10th Aug 2005 11:00
Prime People PLC10 August 2005 Prime People Plc Interim Report for the six months ended 30 June 2005 Prime People Interim Report 2005 Chairman's Statement Prime People Plc reports a loss on ordinary activities before taxation of£41,183 for the six-month period ended 30 June 2005. The profit before tax forthe corresponding period in 2004 of £58,851 included an operating profitcontribution of £165,767 from Portfolio International Limited ("Portfolio")which was disposed of in July 2004. As a result of the receipt of the proceedsof sale of Portfolio net interest received increased to £67,540 (2004: £19,444). Following the disposal of Portfolio our only continuing operation is HarperCraven, the professional training company. Despite a reduction in turnoverHarper Craven generated profit before tax of £22,782 (2004: £19,708). Our associate, Cameron Kennedy, is experiencing relatively strong marketconditions. However recruitment of new consultants together with the payment ofhigher bonuses in the period has resulted in our share of its profit remainingsimilar to the corresponding period in 2004 at £17,701 (2004: £15,770). Of the administrative expenses charged to the period under review some £155,000related to the head office and public company costs of Prime People. It isexpected that these costs will be approximately £189,000 in the second half ofthe year. Net assets at 30 June 2005 were £3.3 million of which £2.8million was cash atbank. The option exercise price for the options granted to the executive directors on16 May has been reset to 5.75p being the share price as at that date. Theexecutive directors will be entitled to receive a cash bonus dependent onachieving certain performance criteria and at the absolute discretion of theBoard. Since May, the Board has significantly increased the intensity of its effort toachieve its stated short to medium term strategic aim of identifyingacquisitions, which will provide platforms to generate profitable growth andshareholder value. Richard Lee has today resigned from the Board. Richard is also a director of WHIreland, our nominated adviser, and it is not possible for him to continue inboth roles. I would like to thank Richard for his contribution to the Boardover many years. Peter Hearn Non-executive Chairman 10 August 2005 Prime People Interim Report 2005 Consolidated Profit and Loss Accountfor the six months ended 30 June 2005 Six months Six months Year Ended Ended Ended 30 June 30 June 31December 2005 2004 2004 Notes Unaudited Unaudited Audited £ £ £Turnover - Continuing operations 307,491 374,883 708,653- Discontinued operations - 1,377,640 1,585,895 307,491 1,752,523 2,294,548Cost of Sales - Continuing operations (83,827) (107,052) (179,571)- Discontinued operations - (7,240) (7,240) (83,827) (114,292) (186,811) Gross Profit 223,664 1,638,231 2,107,737 Administrative expenses (344,088) (1,608,594) (2,197,259) Group operating (loss) / profit - Continuing operations (120,424) (136,130) (283,243) - Discontinued operations - 165,767 193,721 (120,424) 29,637 (89,522) Share of operating profit in associate 17,701 15,770 87,133 Amortisation of goodwill (6,000) (6,000) (12,000) (Loss) / profit on ordinary activities beforeinterest (108,723) 39,407 (14,389) Profit on disposal of subsidiary - - 609,844Interest receivable and similar income 68,272 19,444 79,530 Interest payable and similar charges (732) - (487) (Loss) / profit on ordinary activities beforetaxation (41,183) 58,851 674,498 Tax on (loss) / profit on ordinary activities 2 - - (2,112) (Loss) / profit on ordinary activities aftertaxation transferred to reserves 5 (41,183) 58,851 672,386 (Loss) / earnings per ordinary share - Basic 4 (0.11)p 0.16p 1.82p - Diluted (0.11)p 0.16p 1.82p Prime People Interim Report 2005 CONSOLIDATED BALANCE SHEET at 30 June 2005 30 June 30 June 31 December 2005 2004 2004 Notes Unaudited Unaudited Audited £ £ £ Fixed assets Tangible assets 39,198 57,167 44,028 Investment in associate 423,377 346,314 411,676 462,575 403,481 455,704 Current assets Debtors 245,538 1,000,499 262,052 Cash at bank and in hand 2,808,142 1,275,690 2,835,981 3,053,680 2,276,189 3,098,033 Creditors: Amounts falling due within one year (208,353) (593,875) (200,903) Net current assets 2,845,327 1,682,314 2,897,130 Creditors: Amount falling due after one year (8,748) - (12,497) Net assets 3,299,154 2,085,795 3,340,337 Capital and reserves Called up share capital 368,467 368,467 368,467 Share premium account 5 909,925 909,925 909,925 Merger reserve 5 173,077 173,077 173,077 Profit and loss account 5 1,847,685 634,326 1,888,868 Shareholders' funds 6 3,299,154 2,085,795 3,340,337 Prime People Interim Report 2005 Consolidated Cash Flow Statementfor the six months ended 30 June 2005 Six months Six months Year