Penna Consulting Share Discussion Threads

[parvez] 25/4/2003 16:50

Seems like the tide is turning with Mr & Mrs Rowlinson increasing their stake by 3.3% to 16.1%. This is a major boost of confidence by Mr & Mrs R. Wonder if they know something that we don't ??

[shadowside] 18/11/2002 10:53

Bid/offer prices moved up 11% this morning and not one share traded.Interesting.

[shadowside] 11/11/2002 16:49

Hard to make sense of buy/sells but shares don't usually go up 13% under heavy selling pressure. Glad I tucked a few away.

[shadowside] 11/11/2002 13:40

At current price these look quite interesting. Turnover 4* market cap which always interests me. Low net debt. Cash to cover divi for a few years. They paid high for aquisitions but a lot was in shares or converted loan notes so at todays share price they bought cheap and from what I know of businesses they were quality. Excellent web site!! Results due tomorrow I think. One to tuck away in bottom draw.

[pictureframe] 11/11/2002 13:21

a lot of sells today

[small racer] 28/9/2002 00:30

Mitzis, I agree with you, but I think this will halve and halve on a (2 week/monthly) regular until it reaches 22 or even 19. Sad - I have held on to these on the belief that they will recover. But now I'm not to sure. 25p still does me no good - I need them to rise and rise. Never mind, buy high and keep to late to sell now I suppose - else I just cut my loses.

[rocket47] 27/9/2002 20:08

too many chiefs not enough indians in this one.
looks like they r top heavy. looking like a takeover could be in the offering.
anybody heard anything.

[mitzis] 27/9/2002 08:14

well done Hodgins.......... the results were pretty awful and the chart suggests futher falls to 25p or less.

[hodginsjkp] 03/9/2002 23:11

Recent double tops suggest that the share price is set for a 50% fall to around 1 pound.

[investorfriendly] 09/8/2002 10:33

If you had opened your short yesterday you would be in profit

[investorfriendly] 08/8/2002 15:21

Is this a short or what ? Sector is on ropes no sign of recovery. News from board is negitive.

Price is droping away nearly every day. Prime candidate to short imho.

[zzaxx99] 16/4/2002 16:21

Hmm. Just noticed another island immediately above this one - I'll be more excited when/if it has reversed that one as well.

[zzaxx99] 16/4/2002 13:25

I know zilch about this company, but it looks to be completing a huge double bottom formation, and has just made an island reversal - both pretty bullish signs. Anyone still watching these?

[rocket47] 04/2/2002 00:14

why is it that the shares are in decline?.
just when they are getting big names in, is it going to be taken over?
anybody heard anything? should we unship the shares now?
would like to hear anyones views.

[redman2] 31/1/2002 00:25

Anyone know when their results are out?

[pictureframe] 15/1/2002 09:54

Keep an eye on this one. Look for about 2.90 entry point

[quantas] 30/11/2001 10:13

Cheers pictureframe will take a look. How long have you been following this Co.

[pictureframe] 28/11/2001 00:36

Quantas,

My next tip is IFX Power. Look for entry point of £2.50 , looks like a good recovery play.

[pictureframe] 28/11/2001 00:36

Quantas,

My next tip is IFX Power. Look for entry point of £2.50 , looks like a good recovery play.

[quantas] 22/11/2001 19:52

pictureframe like I said great tip unfortunately I missed this one, where else are you looking if I can be so bold as to ask and have you got my address now as I will remove it from the bb when you let me know.

regards Quantas.

[pictureframe] 20/11/2001 08:59

RNS Number:3770N
Penna Consulting PLC
20 November 2001

Penna Consulting plc

("Penna" or "the Company")


PENNA CONSULTING ANNOUNCES INTERIM RESULTS


20 November 2001 - Penna Consulting (PNA LN), the human capital management
consultancy group, today announces its interim results for the six months to
30 September 2001.

