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PRP Prime People Plc

67.00
0.00 (0.00%)
24 Apr 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Prime People Plc LSE:PRP London Ordinary Share GB00B4ZG0R74 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 67.00 63.00 71.00 0.00 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Prime People PLC Half-year Report (9821V)

09/11/2017 7:00am

UK Regulatory


Prime People (LSE:PRP)
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TIDMPRP

RNS Number : 9821V

Prime People PLC

09 November 2017

9(th) November 2017

Prime People Plc

Unaudited Condensed Consolidated Interim Report

for the six months ended 30 September 2017

CHAIRMAN'S STATEMENT

Overview

I am pleased to report the results for Prime People Plc for the half-year ended 30 September 2017.

Market conditions in the period became more challenging for our overseas businesses whereas our businesses in the UK performed well. The outcome for the period reflects the overseas businesses' performance and the Company's expenditure on, and commitment to long term growth internationally and to supporting new business lines across the Group.

Net Fee Income ("NFI") in the period for the Group was GBP6.15m (2016: GBP6.33m). The profit before tax for the first half, on a like for like basis, was GBP0.70m (2016: GBP0.76m).

The interim dividend will be 1.75p per share (2016: 1.75p).

Financial Results

Group revenue was 1.83% lower than the same period last year at GBP11.27m (2016: GBP11.48m).

Net Fee Income ("NFI") in the period for the Group was GBP6.15m (2016: GBP6.33m). Our UK business showed strong NFI performance with an increase to GBP3.84m (2016: GBP3.40m). Our overseas NFI was GBP2.31m (2016: GBP2.93m).

Administrative costs for the group were GBP5.50m during the period (2016: GBP5.57m). Whilst continuing to exercise careful cost control, we have invested in the growth and diversification of our businesses increasing consultant headcount across the Group by 3%.

The reduction in profit before taxation in the period to GBP0.65m, after exceptional costs of GBP50,000 in the period relating to the acquisition of Command Recruitment, (2016: GBP0.76m) is the result of lower levels of activity in our overseas businesses and fixed staff costs associated with talent investment.

In the UK profit before tax grew to GBP0.51m from GBP0.10m in the same period in the prior year, driven by good growth in NFI in both our permanent and contract businesses.

Our Asia business, which covers the Group activities in Hong Kong and Singapore, closed the period with profit before tax of GBP0.26m (2017: GBP0.60m). The regional performance was affected by Chinese capital control policies, which resulted in reduced demand in our core real estate market. Action has been taken to refocus business development activity and to address training needs. This is having positive outcomes and we expect an improved performance from the region in the second half of the year.

Our business in Dubai is reported under Rest of the World below and represents 3.04 per cent of Group's activities. The business experienced reduced NFI of GBP0.19m (2016: GBP0.33m). The business has relatively high fixed costs and the slower than expected development of a new revenue stream together with staff movements resulted in a negative contribution in the period of GBP0.12m. Performance from the region is expected to improve in the second half.

The charge for taxation of GBP0.14m (2016: GBP0.16m) is based on the expected annual effective tax rate of 19% (2016: 20%).

Basic earnings per share for the period were 4.16p (2016: 4.92p).

Cash Flow

The Group continues to maintain a strong net cash position. At the end of the period the Group had net cash of GBP2.57m (2016: GBP1.34m). Following payment of GBP1.00m for the acquisition of the interest in Command Recruitment Group (H.K.) Limited, the Group cash held as at the date of this statement was GBP1.86m.

Dividend

The Board will be declaring an interim dividend of 1.75p (2016: 1.75p) payable on 24 November 2017 to those shareholders whose names are on the register on 17 November 2017.

Command Recruitment Group (H.K.) Limited

On 11(th) October 2017, shortly after the half year's end, our Hong Kong subsidiary, Macdonald and Company Limited acquired 60 per cent of the equity capital of Command Recruitment Group (H.K.) Limited ("CMD") for consideration of HK$9.9 million (GBP1.0 million).

The consideration for the acquisition was funded from the Group's existing cash reserves. The key management of CMD will remain with the business post-acquisition and they, as a group, will retain the remaining 40 per cent of CMD's equity capital. Under the terms of the shareholders' agreement, the Group has the option to purchase CMD's remaining equity capital after 30 June 2018.

CMD specialises in providing professional and executive staff for the construction & engineering, design & development, infrastructure and professional services sectors. The transaction adds considerably to the Group's client reach and our span of services in the Asia Pacific and Middle East regions. The fit with our current business is complementary and we have identified a range of opportunities arising from the investment.

We are very pleased to welcome Command and its people to the Group and look forward to working with them.

Outlook

Subject to economic circumstances in the regions in which we operate remaining in their current state, we expect the businesses to perform in the second half at least in line with levels achieved in the first half.

The present focus for the Group is to maximize the returns from recent investment in businesses and people, to improve productivity and increase profitability.

