Interim results

12th Nov 2009 07:00



FOR RELEASE 07:00 12 November 2009

Highams Systems Services Group plc (HSS/L)

("Highams" or "the Group")

The AIM-quoted recruitment consultancy and a leading niche provider of business, technology and professional services to the insurance and financial services sectors announces its interim results 

for the six months ended 30 September 2009

INTERIM RESULTS

For the six months ended 30 September 2009

Highlights

Return to profit of £40,000 (2008: loss £261,000) 

Increase in specialist requirements

Firm control over costs

Already benefiting from improved market conditions

Reduced revenue of £3.77m (2008: £5.66m) 

Gross margin reduced slightly to 15.2% from 16.7% for the last financial year

Permanent revenue remains strong

Ken Ford, Chairman of Highams, commented:

"As anticipated in our preliminary results announced at the end of July, we have produced a profit for the first six months of this financial year despite the difficult trading conditions during the period. We are pleased that the positive effects of the significant cost savings achieved have all come into play and this reduction in our overheads, together with the signs of increased activity within our market have therefore given the expected results so far. With these increased levels in activity, we expect further progress during the following six months and look forward to our future growth."

 

Enquiries:

Mark de Lacy, Managing Director	Tel: 01883 341 144
Highams Systems Services Group plc
www.highams.com
Rick Thompson / Carl Holmes	Tel: 020 7149 6000
Charles Stanley Securities (Nominated Adviser and Broker)
Tarquin Edwards	Tel: 07879 458 364
Peckwater PR

 

  

CHAIRMAN'S STATEMENT

Interim results for the six months ended 30 September 2009

Introduction

As anticipated in our preliminary results announced at the end of July, we have produced a profit for the first six months of this financial year despite the difficult trading conditions during the period. We are pleased that the positive effects of the significant cost savings achieved have all come into play and this reduction in our overheads, together with the signs of increased activity within our market have therefore given the expected results so far. With these increased levels in activity, we expect further progress during the following six months and look forward to our future growth.

The market is showing signs of improvement and we believe that we are well placed to deliver quality candidates into our clients at the right time and at the right value. We continue to build excellent client and candidate relationships within our niche market in the insurance sector and we look forward to benefiting from these efforts in the future and in capitalising on the quality of service and delivery associated with our brand.

Financials

With a difficult trading start to the year, Group turnover reduced to £3.77 million (2008: £5.66 million), and gross profit fell to £572,000 (2008: £1.004 million). However the operating profit before interest and tax was £45,000 (2008: loss £227,000), reflecting the significant reduction in our overheads.

The Company will not be declaring an interim dividend.

Summary and Outlook

The current business has been stabilised and there are signs of recovery showing in our niche areas. We are fully focused on continuing to turn our business around and delivering value for all shareholders.

Ken Ford

Chairman

12 November 2009

 

Consolidated income statement
for the six months ended 30 September 2009		6 months to		6 months to		12 months to
		30 Sep 2009		30 Sep 2008		31 Mar 2009
		Unaudited		Unaudited		Audited
	Note	£'000		£'000		£'000
Revenue		3,768		5,664		10,533
Cost of sales		(3,196)		(4,660)		(8,768)
Gross profit		572		1,004		1,765
Administrative costs		(527)		(1,231)		(2,082)
Operating profit/loss		45		(227)		(317)
Finance income		-		4		4
Finance costs		(5)		(38)		(57)
Profit/(loss) on ordinary activities before taxation		40		(261)		(370)
Profit/(loss) for the period attributable to equity shareholders		40		(261)		(370)
Basic and diluted earnings/(loss) per share	2	0.06	p	(0.82)	p	(0.77)	p
Consolidated statement of comprehensive income
for the six months ended 30 September 2009		6 months to		6 months to		12 months to
		30 Sep 2009		30 Sep 2008		31 Mar 2009
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
Profit/loss for the period		40		(261)		(370)
Other comprehensive income
Foreign currency translation difference		1		1		(1)
Total comprehensive income for the period attributable to equity shareholders		41		(260)		(371)

  