Ended ended ended 30 June 30 June 31 December 2005 2004 2004 Notes Unaudited Unaudited Audited £ £ £ Net cash (outflow) / inflow from operating activities 7 (95,503) 203,412 (93,986) Return on investment and servicing of finance Interest received 68,272 19,444 79,530 Interest paid (732) - (487) 67,540 19,444 79,043 Taxation - 74,350 74,350 Capital expenditure and financial investment Purchase of tangible fixed assets (3,490) (19,845) (37,592) Sale of tangible fixed assets 899 800 1,800 (2,591) (19,045) (35,792) Acquisitions and disposals Sale of subsidiary undertaking - - 1,905,284 Net cash disposal with subsidiary - - (53,986) - - 1,851,298 Net cash (outflow) / inflow before management of liquid resources and financing (30,554) 278,161 1,874,913 Management of liquid resources Sale / (purchase) of deposits 27,700 (229,000) (1,647,000) Financing Capital element of finance leases (3,749) - (2,501) (Decrease) / increase in cash 8 (6,603) 49,161 225,412 Prime People Interim Report 2005 Notes To The Interim Financial Statementsfor the six months ended 30 June 2005 1. Accounting Policies The interim results have been prepared on the same basis and usingthe same accounting policies as those used in the preparation of the accountsfor the year ended 31 December 2004. 2. Taxation on profit on ordinary activities Group 2005 2004 £ £ UK corporation tax - - Share of associate's tax - - - - 3. Dividends The directors recommend that no interim dividend be paid. 4. Loss per share The loss per share is calculated based on a weighted average numberof shares of 36,846,692 (2004: 36,846,692) and the loss of £41,183 (2004: profitof £58,851) giving loss per share of 0.11p (2004: earnings per share of 0.16p). 5. Reserves Share Premium Merger Reserve Profit Account and Loss Account £ £ £ At 1 January 2005 909,925 173,077 1,888,868 Transfer from Profit and Loss Account - - (41,183) At 30 June 2005 909,925 173,077 1,847,685 Prime People Interim Report 2005 Notes To The Interim Financial Statementscontinued 6. Reconciliation of movement in shareholders' funds 30 June 2005 30 June 2004 31 December 2004 Unaudited Unaudited Audited £ £ £ (Loss) / profit for the period (41,183) 58,851 672,386Goodwill eliminated on disposal of subsidiary - - 641,006Opening shareholders' funds 3,340,337 2,026,944 2,026,945 Closing shareholders' funds 3,299,154 2,085,795 3,340,337 7.Reconciliation of operating (loss) / profit to net cash (outflow) /inflow from operating activities Six months ended Six months ended Year 30 June 2005 30 June 2004 ended Unaudited Unaudited 31 December 2004 Audited £ £ £ Group operating (loss) / profit (120,424) 29,637 (89,522)Depreciation 7,331 24,334 33,784Loss / (profit) on sale of tangible fixed assets 90 (800) (1,800)Decrease / increase in debtors 16,514 47,855 (155,561)Increase in creditors 986 102,386 119,113 Net cash (outflow) / inflow from operatingactivities (95,503) 203,412 (93,986) Prime People Interim Report 2005 Notes To The Interim Financial Statementscontinued 8.Reconciliation of net cash outflow to movement in net funds Six months ended Six months ended Year 30 June 2005 30 June 2004 ended Unaudited Unaudited 31 December 2004 Audited £ £ £ (Decrease) / increase in cash in the period (6,603) 49,161 225,412 Cash outflow from decrease in debt and leasefinancing 3,749 - 2,501 Cash outflow / (inflow) from increase / (decrease)in liquid resources (27,700) 229,000 1,647,000 (Decrease) / increase in net funds resulting fromcash flows (30,554) 278,161 1,874,913 New finance leases - - (22,496) Opening net funds 2,800,187 947,770 947,770 Closing net funds 2,769,633 1,225,931 2,800,187 9.Analysis of net funds At 1 January Cash flow At 30 June 2005 £ 2005 £ £ Cash at bank and in hand 192,981 (139) 192,842 Bank Overdraft (15,799) (6,464) (22,263) 177,182 (6,603) 170,579 Liquid resources 2,643,000 (27,700) 2,615,300 Finance leases (19,995) 3,749 (16,246) TOTAL 2,800,187 (30,554) 2,769,633 Prime People Interim Report 2005 Notes To The Interim Financial Statements Continued 10. Nature of the financial information The interim financial information for the six months ended 30 June 2005, was approved by the board on 9 August 2005. The financial information set out above does not constitute full accounts withinthe meaning of Section 254 of the Companies Act 1985. The results for the year to 31 December 2004 are extracts from the published accounts for that year whichhave received an unqualified audit report and have been filed with the Registrarof Companies. Copies of the interim results are being sent to shareholders. Further copiescan be obtained from the company's registered office at: 7 Bream's Buildings,Chancery Lane, London EC4A 1DT. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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