17th Feb 2009 07:00
Savile Group plc
("Savile", the "Group" or the "Company")
INTERIM RESULTS FOR THE SIX MONTHS ENDED
31 DECEMBER 2008
Savile Group plc (SAVG.L), the AIM quoted human resources consulting group, specialising in outplacement, career transition and talent management, announces its unaudited interim results for the six months ended 31 December 2008.
Financial Highlights
|
Six months ended 31 December 2008 (Unaudited) £000 |
Six months ended 30 June 2008 (Unaudited) £000 |
Six months ended 31 December 2007 (Unaudited) £000 |
|
|
Revenue |
4,768 |
3,905 |
3,044 |
|
Profit/(loss) before tax |
750 |
752 |
(27) |
|
Cash at bank |
1,330 |
1,093 |
101 |
|
Diluted EPS |
3.52p |
4.83p |
(0.28)p |
Group revenue up by 57% to £4.77m (2007: £3.04m)
Net assets of £2.51m at 31 December 2008 (2007: £0.85m)
No debt; cash and cash equivalents at 31 December 2008 of £1.33m (2007: £0.1m)
Intention to pay a final dividend for the current financial year
Operational Highlights
Successful integration of CEDAR and IDDAS
Additional office space taken at Cornhill to meet client demand
Jonathan Cohen, Executive Chairman of Savile, commented:
"I am delighted to report an excellent set of results for the first full six month period reflecting the combined results of the Group's three brands, Fairplace, CEDAR and IDDAS.
Following the restructuring of its balance sheet in December 2008, the Company is able to pay dividends from profits arising after 18 December 2008. It is therefore our intention to pay a final dividend for the current financial year.
These impressive results for the first half of the financial year, combined with the current levels of activity we are experiencing, point to a very successful year for the Group."
Enquiries to:
|
Savile Group plc |
020 7204 6990 |
|
Jonathan Cohen, Chairman |
|
|
Mark Sidlin, CFO |
|
|
Arbuthnot Securities Limited |
020 7012 2000 |
|
Tom Griffiths |
|
|
Ed Gay |
|
|
Cardew Group |
020 7930 0777 |
|
Richard Spiegelberg |
|
|
James Milton |
Notes to Editors
Savile Group is a human resources consulting group with three centres of excellence: CEDAR Talent Management, Fairplace and IDDAS. These provide coaching, mentoring, career transition and talent management to leading companies, professional services firms and the public sector.
CEDAR Talent Management offers extensive expertise in coaching, leadership assessment and development.
Fairplace has an enviable reputation for high quality career transition and career management.
IDDAS provides a range of board level career and business mentoring, coaching and talent management services, including leadership development.
Further information on the Company can be found on its website, at www.savile.com
Chairman's Statement
I am delighted to report an excellent set of results for the first full six month period reflecting the combined results of the Group's three brands, Fairplace, CEDAR and IDDAS.
The Group's unaudited revenue in the six months ended 31 December 2008 increased by 57 per cent. to £4.77m (2007: £3.04m) and its profit before tax was £0.75m (2007: loss £0.03m). Net assets at 31 December 2008 were £2.5m (2007: £0.85m) including net cash of £1.33m (2007: £0.1m). The Group has no debt and since the period end we have seen continued growth in our cash reserves.
Following the restructuring of its balance sheet in December 2008, the Company is able to pay dividends from profits arising after 18 December 2008. It is therefore our intention to pay a final dividend for the current financial year.
The last financial year was one of considerable change within the Group with the acquisitions of CEDAR and IDDAS. These interim results reflect the successful integration of these brands under the Savile banner and the Group continues to benefit from the opportunities to provide services from more than one brand to our clients.
There is no doubt that the far reaching effects of the credit crunch and subsequent recession have fuelled the growth of our outplacement brand, Fairplace. During the six months to 31 December 2008, Fairplace has experienced record levels of clients which it continues to help and support through these very difficult times. These very high levels of activity have continued into the second half of the current financial year.
