22nd Feb 2012 07:00
Savile Group plc
("Savile", the "Group" or the "Company")
INTERIM RESULTS FOR THE SIX MONTHS ENDED
31 December 2011
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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 2011.
Financial Summary
| Six months ended 31 December 2011 (Unaudited) £000 | Six months ended 31 December 2010 (Unaudited) £000 | Year ended 30 June 2011 (Audited) £000 |
Revenue on continuing operations | 3,596 | 3,473 | 7,151 |
Profit/(loss) before exceptional items and taxation on continuing operations | 74 | (275) | (276) |
Cash at bank | 758 | 1,175 | 1,198 |
Diluted earnings/(loss) per share on continuing operations | 0.82p | (1.46)p | (4.33)p |
David Harrel, Non Executive Chairman of Savile, commented:
"In this, my first statement as Chairman of the Group, I am pleased to be able to report that the Group has moved back into profit on continuing activities in the first half of the financial year.
In July 2011 the Fairplace and Cedar activities were combined to create a more robust and focused business and in September 2011, Penny de Valk joined as CEO to lead this business and its team. As part of Penny's ongoing restructuring she has recently recruited a head of business development and a head of practice to help move the business forward.
The trading environment remains challenging but we believe the restructured Group is taking steps to meet these challenges."
Enquiries to:
Savile Group plc
David Harrel, Chairman
Mark Sidlin, CFO 020 7204 6990
FinnCap
Geoff Nash/Ed Frisby
Tom Jenkins (Broking) 020 7600 1658
Further information on the Company can be found on its website, at www.savile.com
In this, my first statement as Chairman of the Group, I am pleased to be able to report that the Group has moved back into profit on continuing activities in the first half of the financial year.
The Group's unaudited revenue on continuing activities in the six months ended 31 December 2011 was £3.60m (2010: £3.47m) and profit before tax on continuing activities was £0.07m (2010: Loss £0.28m). Net assets at 31 December 2011 were £2.00m (2010: £3.95m) including net cash of £0.76m (2010: £1.17m). The Group has no debt.
The closure of 7 Days in October 2011 has resulted in a charge for discontinued operations of £1.07m in the six months ended 31 December 2011. Details of this are given in note 3.
In July 2011 the Fairplace and Cedar activities were combined to create a more robust and focused business and in September 2011, Penny de Valk joined as CEO to lead this business and its team. As part of Penny's ongoing restructuring she has recently recruited a head of business development and a head of practice to help move the business forward.
During the period Linda Jackson resigned from the board to take up other challenges and we wish her well.
The trading environment remains challenging but we believe the restructured Group is taking steps to meet these challenges.
David Harrel
Chairman
22 February 2012
| Six months ended 31 December 2011 | Six months ended 31 December 2010 | Year ended 30 June 2011 | |
Note | Unaudited | Unaudited | Audited | |
£'000 | £'000 | £'000 | ||
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Revenue |
| 3,596 | 3,473 | 7,151 |
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Operating expenses |
| (3,527) | (3,771) | (7,457) |
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Operating profit/(loss) before non-recurring exceptional items |
| 69 | (298) | (306) |
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Non-recurring exceptional items | 2 | - | - | (418) |
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Operating profit/(loss) |
| 69 | (298) | (724) |
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Finance income |
| 5 | 23 | 30 |
Profit/(loss) before taxation on continued activities |
| 74 | (275) | (694) |
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Taxation |
| 50 | 43 | 4 |
Profit/(loss) after taxation on continued operations |
| 124 | (232) | (690) |
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(Loss)/profit on discontinued operations | 3 | (1,076) | 61 | (466) |
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Loss and total comprehensive income for the period attributable to equity owners of the parent |
| (952) | (171) | (1,156) |
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Loss per ordinary share (total) | 4 | Pence | Pence | Pence |
Basic |
| (6.37) | (1.08) | (7.26) |
Diluted |
| (6.33) | (1.08) | (7.26) |
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Earnings/(loss) per ordinary share (continued operations) | 4 | Pence | Pence | Pence |
Basic |
| 0.83 | (1.46) | (4.33) |
Diluted |
| 0.82 | (1.46) | (4.33) |
As at 31 December 2011 | As at 31 December 2010 | As at 30 June 2011 | |
Unaudited | Unaudited | Audited | |
£'000 | £'000 | £'000 | |
Assets | |||
Non current assets |
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Property, plant and equipment | 237 | 420 | 369 |
Intangible assets | 123 | 1,194 | 929 |
| 360 | 1,614 | 1,298 |
Current assets: |
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Inventories | 25 | 25 | 14 |
Trade and other receivables | 2,409 | 3,499 | 2,701 |
Cash and cash equivalents | 758 | 1,175 | 1,198 |
| 3,192 | 4,699 | 3,913 |
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Total assets | 3,552 | 6,313 | 5,211 |
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Liabilities: |
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Current liabilities |
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Trade and other payables | 1,552 | 2,365 | 2,148 |
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Non-current liabilities |
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Deferred tax | - | - | 50 |
Total liabilities | 1,552 | 2,365 | 2,198 |
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Net assets | 2,000 | 3,948 | 3,013 |
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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 | 194 | 329 | 329 |
Capital redemption reserve | 800 | 800 | 800 |
Retained earnings | (1,293) | 520 | (415) |
Total equity | 2,000 | 3,948 | 3,013 |
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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 2011 | 448 | 1,851 | 329 | 800 | (415) | 3,013 |
