2nd Jun 2009 07:00
RNS Number : 1657T
Penna Consulting PLC
02 June 2009
PENNA CONSULTING PLC
(“Penna” or “the Group”)
Preliminary announcement of results
for the year ended 31 March 2009
Continuing Strong Growth
2 June 2009
Penna Consulting Plc (PNA:AIM), the international human resources consulting group, today announces its preliminary unaudited results for the year ended 31 March 2009.
HIGHLIGHTS
·; Revenue up 30% to £63.2m (2008: £48.5m)
·; Profit before taxation up 176% to £6.0m (2008: £2.2m)
·; Fully diluted earnings per share up 185% to 17.1p (2008: 6.0p)
·; Cash tripled to £8.88m (2008: £2.96m)
·; No bank debt
·; Final Dividend doubled to 4p (2008: 2p)
·; Full Year Dividends 6p (2008: 2p)
Commenting on the results and outlook, Stephen Rowlinson, Chairman, said:
“The Group has completed a very successful year and earnings per share grew significantly to 17.1 p. The new financial year has started well and we have a high level of work in progress. We expect continuing growth and intend to maintain a progressive dividend policy.”
ENDS
For further information please contact:
Stephen Rowlinson, Chairman 0771 00 23699
Gary Browning, Chief Executive 020 7648 2448
David Firth, Finance Director 020 7648 2423
Hawkpoint Partners
Graham Paton/Serge Rissi 020 7655 4500
Collins Stewart
Adrian Hadden 020 7523 8350
Pelham PR
Polly Fergusson/Zoe Pocock 020 7337 1519
Penna Consulting Plc
Chairman’s Review
The Group completed a very successful year. I am pleased to report that Revenue for the year ended 31 March 2009 was up 30% to £63.2m (2008:£48.6m). Operating expenses were controlled well and our operating margin more than doubled from 4.5% to 9.3% producing profits before taxation up 176% to £6.0m (2008:£2.2m) and fully diluted earnings per share of 17.1p (2008:6.0p).
Penna’s businesses are highly cash generative and our balance sheet is strong. We have no bank debt and facilities established in 2007 remain undrawn. Cash at the year end was £8.9m (2008:£3.0m).
Your Board is recommending a final dividend of 4p per share making a total dividend for the year of 6p (2008: 2p). The proposed final dividend will be payable on 27th October 2009 to shareholders on the register on 18th September 2009.
Operations
Penna is a broadly based human resources company with the following business streams:
Resourcing – Permanent Recruitment and provision of Interim Managers
Career Transition – Outplacement and Career Management
Consulting – Assessment, Organisational Design and Executive Coaching
All three business streams produced impressive organic growth during the year.
|
Revenues
|
% of Total
|
Year to
31 March 2009
|
Year to
31 March 2008
|
Year on year
% Growth
|
|
Resourcing
|
44%
|
£27.5m
|
£22.9m
|
+20%
|
|
Career Transition
|
43%
|
£27.2m
|
£18.0m
|
+51%
|
|
Consulting
|
13%
|
£8.5m
|
£7.6m
|
+12%
|
|
Total revenue
|
100%
|
£63.2m
|
£48.5m
|
+30%
|
Resourcing has performed very well in a difficult market when many competitors have experienced declines in demand and margins. A significant contributor to growth has been our emergence as a leading provider of recruitment services for large organisations requiring an integrated approach to setting up or relocating a major unit.
We have the in-house capability to provide recruitment advertising and internet sites to attract the best talent, response handling systems to effectively deal with high volumes of applications, assessment centres to test and select the right applicants, induction programmes to introduce the recruits to their new environment and project management to ensure that the whole process is completed with the highest quality of service and with achievement of all time and cost targets.
Our Interim Management team has continued its impressive growth and we believe we are the UK’s second largest provider of temporary managers.
Career Transition has continued to grow rapidly. We are the UK’s largest provider of outplacement services to the private sector and our market share grew from 26% in 2006 to 34% during 2008 (published data from the Association of Career Firms). Penna serves a majority of the country’s largest financial, commercial and industrial companies and many public sector organisations. Many of our clients have embarked on long term restructuring programmes that will take some years to implement. Forward commitments and work in progress are at record levels.