Business in the Group's other brands CEDAR and IDDAS is holding up well in the current economic climate. While some clients are reviewing their budgeted spend on talent management, coaching and mentoring, many others are continuing to invest in their key human resources to ensure they attract and retain the best people.
The demand for our services in the first six months of the financial year meant that we have recruited a number of new staff to service these levels of activities and we have agreed to take another floor at our head office in Cornhill to accommodate staff and to provide adequate space for our clients. We have also benefited from the input of our advisory panel, led by Lord Freeman, and have expanded our associate base to ensure we have sufficient resource to support our clients both in terms of quality and quantity.
The Board continues to develop the Group's strategy of creating centres of excellence across a range of markets within the field of human capital management, whether by organic growth or by acquisition. Current economic conditions continue to be tough but we remain confident that these conditions provide an opportunity to grow a significant business, made up of quality brands, supported by the skill and hard work of our entire workforce.
These impressive results for the first half of the current financial year, combined with the current levels of activity we are experiencing, point to it being a very successful year for the Group.
Jonathan Cohen
Chairman
17 February 2009
Group Income Statement
for the six months ended 31 December 2008
|
Six months ended 31 December 2008 |
Six months ended 31 December 2007 |
Year ended 30 June 2008 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
£ |
£ |
£ |
|
|
Revenue |
4,768,321 |
3,044,454 |
6,949,325 |
|
Other operating income |
- |
- |
68,142 |
|
Other operating expenses |
(4,044,280) |
(3,020,088) |
(6,306,525) |
|
Goodwill impairment |
- |
(54,000) |
- |
|
Operating expenses |
(4,044,280) |
(3,074,088) |
(6,306,525) |
|
Operating profit/(loss) |
724,041 |
(26,934) |
710,942 |
|
Finance income |
26,326 |
2,710 |
14,936 |
|
Finance expenses |
- |
(236) |
(1,437) |
|
Profit/(loss) before taxation |
750,367 |
(27,160) |
724,441 |
|
Taxation |
(210,005) |
- |
(198,506) |
|
Profit/(loss) for the period attributable to equity shareholders |
540,362 |
(27,160) |
525,935 |
|
Earnings/(loss) per share for profit/(loss) attributable to the equity holders of the parent during the period: |
Pence |
Pence |
Pence |
|
Basic |
3.69 |
(0.28) |
4.60 |
|
Diluted |
3.52 |
(0.28) |
4.55 |
Group Balance Sheet
as at 31 December 2008
|
As at 31 December 2008 |
As at 31 December 2007 |
As at 30 June 2008 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
£ |
£ |
£ |
|
|
Assets |
|||
|
Non current assets |
|||
|
Property, plant and equipment |
364,401 |
175,514 |
278,708 |
|
