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SVCA Servoca

8.50
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Servoca LSE:SVCA London Ordinary Share GB00BF2VKD83 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 8.50 2.00 15.00 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Servoca PLC Half-year Report (7339H)

12/06/2017 7:00am

UK Regulatory


Servoca (LSE:SVCA)
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TIDMSVCA

RNS Number : 7339H

Servoca PLC

12 June 2017

SERVOCA Plc

("Servoca" or the "Group")

Specialist Outsourcing and Recruitment Solutions Provider

Unaudited Interim Results

for the six months ended 31 March 2017

Highlights

-- Revenue GBP40.93m (2016: GBP34.44m), an increase of 18.8%

-- Gross profit GBP9.74m (2016: GBP8.95m), an increase of 8.8%

-- EBITDA* GBP1.95m (2016: GBP1.52m), an increase of 28.3%

-- Profit before taxation* up 28.6% to GBP1.71m (2016: GBP1.33m)

-- Increased revenues in all areas of Group markets

-- Basic EPS of 1.10p* (2016: 0.85p), an increase of 29.4%

* before amortisation (GBP0.03m), share based payments (GBP0.03m) and contingent consideration payments (GBP0.4m)

Andy Church, CEO, commented:-

As indicated in our recent trading update, we are pleased to report that results for the first half are significantly ahead of the same period last year. The Group continues to achieve substantial growth and our performance is benefitting from our diversified business mix. The Group operates in six distinct markets and revenues in each one were ahead of the corresponding period last year. Performance in the first half leaves the Group well placed to deliver against full-year expectations.

For further enquiries:

Servoca Plc

   Andrew Church, CEO                                                                 020 7747 3030 

finnCap Ltd

   Geoff Nash/James Thompson                                                      020 7220 0500 

Camille Gochez (corporate broking)

Newgate Communications

   Bob Huxford/James Browne                                                        020 7653 9850 

This document is available from the Company's website: www.servoca.com, on the "Shareholder Documents" page in the section headed "Investor Relations".

Unaudited Interim Results

SERVOCA Plc

Interim Statement

For the six months ended 31 March 2017

Introduction

We are pleased to report that for the six months ended 31 March 2017 we have delivered another period of significant improvement in the performance of the Group.

All areas of the Group achieved revenue growth and this helped ensure the Recruitment and Outsourcing operations both delivered improved profitability.

The improvement to profitability in our Recruitment operation was led by our Health and Social Care business (Private Sector focus) and our Criminal Justice division. Our Outsourcing operations delivered a substantial improvement in profits benefitting from both sales growth and action taken at the end of the prior year to reduce overheads.

It is particularly pleasing to see different parts of the Group coming to the fore and the first half performance reflects this. There have been some well publicised challenges in some of our markets but our diversified business mix has delivered a resilient performance. The business also continues to benefit from the experience and strength of its management team, which is proving important in attracting talent into the Group.

Financial review

During the six months to 31 March 2017 revenues were GBP40.93m (2016: GBP34.44m), an increase of 18.8%, which resulted in a gross profit of GBP9.74m (2016: GBP8.95m), an increase of 8.8%.

Administrative expenses (before amortisation, share based payments and contingent consideration) for the current period were GBP7.98m (2016: GBP7.58m), an increase of 5.3%.

EBITDA (before amortisation, share based payments and contingent consideration) increased to GBP1.95m (2016: GBP1.52m), an increase of 28.3%.

The profit before tax (before amortisation (GBP0.03m), share based payments (GBP0.03m) and contingent consideration payments (GBP0.4m)) increased to GBP1.71m (2016: GBP1.33m), an increase of 28.6%.

Basic earnings per share (before amortisation, share based payments and contingent consideration) for the period to 31 March 2017 were 1.10p (2016: 0.85p), an increase of 29.4%.

Net debt at 31 March 2017 was GBP2.95m (March 2016: GBP1.30m, September 2016: GBP2.40m) reflecting normal working capital increases from a higher level of turnover during the six month period.

