25th Mar 2009 07:00
25 March 2009
Work Group plc
Preliminary results for the 12 months ended 31st December 2008
Work Group plc ("Work Group" or the "Company") announces its preliminary results for the 12 months ended 31st December 2008.
Headlines
Net fee income of £14.9m (2007: £16.1m) a decrease of 7%
23% increase in net fee income from global contracts to £2.5m (2007: £2.0m)
Cash at year end £1.6m (2007: £1.0m)
Operating profit before exceptional items £1.1m (2007: £3.2m)
Operating profit £0.9m (2007: £2.9m)
Strong balance sheet and zero debt
Commenting, Simon Howard, Executive Chairman said:
"2008 was a tough year, particularly in the second half when Work Group experienced increasingly difficult market conditions. However we entered 2009 with a strong balance sheet and debt-free.
Whilst UK client expenditure declined, expenditure from overseas clients increased to £2.64m (2007: £1.76m). This, together with the fact that 17% of our income was derived from Global contracts in 2008 (2007: 12%), highlights the significance of our Asia Pacific and US Offices.
We continue to monitor costs and income closely. In the first two months of 2009 overall trading has been in line with our expectations."
www.workgroup.plc.uk
Further enquiries:
|
Work Group Simon Howard, Executive Chairman Michael Warren, Finance Director |
Tel: +44 (0)20 7492 0000 |
|
Altium Tim Richardson Sam Fuller |
Tel: +44 (0)20 7484 4040 |
About Work Group
Work Group is a marketing services company which offers a range of solutions which enable employers to win the war for talent. It focuses on providing services in "talent acquisition and talent development" which enable employers to more effectively recruit and retain key staff.
Work Group's approach is to help employers reduce their traditional reliance on third-party recruiters such as head-hunters and recruitment firms through helping them establish and maintain a direct relationship between employer and prospective employee. It also helps employers reduce attrition costs through better employee engagement and retention of key talent.
Work Group currently operates through two divisions; Communications and Talent Management, providing services from its six locations in the UK and offices in New York and Hong Kong.
Headlines
Net fee income of £14.9m (2007: £16.1m) a decrease of 7%
Increase in net fee income from global contracts of 23% to £2.5m (2007: £2.0m)
Cash at year end of £1.6m (2007: £1.0m)
Operating profit before exceptional items of £1.1m (2007: £3.2m) a decrease of 66%
Operating profit of £0.9m (2007: £2.9m)
Strong balance sheet and zero debt
Financial Highlights
|
Year ended 31 December 2008 |
Year ended 31 December 2007 |
change |
|
|
£m |
£m |
£m |
|
|
Gross profit (Net fee income)^ |
14.9 |
16.1 |
(1.2) |
|
Operating profit before exceptional items |
1.1 |
3.2 |
(2.1) |
|
Operating profit |
0.9 |
2.9 |
(2.0) |
|
Profit before tax |
0.9 |
3.0 |
(2.1) |
|
Profit after tax |
0.4 |
2.0 |
(1.6) |
|
Diluted earnings per share |
1.36 |
7.06p |
(5.70)p |
|
Diluted earnings per share adjusted* |
1.79 |
7.82p |
(6.03)p |
^ References in the report to "Net fee income" represent Gross profit
* Adjusted diluted earnings per share is stated before exceptional items. (see note 5)
Chairman's statement Chairman's review
Despite the increasingly difficult market conditions we experienced during 2008, we can point to positive developments within the Group which stand us in good stead for what will be a challenging 2009.
We finished 2008 with a strong balance sheet, zero debt and cash at year end of £1.6m (2007: £1.0m), having paid all outstanding deferred considerations. More disappointingly, operating profit before exceptional items declined to £1.1m (2007: £3.2m), while our net fee income of £14.9m (2007: £16.1m) was a decrease of 7% over the previous year.
However there were many positive steps in the development of our client base with 20% of our income coming from new business while 74% of our top 50 clients increased their business with us.