Intangible assets |
128,508 |
29,290 |
129,508 |
|
Deferred tax assets |
- |
16,443 |
- |
|
492,909 |
221,247 |
408,216 |
|
|
Current assets: |
|||
|
Inventories |
12,899 |
19,125 |
18,268 |
|
Trade and other receivables |
2,765,295 |
1,977,594 |
2,423,004 |
|
Cash and cash equivalents |
1,330,238 |
100,678 |
1,093,201 |
|
4,108,432 |
2,097,397 |
3,534,473 |
|
|
Total assets |
4,601,341 |
2,318,644 |
3,942,689 |
|
Liabilities |
|||
|
Current liabilities |
|||
|
Trade and other payables |
2,088,695 |
1,468,505 |
1,994,570 |
|
Total liabilities |
2,088,695 |
1,468,505 |
1,994,570 |
|
Net assets |
2,512,646 |
850,139 |
1,948,119 |
|
Capital and reserves attributable to equity holders of the company |
|||
|
Share capital |
439,504 |
294,005 |
439,504 |
|
Share premium account |
395,408 |
2,381,033 |
2,579,601 |
|
Merger reserve |
193,666 |
- |
193,666 |
|
Capital redemption reserve |
726,021 |
726,021 |
726,021 |
|
Retained earnings |
758,047 |
(2,550,920) |
(1,990,673) |
|
Total equity |
2,512,646 |
850,139 |
1,948,119 |
Statement of Changes in Equity
for the six months ended 31 December 2008
|
Share capital |
Share premium account |
Merger reserve |
Capital redemption reserve |
Retained earnings |
Total equity |
|
|
At 1 July 2008 |
439,504 |
2,579,601 |
193,666 |
726,021 |
(1,990,673) |
1,948,119 |
|
Profit for the period |
- |
- |
- |
- |
540,362 |
540,362 |
|
Total recognised income and expenses for the period |
- |
- |
- |
- |
540,362 |
540,362 |
|
Credit to equity for share based payments |
- |
- |
- |
- |
24,165 |
24,165 |
|
Capital reorganisation * |
- |
(2,184,193) |
- |
- |
2,184,193 |
- |
|
At 31 December 2008 |
439,504 |
395,408 |
193,666 |
726,021 |
758,047 |
2,512,646 |
|
At 1 July 2007 |
294,005 |
2,381,033 |
- |
726,021 |
(2,526,263) |
874,796 |
|
Loss for the period |
- |
- |
- |
- |
(27,160) |
(27,160) |
|
Total recognised income and expenses for the period |
- |
- |
- |
- |
(27,160) |
(27,160) |
|
Credit to equity for share based payments |
- |
- |
- |
- |
2,503 |
2,503 |
|
At 31 December 2007 |
294,005 |
2,381,033 |
- |
726,021 |
(2,550,920) |
850,139 |
|
At 1 July 2007 |
294,005 |
2,381,033 |
- |
726,021 |
(2,526,263) |
874,796 |
|
Profit for the period |
- |
- |
- |
- |
525,935 |
525,935 |
|
Total recognised income and expenses for the period |
- |
- |
- |
- |
525,935 |
525,935 |
|
Credit to equity for share based payments |
- |
- |
- |
- |
9,655 |
9,655 |
|
Issue of shares |
144,899 |
196,068 |
193,666 |
- |
- |
534,633 |
|
Exercise of options |
600 |
2,500 |
- |
- |
- |
3,100 |
|
At 30 June 2008 |
439,504 |
2,579,601 |
193,666 |
726,021 |
(1,990,673) |
1,948,119 |
The Capital redemption reserve arose on cancellation of deferred shares of 1p each on 6 September 2006.
The Merger reserve represents the premium arising on the share for share acquisition of IDDAS Limited.
* See note 5 for details of the capital reorganisation.