The Company has and will continue its share buy-back program and at the date of this report, holds 1,920,138 shares in treasury.

Unaudited Interim Results

SERVOCA Plc

Interim statement (continued)

For the six months ended 31 March 2017

Operational highlights

Strategy and delivery

The focus during the period has remained the development of the Group's capabilities in those areas that the Board believes afford good growth opportunities.

Outsourcing

Our Outsourcing activities are primarily based in two areas; Domiciliary Care and Security.

Our Security business has delivered a substantially improved performance in the first half of this year compared to the same period last year. Revenue growth in our Manned Guarding and Electronic security offerings has been complimented by action to reduce overheads at the end of the prior year.

As referenced in our statement for the year ending 30 September 2016, both the Manned Guarding and Electronics divisions secured substantial additional work towards the end of the last financial year which has driven the growth during the first half of this year.

The growth in our Electronics division is largely attributable to the expanded deployment by an existing client of a unique software solution for loss prevention in the retail industry. The client is a major UK grocery retailer that has deployed the product for several years in a sizeable number of their stores. The results and return on investment during this period have helped secure an order for a considerable expansion into what is expected to be the majority of their estate over the next few years.

In our statement for the year-ended 30 September 2016 we reported that our Domiciliary Care business had endured a challenging year and that second half revenues had mirrored the first half and lagged behind prior year. We are pleased to report that during the first half of the current financial year this trend has been reversed and we have seen healthy sales and profitability growth over the corresponding period last year.

As mentioned in our statement for the previous financial year, we have managed costs tightly and retained a focus on only those supply arrangements that we believed were sustainable. This approach has given us a solid foundation for profitable growth.

During the first half of the current year we have seen recognition that the sector must receive additional funding as we enter the new tax year. Over recent years, providers have faced rising costs (predominantly associated with increases to the National Living Wage and other statutory costs) and static or declining charge rates. Increased flexibility for local authorities to generate additional funding through the adult social care precept is one step towards generating additional monies to meet the increased costs of provision. Our experience is that the majority of our commissioning authorities are now increasing fee rates in line with increases to statutory costs for the new budget year.

During the first half of the year the business tendered for several meaningful opportunities for new contracts and we have received positive news that two of these contracts have been secured and will commence in the second half of the year.

Unaudited Interim Results

SERVOCA Plc

Interim statement (continued)

For the six months ended 31 March 2017

Recruitment

Our recruitment businesses supply into the Education, Healthcare and Criminal Justice markets.

Our Healthcare recruitment division has enjoyed another period of significant growth over prior year.

We operate in two distinct markets in this area through separate subsidiary brands. Servoca Nursing and Care supplies temporary resource to the Health and Social Care market, which is almost exclusively within the Private Sector, whilst Firstpoint supplies Nursing and Care professionals into the NHS. This distinction is important as whilst revenues have increased in both areas, profitability growth is all from our Health and Social Care supply into the Private Sector.

As previously reported, the NHS supply has faced significant challenges, largely as a result of previously imposed agency price caps, the last of which came into force in April 2016. This has placed downward pressure on margins and therefore necessitates increased volumes of supply in an efficient manner if we are to protect profitability. We have restructured support operations in response to this requirement, including the establishment of a low cost offshore capability.

We are therefore pleased to report that during the first half of the year, we continued to take increased market share. Revenues were up 15% and the volume of weekly hours supplied was also up by just under 10%. The increase in sales volumes has maintained profitability in line with the prior year period despite a reduction in the gross margin achieved.

Our Servoca Nursing and Care business has enjoyed a great six months accounting for 62% of total operating profit generated by our healthcare recruitment activities. The weekly gross profit run rate has increased by over 16% during the first half of the year and the volume of weekly hours supplied is up by 17% over the period.