Highlights


- Turnover increased 8% to #24.3 million
- Profit of #2.2 million*
- Diluted earnings per share of 8.2 pence*
- Record profits from career consulting business
- Change consulting business making good progress
- Interim dividend held at 1.5 pence
- Strong balance sheet of #6.9 million of cash
- Strengthened senior management team




*Before tax and goodwill amortisation and restructuring costs of #0.6
million relating to the
re-alignment programme



Michael Jolly, Chief Executive of Penna Consulting said:

"Penna's strategy of building a balanced business has never proved more
valuable than in the first half of this year. We witnessed economic and market
changes at an unprecedented level, but our business model has still delivered
a highly creditable performance - and a profit. Our clients are increasingly
turning to us for solutions to a range of human capital management needs, so
while recruitment markets froze, our career consulting and change consulting
businesses grew and delivered strong profits. In this uncertain market, I am
confident that our solid business strategy will ensure we continue to build
this business to deliver value for clients and shareholders."



Notes to Editors

Penna Consulting

Penna Consulting is among the leading providers of human capital management.
It has over 400 employees and 400 associates in 140 offices across the UK,
Denmark, France, Ireland, Italy, Norway and Sweden. It has a further 115
partner offices covering 27 countries around the world. Penna serves over 5000
clients, 75 of which are in the FTSE 100. More information can be found on the
Web Site at www.e-penna.com.

Its integrated services cover HR strategy, organisation development & change
management, resourcing, assessment, career management, development and
coaching and outplacement.

Blue chip clients include:

* Cable & Wireless
* JP Morgan
* Astra Zeneca
* Societe Generale



Contract wins

* Compaq
* Wyeth



For Further Information:

Penna Consulting

Suzie Mumme, Chairman

Michael Jolly, Chief Executive

David Firth, Finance Director

020 7945 3505

GCI Financial

Philip Robinson

Kate O'Sullivan

Geoff Callow

020 7398 0829

Chairman's and Chief Executive's Statement

During the period under review, Penna Consulting has continued to strengthen
and balance its business platform. Both the Career Consulting and Change
Consulting businesses have grown considerably and delivered strong results. At
the same time, there has been a marked deterioration in the recruitment market
which has contracted sharply in the face of global economic uncertainty. This
contraction has had a disappointing effect on earnings, but we acted swiftly
to manage the situation in our Resourcing business and the strength in the
rest of our businesses has meant that we are still reporting a group profit
for the six months to 30 September 2001. Penna remains well positioned as an
integrated provider of human capital management solutions for the future and
to take advantage of any economic up turn.

RESULTS

Turnover was #24.3m (2000: #22.5m), an increase of 8%. However, profit before
tax and goodwill amortisation and restructuring costs decreased to #2.2m
(2000: #4.3m). This reflects the impact of the sharp deterioration in the
recruitment market. We have acted to reduce our cost base in Resourcing and
have incurred restructuring costs of #0.6m for the period. Our overall cost
base has increased due to these restructuring costs, two acquisitions made
last year, additional costs associated with higher activity in Career
Consulting and continued investment in the integration of the businesses.

Diluted earnings per share (before goodwill amortisation and restructuring
costs) decreased to 8.2 pence per share (2000: 17.3p). The Board has
maintained the interim dividend of 1.5 pence per share (2000: 1.5 pence)
payable on 21 December 2001 to shareholders on the register at close of
business on 30 November 2001. The Company's cash balance as of 30 September
2001 was #6.9 million.



INTEGRATED SOLUTIONS

As we continue our corporate evolution, we remain committed to building a
comprehensive, integrated human capital management offering, and we have been
particularly encouraged by the growing number of clients who find our
integrated approach attractive. We have won some major long-term projects with
a contract life of several years, which will use a wide range of Penna
services. For example, we are currently working with Wyeth, a subsidiary of
American Home Products, to establish a biopharmaceutical campus in Ireland,
which is expected to employ approximately 1,300 people over the next four
years. The Penna team has been appointed to provide an integrated solution
which will identify and assess the behavioural and technical expertise
necessary to complete the first phase of the project and also to manage the
recruitment process.