Client expenditure
Despite the slowing market, our clients spent £32.8*m with us in 2008 (£35.0*m, 2007), and while we experienced a decline in UK turnover, our clients increased expenditure in all overseas markets - highlighting the importance of our international operations and their ability to expand our global client base.
|
2008 Client expenditure* by geographical split |
|||
|
2008 |
2007 |
Variance |
|
|
£'000 |
£'000 |
£'000 |
|
|
UK |
30,132 |
33,203 |
(3,071) |
|
USA & Canada |
1,602 |
1,050 |
552 |
|
Europe |
677 |
672 |
5 |
|
Asia Pacific |
357 |
34 |
323 |
|
UK Media buying contract |
2,911 |
3,947 |
(1,036) |
|
Total |
35,679 |
38,906 |
(3,227) |
|
International expenditure |
2,636 |
1,755 |
881 |
Our strategy is to gain a larger share of client budgets and in 2008 more than 50 clients spent over £100,000 with us, with just over half buying services from both the Communications and Talent Management divisions. This is an advance on previous years and is an example of the continued opportunity we have to further develop our client base in 2009. This was a major reason for launching the "one work" project which will simplify and strengthen the management of client relationships.
* Reported turnover of £35.7m (2007: £38.9m) adjusted to remove the effects of a UK media buying contract
Client expenditure by sector
We continue to enjoy a broad spread of clients. Finance & Banking is still our largest sector representing 28% of Group income. This 28% was itself broadly spread by activity, with Global clients accounting for 11%, UK-based RPO 10%, Research 5% and UK Communications 2%. The remaining 72% of clients' income was spread over 9 sectors, with the Public and Not-for-profit sector the largest of those at 13%.
We believe this breadth of client sectors to be an important strength - especially in the current market conditions.
Our people
In the current environment it is all the more important (and all the more difficult) for any employer to improve people practices and ensure that talented people are able to develop their careers. That is especially true if, like us, we try to practice what we preach to our clients about getting, growing and retaining talent.
However, despite the fact that our UK headcount continues to shrink, the morale of our teams remains remarkably good and we believe they continue to represent some of the very best talent working in this sector. Consequently their commitment and drive is appreciated more than ever.
Dividend
In light of the prevailing economic conditions, the Board is not recommending a dividend.
Outlook
Our aim is to weather the storm of recession and come out of this having acquired more clients and consequently occupying a stronger market position. Recessions accelerate change and as Work Group's whole raison d'être is to change the way employers recruit, engage and develop their talent, we have a real opportunity to gain market share. Recessions also present opportunities for consolidation, and being debt-free with a strong balance sheet, Work Group is well-positioned to hasten that consolidation.
Throughout 2009 we will monitor closely our performance and currently we are trading in line with our plans.
Simon Howard
Chairman
Operating review
At the half year we were able to report net fee income 2% ahead of the previous year despite seeing some early effects of the weakening economy in project sign off for our executive research services.
September was the first month the economic slowdown made a significant impact on net fee income across the Group. This was followed by a sharper decline in Q4. In the second half year we recorded a 17% fall in net fee income against 2007, £6.88m against £8.27m. The effects were felt through all our service lines with the exception of outsourcing services in Talent Management where income was more resilient.
Total net fee income for the year was £14.9m, down 7% against 2007 (2007: £16.1m).
|
Year ended 31 Dec 2008 £'000 |
Change £'000 |
Year ended 31 Dec 2007 £'000 |
|
|
Gross profit (net fee income) |
|||
|
Communications |
8,807 |
(675) |
9,482 |
|
Talent Management |
6,070 |
(589) |
6,659 |
|
Group gross profit |
14,877 |
(1,264) |
16,141 |
|
Operating profit before exceptional items |
|||
|
Communications |
544 |
(1,685) |
2,229 |
|
Talent Management |
747 |
(514) |
1,261 |
|
Corporate (non-recharged) |
(236) |
34 |
(270) |
|
Group adjusted profit |
1,055 |
(2,165) |
3,220 |
|
Operating profit |
|||
|
Communications |
408 |
(1,533) |
1,941 |
|
Talent Management |
699 |
(539) |
1,238 |
|
Corporate (non-recharged) |
(236) |
34 |
(270) |
|
Group operating profit |
871 |
(2,038) |
2,909 |
The impact on profit has been more severe. Operating profit before exceptional items was £1.1m against £3.2m in the previous year. Operating profit was £0.9m (2007: £2.9m).