We reported in our full year results that our Education division experienced a tougher second half to the last financial year and that over the year, whilst revenues were up, gross profit was marginally down. The performance in the first half of the current year mirrors that of the last full year with revenues up but gross profit marginally down when compared to the first six months of last year.

However, demand continues to outstrip supply despite the budget pressures faced by schools and there remains an acute shortage of qualified teachers. We are making positive progress in our overseas candidate generation capabilities in response to this and have continued to invest in developing our branch network where we identify appropriate opportunity.

Our Criminal Justice business has continued its positive momentum from the previous financial year and enjoyed a very strong start to the year.

As reported in our statement for the year ended 30 September 2016 the business secured a significant contract for the supply of temporary probation staff in the final quarter of last year. Delivery into this contract has continued to build during the first half of the year and has helped contribute towards a significant improvement in revenues and profit over the same period last year.

Unaudited Interim Results

SERVOCA Plc

Interim statement (continued)

For the six months ended 31 March 2017

Outlook

The Group enters the second half with positive momentum on the back of a strong first half performance. The balanced and diversified nature of the Group continues to provide healthy growth opportunities.

Recent new contract wins, particularly in our Outsourcing businesses, bode well for prospects in the second half of the year.

The Group therefore remains confident in delivering its expectations for the full year.

John Foley Andrew Church

Chairman Chief Executive Officer

12 June 2017 12 June 2017

Unaudited Interim Results

SERVOCA Plc

Consolidated statement of comprehensive income

For the six months ended 31 March 2017

 
                                                  Six months ended                                  Six months ended                             Year ended 
                                                    31 March 2017                                     31 March 2016                             30 September 
                                                                                                                                                     2016 
                                                     (unaudited)                                       (unaudited)                                (audited) 
 
                                     Before    Amortisation,                           Before                                         Before    Amortisation, 
                               amortisation            share                     amortisation    Amortisation                   amortisation            share 
                                        and            based                              and             and                            and            based 
                                      share         payments                            share           share                          share         payments 
                                      based              and      Total                 based           based      Total               based              and      Total 
                                   payments       contingent                         payments        payments                       payments      exceptional 
                                               consideration                                                                                            costs 
                   Note             GBP'000          GBP'000    GBP'000               GBP'000         GBP'000    GBP'000             GBP'000          GBP'000    GBP'000 
----------------  -----      --------------  ---------------  ---------      ----------------  --------------  ---------  ------------------  ---------------  --------- 
 Continuing 
  operations 
 Revenue                             40,927                -     40,927                34,435               -     34,435              69,234                -     69,234 
 Cost of sales                     (31,186)                -   (31,186)              (25,489)               -   (25,489)            (50,593)                -   (50,593) 
----------------  -----      --------------  ---------------  ---------      ----------------  --------------  ---------  ------------------  ---------------  --------- 
 
 Gross profit                         9,741                -      9,741                 8,946               -      8,946              18,641                -     18,641 
 Administrative 
  expenses                          (7,983)            (455)    (8,438)               (7,578)            (55)    (7,633)            (15,026)            (124)   (15,150) 
 
   Operating 
   profit                             1,758            (455)      1,303                 1,368            (55)      1,313               3,615            (124)      3,491 
 
 Finance costs                         (46)                -       (46)                  (35)               -       (35)                (77)                -       (77) 
----------------  -----                                                      ---------------- 
 
 Profit before 
  taxation                            1,712            (455)      1,257                 1,333            (55)      1,278               3,538            (124)      3,414 
 Tax charge                           (342)                -      (342)                 (271)               -      (271)               (740)                -      (740) 
----------------  -----      --------------  ---------------  ---------      ----------------  --------------  ---------  ------------------  ---------------  --------- 
 Total 
  comprehensive 
  income for 
  the period, 
  net of tax, 
  attributable 
  to equity 
  holders of 
  the parent                          1,370            (455)        915                 1,062            (55)      1,007               2,798            (124)      2,674 
----------------  -----      --------------  ---------------  ---------      ----------------  --------------  ---------  ------------------  ---------------  --------- 
 