CAREER CONSULTING

We have seen record results from our Career Consulting business, building on
the impressive trend of the past six years of significant growth and strong
margins, which are a hallmark of this business. Turnover rose 21% to #16.1m
(2000: #13.4m) and operating profit was up 25% to #4.3m (2000: #3.5m). As
recent economic uncertainty grew, corporate change was inevitable and our
clients across all sectors demanded more from our career consulting business
particularly in the area of outplacement. We continue to win significant
international contracts in alliance with Arbora, our global network of
partners, and have recently secured a contract with Compaq Computers to
deliver solutions in more than 23 countries.

RESOURCING

During the six months ended 30 September 2001, we witnessed deterioration in
the recruitment sector, the scale and scope of which this Company has never
seen before. Beginning in the summer, there was a sharp and sudden decrease in
recruitment as companies globally implemented hiring freezes and embarked on
head-count reductions, responding to the uncertain and turbulent markets. This
unprecedented downturn in the recruitment market, combined with the slowdown
in Technology and Telecoms has effected the Resourcing side of our business.
These events coincided with a period when we were expanding the business to
cover a wider number of service offerings and a broader range of industry
sectors.

Turnover was #4.2m (2000: #6.7m) resulting in an operating loss (before
restructuring costs) of #1.9m (2000: profit #1.5m). We acted swiftly to reduce
our cost base whilst preserving our presence across the UK and continental
Europe to ensure the business is well positioned to continue to meet the needs
of our clients and to respond to an upturn in the market.

CHANGE CONSULTING

Our Change Consulting business is progressing well. Turnover is up 64% to #
4.0m (2000 : #2.4m) and operating profit increased to #0.5m (2000 : loss #
0.1m).

Expanding our Change Consulting business is key to our strategy. In addition
to restoring profitability, we have strengthened our senior management team
with the addition of Lorraine Bateman, formerly Global Head of Development for
Diageo plc who has joined us to lead our Executive Development and Coaching
business.

Our Change Consulting services include HR strategy, change programme
management, communication, assessment, and executive development and coaching.
Demand here has increased as major international corporations invest in the
retention and development of talent, re-focus their organisations, examine
cost structures and build new teams to deliver growth.

Significant contracts during the period included, working with the IT
leadership team supporting Societe Generale in Europe and the US to expand and
improve global delivery; working with Guinness UDV to support the development
of their customer service function; and working with Preussag/Thomson Travel
Group to help provide solutions for their HR systems and practices during a
period of organisational change.

We have also extended our focus to develop our presence in the Public Sector,
working closely with many local authorities to provide a wide range of
services which include executive development and coaching.

INTERNATIONAL EXPANSION

In June we completed the acquisition of The James Black Partnership, a human
capital management consultancy based in Northern Ireland, so that we can now
provide a full service throughout Ireland. In July we invested #1.0 million to
acquire a minority interest in a high-growth Canadian human capital management
consultancy, in line with our strategy to provide growing international
capabilities to our clients.

BOARD CHANGES

We are extremely pleased that Richard Stillwell accepted our invitation to
join the Board on 1 January 2002, as a non-executive director. Richard joins
Penna having been a board director at ICI and brings with him a wealth of
experience in senior management, integration and human resources. While at
ICI, he was responsible for the successful management, development and
integration of large numbers of staff during periods of substantial corporate
change. He is currently a non-executive director of BBA plc.

THE FUTURE

This continues to be a time of considerable uncertainty, and our performance
for the full year will very much depend upon how the market place develops. We
look to the future with confidence knowing that Penna is well placed to
respond to market changes, while continuing to evolve as a balanced business
in the human capital management industry.

We have seen the buoyancy of the outplacement market offset by the virtual
freeze in recruitment, and this, in part, reflects the strength of our
business model. While the recruitment market remains difficult, our change
consulting and career consulting businesses are meeting the needs of those
clients who are engaged in significant corporate change. These contracts span
several years and are often the result of a relationship forged from client
satisfaction with the services we provide. We find that clients who seek our
help for one solution turn to us for others.