Losses attributable to the overseas offices in New York and Hong Kong totalled £0.5m. These included start up costs in Hong Kong. However, net fee income from global contracts increased by 23% to £2.46m (2007: £2.0m) and net fee income across the Group derived from work billed to the US increased by 22% to £1.1m (2007: £0.9m). Most of the net fee income billed to the US has continued to be delivered from and is recognised in the UK.
The US office is critical to the winning and retention of global contracts. As well as migrating some of the project delivery from the UK, it remains a goal for the US business to generate sufficient income of its own to become profitable - this proved difficult in 2008 against the economic downturn.
The Hong Kong office opened in July and delivered incremental Group net fee income in its first six months and has won clients new to the Group.
Excluding overseas operations, costs in the UK increased by 1% year on year. However, costs in the UK in the second half year were 7% less than the first half, £6.26m against £6.75m, as actions were taken to reduce the cost base. Year end headcount in the UK had reduced by 12% from the half year position. The impact of all actions taken by the end of the year reduced the cost base of the Group by over £1m year on year.
Exceptional costs of £0.18m incurred in the year were principally redundancy costs.
There has been greater focus on working capital management and this has meant that cash flow has continued to be strong. Net cash at the year end was £1.6m (2007: £1.0m). During the year the deferred consideration relating to the acquisition of The Recruitment Communications Company was fully paid. At the year end the Group is debt free and retains a strong balance sheet.
The effective tax charge in the year is 53%. Both the US and Hong Kong are early stage businesses and in the current economic climate the Board is taking a more cautious and longer term view of the timing of future profits. Consequently no deferred tax asset is recognised in relation to the overseas losses. Disregarding this adjustment, the effective tax rate is 31%.
Diluted earnings per share were 1.36p (2007: 7.06p), diluted earnings per share before exceptional costs were 1.79p (2007: 7.82p).
The board is not recommending the payment of a dividend (2007: 0.5p per share)
2009 will be a challenging year. Our objectives are to preserve cash, grow market share and be well positioned for any improvement in market conditions.
Michael Warren
Finance Director
25 March 2009
Consilidatied income statement
|
Note |
2008 |
2007 |
|
|
£'000 |
£'000 |
||
|
Note |
2008 |
2007 |
|
|
£'000 |
£'000 |
||
|
Revenue |
2 |
35,679 |
38,906 |
|
Cost of sales |
(20,802) |
(22,765) |
|
|
Gross profit (net fee income) |
14,877 |
16,141 |
|
|
Net operating expenses |
(14,006) |
(13,232) |
|
|
Operating profit |
871 |
2,909 |
|
|
Operating profit before exceptional items |
1,055 |
3,220 |
|
|
Exceptional items |
3 |
(184) |
(311) |
|
Finance costs |
(26) |
(22) |
|
|
Finance income |
28 |
64 |
|
|
Profit before taxation |
873 |
2,951 |
|
|
Taxation |
4 |
(462) |
(933) |
|
Profit for the year |
411 |
2,018 |
|
|
Earnings per share (pence) |
5 |
1.44 |
7.64 |
|
Diluted earnings per share (pence) |
5 |
1.36 |
7.06 |
|
Dividend paid per share (pence) |
6 |
0.5 |
0.4 |
The results above are all in respect of continuing operations.
