25th Mar 2013 07:00
Savile Group plc
("Savile", the "Group" or the "Company")
INTERIM RESULTS FOR THE SIX MONTHS ENDED
31 December 2012
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Savile Group plc (SAVG.L), the AIM quoted human resources consulting group announces its unaudited interim results for the six months ended 31 December 2012.
Financial Summary
| Six months ended 31 December 2012 (Unaudited) £000 | Six months ended 31 December 2011 (Unaudited) £000 | Year ended 30 June 2012 (Audited) £000 |
Revenue on continuing operations | 3,828 | 3,596 | 7,390 |
Operating (loss)/profit before non-recurring exceptional items | (443) | 69 | (40) |
Non-recurring exceptional items | (351) | - | (62) |
Cash at bank | 554 | 758 | 1,043 |
Diluted (loss)/earnings per share on continuing operations | (5.29)p | 0.82p | (0.62)p |
Enquiries to:
Savile Group plc | Cairn Financial Advisers LLP |
David Harrel | Tony Rawlinson |
Chairman | Nominated advisor |
Tel: 020 7204 6990 | Tel: 020 7148 7901 |
Further information on the Company can be found on its website, at www.savile.com
Chairman's Statement
The first six months of the current financial year have been extremely challenging for the Group. As noted in our recent trading update, like for like income, excluding the CMC acquisition was around 20% below the same period in 2011 (6% above last year including CMC), with demand in the first quarter being particularly slow. This continued into the second quarter, with customers delaying committing to projects. In addition, reorganisation costs added to the loss as detailed in note 2.
These reorganisation costs relate to a work programme to fully integrate the operations of CMC and improve efficiency. The majority of the total costs relating to this project, including redundancies have been incurred in the first half of the year.
The Group's unaudited revenue on continuing activities in the six months ended 31 December 2012 was £3.83m (2011: £3.60m) and operating loss before exceptional items was £(0.44m) (2011: Profit £0.07m). Net assets at 31 December 2012 were £0.96m (2011: £2.00m) including net cash of £0.55m (2011: £0.76m). The Group has no debt.
The poor trading and losses incurred in the 6 month period to 31 December 2012 has impacted the Group's cash at bank.
2013 has started on a more positive note and if this continues it will result in an improved performance in the second half of the year to 30 June 2013 compared to the first half.
The trading environment remains challenging but we believe the restructured Group is taking steps to meet these challenges.
David Harrel
Chairman
25 March 2013
Group Statement of Comprehensive Income
for the six months ended 31 December 2012
| Six months ended 31 December 2012 | Six months ended 31 December 2011 | Year ended 30 June 2012 | |
Note | Unaudited | Unaudited | Audited | |
£'000 | £'000 | £'000 | ||
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Revenue |
| 3,828 | 3,596 | 7,390 |
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Operating expenses |
| (4,271) | (3,527) | (7,430) |
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Operating (loss)/profit before non-recurring exceptional items |
| (443) | 69 | (40) |
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Non-recurring exceptional items | 2 | (351) | - | (62) |
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Operating (loss)/profit |
| (794) | 69 | (102) |
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Finance income |
| 4 | 5 | 10 |
(Loss)/profit before taxation on continuing activities |
| (790) | 74 | (92) |
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Taxation |
| - | 50 | - |
(Loss)/profit after taxation on continuing operations |
| (790) | 124 | (92) |
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Loss on discontinued operations | 3 | - | (1,076) | (1,136) |
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Loss and total comprehensive income for the period attributable to equity owners of the parent |
| (790) | (952) | (1,228) |
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Loss per ordinary share (total) | 4 | Pence | Pence | Pence |
Basic |
| (5.29) | (6.37) | (8.22) |
Diluted |
| (5.29) | (6.33) | (8.22) |
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(Loss)/earnings per ordinary share (continuing operations) | 4 | Pence | Pence | Pence |
Basic |
| (5.29) | 0.83 | (0.62) |
Diluted |
| (5.29) | 0.82 | (0.62) |
Group Balance Sheet
as at 31 December 2012
As at 31 December 2012 | As at 31 December 2011 | As at 30 June 2012 | |
Unaudited | Unaudited | Audited | |
£'000 | £'000 | £'000 | |
Assets | |||
Non current assets |
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Property, plant and equipment | 293 | 237 | 312 |
Intangible assets | 498 | 123 | 505 |
| 791 | 360 | 817 |
Current assets: |
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Inventories | 9 | 25 | 11 |
Trade and other receivables | 2,193 | 2,409 | 2,796 |
Cash and cash equivalents | 554 | 758 | 1,043 |
| 2,756 | 3,192 | 3,850 |
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Total assets | 3,547 | 3,552 | 4,667 |
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Liabilities: |
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Current liabilities |
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Trade and other payables | 2,589 | 1,552 | 2,878 |
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Total liabilities | 2,589 | 1,552 | 2,878 |
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Net assets | 958 | 2,000 | 1,789 |
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Capital and reserves attributable to equity holders of the company |
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Share capital | 448 | 448 | 448 |
Share premium account | 1,851 | 1,851 | 1,851 |
Merger reserve | 329 | 194 | 329 |
Capital redemption reserve | 800 | 800 | 800 |
Retained earnings | (2,470) | (1,293) | (1,639) |
Total equity | 958 | 2,000 | 1,789 |
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Group Statement of Changes in Equity
for the six months ended 31 December 2012
Share capital | Share premium account |
Merger reserve | Capital redemption reserve |
Retained earnings | Total equity | |
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
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At 1 July 2012 | 448 | 1,851 | 329 | 800 | (1,639) | 1,789 |
Treasury shares | - | - | - | - | (41) | (41) |
Loss and total comprehensive income for the period | - | - | - | - | (790) | (790) |