Our Consulting activities provide advice and support to organisations and executives as they manage changes in their businesses. Our services include organisational design, individual coaching for Executives and the design and implementation of assessment programmes to ensure organisations make the best recruitment decisions and continually identify and develop talent within the workforce. Revenues in 2009 grew by 12% to £8.5m.
Outlook
The company provides its clients with a broad range of human resource services all focussed on the management of change within large organisations. We are pleased that all of our business streams, Resourcing, Career Transition and Consulting are growing profitably. This demonstrates the strength and breadth of the Company’s portfolio of businesses.
The new financial year has started well and we have a high level of work in progress. We expect to achieve continuing growth and intend to maintain a progressive dividend policy.
Stephen Rowlinson
Chairman
2 June 2009
Penna Consulting Plc
Consolidated income statement
for the year ended 31 March 2009 (unaudited)
|
|
Notes
|
|
Year
Ended
31 March
2009
£’000
|
Year
Ended
31 March
2008*
£’000
|
|
|
|
|
|
|
|
Revenue
|
|
|
63,162
|
48,535
|
|
Operating expenses
|
|
|
(57,276)
|
(46,328)
|
|
|
|
|
|
|
|
Operating profit
|
|
|
5,886
|
2,207
|
|
Finance income
Finance expense
|
|
|
141
(24)
|
15
(47)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
|
6,003
|
2,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
2
|
|
(1,497)
|
(654)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit from continuing operations
|
|
|
4,506
|
1,521
|
|
|
|
|
|
|
|
Post tax loss on disposal of discontinued operations
|
6
|
|
(788)
|
(143)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year attributable to equity holders of the parent company
|
|
|
3,718
|
1,378
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
3
|
|
|
|
|
- basic
|
|
|
14.8p
|
5.5p
|
|
- diluted
|
|
|
14.2p
|
5.5p
|
|
Earnings per share (continuing activities):
|
3
|
|
|
|
|
- basic
|
|
|
17.9p
|
6.0p
|
|
- diluted
|
|
|
17.1p
|
6.0p
|
* The comparative figures have been restated for discontinued operations (see note 6)
Penna Consulting Plc
Consolidated balance sheet
at 31 March 2009 (unaudited)
|
|
|
|
|
|
|
Note
|
31 March 2009
£’000
|
31 March 2008
£’000
|
|
Non-current assets
|
|
|
|
|
Goodwill
|
|
14,036
|
14,036
|
|
Property, plant and equipment
|
|
1,823
|
1,850
|
|
Other intangible assets – software
|
|
24
|
32
|
|
Deferred tax
|
|
75
|
24
|
|
|
|
15,958
|
15,942
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
Trade receivables
|
|
12,672
|
11,271
|
|
Other current assets
|
|
2,419
|
1,788
|
|
Cash and cash equivalents
|
5b
|
8,875
|
2,961
|
|
|
|
23,966
|
16,020
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
39,924
|
31,962
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Trade payables
|
|
2,520
|
2,368
|
|
Loan notes
Obligations under finance lease
|
|
41
-
|
111
88
|
|
Provisions
|
|
78
|
153
|
|
Corporation tax
|
|
838
|
154
|
|
Deferred income
|
|
3,082
|
1,849
|
|
Other creditors and accruals
|
|
10,758
|
7,557
|
|
|
|
17,317
|
12,280
|
|
Non-current liabilities
|
|
|
|
|
Provisions
|
|
458
|
351
|
|
|
|
458
|
351
|
|
|
|
|
|
|
Total liabilities
|
|
17,775
|
12,631
|
|
|
|
|
|
|
Net assets
|
|
22,149
|
19,331
|
|
|
|
|
|
|
Capital and reserves attributable to equity holders of the parent company
|
|
|
|
|
Called up share capital
|
|
1,270
|
1,264
|
|
Share premium account
|
|
15,209
|
15,109
|
|
Merger reserve
|
|
10,170
|
10,170