Balance sheets
As as 31 December 2008
|
Note |
Group 2008 |
Group 2007 |
Company 2008 |
Company 2007 |
|
|
Note |
Group 2008 |
Group 2007 |
Company 2008 |
Company 2007 |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
||
|
Assets |
|||||
|
Non-current assets |
|||||
|
Goodwill |
12,197 |
12,197 |
4,308 |
4,308 |
|
|
Property, plant & equipment |
721 |
812 |
587 |
668 |
|
|
Investment in subsidiaries |
- |
- |
11,090 |
10,188 |
|
|
Deferred tax asset |
24 |
252 |
- |
193 |
|
|
12,942 |
13,261 |
15,985 |
15,357 |
||
|
Current assets |
|||||
|
Inventories & WIP |
314 |
241 |
312 |
241 |
|
|
Trade and other receivables |
4,972 |
6,944 |
4,062 |
6,015 |
|
|
Cash and cash equivalents |
1,566 |
1,638 |
1,229 |
1,626 |
|
|
6,852 |
8,823 |
5,603 |
7,882 |
||
|
Liabilities |
|||||
|
Current liabilities |
|||||
|
Financial liabilities - borrowings |
- |
(595) |
- |
(1,840) |
|
|
Trade and other payables |
(4,753) |
(4,973) |
(6,861) |
(5,732) |
|
|
Provisions |
- |
(2,000) |
- |
(2,000) |
|
|
Current tax liabilities |
(265) |
(883) |
(184) |
(581) |
|
|
(5,018) |
(8,451) |
(7,045) |
(10,153) |
||
|
Net current assets/(liabilities) |
1,834 |
372 |
(1,442) |
(2,271) |
|
|
Non current liabilities |
|||||
|
Deferred tax liability |
- |
- |
(6) |
- |
|
|
Net assets |
14,776 |
13,633 |
14,537 |
13,086 |
|
|
Shareholders' equity |
|||||
|
Ordinary share capital |
572 |
542 |
572 |
542 |
|
|
Share premium |
8,240 |
7,261 |
8,240 |
7,261 |
|
|
Other reserves |
2,826 |
2,826 |
2,826 |
2,826 |
|
|
Foreign exchange reserves |
100 |
- |
- |
- |
|
|
Retained earnings |
3,038 |
3,004 |
2,899 |
2,457 |
|
|
Total shareholders' equity |
14,776 |
13,633 |
14,537 |
13,086 |
Statements of changes in shareholders' equity
For the year ended 31 December 2008
Group
|
Note |
Share capital |
Share premium |
Retained Earnings |
Foreign exchange reserves |
Special reserve |
Total Reserves |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
||
|
1 January 2007 |
510 |
6,433 |
1,077 |
- |
2,826 |
10,846 |
|
|
Profit for the year |
- |
- |
2,018 |
- |
- |
2,018 |
|
|
Value of employee services |
- |
- |
30 |
- |
- |
30 |
|
|
Deferred taxation on share options |
- |
- |
(15) |
- |
- |
(15) |
|
|
Proceeds from shares issued |
32 |
828 |
- |
- |
- |
860 |
|
|
Dividends paid |
6 |
- |
- |
(106) |
- |
- |
(106) |
|
At 31 December 2007 |
542 |
7,261 |
3,004 |
- |
2,826 |
13,633 |
|
|
Profit for the year |
- |
- |
411 |
- |
- |
411 |
|
|
Value of employee services |
- |
- |
(32) |
- |
- |
(32) |
|
|
Deferred taxation on share options |
- |
- |
(202) |
- |
- |
(202) |
|
|
Proceeds from shares issued |
30 |
979 |
- |
- |
- |
1,009 |
|
|
Foreign Exchange |
- |
- |
- |
100 |
- |
100 |
|
|
Dividends paid |
6 |
- |
- |
(143) |
- |
- |
(143) |
|
At 31 December 2008 |
572 |
8,240 |
3,038 |
100 |
2,826 |
14,776 |
Company
|
Note |
Share capital |
Share premium |
Retained earnings |
Special reserve |
Total Reserves |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