 Earnings per                         Pence            Pence      Pence                 Pence           Pence      Pence               Pence            Pence      Pence 
  share: 
 
 - Basic              6                1.10           (0.36)       0.74                  0.85          (0.04)       0.81                2.25           (0.10)       2.15 
 - Diluted            6                1.09           (0.36)       0.73                  0.84          (0.04)       0.80                2.22           (0.10)       2.12 
----------------  -----      --------------  ---------------  ---------      ----------------  --------------  ---------  ------------------  ---------------  --------- 
 
 

Unaudited Interim Results

SERVOCA Plc

Consolidated statement of financial position

At 31 March 2017

 
                                               31 March       31 March   30 September 
                                                   2017           2016           2016 
                                            (unaudited)    (unaudited)      (audited) 
                                Note            GBP'000        GBP'000        GBP'000 
-----------------------------  -----      -------------  -------------  ------------- 
 Assets 
 Non-current assets 
 Intangible assets                                8,930          7,790          8,954 
 Property, plant and 
  equipment                                       1,217            923            829 
 Deferred tax asset                                   -             53              - 
 
 Total non-current assets                        10,147          8,766          9,783 
 
 Current assets 
 Trade and other receivables                     13,714         12,384         12,842 
 Inventories                                        195            137            222 
 Cash and cash equivalents                          929          1,805            342 
-----------------------------  -----      -------------  -------------  ------------- 
 
 Total current assets                            14,838         14,326         13,406 
-----------------------------  -----      -------------  -------------  ------------- 
 
 Total assets                                    24,985         23,092         23,189 
-----------------------------  -----      -------------  -------------  ------------- 
 
 Liabilities 
 Current liabilities 
 Trade and other payables                       (5,502)        (6,541)        (5,266) 
 Corporation tax payable                        (1,149)        (1,001)        (1,127) 
 Other financial liabilities 
  and provisions                   7            (3,879)        (3,103)        (2,745) 
 
 Total current liabilities                     (10,530)       (10,645)        (9,138) 
 
 Non current liabilities 
 Deferred consideration                               -           (37)              - 
 
 Total liabilities                             (10,530)       (10,682)        (9,138) 
 
 Total net assets                                14,455         12,410         14,051 
-----------------------------  -----      -------------  -------------  ------------- 
 
 
 
 Capital and reserves 
  attributable to equity 
  holders of the parent 
 Called up share capital    8      1,256      1,256      1,256 
 Share premium account               202        202        202 
 Merger reserve                    2,772      2,772      2,772 
 Reverse acquisition 
  reserve                       (12,268)   (12,268)   (12,268) 
 Retained earnings                22,493     20,448     22,089 
-------------------------      ---------  ---------  --------- 
 
                                  14,455     12,410     14,051 
-------------------------      ---------  ---------  --------- 
 

Unaudited Interim Results

SERVOCA Plc

Consolidated statement of changes in equity

For the six months ended 31 March 2017

 
 Unaudited                                                          Reverse 
                               Share       Share      Merger    acquisition     Retained      Total 
                             capital     premium     reserve        reserve     earnings     equity 
                             GBP'000     GBP'000     GBP'000        GBP'000      GBP'000    GBP'000 
-----------------------   ----------  ----------  ----------  -------------  -----------  --------- 
 
 Balance as at 
  1 October 2015               1,256         202       2,772       (12,268)       20,002     11,964 
-----------------------   ----------  ----------  ----------  -------------  -----------  --------- 
 Changes in equity 
  for the period 
  ended 31 March 
  2016 
 Profit for the 
  period                           -           -           -              -        1,007      1,007 
 
 Total comprehensive 
  income for the 
  period                           -           -           -              -        1,007      1,007 
-----------------------   ----------  ----------  ----------  -------------  -----------  --------- 
 
  Share based payment 
   transactions                    -           -           -              -           31         31 
  Dividend paid                    -           -           -              -        (374)      (374) 
  Net purchase of 
   treasury shares                 -           -           -              -        (218)      (218) 
 