We have completed the reorganisation of our internal structure, which enables
client management and delivery through ten Penna 'Hubs' across the UK and
Ireland. This ensures that we can provide our clients with seamless solutions
for all their human capital management needs under a single, recognisable
Penna brand. Our balance sheet remains strong with #6.9m of cash which
positions us well to continue to grow both organically and by acquisition.

Much credit for the progress we have achieved this year must go to our staff
and associates. We want to thank them all. Through this challenging period,
they have consistently delivered value, commitment and partnership to our
clients. We too understand that talent is the key to competitive advantage.



Suzie Mumme Michael Jolly

Chairman Chief Executive

20 November 2001

GROUP PROFIT AND LOSS ACCOUNT

For the six months to 30 September 2001


6 months 6 months Year to
to to
30 Sept 30 Sept 31 March
2001 2000 2001
Notes Unaudited Unaudited Audited
#000's #000's #000's

Turnover 3 24,351 22,453 47,902

Operating costs (22,842) (18,285) (39,370)
--------- --------- ---------
Operating profit before amortisation of 1,509 4,168 8,532
goodwill
Amortisation of goodwill (717) (488) (1,139)
--------- --------- ---------

Operating profit 3 792 3,680 7,393
Net interest receivable 76 101 89
--------- --------- ---------
profit on ordinary

Activities before taxation 868 3,781 7,482

Taxation on profit on ordinary activities (507) (1,289) (2,679)
--------- --------- ---------
profit on ordinary activities
after taxation 361 2,492 4,803

Dividends 4 (268) (257) (631)
--------- --------- ---------
Retained profit for the period 93 2,235 4,172
========= ========= =========

Earnings per share 5
Basic

After amortisation of goodwill 2.0p 15.1p 28.1p
Before amortisation of goodwill 6.0p 18.0p 34.8p

Diluted
After amortisation of goodwill 2.1p 14.6p 27.4p
Before amortisation of goodwill 6.1p 17.3p 33.7p

Consolidated statement of total recognised
gains and losses
For the six months to 30 September 2001
6 months 6 months Year to
to to
30 Sept 30 Sept 31 March
2001 2000 2001
Unaudited Unaudited Audited
#000's #000's #000's

Profit for the period 361 2,492 4,803
Gain/(loss) on foreign currency translation 1 1 (5)
--------- --------- ---------

Total recognised gains and losses for the 362 2,493 4,798
period
========= ========= =========



GROUP BALANCE SHEET
30 September 2001


30 Sept 30 Sept 31 March
2001 2000 2001
Unaudited Unaudited Audited
Notes #000's #000's #000's

fixed assets
Intangible assets - goodwill 28,650 21,252 24,792
Tangible assets 1,821 1,616 1,747
Investments 985 24 90
---------- ---------- ----------
31,456 22,892 26,629

Current assets
Debtors 14,168 11,351 14,141
Cash at bank and in hand 3,283 7,113 7,365
Cash on restricted deposit account 7 3,628 3,128 3,128
---------- ---------- ---------
21,079 21,592 24,634

Creditors: amounts falling due
within one year (13,984) (17,441) (16,772)
---------- ---------- ---------

net current assets 7,095 4,151 7,862
---------- ---------- ----------
total assets less current 38,551 27,043 34,491
liabilities

Creditors: amounts falling due
after more than one year
Convertible debt (160) (667) (667)
Other (3,852) (1,601) (3,530)
---------- ---------- ----------
(4,012) (2,268) (4,197)
---------- ---------- ----------
Provisions for liabilities and 8 (8,587) (4,583) (6,327)
charges
---------- ---------- ----------

net assets 25,952 20,192 23,967
========= ======== =========
capital and reserves
Called up share capital 900 858 890
Share premium account 10,184 11,467 9,474
Merger reserve 10,170 6,365 10,170
Profit and loss account 4,698 1,502 3,433
---------- ---------- ----------
Shareholders' funds
Equity Interests 25,952 20,192 23,967
========= ======== =========