Transfer on liquidation of 7 Days Limited | - | - | (135) | - | 135 | - |
Debit to equity for share based payments on 7 Days liquidation | - | - | - | - | (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 2010 | 480 | 1,851 | 194 | 753 | 882 | 4,160 |
Loss and total comprehensive income for the period | - | - | - | - | (171) | (171) |
Credit to equity for share based payments | - | - | - | - | 11 | 11 |
Issue of shares | 15 | - | 135 | - | - | 150 |
Treasury shares | (47) | - | - | 47 | (58) | (58) |
Equity dividend paid | - | - | - | - | (144) | (144) |
At 31 December 2010 | 448 | 1,851 | 329 | 800 | 520 | 3,948 |
At 1 July 2010 | 480 | 1,851 | 194 | 753 | 882 | 4,160 |
Loss and total comprehensive income for the year | - | - | - | - | (1,156) | (1,156) |
Credit to equity for share based payments | - | - | - | - | 61 | 61 |
Issue of shares | 15 | - | 135 | - | - | 150 |
Treasury shares | (47) | - | - | 47 | (58) | (58) |
Equity dividend paid | - | - | - | - | (144) | (144) |
At 30 June 2011 | 448 | 1,851 | 329 | 800 | (415) | 3,013 |
Cash flow from operating activities | Six months ended 31 December 2011 Unaudited £'000 | Six months ended 31 December 2010 Unaudited £'000 | Year ended 30 June 2011 Audited £'000 |
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Profit/(loss) before tax - continued operations | 74 | (275) | (694) |
(Loss)/profit before tax - discontinued operations | (1,076) | 61 | (488) |
(1,002) | (214) | (1,182) | |
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Amortisation and impairment of intangibles | 806 | 7 | 272 |
Net liabilities of 7 Days on liquidation excluding cash | (112) | - | - |
Depreciation | 48 | 52 | 118 |
Share-based payment charge | - | 11 | 61 |
Interest received | (5) | (23) | (30) |
737 | 47 | 421 | |
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Changes in working capital: |
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Inventories | (11) | (16) | (5) |
Trade and other receivables | 169 | (725) | 105 |
Trade and other payables | (335) | (158) | (172) |
(177) | (899) | (72) | |
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Tax paid | - | - | (202) |
Net cash used by operations | (442) | (1,066) | (1,035) |
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Investing activities |
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Purchase of property, plant and equipment | (3) | (29) | (44) |
Interest received | 5 | 23 | 30 |
Acquisition of 7 days Limited | - | (1,268) | (1,268) |
Net cash from/(used) in investing activities | 2 | (1,274) | (1,282) |
(440) | (2,340) | (2,317) | |
Financing activities |
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Purchase of own shares | - | (58) | (58) |
Equity dividend paid | - | (144) | (144) |
Issue of ordinary shares | - | 150 | 150 |
Net cash used in financing activities | - | (52) | (52) |
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Net decrease in cash and cash equivalents | (440) | (2,392) | (2,369) |
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Cash and cash equivalents at beginning of period | 1,198 | 3,567 | 3,567 |
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Cash and cash equivalents at end of period | 758 | 1,175 | 1,198 |
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 2012 and, are unchanged from those disclosed in the Group's Report and Financial Statements for the year ended 30 June 2011.
The financial information for the year ended 30 June 2011 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for 2011 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statement on those accounts for 2011 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 a provision made against the carrying value of an investment in public sector business, which whilst the Directors hope is fully recoverable, they believe it is appropriate to make a provision.
These items are highlighted in the consolidated statement of comprehensive income because separate disclosure is considered appropriate in understanding the underlying performance of the business.
31 December 2011 | 31 December 2010 | 30 June 2011 | |
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Reorganisation costs |
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Personnel | - | - | 293 |
Consultancy | - | - | 38 |
Legal | - | - | 7 |
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Provision against investment in Public Sector included in other debtors | - | - | 80 |
| - | - | 418 |
3. Discontinued operations
The appointment of a liquidator for 7 Days Limited in October 2011 has resulted in the following charges for discontinued operations:
31 December 2011 £'000 | 31 December 2010 £'000 | 30 June 2011 £'000 | |
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Revenue | 98 | 555 | 1,705 |
Operating expenses | (454) | (452) | (1,720) |
Taxation | - | - | 22 |
Impairment of goodwill | (661) | - | (220) |
Intangibles write off | (144) | - | - |
Net liabilities on liquidation | 82 | - | - |
Settlement of leases | (53) | - | - |
Remuneration costs relating to shares issued | 61 | - | (211) |
Legal and professional | (5) | (42) | (42) |
| (1,076) | 61 | (466) |
4. Earnings per share | |||
31 December 2011 | 31 December 2010 | 30 June 2011 | |
| £'000 | £'000 | £'000 |
Numerator |
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Profit/(loss) for the period on continued operations | 124 | 61 | (690) |
Loss for the period on discontinued operations | (1,076) | (232) | (466) |
| (952) | (171) | (1,156) |
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Denominator | Number | Number | Number |
Weighted average of shares used in basic EPS | 14,941,822 | 15,915,927 | 15,915,927 |
Effects of: |
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Employee share options | 104,494 | 801,853 | - |
Weighted average of shares used in diluted EPS | 15,046,316 | 16,717,780 | 15,915,927 |
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5. Availability of Interim statement
The interim statement was approved by the Board of Directors on 21 February 2012.
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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