                                   -           -           -              -        (561)      (561) 
                          ----------  ----------  ----------  -------------  -----------  --------- 
 
   Balance as at 
   31 March 2016               1,256         202       2,772       (12,268)       20,448     12,410 
-----------------------   ----------  ----------  ----------  -------------  -----------  --------- 
 
 Changes in equity 
  for the period 
  ended 30 September 
  2016 
 Profit for the 
  period                           -           -           -              -        1,667      1,667 
-----------------------   ----------  ----------  ----------  -------------  -----------  --------- 
 
 Total comprehensive 
  income for the 
  period                           -           -           -              -        1,667      1,667 
-----------------------   ----------  ----------  ----------  -------------  -----------  --------- 
 
  Share based payment 
   transactions                    -           -           -              -           32         32 
  Purchase of treasury 
   shares                          -           -           -              -         (58)       (58) 
 -----------------------  ----------  ----------  ----------  -------------  -----------  --------- 
 
                                   -           -           -              -         (26)       (26) 
                          ----------  ----------  ----------  -------------  -----------  --------- 
  Balance as at 
   30 September 2016           1,256         202       2,772       (12,268)       22,089     14,051 
 -----------------------  ----------  ----------  ----------  -------------  -----------  --------- 
 
  Changes in equity 
   for the period 
   ended 31 March 
   2017 
  Profit for the 
   period                          -           -           -              -          915        915 
 
  Total comprehensive 
   income for the 
   period                          -           -           -              -          915        915 
 -----------------------  ----------  ----------  ----------  -------------  -----------  --------- 
 
  Share based payment 
   transactions                    -           -           -              -           31         31 
  Dividend paid                    -           -           -              -        (435)      (435) 
  Purchase of treasury 
   shares                          -           -           -              -        (107)      (107) 
 
                                   -           -           -              -        (511)      (511) 
 
    Balance as at 
    31 March 2017              1,256         202       2,772       (12,268)       22,493     14,455 
 -----------------------  ----------  ----------  ----------  -------------  -----------  --------- 
 
 

Unaudited Interim Results

SERVOCA Plc

Consolidated statement of cash flows

For the six months ended 31 March 2017

 
                                                 Six months     Six months 
                                                      ended          ended       Year ended 
                                                   31 March       31 March     30 September 
                                                       2017           2016             2016 
                                   Note         (unaudited)    (unaudited)        (audited) 
                                                    GBP'000        GBP'000          GBP'000 
-------------------------------  ------       -------------  -------------  --------------- 
 Operating activities 
 Profit before tax                                    1,257          1,278            3,414 
 Non cash adjustment 
  to reconcile profit 
  before tax to net cash 
  flows: 
 Depreciation and amortisation                          215            173              381 
 Contingent consideration                               400              -                - 
 Share based payments                                    31             31               63 
 Finance costs                                           46             35               77 
 Decrease/(increase) 
  in inventories                                         27           (34)            (119) 
 Increase in trade and 
  other receivables                                   (872)          (759)            (882) 
 Increase/(decrease) 
  in trade and other 
  payables                                              269            912            (613) 
 
   Cash generated from 
   operations                                         1,373          1,636            2,321 
 
 Corporation tax paid                                 (320)           (21)            (466) 
 
 Cash flows from operating 
  activities                                          1,053          1,615            1,855 
-------------------------------  ------       -------------  -------------  --------------- 
 
 Investing activities 
 Acquisitions net of 
  cash                                                    -          (772)          (1,123) 
 Deferred/contingent 
  consideration paid                                  (433)              -            (805) 
 Purchase of property, 
  plant and equipment                                 (579)          (335)            (424) 
 
   Net cash flows used 
   in investing activities                          (1,012)        (1,107)          (2,352) 
-------------------------------  ------       -------------  -------------  --------------- 
 