GROUP CASH FLOW STATEMENT

For the six months to 30 September 2001

6 months 6 months to Year to
to
30 Sept 130 Sept 31 March
200 2000 2001
Unaudited Unaudited Audited
#000's #000's #000's

Operating profit 792 3,680 7,393

Depreciation charges 386 410 830
Amortisation of goodwill 717 488 1,139
Profit on disposal of tangible fixed assets - - (30)
Decrease/(Increase) in debtors 339 (879) (3,355)
Decrease in creditors (2,571) (2,735) (93)
Share of associated undertaking's loss before - - (66)
taxation
--------- ----------- -----------

net cash (outflow)/inflow from
Operating activities (337) 964 5,818

Returns on investments and servicing of 76 101 89
finance
Equity dividends paid (374) (291) (548)
Taxation paid (1,157) (639) (2,688)
Capital expenditure and financial investment (1,340) (323) (825)
Acquisitions (134) 207 (1,619)
Payment of deferred acquisition consideration (369) (73) (84)
--------- --------- ---------

Cash flow before management of liquid
Resources and financing (3,635) (54) 143
Management of liquid resources 507 (2,778) 375
Financing 53 113 168
--------- ---------- ---------

(DECREASE)/INCREASE IN CASH IN THE PERIOD (3,075) (2,719) 686
======== ======== =======




Cash acquired on the acquisition of The James Black Partnership and the
remaining 50% of Penna Consulting (NI) Limited amounted to #186,000 (see
note 6).





Reconciliation of movements in shareholders' funds

For the six months to 30 September 2001
6 months 6 months Year to
to to
30 Sept 30 Sept 31 March
2001 2000 2001
Unaudited Unaudited Audited
#000's #000's #000's

Profit for the period 361 2,492 4,803
Dividends (268) (257) ( 631)
Adjustment to goodwill previously written off 1,171
to reserves

Shares issued during the year 720 4,113 5,957
Gain/(loss) on foreign currency translation 1 1 (5)
---------- ---------- ----------

Net addition to shareholders' funds 1,985 6,349 10,124
Opening shareholders' funds 23,967 13,843 13,843
---------- ---------- ----------

Closing shareholders' funds 25,952 20,192 23,967
========= ======== ==========





NOTES TO THE INTERIM REPORT

1. ACCOUNTING POLICIES

There have been no changes to the accounting policies set out in the 2001
Report and Accounts.



2. ACCOUNTS

The financial information set out in this document does not constitute
statutory accounts within the meaning of Section 240 of the Companies Act
1985. Statutory accounts for the year ended 31 March 2001, on which the
auditors gave an unqualified audit report, have been delivered to the
Registrar of Companies and copies of the Interim Report can be obtained
from our Registered Office at 15 Welbeck Street, London W1G 9XT.

The board of directors approved the interim report on 20 November 2001.
The financial information in respect of the six months to 30 September
2001 is unaudited.

3. SEGMENTAL ANALYSIS

The Group's turnover and operating profits were attributable to the
following activities:

Six months to 30 Six months to 30
September 2001 September 2000
Turnover Operating Turnover Operating
Profit Profit
#000's #000's #000's #000's



Career Consulting 16,122 4,346 13,360 3,489
Resourcing 4,229 (1,911) 6,650 1,546
Change Consulting and 4,000 510 2,443 (50)
Executive Development &
Coaching
Unallocated central overheads - (868) - (817)

24,351 2,077 22,453 4,168
Restructuring costs - (568) - -
Amortisation of goodwill - (717) - (488)
-------- --------- ------- --------
24,351 792 22,453 3,680
======= ======= ===== ======


Geographic analysis
UK 21,253 934 20,632 3,398
Rest of World 3,098 (142) 1,821 282
------- --------- ------- ---------
24,351 792 22,453 3,680
====== ======= ===== =======

4. DIVIDENDS

An interim net dividend of 1.5p (interim 2000: 1.5p) per ordinary share is
payable on