||
|
1 January 2007 |
510 |
6,433 |
1,615 |
2,826 |
11,384 |
|
|
Profit for the year |
- |
- |
933 |
- |
933 |
|
|
Value of employee services |
- |
- |
30 |
- |
30 |
|
|
Deferred taxation on share options |
- |
- |
(15) |
- |
(15) |
|
|
Proceeds from shares issued |
32 |
828 |
- |
- |
860 |
|
|
Dividends paid |
6 |
- |
- |
(106) |
- |
(106) |
|
At 31 December 2007 |
542 |
7,261 |
2,457 |
2,826 |
13,086 |
|
|
Profit for the year |
- |
- |
819 |
- |
819 |
|
|
Value of employee services |
- |
- |
(32) |
- |
(32) |
|
|
Deferred taxation on share options |
- |
- |
(202) |
- |
(202) |
|
|
Proceeds from shares issued |
30 |
979 |
- |
- |
1,009 |
|
|
Dividends paid |
6 |
- |
- |
(143) |
- |
(143) |
|
At 31 December 2008 |
572 |
8,240 |
2,899 |
2,826 |
14,537 |
Cash flow statements
For year ended 31 December 2008
|
Note |
Group 2008 £'000 |
Group 2007 £'000 |
Company 2008 £'000 |
Company 2007 £'000 |
|
|
Note |
Group 2008 £'000 |
Group 2007 £'000 |
Company 2008 £'000 |
Company 2007 £'000 |
|
|
Cash flows from operating activities |
|||||
|
Cash generated from/(absorbed by) operations |
7 |
2,920 |
1,457 |
3,452 |
(325) |
|
Interest paid |
(30) |
(22) |
(30) |
(21) |
|
|
Tax paid |
(1,037) |
(336) |
(722) |
- |
|
|
Net cash inflow/(outflow) from operating activities |
1,853 |
1,099 |
2,700 |
(346) |
|
|
Cash flows from investing activities |
|||||
|
Acquisition of businesses (net of cash acquired) |
(1,000) |
- |
(1,000) |
1,375 |
|
|
Interest received |
31 |
64 |
17 |
22 |
|
|
Cash received from sale of property, plant and equipment |
4 |
- |
4 |
- |
|
|
Purchase of property, plant and equipment |
(220) |
(323) |
(133) |
(237) |
|
|
Net cash (used in)/generated from investing activities |
(1,185) |
(259) |
(1,112) |
1,160 |
|
|
Cash flows from financing activities |
|||||
|
Net proceeds from issue of ordinary share capital |
9 |
144 |
9 |
144 |
|
|
Loan notes repaid |
(9) |
(728) |
(9) |
(728) |
|
|
Dividend paid |
6 |
(143) |
(106) |
(143) |
(106) |
|
Finance lease payments |
(2) |
(2) |
(2) |
- |
|
|
Net cash (outflow)/inflow from financing activities |
(145) |
(692) |
(145) |
(690) |
|
|
Increase in cash and cash equivalents in the year |
523 |
148 |
1,443 |
124 |
|
|
Net cash and cash equivalents at start of the year |
1,043 |
895 |
(214) |
(338) |
|
|
Net cash and cash equivalents at end of the year |
1,566 |
1,043 |
1,229 |
(214) |
Notes to the financial statements
For the year ended 31 December 2008
1 Basis of preparation
The preliminary results of the Group for the year ended 31 December 2008 were approved by the directors on 25 March 2008. The Annual General Meeting of Work Group plc will be held at Saffron House, 6-10 Kirby Street, London EC1N 8EQ on 16 June 2009.
The financial information has been prepared, in accordance with International Financial Reporting Standards (IFRS) adopted for use in the European Union and those parts of the Companies Act 1985 which are applicable to companies reporting under IFRS.
