World Careers Network PLC Final Results (2990E)

TIDMWOR

RNS Number : 2990E

World Careers Network PLC

03 November 2015

PRELIMINARY ANNOUNCEMENT OF THE AUDITED RESULTS OF

WORLD CAREERS NETWORK PLC

WORLD CAREERS NETWORK PLC

Chairman's Statement

I am pleased to present the annual accounts of WCN, which show the results of the company for the year to 31 July 2015.

Financial review

As set out in the announcement on 20 April 2015 of the Interim Statement for the six months to 31 January trading has improved compared to the first half of the year, however, sales and profits remain below the levels achieved in 2013-14. Sales were GBP7.9m, 9% below those of 2013-14 (GBP8.6m) and profits were GBP1.20m compared to GBP2.47m achieved in 2013-14. The profit represents basic earnings per share of 12.29p (2014 - 25.25p).

The Board will be seeking at the Annual General Meeting the extension of the authority granted last year to make market purchases of ordinary shares, within the usual limits for a listed company. In assessing whether in practice to use this authority, the Board will take into account all relevant factors including the effect on earnings per share and assets per share ratios and other benefits to shareholders.

Dividends

The directors are pleased to recommend the payment of a dividend of 3.5p per share, which is the same as that paid in respect of the previous year. This dividend will be subject to the approval of shareholders at the Annual General Meeting to be held at 5-7 Bridgeworks, The Crescent, London SW19 8DR at 10.30 am, on 14 December 2015, and, if approved, will be payable on 16 December 2015 to shareholders on the register as at 20 November 2015

Operating review

Sales fell principally as a result of the renewal of a major contract at a significantly lower fee. New business performed relatively well, but only partly offset this fall in revenues. Increased sales in the second half of the year (GBP4.4m) versus the first half year (GBP3.5m) reflect these new contracts coming online.

At the same time we significantly increased our cost base as we made widespread investments in product development, delivery and customer support, sales and marketing and overseas expansion in order to provide a sound basis for the long term future of the business.

Principal risks and uncertainties

Competitive pressure and economic instability is a continuing risk for the company. The company manages this risk by providing leading edge products and high levels of customer service, by managing resource levels and pursuing opportunities for continuous improvement.

The business is dependent upon clients' ability to safely access data held on our servers. In order to ensure that this is not affected by a breakdown in power supplies or by other physical hazards our servers are housed offsite in secure facilities on the premises of a specialist provider of such facilities. Third party security experts are also regularly engaged to advise on data security.

Outlook

WCN has long term relationships delivering significant value to our clients and a world class product. which, together with our ongoing investments, provide a good foundation for success in a highly dynamic and competitive market place.

Inevitably it will take some time for our investments to generate a meaningful return and for the coming year, we expect to see a continued and significant reduction in profitability as the full year impact of last year's cost increases and the further investments we are currently making impact upon the business.

During the year the team have continued to provide high levels of client support, to work agilely and continuously to release updated versions of our software and at the same time have successfully launched a number of large scale client projects. I would like to thank the whole team for their tireless efforts.

Charles EH Hipps

Chairman, World Careers Network Plc

Date 2 November 2015

consolidated income statement

For the Year Ended 31 July 2015

 
                                        2015        2014 
                                         GBP         GBP 
 
 Revenue                           7,856,506   8,583,571 
 
 Total administrative expenses     6,701,553   6,152,087 
                                   _________   _________ 
 
 Operating Profit                  1,154,953   2,431,484 
 
 Finance income                       42,926      43,300 
                                   _________   _________ 
 
 Profit on Ordinary Activities 
  before taxation                  1,197,879   2,474,784 
 
 Income tax                          262,500     548,667 
                                   _________   _________ 
 
 Profit for the year                 935,379   1,926,117 
                                   _________   _________ 
 
 Earnings per share 
 
 Basic                                12.29p      25.25p 
                                   _________   _________ 
 
 Diluted                              12.04p      24.82p 
                                   _________   _________ 
 

Consolidated Statement of Financial Position

Company number 3813540

As at 31 July 2015

 
                                                    2015           2014          2013 
                                                     GBP            GBP           GBP 
 
 Assets 
  Non-current assets 
     Property, plant and equipment               116,743        108,142       100,276 
                                                 116,743        108,142       100,276 
                                           -------------  -------------  ------------ 
 Current assets 
  Trade and other receivables                  2,567,678      2,074,764     1,702,413 
     Cash and cash equivalents                 8,219,388      8,171,494     6,726,116 
                                           -------------  -------------  ------------ 
 
 Total current assets                         10,787,066     10,246,258     8,428,529 
                                           -------------  -------------  ------------ 
 
   Total assets                               10,903,809     10,354,400     8,528,805 
                                           -------------  -------------  ------------ 
 
 
 
   Equity 
     Issued capital                                7,559          7,603         7,658 
     Share premium                             1,591,703      1,565,751     1,548,695 
     Capital redemption reserve                      689            614           540 
     Translation reserve                           9,966              -             - 
     Retained earnings                         7,088,194      6,559,250     5,030,634 
                                           -------------  -------------  ------------ 
 Total equity                                  8,698,111      8,133,218     6,587,527 
                                           -------------  -------------  ------------ 
 
 
   Liabilities 
   Non-current liabilities 
   Deferred tax                                   11,843          6,945         5,940 
                                           -------------  -------------  ------------ 
 
   Liabilities 
   Current liabilities 
   Trade and other payables                    2,042,599      1,895,838     1,719,190 
     Income tax                                  151,256        318,399       216,148 
 Total current liabilities                     2,193,855      2,214,237     1,935,338 
                                           -------------  -------------  ------------ 
 Total liabilities                             2,205,698      2,221,182     1,941,278 
                                           -------------  -------------  ------------ 
 
   Total equity and liabilities               10,903,809     10,354,400     8,528,805 
                                           -------------  -------------  ------------ 
 
 
 

Consolidated Statement of Changes in Equity

For the Year Ended 31 July 2015

 
 
                            Share      Share       Capital    Translation     Retained        Total 
                          capital    Premium    redemption        reserve     Earnings 
                                                   reserve 
                              GBP        GBP           GBP            GBP          GBP          GBP 
Balance at 1 August 
 2013                       7,658  1,548.695           540              -    5,030,634    6,587,527 
                         --------  ---------  ------------  -------------  -----------  ----------- 
Comprehensive income 
Profit for the year             -          -             -              -    1,926,117    1,926,117 
Total comprehensive 
 income for the year            -          -             -              -    1,926,117    1,926,117 
                         --------  ---------  ------------  -------------  -----------  ----------- 
Transactions with 
 owners 
Issue of shares                19     17,056             -              -            -       17,075 
Purchase of own shares       (74)          -            74              -    (143,325)    (143,325) 
Dividends paid                  -          -             -              -    (268,667)    (268,667) 
Share based payments            -          -             -              -       14,491       14,491 
Balance at 31 July 
 2014                       7,603  1,565,751           614              -    6,559,250    8,133,218 
                         --------  ---------  ------------  -------------  -----------  ----------- 
 
Balance at 1 August 
 2014                       7,603  1,565,751           614              -    6,559,250    8,133,218 
                         --------  ---------  ------------  -------------  -----------  ----------- 
Comprehensive income 
Profit for the year             -          -             -              -      935,379      935,379 
Other comprehensive 
 income                         -          -             -          9,966            -        9,966 

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November 03, 2015 02:00 ET (07:00 GMT)