is shown below.
|
6 Months to |
6 Months to |
12 Months to |
|
|
30 Jun 2009 |
30 Jun 2008 |
31 Dec 2008 |
|
|
(unaudited) |
(unaudited) |
||
|
£'000 |
£'000 |
£'000 |
|
|
REVENUE |
|||
|
Recruitment |
7,782 |
9,923 |
20,646 |
|
Training |
1,450 |
1,848 |
3,773 |
|
Conferencing |
534 |
716 |
1,429 |
|
9,766 |
12,487 |
25,848 |
|
|
GROSS MARGIN |
|||
|
Recruitment |
624 |
1,773 |
3,607 |
|
Training |
410 |
587 |
1,239 |
|
Conferencing |
192 |
209 |
338 |
|
1,226 |
2,569 |
5,184 |
|
|
OPERATING (LOSS)/ PROFIT |
|||
|
Recruitment |
(609) |
610 |
1,046 |
|
Training |
(424) |
(168) |
(130) |
|
Conferencing |
(163) |
(180) |
(383) |
|
(1,196) |
262 |
533 |
|
In the view of the directors, there is not a seasonal aspect to the performance of the business.
3. TAX ON PROFIT ON ORDINARY ACTIVITIES
No provision has been made for tax in the period, as a result of the losses incurred. Tax charges in the previous periods were estimated at the anticipated effective rate.
4. DIVIDENDS
The Board does not propose the payment of an interim dividend.
5. (LOSS)/EARNINGS PER SHARE
The (loss)/earnings per share have been calculated on continuing operations after taxation, based on the weighted average number of shares in issue during the period. There were no discontinued operations in either the current or comparative periods. The outstanding share options are not considered to be dilutive in either the current or comparative periods.
|
|
|
6 Months to
30 Jun 2009
(unaudited)
|
6 Months to
30 Jun 2008
(unaudited)
|
12 Months to
31 Dec 2008
|
|
|
|
|
|
|
|
Weighted average number of shares
|
|
9,022,564
|
8,477,244
|
8,751,394
|
|
(Loss)/earnings (£'000)
|
|
(1,196)
|
186
|
138
|
|
(Loss)/earnings per share (pence)
|
|
(13.26)
|
2.19
|
1.58
|
6. ANALYSIS OF CHANGES IN NET FUNDS
|
At 1 Jan 2009 |
Cash Flows |
Other Movements |
At 30 Jun 2009 |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Net Funds |
||||
|
Cash at bank and in hand |
108 |
(107) |
- |
1 |
The Group has a working capital facility with Lloyds TSB plc that allows it to borrow up to 90% of the invoiced trade debtors of ATA Recruitment Limited up to £3.5m.
7. RECONCILIATION OF CONSOLIDATED EQUITY
|
As at |
As at |
As at |
|
|
30 Jun 2009 |
30 Jun 2008 |
31 Dec 2008 |
|
|
(unaudited) |
(unaudited) |
||
|
£'000 |
£'000 |
£'000 |
|
|
Opening total equity |
4,155 |
4,062 |
4,062 |
|
Total comprehensive (expense)/income for the period |
(1,196) |
186 |
138 |
|
Dividends |
- |
- |
(361) |
|
Issue of shares |
- |
308 |
308 |
|
Share based payment |
- |
- |
8 |
|
Closing total equity |
2,959 |
4,556 |
4,155 |
8. CONTINGENT LIABILITIES
The bank facility is subject to unlimited cross guarantees between Group companies secured by mortgage debentures.
9. RELATED PARTY TRANSACTIONS
RTC Group Plc is the parent company of the Group that includes the following entities that have been consolidated:
ATA Management Services Limited
ATA Recruitment Limited
Catalis Limited
The Derby Conference Centre Limited
Ganymede Solutions Limited
Global Choice Recruitment Limited
The Group has taken advantage of the exemption permitted by relevant accounting standards and has not disclosed transactions with other Group companies that are eliminated on consolidation.
RTC Group Plc
Registered Office
The Derby Conference Centre,
London Road,
Derby, DE24 8UX
Approved and authorised for release
for and on behalf of RTC Group Plc
Related Shares:
Rtc Grp.