The financial information in the preliminary announcement does not constitute the Group's statutory accounts for the year ended 31 December 2007 and 2008. Statutory financial statements for 2007, on which the auditors gave an unqualified report pursuant to section 235 of the Companies Act 1985, have been delivered to the Registrar of Companies and those for 2008 will be delivered following the Company's Annual General Meeting.
The financial information has been prepared in sterling, the currency in which the majority of the Group's transactions are denominated, and on the historical cost basis, except for the revaluation of certain financial instruments.
2 Segmental reporting
This is the first period in which the Group reports two segments, Communications and Talent Management. Communications was previously described as Employer Marketing, and Talent Management combines what was previously described as Executive Research and Recruitment Process
Outsourcing. These segments better describe the services we deliver as a marketing services company specialising in employer marketing. Accordingly prior period comparatives have been restated for consistency with the new segmental analysis.
Primary reporting format - business segments
At 31 December 2008, the Group was organised into 2 main business segments:
Communications
Talent Management
All assets and liabilities of the Group are allocated to the individual segments.
|
2008 |
Communications £'000 |
Talent Management £'000 |
Corporate £'000 |
Group £'000 |
|
Revenue |
28,340 |
7,378 |
(39) |
35,679 |
|
Operating profit/(loss) (segment result) |
408 |
699 |
(236) |
871 |
|
Finance cost |
- |
- |
(26) |
(26) |
|
Finance income |
- |
- |
28 |
28 |
|
Profit before tax |
408 |
699 |
(234) |
873 |
|
Income taxes |
- |
- |
(462) |
(462) |
|
Profit for the year |
408 |
699 |
(696) |
411 |
|
Segment assets |
15,023 |
9,417 |
(4,646) |
19,794 |
|
Segment liabilities |
(6,527) |
(2,092) |
3,601 |
(5,018) |
|
Net Assets |
8,496 |
7,325 |
(1,045) |
14,776 |
|
Depreciation |
(178) |
(134) |
- |
(312) |
|
Capital expenditure |
(140) |
(80) |
- |
(220) |
|
Exceptional items |
(136) |
(48) |
- |
(184) |
|
2007 (Restated) |
Communications £'000 |
Talent Management £'000 |
Corporate £'000 |
Group £'000 |
|
Revenue |
31,646 |
7,335 |
(75) |
38,906 |
|
Operating profit/(loss) (segment result) |
1,941 |
1,238 |
(270) |
2,909 |
|
Finance cost |
- |
- |
(22) |
(22) |
|
Finance income |
- |
- |
64 |
64 |
|
Profit before tax |
1,941 |
1,238 |
(228) |
2,951 |
|
Income taxes |
- |
- |
(933) |
(933) |
|
Profit for the year |
1,941 |
1,238 |
(1,161) |
2,018 |
|
Segment assets |
14,951 |
9,422 |
(2,289) |
22,084 |
|
Segment liabilities |
(8,131) |
(1,564) |
1,244 |
(8,451) |
|
Net Assets |
6,820 |
7,858 |
(1,045) |
13,633 |
|
Depreciation |
(165) |
(144) |
- |
(309) |
|
Capital expenditure |
(202) |
(121) |
- |
(323) |
|
Exceptional items |
(288) |
(23) |
- |
(311) |
Included in the Corporate segment are consolidation entries that eliminate intercompany transactions, and reclassifications of balances between assets and liabilities.
Secondary format - geographical segments
The Group manages its business segments in the UK, which is the home country of the parent.
The sales analysis in the table below is based on the location of the customer. All significant assets and capital expenditure are located in the UK, which is where all orders are received.
|
Revenue |
2008 £000 |
2007 £000 |
|
UK |
33,043 |
37,150 |
|
USA |
1,602 |
1,050 |
|
Europe |
677 |
672 |
|
Rest of world |
357 |
34 |
|
35,679 |
38,906 |
3 Exceptional items
The exceptional costs of £184,000 (2007: £311,000) principally relate to redundancies made during the year.