21 December 2001 to ordinary shareholders on the register at the close of
business on 30 November 2001.



5. EARNINGS PER SHARE

Earnings per share have been calculated by dividing the profit
attributable to shareholders for the financial period by the weighted
average number of ordinary shares in issue during the period. The weighted
average number of shares in issue is based on the following information:

30 Sept 2001 30 Sept 2000 31 March
Unaudited Unaudited 2001
Audited
Number Number Number

Weighted average number of shares 17,881,096 16,529,806 17,062,059
in issue per basic earnings
Dilutive effect of:
Share options 245,552 329,737 298,084
Convertible debt 88,726 824,815 654,815
--------- --------- --------
Weighted average number of shares 18,215,374 17,684,358 18,014,958
in issue per diluted earnings
======= ======= =======


The profit attributable to shareholders used in the calculation of
earnings per share for the period is based on the following information:

30 Sept 2001 30 Sept 2000 31 March
2001
Unaudited Unaudited Audited
#000's #000's #000's

Profit attributable to 361 2,492 4,803
shareholders
Interest on loan notes 25 82 125
after tax
Goodwill amortisation 717 488 1,139
======= ======= ======


The Directors consider that earnings per share before goodwill amortisation is a
more representative measure of the Group's performance.


6. ACQUISITION

On 28 June 2001 Penna Consulting Plc acquired the assets of The James
Black Partnership for an estimated maximum consideration of #4.6 million,
incurring costs of #20,000. This acquisition resulted in the Group
acquiring the remaining 50% of Penna Consulting (NI) Limited (formerly
Sanders & Sidney (NI) Limited) which was previously held by The James
Black Partnership. The consideration and costs were financed by the issue
of convertible loan notes amounting to #160,000, the issue of non
convertible loan notes of #340,000 and cash of #300,000. The acquisition
has been accounted for using acquisition accounting and has been
consolidated into the Group balance sheet as follows:

Book value Revaluations Fair value to the
Group
#000's #000's #000's
Tangible fixed 31 (16) 15
assets
Debtors 366 - 366

Cash 186 - 186
----------- ----------- ----------

583 (16) 567
Creditors (445) (77) (522)
--------- ----------- ----------


Net assets 138 (93) 45
========= =========
Goodwill 4,575
----------
Purchase consideration and 4,620
costs:
========
Analysed as:
Issue of convertible loan notes 160
Issue of non convertible loan notes 340
Deferred consideration 3,800
Cash 300
Costs 20
----------
4,620
========

The fair value adjustment relates to the affect of aligning accounting
policies with regard to the capitalisation and depreciation of fixed
assets and dilapidations to those of the Group.

7. CASH ON RESTRICTED DEPOSIT ACCOUNT

The Penna Change Consulting Limited (formerly Crane Davies Limited)
purchase consideration included the issue of loan notes amounting to #3.1
million. An equivalent cash amount was transferred to a restricted deposit
account to guarantee the payment of the loan note liability. A further #
500,000 has been transferred in terms of the Penna James Black acquisition
to guarantee the payment of the loan note liability above.

8. PROVISIONS FOR LIABILITES AND CHARGES


This item, amounting to #8,587,000, reflects the estimated deferred
consideration due under the acquisitions of Crane Davies Limited (#
3,333,000), Target Holdings AS (#1,454,000) and The James Black
Partnership (#3,800,000).

[pictureframe] 20/11/2001 08:44

Chicken no problem, I dont mind sharing tips with people who appreciate it.

Plenty of mileage left in this, outplacement had record sales of £4 million last month (I phoned company first thing this morning). If you can hold until next results expect old level of £5- £5.50.

Good Luck

[chicken] 20/11/2001 07:57

Good results thanks pf pna up 10% already

[pictureframe] 19/11/2001 16:10

Up we go, depending of statement I expect at least a 12% rise could be as high as 30+

[pictureframe] 19/11/2001 14:36

Hold, need to see if statement mentions recent high sales !