Consolidated statement of changes in equity  At 30 September 2009	Share capital	Share premium	Merger reserve	Employee share benefit reserve			Total equity
					Currency Reserve	Retained earnings
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 1 April 2008	1,594	679	90	(61)	4	(2,435)	(129)
Currency Adjustments					1		1
Loss to 30 September 2008						(261)	(261)
at 1 October 2008	1,594	679	90	(61)	5	(2,696)	(389)
Issue of new shares	3	647					650
Associated cost of new shares		(87)					(87)
Loss to 31 March 2009	-	-	-	-	(2)	(109)	(111)
At 1 April 2009	1,597	1,239	90	(61)	3	(2,805)	63
Currency adjustments	-	-	-	-	1	-	1
Profit to 30 September 2009	-	-	-	-		40	40
At 30 September 2009	1,597	1,239	90	(61)	4	(2,765)	104

 

 

Consolidated balance sheet
As at 30 September 2009
		6 months to	6 months to	12 months to
		30 Sep 2009	30 Sep 2008	31 Mar 2009
		Unaudited	Unaudited	Audited
		£'000	£'000	£'000
Assets
Non-current assets
Intangible assets		-	6	3
Property, plant and equipment		10	11	12
Total		10	17	15
Current assets
Trade and other receivables		1,010	1,563	1,343
Cash and cash equivalents		-	-	-
Total		1,010	1,563	1,343
Total assets		1,020	1,580	1,358
Liabilities
Current liabilities
Borrowings		(132)	(670)	(256)
Trade and other payables		(784)	(1,299)	(1,039)
Total		(916)	(1,969)	(1,295)
Net assets/(liabilities)		104	(389)	63
Equity
Share capital		1,597	1,594	1,597
Share premium account		1,239	679	1,239
Merger reserve		90	90	90
Employee share benefit trust reserve		(61)	(61)	(61)
Currency reserve		4	5	3
Retained earnings		(2,765)	(2,696)	(2,805)
Total equity		104	(389)	63

 

 

Consolidated Cash Flow Statement
for the six months ended 30 September 2009
		6 months to	6 months to	12 months to
		30 Sep 2009	30 Sep 2008	31 Mar 2009
		Unaudited	Unaudited	Audited
		£'000	£'000	£'000
Operating activities
Profit/(loss) before taxation		40	(261)	(370)
	Depreciation of property, plant and equipment	2	5	10
	Amortisation of intangible assets	3	5	8
	Net finance costs	5	34	53
	Changes in trade and other receivables	333	710	930
	Changes in trade and other payables	(254)	63	(198)
Net cash used in operating activities		129	556	433
Cash flows from investing activities
Purchase of property plant and equipment		-	-	(10)
Proceeds of property plant and equipment		-	4	7
interest received		-	4	4
Net cash used in investing activities		-	8	1
Financing activities
Reduction in borrowings		(58)	(526)	(890)
Proceeds from issue of share capital		-	-	650
Associated cost of share issue		-	-	(87)
Interest paid		(5)	(38)	(57)
Net cash from financing activities		(63)	(564)	(384)
Net changes in cash and cash equivalents		(66)	-	50
Cash and cash equivalents, beginning of period		(119)	-	(169)
Cash and cash equivalents at end of period		(53)	-	(119)

 

Notes to the Interim Report

1. Basis of Preparation

This unaudited consolidated interim financial information 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 EU IFRSs). The principal accounting policies used in preparing the interim results are those it expects to apply in its financial statement for the year ended 31 March 2010 and are unchanged from those disclosed in the group's Annual Report for the year ended 31 March 2009.

The financial information for the six months ended 30 September 2009 and 30 September 2008 is unreviewed and unaudited and does not constitute the group's statutory financial statements for those periods. The comparative financial information for the full year ended 31 March 2009 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.

The financial information in the Interim Report is presented in Sterling and all values are rounded to the nearest thousand pounds (£'000) except when otherwise indicated.

2. Earnings per share

	6 months to  30 Sept 2009  Unaudited			6 months to 30 Sept 2008 Unaudited			12 months to   31 March 2009  Audited
Earnings/(loss) per share		Weighted			Weighted			Weighted
		average			average			average
		number of	Earnings		number of	Loss		number of	(loss)
	Earnings	shares	per share	Loss	shares	per share	Loss	shares	per share
	£'000	'000	p	£'000	'000	p	£'000	'000	p
Basic earnings/loss per share	40	68,834	0.06	(260)	31,692	(0.82)	(370)	47,770	(0.77)

ENDIR BBBFTMMABBAL

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