4 Corporation tax
|
2008 |
2007 |
|
|
£'000 |
£'000 |
|
|
Current tax |
435 |
841 |
|
Deferred tax |
27 |
92 |
|
462 |
933 |
The United Kingdom corporation tax changed on 1 April 2008 from 30% to 28%. This resulted in an effective corporation tax rate of 28.5% for the period 1 January to 31 December 2008.
The tax assessed on the profit for the year differs from the standard rate of corporation tax in the UK (28.5%). The differences are explained below:
|
2008 |
2007 |
|
|
£'000 |
£'000 |
|
|
Profit before taxation |
873 |
2,951 |
|
Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 28.5% (2007: 30%) |
249 |
886 |
|
Effects of: |
||
|
Expenses not deductible for tax purposes |
5 |
1 |
|
Deferred tax on trading losses not recognised |
130 |
- |
|
Foreign country tax rate differences |
21 |
- |
|
Adjustments to prior year |
57 |
46 |
|
Tax charge |
462 |
933 |
5 Earnings per share
|
2008 |
2007 |
|||||
|
Earnings |
Weighted average number of shares |
Per share amount |
Earnings |
Weighted average number of shares |
Per share amount |
|
|
£'000 |
'000 |
Pence |
£'000 |
'000 |
pence |
|
|
Basic earnings per share |
411 |
28,504 |
1.44 |
2,018 |
26,419 |
7.64 |
|
Effect of dilutive share options |
- |
1,825 |
(0.08) |
- |
2,180 |
(0.58) |
|
Diluted earnings per share |
411 |
30,329 |
1.36 |
2,018 |
28,599 |
7.06 |
|
Adjusted basic earnings per share |
543 |
28,504 |
1.90 |
2,236 |
26,419 |
8.46 |
|
Effect of dilutive share options |
- |
1,825 |
(0.11) |
- |
2,180 |
(0.64) |
|
Adjusted diluted earnings per share |
543 |
30,329 |
1.79 |
2,236 |
28,599 |
7.82 |
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the period.
For diluted earnings per share, the weighted average number of shares is adjusted to reflect the impact of all dilutive potential ordinary shares.
Earnings reconciliation
|
2008 |
2007 |
|
|
£'000 |
£'000 |
|
|
Statutory Earnings |
411 |
2,018 |
|
Add back exceptional items |
184 |
311 |
|
Tax on exceptional items 28.5% (2007 30%) |
(52) |
(93) |
|
Revised earnings for Adjusted EPS |
543 |
2,236 |
Adjusted earnings per share excludes the cost of exceptional items less tax at 28.5% (2007: 30%).
6 Dividends
|
Group and Company |
2008 |
2007 |
|
£'000 |
£'000 |
|
|
2007 Final dividend payment - 0.5 pence per share (2006 0.4 pence per share) |
143 |
106 |
The proposed dividend for 2008 is nil (2007 pence per share: 0.5p).
7 Reconciliation of operating profit to cash generated from/(absorbed by) operations
|
Group 2008 |
Group 2007 |
Company 2008 |
Company 2007 |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Profit for the year |
411 |
2,018 |
819 |
933 |
|
Adjustments: |
||||
|
Taxation |
462 |
933 |
323 |
488 |
|
Finance income |
(28) |
(64) |
(51) |
(22) |
|
Finance costs |
26 |
22 |
27 |
21 |
|
Depreciation of plant property and equipment |
312 |
309 |
211 |
175 |
|
Profit/loss on disposal of plant property and equipment |
(3) |
58 |
(1) |
28 |
|
Share based payments |
(32) |
30 |
(32) |
30 |
|
Increase in inventories |
(74) |
(146) |
(71) |
(146) |
|
Increase in trade and other receivables |
2,057 |
(1,086) |
1,117 |
(2,518) |
|
(Decrease)/increase in trade and other payables |
(211) |
(617) |
1,110 |
686 |
|
Cash generated from/(absorbed by) operations |
2,920 |
1,457 |
3,452 |
(325) |
Related Shares:
INCE.L