|
|
Employee Share Option Plan reserve
|
|
(397)
|
(397)
|
|
Foreign currency translation reserve
|
|
(126)
|
3
|
|
Retained loss
|
|
(3,977)
|
(6,818)
|
|
|
|
|
|
|
Total equity
|
|
22,149
|
19,331
|
Penna Consulting Plc
Consolidated statement of changes in equity
At 31 March 2009 (unaudited)
|
|
Called up share capital
£’000
|
Share Premium
£’000
|
Merger Reserve
£’000
|
ESOP reserve
£’000
|
Foreign currency translation
£’000
|
Retained loss
£’000
|
Total equity
£’000
|
||
|
At 1 April 2007
|
1,264
|
15,109
|
10,170
|
(397)
|
66
|
(8,263)
|
17,949
|
||
|
Currency translation differences
|
-
|
-
|
-
|
-
|
(63)
|
-
|
(63)
|
||
|
Net income recognised directly in equity
|
-
|
-
|
-
|
-
|
(63)
|
-
|
(63)
|
||
|
Profit for the year
|
-
|
-
|
-
|
-
|
-
|
1,378
|
1,378
|
||
|
Total recognised income and expense for the year
|
-
|
-
|
-
|
-
|
(63)
|
1,378
|
1,315
|
||
|
Share option credit
|
-
|
-
|
-
|
-
|
-
|
67
|
67
|
||
|
At 1 April 2008
|
1,264
|
15,109
|
10,170
|
(397)
|
3
|
(6,818)
|
19,331
|
||
|
Currency translation differences
|
-
|
-
|
-
|
-
|
(129)
|
-
|
(129)
|
||
|
Net income recognised directly in equity
|
-
|
-
|
-
|
-
|
(129)
|
-
|
(129)
|
||
|
Profit for the year
|
-
|
-
|
-
|
-
|
-
|
3,718
|
3,718
|
||
|
Total recognised income and expense for the year
|
-
|
-
|
-
|
-
|
(129)
|
3,718
|
3,589
|
||
|
Share issue
|
6
|
100
|
-
|
-
|
-
|
-
|
106
|
||
|
Dividend paid
|
-
|
-
|
-
|
-
|
-
|
(1,007)
|
(1,007)
|
||
|
Share option credit
|
-
|
-
|
-
|
-
|
-
|
130
|
130
|
||
|
At 31 March 2009
|
1,270
|
15,209
|
10,170
|
(397)
|
(126)
|
(3,977)
|
22,149
|
||
|
|
|
|
|
|
|
|
|
||
Penna Consulting Plc
Consolidated group cash flow statement
for the year ended 31 March 2009 (unaudited)
|
|
|
|
|
|
|
Note
|
Year
Ended
31 March
2009
£’000
|
Year
Ended
31 March
2008
£’000
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
Cash generated by operations
|
5a
|
7,915
|
2,497
|
|
Tax paid
|
|
(605)
|
(393)
|
|
Interest paid
|
|
(19)
|
(32)
|
|
Interest received
|
|
141
|
15
|
|
|
|
|
|
|
Net cash generated by operating activities
|
|
7,432
|
2,087
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
Net purchase of property, plant and equipment
|
|
(437)
|
(396)
|
|
Net purchase of intangible fixed assets
|
|
(17)
|
(19)
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
(454)
|
(415)
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issue of ordinary shares
|
|
106
|
-
|
|
Interest paid – finance leases
|
|
(5)
|
(15)
|
|
Repayment of finance leases
|
|
(88)
|
(94)
|
|
Repayment of loan notes
|
|
(70)
|
(320)
|
|
Dividends paid
|
|
(1,007)
|
-
|
|
Bank loan repaid
|
|
-
|
(1,500)
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
(1,064)
|
(1,929)
|
|
|
|
|
|
|
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents
|
|
5,914
|
(257)
|
|
|
|
|
|
|
Cash and cash equivalents at start of year
|
|
2,961
|
3,218
|
|
|
|
|
|
|
Cash and cash equivalents at end of year
|
5b
|
8,875
|
2,961
|
|
|
|
|
|
Penna Consulting Plc
Notes to the preliminary announcement
for the year ended 31 March 2009 (unaudited)
|
1. Accounting policies
The unaudited preliminary consolidated financial statements are for the year ended 31st March 2009. They have been prepared under the historical cost convention, except for certain financial instruments, using accounting polices that are consistent with current International Financial Reporting Standards (IFRS). The financial statements are unaudited.
|
||
|
2. Taxation
Taxation has been provided for at 28% (2008:30%), for the UK and appropriate rates for overseas earnings.