At 31 December 2012 | 448 | 1,851 | 329 | 800 | (2,470) | 958 |
At 1 July 2011 | 448 | 1,851 | 329 | 800 | (415) | 3,013 |
Transfer on liquidation of 7 Days Limited | - | - | (135) | - | 135 | - |
Reversal of share based payment charge | - | - | - | - | (61) | (61) |
Loss and total comprehensive income for the period | - | - | - | - | (952) | (952) |
At 31 December 2011 | 448 | 1,851 | 194 | 800 | (1,293) | 2,000 |
At 1 July 2011 | 448 | 1,851 | 329 | 800 | (415) | 3,013 |
Loss and total comprehensive income for the year | - | - | - | - | (1,228) | (1,228) |
Share based payments | - | - | - | - | 4 | 4 |
At 30 June 2012 | 448 | 1,851 | 329 | 800 | (1,639) | 1,789 |
Group Cash Flow Statement
for the six months ended 31 December 2012
Cash flow from operating activities | Six months ended 31 December 2012 Unaudited £'000 | Six months ended 31 December 2011 Unaudited £'000 | Year ended 30 June 2012 Audited £'000 |
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(Loss)/profit before tax - continued operations | (790) | 74 | (92) |
Loss before tax - discontinued operations | - | (1,076) | (1,136) |
(790) | (1,002) | (1,228) | |
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Amortisation and impairment of intangibles | 7 | 806 | 809 |
Net liabilities of 7 Days on liquidation excluding cash | - | (112) | 85 |
Depreciation | 63 | 48 | 95 |
Share-based payment charge | - | - | 4 |
Interest received | (4) | (5) | (10) |
66 | 737 | 983 | |
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Changes in working capital: |
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Inventories | 2 | (11) | 3 |
Trade and other receivables | 603 | 169 | 587 |
Trade and other payables | (289) | (335) | (477) |
316 | (177) | 113 | |
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Tax paid | - | - | (26) |
Net cash used by operations | (408) | (442) | (158) |
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Investing activities |
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Purchase of property, plant and equipment | (44) | (3) | (104) |
Acquisition of CMC Limited (net of cash acquired) | - | - | 97 |
Interest received | 4 | 5 | 10 |
Net cash (used)/from in investing activities | (40) | 2 | 3 |
(448) | (440) | (155) | |
Financing activities |
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Purchase of own shares | (41) | - | - |
Net cash used in financing activities | (41) | - | - |
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Net decrease in cash and cash equivalents | (489) | (440) | (155) |
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Cash and cash equivalents at beginning of period | 1,043 | 1,198 | 1,198 |
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Cash and cash equivalents at end of period | 554 | 758 | 1,043 |
Notes to the interim results
for the six months ended 31 December 2012
1. Accounting policies
The financial information in these interim results has been prepared using the recognition and measurement principles of International Accounting Standards, International Financial Reporting Standards and Interpretations adopted for use in the European Union (collectively Adopted IFRSs). The principal accounting policies used in preparing the interim results are those the Group expects to apply in its financial statements for the year ending 30 June 2013 and, are unchanged from those disclosed in the Group's Report and Financial Statements for the year ended 30 June 2012.
The financial information for the year ended 30 June 2012 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for 2012 have been filed with the Registrar of Companies. The Independent Auditors' Report on those accounts for 2012 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
2. Exceptional items
Exceptional items comprise two main elements; Costs incurred by the Group in reorganising the Fairplace and Cedar businesses and costs arising from the acquisition and reorganisation of Career Management Services Limited.
31 December 2012 | 31 December 2011 | 30 June 2012 | |
| £'000 | £'000 | £'000 |
Reorganisation costs |
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Personnel | - | - | 12 |
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Costs relating to Career Management Services Limited |
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Personnel - redundancies and termination payments | 193 | - | 31 |
Property costs relating to unoccupied premises | 94 | - | 15 |
Legal | 64 | - | 4 |
| 351 | - | 62 |
3. Discontinued operations
The appointment of a liquidator for 7 Days Limited in October 2011 resulted in the following charges for discontinued operations:
31 December 2012 £'000 | 31 December 2011 £'000 | 30 June 2012 £'000 | |
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Revenue | - | 98 | 98 |
Operating expenses | - | (454) | (454) |
Taxation | - | - | - |
Impairment of goodwill | - | (661) | (661) |
Intangibles write off | - | (144) | (144) |
Net liabilities on liquidation | - | 82 | 82 |
Settlement of leases | - | (53) | (52) |
Remuneration costs relating to shares issued | - | 61 | - |
Legal and professional | - | (5) | (5) |
| - | (1,076) | (1,136) |
Taxation | - | - | - |
| - | (1,076) | (1,136) |
4. Earnings per share | |||
31 December 2012 | 31 December 2011 | 30 June 2012 | |
| £'000 | £'000 | £'000 |
Numerator |
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(Loss)/profit for the period on continued operations | (790) | 124 | (92) |
Loss for the period on discontinued operations | - | (1,076) | (1,136) |
| (790) | (952) | (1,228) |
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Denominator | Number | Number | Number |
Weighted average of shares used in basic EPS | 14,941,822 | 14,941,822 | 14,941,822 |
Effects of: |
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Employee share options | - | 104,494 | - |
Weighted average of shares used in diluted EPS | 14,941,822 | 15,046,316 | 14,941,822 |
Employee options whose exercise price is greater than the weighted average share price during the year (i.e. they are out of the money) are excluded from the earnings per share calculations.
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5. Availability of Interim statement
The interim statement was approved by the Board of Directors on 22 March 2013. .
This Interim Statement is being sent by post to all registered shareholders. Additional copies are available from the Company's registered office, 36-38 Cornhill, London, EC3V 3PQ and on its website: www.savile.com.
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