 Cash flows from financing 
  activities 
 Interest paid                                         (46)           (35)             (77) 
 Dividend paid                                        (435)          (374)            (374) 
 Net purchase of shares 
  held in treasury                                    (107)          (218)            (276) 
 Net cash flows used 
  in financing activities                             (588)          (627)            (727) 
-------------------------------  ------       -------------  -------------  --------------- 
 
   Decrease in cash and 
   cash equivalents                                   (547)          (119)          (1,224) 
 Cash and cash equivalents 
  at the beginning of 
  the period                                        (2,403)        (1,179)          (1,179) 
 Cash and cash equivalents 
  at the end of the period            9             (2,950)        (1,298)          (2,403) 
-------------------------------  ------       -------------  -------------  --------------- 
 

Unaudited Interim Results

SERVOCA Plc

Notes forming part of the financial information

For the six months ended 31 March 2017

   1    Accounting periods 

The accounting reference date of the Group is 30 September. The current interim results are for the six months ended 31 March 2017. The comparative interim results are those for the six months ended 31 March 2016. The comparative year end's results are for the year ended 30 September 2016.

   2    Going concern 

The directors have prepared trading and cash flow forecasts for the period to 30 September 2018 which indicate adequate headroom in borrowing facilities. Accordingly, they continue to adopt the going concern basis in preparing these financial statements.

   3    Financial information 

The interim financial information for the six months ended 31 March 2017 does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.

The financial information for the periods ended 31 March 2017 and 31 March 2016 are unaudited. The comparative figures for the year ended 30 September 2016 are not the full statutory accounts for the period. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors have reported on those accounts; their reports were unqualified, did not contain an emphasis of matter paragraph and did not contain a statement under Section 498 of the Companies Act 2006.

   4    Basis of preparation and accounting policies 

The interim financial statements have been prepared using the recognition and measurement principles of IFRS as endorsed for use in the European Union.

The accounting policies adopted in the preparation of this interim financial information are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 30 September 2016 and no new standards or interpretations that have come into effect in the interim period has a material impact on the results of the business.

Unaudited Interim Results

SERVOCA Plc

Notes forming part of the financial information

For the six months ended 31 March 2017

   5    Segmental information 

The Group's format for reporting segment information is by business segment, being by type of service supplied. The operating divisions are organised and managed by reporting segment where applicable and by divisions within a reporting entity where necessary. The information presented is consistent with that used by the chief operating decision maker. All revenues are generated from external customers.

The Outsourcing segment provides services to the Domiciliary Care and Security sectors.

The Recruitment segment provides recruitment services to the Healthcare, Education and Police sectors.

 
 
                                 Outsourcing     Recruitment     Unallocated1      Total 
 Unaudited                           GBP'000         GBP'000          GBP'000    GBP'000 
---------------------------   --------------  --------------  ---------------  --------- 
 For the six months 
  ended 31 March 2017: 
 Revenue                               8,484          32,443                -     40,927 
----------------------------  --------------  --------------  ---------------  --------- 
 
 Segment expense                     (8,132)        (30,206)            (831)   (39,169) 
 Amortisation, share 
  based payment and 
  contingent consideration              (26)           (413)             (16)      (455) 
 
 Operating profit/(loss)                 326           1,824            (847)      1,303 
 Finance costs                          (16)            (30)                -       (46) 
 
 Profit/(loss) before 
  tax                                    310           1,794            (847)      1,257 
----------------------------  --------------  --------------  ---------------  --------- 
 
 As at 31 March 2017: 
 Assets                                6,734          16,826            1,425     24,985 
 Liabilities                         (2,788)         (6,978)            (764)   (10,530) 
----------------------------  --------------  --------------  ---------------  --------- 
 
 Net assets                            3,946           9,848              661     14,455 
----------------------------  --------------  --------------  ---------------  --------- 
 

[1] Unallocated includes holding company director costs, group legal costs, central share based payment charges and a share of central property costs.