3. Earnings per share
The calculation of basic and diluted earnings per share are based on the following amounts:
|
||
|
|
|
|
|
|
Year ended
31 March
2009
|
Year ended
31 March
2008
|
|
Earnings
|
£’000
|
£’000
|
|
Profit after tax
|
3,718
|
1,378
|
|
Profit after tax (continuing activities)
|
4,506
|
1,521
|
|
|
|
|
|
Number of shares
|
|
|
|
Weighted average number of Shares
|
25,184,491
|
25,173,348
|
|
Dilution effect of share option Schemes
|
1,093,230
|
14,495
|
|
Diluted weighted average number
of Shares
|
26,277,721
|
25,187,843
|
|
|
|
|
|
Earnings per share:
|
|
|
|
Basic
|
14.8p
|
5.5p
|
|
Diluted
|
14.2p
|
5.5p
|
|
Earnings per share (continuing activities):
|
|
|
|
Basic
|
17.9p
|
6.0p
|
|
Diluted
|
17.1p
|
6.0p
|
|
4. Dividends
A final dividend of 4 pence per Ordinary share is proposed (2008: 2 pence) and if approved by Shareholders will be paid on 27th October 2009 to shareholders on the register on 18th September 2009. An interim dividend of 2 pence per ordinary share (2008: nil pence) was paid on 4th March 2009 making a total dividend for the year ended 31st March 2009 of 6 pence per share (2008: 3 pence).
|
||
|
|
||
Penna Consulting Plc
Notes to the preliminary announcement (continued)
for the year ended 31 March 2009 (unaudited)
|
|
||
|
|
|
|
|
5a. Reconciliation of operating profit to cash generated by operating activities
|
Year
Ended
31 March 2009
£’000
|
Year
Ended
31 March
2008
£’000
|
|
|
|
|
|
Profit from continuing activities
|
4,506
|
1,521
|
|
Income tax expense
|
1,497
|
654
|
|
Finance income
|
(141)
|
(15)
|
|
Finance expense
|
24
|
47
|
|
Operating profit
|
5,886
|
2,207
|
|
Adjustments for:
|
|
|
|
Depreciation
|
495
|
532
|
|
Share option expense
|
130
|
67
|
|
|
|
|
|
Changes in working capital:
|
|
|
|
Increase in trade and other receivables
|
(2,032)
|
(1,187)
|
|
Increase in trade and other payables
Increase/(decrease) in provisions
|
3,404
32
|
956
(78)
|
|
|
|
|
|
Cash generated by operations
|
7,915
|
2,497
|
|
|
||
|
5b. Cash and cash equivalents
|
At 31 March 2009
£’000
|
At 31 March
2008
£’000
|
|
Cash and cash equivalents are made up as follows:
|
|
|
|
Cash at bank
|
8,834
|
2,850
|
|
Cash on restricted deposit
|
41
|
111
|
|
|
|
|
|
Cash and cash equivalents
|
8,875
|
2,961
|
|
Penna Consulting Plc
Notes to the preliminary announcement (continued)
for the year ended 31 March 2009 (unaudited)
6. Discontinued operations
During the year the Company’s operations in Paris were closed at an after tax cost of £0.8m.
7. Nature of the financial information
The Board of Directors approved the Preliminary Results on 2nd June 2009.
The financial information set out in this document does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The financial information in respect of the year to 31st March 2009 is unaudited. Statutory accounts for the year ended 31st March 2008, on which the auditor’s report was unqualified and did not contain a statement under s237(2) or (3) of the Companies Act 1985, have been delivered to the Registrar of Companies. Copies can be obtained from our Registered Office at 3rd Floor, St Mary’s Court, 20 St Mary at Hill, London EC3R 8EE.
The financial information included in this preliminary announcement has been computed in accordance with International Financial Reporting Standards (IFRSs). This announcement does not itself contain sufficient information to comply with IFRSs. The Company expects to publish full financial statements that comply with IFRSs in August 2009.
|
This information is provided by RNS
The company news service from the London Stock Exchange
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