Group Cash Flow Statement
for the six months ended 31 December 2008
|
Cash flow from operating activities |
Six months ended 31 December 2008 Unaudited £ |
Six months ended 31 December 2007 Unaudited £ |
Year ended 30 June 2008 Audited £ |
|
Profit/(loss) before tax |
750,367 |
(27,160) |
724,441 |
|
|
|||
|
Amortisation and impairment of intangibles |
1,000 |
54,000 |
2,000 |
|
Loss on disposal of property, plant and equipment |
- |
3,137 |
3,137 |
|
Depreciation |
47,082 |
27,008 |
57,569 |
|
Share-based payment charge |
24,165 |
2,503 |
9,655 |
|
Tax |
(1,269) |
- |
- |
|
Interest paid |
- |
236 |
1,437 |
|
Interest received |
(26,326) |
(2,710) |
(14,936) |
|
44,652 |
84,174 |
58,862 |
|
|
Cash flows from operating activities before changes in working capital |
795,019 |
57,014 |
783,303 |
|
Changes in working capital (excluding the effects of acquisition): |
|||
|
Inventories |
5,369 |
(3,742) |
(2,885) |
|
Trade and other receivables |
(342,291) |
(530,836) |
(829,990) |
|
Trade and other payables |
(114,611) |
405,973 |
589,536 |
|
(451,533) |
(128,605) |
(243,339) |
|
|
Net cash generated from/(used by) operations |
343,486 |
(71,591) |
539,964 |
|
Investing activities |
|||
|
Purchase of property, plant and equipment |
(132,775) |
(15,013) |
(147,802) |
|
Acquisition of trade and assets of CEDAR |
- |
(86,290) |
(20,012) |
|
Acquisition of IDDAS Limited |
- |
- |
167,354 |
|
Interest received |
26,326 |
2,710 |
14,936 |
|
Net cash from/(used in) investing activities |
(106,449) |
(98,593) |
14,476 |
|
237,037 |
(170,184) |
554,440 |
|
|
Financing activities |
|||
|
Interest paid |
- |
236) |
(1,437) |
|
Issue of ordinary shares |
- |
- |
269,100 |
|
Net cash from/(used in) financing activities |
- |
(236) |
267,663 |
|
Net increase in cash and cash equivalents |
237,037 |
(170,420) |
822,103 |
|
Cash and cash equivalents at beginning of period |
1,093,201 |
271,098 |
271,098 |
|
Cash and cash equivalents at end of period |
1,330,238 |
100,678 |
1,093,201 |
Notes to the interim announcement
for the six months ended 31 December 2008
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 2009 and are unchanged from those disclosed in the Group's Report and Financial Statements for the year ended 30 June 2008.
The financial information for the six months ended 31 December 2007 and the six months ended 31 December 2008 is unaudited and does not constitute the Group's statutory financial statements for those periods. The comparative financial information for the full year ended 30 June 2008 has, however, been derived from the audited statutory financial statement for that period. A copy of those statutory financial statements has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 237(2)-(3) of the Companies Act 1985.
2. Taxation
Current taxation has been provided for at 28% (2007:30%).
3. Acquisitions
a) CEDAR TM Limited
On 21 September 2007 the Group acquired the business and assets of Corporate Executive Development and Resourcing Plc from the administrators of that company. The business and assets were transferred into a new company, CEDAR TM Limited, which is a 100% subsidiary of Savile Group plc. The purchase consideration, all of which was payable in cash, was £20,012.
b) IDDAS Limited
On 7 April 2008 the Company acquired 100% of the share capital of IDDAS Limited. This was on a share for share basis and the equity consideration was satisfied by Savile Group plc issuing 2,498,912 3p ordinary shares. The issue price consists of the nominal value of the ordinary shares of £0.03 and a share premium of £0.0775.
|
4. Earnings/(loss) per share |
|||
|
As at 31 December 2008 |
As at 31 December 2007 |
As at 30 June 2008 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
£ |
£ |
£ |
|
|
Numerator |
|||
|
Profit/(loss) for the period |
540,362 |
(27,160) |
525,935 |
|
Denominator |
|||
|
Weighted average of shares used in basic EPS |
14,650,146 |
9,800,174 |
11,433,210 |
|
Effects of: |
|||
|
- Employee share options |
702,042 |
- |
114,240 |
|
Weighted average of shares used in diluted EPS |
15,352,188 |
9,800,174 |
11,547,450 |
5. Capital reorganisation
The High Court of Justice (Chancery Division) confirmed on 10 December 2008 the reduction of the share premium account of the Company by £2,184,193. This was registered by the Registrar of Companies on 18 December 2008.
This amount was the accumulated losses of the Company at 30 June 2008. The Company is now able to make distributions from any profits arising after 18 December 2008. Any profits arising between 1 July 2008 and 18 December 2008 will be held in a special reserve and will not be distributable.
6. Availability of Interim statement
The interim statement was approved by the Board of Directors on 17 February 2009.
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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