Unaudited Interim Results

SERVOCA Plc

Notes forming part of the financial information

For the six months ended 31 March 2017

   5    Segmental information (continued) 
 
 
                               Outsourcing     Recruitment     Unallocated1      Total 
 Unaudited                         GBP'000         GBP'000          GBP'000    GBP'000 
-------------------------   --------------  --------------  ---------------  --------- 
 For the six months 
  ended 31 March 2016: 
 Revenue                             7,236          27,199                -     34,435 
--------------------------  --------------  --------------  ---------------  --------- 
 
 Segment expense                   (7,158)        (25,339)            (570)   (33,067) 
 Amortisation and 
  share based payment 
  expense                             (27)            (12)             (16)       (55) 
 
 Operating profit/(loss)                51           1,848            (586)      1,313 
 Finance costs                        (10)            (25)                -       (35) 
 
 Profit/(loss) before 
  tax                                   41           1,823            (586)      1,278 
--------------------------  --------------  --------------  ---------------  --------- 
 
 As at 31 March 2016: 
 Assets                              5,960          15,850            1,282     23,092 
 Liabilities                       (2,530)         (7,158)            (994)   (10,682) 
--------------------------  --------------  --------------  ---------------  --------- 
 
 Net assets                          3,430           8,692              288     12,410 
--------------------------  --------------  --------------  ---------------  --------- 
 
 
 
                               Outsourcing     Recruitment     Unallocated1      Total 
                                   GBP'000         GBP'000          GBP'000    GBP'000 
-------------------------   --------------  --------------  ---------------  --------- 
 For the year ended 
  30 September 2016: 
 Revenue                            14,786          54,448                -     69,234 
                            --------------  --------------  ---------------  --------- 
 
 Segment expense                  (14,646)        (49,658)          (1,315)   (65,619) 
 Amortisation, share 
  based payment expense 
  and exceptional 
  costs                               (52)            (40)             (32)      (124) 
--------------------------  --------------  --------------  ---------------  --------- 
 
 Operating profit/(loss)                88           4,750          (1,347)      3,491 
 Finance costs                        (23)            (54)                -       (77) 
 
 Profit/(loss) before 
  tax                                   65           4,696          (1,347)      3,414 
--------------------------  --------------  --------------  ---------------  --------- 
 
 As at 30 September 
  2016: 
 Assets                              5,904          16,478              807     23,189 
 Liabilities                       (2,907)         (5,721)            (510)    (9,138) 
--------------------------  --------------  --------------  ---------------  --------- 
 
 Net assets                          2,997          10,757              297     14,051 
--------------------------  --------------  --------------  ---------------  --------- 
 

Unaudited Interim Results

SERVOCA Plc

Notes forming part of the financial information

For the six months ended 31 March 2017

   6    Earnings per share 

The calculation of earnings per share for the period ended 31 March 2017 is based on a weighted average number of ordinary shares in issue during the period of:

 
                                     Dilutive effect 
                                                  of 
                                       share options 
                             Basic        and shares         Diluted 
                                        to be issued 
 31 March 2017 
  (unaudited)          124,146,387         1,455,150     125,601,537 
 31 March 2016 
  (unaudited)          124,635,643         1,856,358     126,492,001 
 30 September 
  2016 (audited)       124,509,189         1,834,340     126,343,529 
------------------  --------------  ----------------  -------------- 
 

The above number of shares is used in all of the earnings per share calculations below.

Additional disclosure is also given in respect of earnings per share before share based payments and amortisation as the directors believe this gives a more accurate presentation of maintainable earnings.

 
                                      Six months     Six months 
                                           ended          ended       Year ended 
                                        31 March       31 March     30 September 
                                            2017           2016             2016 
                                     (unaudited)    (unaudited)        (audited) 
                                         GBP'000        GBP'000          GBP'000 
----------------------------       -------------  -------------  --------------- 
 
 Profit used for basic 
  and diluted calculation                    915          1,007            2,674 
 Share based payments, 
  amortisation, exceptional 
  costs and contingent 
  consideration                              455             55              124 
---------------------------------  -------------  -------------  --------------- 
 
 Profit before share based 
  payments, amortisation, 
  exceptional costs and 
  contingent consideration                 1,370          1,062            2,798 
---------------------------------  -------------  -------------  --------------- 
 
 

Unaudited Interim Results

SERVOCA Plc

Notes forming part of the financial information

For the six months ended 31 March 2017

   6   Earnings per share (continued) 
 
                                         Six months     Six months 
                                              ended          ended       Year ended 
                                           31 March       31 March     30 September 
                                               2017           2016             2016 
                                        (unaudited)    (unaudited)        (audited) 
                                              Pence          Pence            Pence 
-------------------------------  ---  -------------  -------------  --------------- 
 
 Basic earnings per share                      0.74           0.81             2.15 
 Share based payments, 
  amortisation, exceptional 
  costs and contingent 
  consideration                                0.36           0.04             0.10 
------------------------------------  -------------  -------------  --------------- 
 
 Basic earnings per share 
  before share based payments, 
  amortisation. exceptional 
  costs and contingent 
  consideration                                1.10           0.85             2.25 
------------------------------------  -------------  -------------  --------------- 
 
 
 Diluted earnings per 
  share                                        0.73           0.80             2.12 
 Share based payments, 
  amortisation, exceptional 
  costs and contingent 
  consideration                                0.36           0.04             0.10 
------------------------------------  -------------  -------------  --------------- 
 
 Diluted earnings per 
  share before share based 
  payments, amortisation, 
  exceptional costs and 
  contingent consideration                     1.09           0.85             2.22 
------------------------------------  -------------  -------------  --------------- 
 
   7   Other financial liabilities and provisions 
 
                                            31 March       31 March   30 September 
                                                2017           2016           2016 
                                         (unaudited)    (unaudited)      (audited) 
                                             GBP'000        GBP'000        GBP'000 
--------------------------------       -------------  -------------  ------------- 
 
 Invoice discounting facilities                3,879          3,103          2,745 
-------------------------------------  -------------  -------------  ------------- 
 
   8   Share capital 
 
                                                                                                      30 
                           31 March                            31 March                        September            30 
                               2017        31 March                2016        31 March             2016     September 
                             Number            2017              Number            2016           Number          2016 
                               '000         GBP'000                '000         GBP'000             '000       GBP'000 
                        (unaudited)     (unaudited)         (unaudited)     (unaudited)        (audited)     (audited) 
                                                         --------------  -------------- 
 Allotted, 
  issued and 
  fully paid: 
 Ordinary 
  shares of 
  1p each                   125,575           1,256             125,575           1,256          125,575         1,256 
-------------------  --------------  --------------      --------------  --------------      -----------  ------------ 
 

The Company acquired 471,000 of its own shares in the period (2016: 1,121,826). The number of shares held as 'treasury shares' at the period end was 1,830,138 (2016: 1,346,926). The company has the right to re-issue these shares at a later date.

Unaudited Interim Results

SERVOCA Plc

Notes forming part of the financial information

For the six months ended 31 March 2017

   9   Cash and cash equivalents and net debt 
 
                                                                      30 September 
                                                                              2016 
                                           31 March        31 March        GBP'000 
                                               2017            2016      (audited) 
                                            GBP'000         GBP'000 
                                        (unaudited)     (unaudited) 
------------------------------       --------------  --------------  ------------- 
 
 Cash at bank                                   929           1,805            342 
 Invoice discounting facility               (3,879)         (3,103)        (2,745) 
-----------------------------------  --------------  --------------  ------------- 
 
 Cash and cash equivalents 
  and net debt                              (2,950)         (1,298)        (2,403) 
-----------------------------------  --------------  --------------  ------------- 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR FMGGVVLNGNZM

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June 12, 2017 02:00 ET (06:00 GMT)

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