Robert Macdonald

Executive Chairman

9(th) November 2017

For further information please contact:

 
 Prime People                            020 7318 1785 
 Robert Macdonald, Executive Chairman 
 Donka Zaneva-Todorinski, Finance 
  Director 
 
 Cenkos Securities                       020 7397 8900 
 Elizabeth Bowman - Nomad 
 Julian Morse - Sales 
 

PRIME PEOPLE PLC

UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 September 2017

 
                                                           Six months ended                              Year ended 
                                                        30 September                  30 September         31 March 
                                                         2017                                 2016             2017 
                             Note                             GBP'000                      GBP'000          GBP'000 
 
 Revenue                      3                                11,271                 11,477                 24,213 
 Cost of sales                                                (5,123)                      (5,151)         (11,115) 
--------------------------  -----      ------------------------------  ---------------------------  --------------- 
 
 Net fee income                                                 6,148                    6,326               13,098 
 Administrative expenses                                      (5,501)                      (5,566)         (11,194) 
--------------------------  -----      ------------------------------  ---------------------------  --------------- 
 
 Operating profit                                                 647                       760               1,904 
 
 
 Profit before taxation                                           647                       760               1,904 
 Income tax expense           4                                 (139)                        (155)            (292) 
--------------------------  -----      ------------------------------  ---------------------------  --------------- 
 
   Profit for the 
   period/year                                                    508                          605            1,612 
 Other comprehensive (loss)/ income: 
  Exchange (loss)/ gain on 
  translating 
  foreign operations                                            (170)               206                         270 
-------------------------------------  ------------------------------  ---------------------------  --------------- 
 
   Other Comprehensive loss for 
   the period/ year, net of tax                                 (170)                          206              270 
-------------------------------------  ------------------------------  ---------------------------  --------------- 
 
   Total comprehensive income for 
   the period/year                                                338                          811            1,882 
-------------------------------------  ------------------------------  ---------------------------  --------------- 
 
 
 Attributable to: 
 
  Equity shareholders of 
  the parent                                                      338                          811            1,882 
--------------------------  -----      ------------------------------  ---------------------------  --------------- 
 
 
 
 Earnings per share           6 
 Basic earnings per share                             4.16p                               4.92p              13.14p 
 Diluted earnings per 
  share                                               4.06p                                  4.79p           12.97p 
--------------------------  -----      ------------------------------  ---------------------------  --------------- 
 
 
 

The above results relate to continuing operations.

The notes to the financial statements form an integral part of this unaudited condensed consolidated interim report.

PRIME PEOPLE PLC

UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

As at 30 September 2017

 
                                                             30 September               30 September                31 March 
                                                                     2017                       2016                    2017 
                                Note                              GBP'000                    GBP'000                 GBP'000 
 
 Assets 
 Non-current assets 
 Goodwill                                                     9,769                        9,769                       9,769 
 Property, plant and 
  equipment                                                     228                           167                        136 
 Deferred tax asset                                             43                                 -                      43 
 
                                                            10,040                         9,936                       9,948 
-----------------------------  -----  -----------------------------------  ---  --------------------  ---  ----------------- 
 
 Current assets 
 Trade and other receivables     9                            4,735                        5,473                       5,101 
 Cash and cash equivalents                            2,569                                1,336                       2,409 
-----------------------------  -----  -----------------------------------  ---  --------------------  ---  ----------------- 
 
                                                               7,304                        6,809                      7,510 
-----------------------------  -----  -----------------------------------  ---  --------------------  ---  ----------------- 
 
 Total assets                                                17,344                       16,745                      17,458 
-----------------------------  -----  -----------------------------------  ---  --------------------  ---  ----------------- 
 
 
 Liabilities 
 Current Liabilities 
 Trade and other payables        10                            2,221                    2,363                          2,310 
 Current tax liabilities                                        84                    165                                 75 
-----------------------------  -----  -----------------------------------  ---  --------------------  ---  ----------------- 
 
                                                               2,305                       2,528                       2,385 
-----------------------------  -----  -----------------------------------  ---  --------------------  ---  ----------------- 
 
 Non-current liabilities 
 Deferred tax liabilities                                               -                        6                         - 
-----------------------------  -----  -----------------------------------  ---  --------------------  ---  ----------------- 
 
                                                                    -                              6                       - 
-----------------------------  -----  -----------------------------------  ---  --------------------  ---  ----------------- 
 
 Total liabilities                                             2,305                        2,534                      2,385 
-----------------------------  -----  -----------------------------------  ---  --------------------  ---  ----------------- 
 
 Net assets                                                   15,039                       14,211                     15,073 
-----------------------------  -----  -----------------------------------  ---  --------------------  ---  ----------------- 
 
 
 Capital and reserves attributable to the Company's equity holders 
 Called up share capital                                            1,229                      1,229                   1,229 
  Capital redemption reserve                                            9                          9                       9 
 Treasury shares                                                     (45)                       (13)                    (21) 
 Share premium account                                              5,371                      5,371                   5,371 
 Merger reserve                                                       173                        173                     173 
 Share option reserve                                                 329                        359                     280 
 Currency translation 
  differences                                                         563                        669                     733 
 Retained earnings                                                  7,410                      6,414                   7,299 
-----------------------------  -----  -----------------------------------  ---  --------------------  ---  ----------------- 
 
 Equity shareholders funds                                         15,039                      4,211                  15,073 
-----------------------------  -----  -----------------------------------  ---  --------------------  ---  ----------------- 
 
 

The notes to the financial statements form an integral part of this unaudited condensed consolidated interim report.

PRIME PEOPLE PLC

UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 September 2017

 
                             Called                   Capital         Treasury           Share            Merger       Share      Translation      Retained        Total 
                            up share                   redem-          shares            premium          reserve      option       Reserve         earnings 
                             capital                   ption                             account                      reserve 
                                                      reserve 
                                      GBP'000               GBP'000    GBP'000                  GBP'000   GBP'000       GBP'000       GBP'000           GBP'000    GBP'000 
 
   At 1 April 
   2016                                 1,229                     9       (21)                    5,371       173           300           463             5,892     13,416 
 Profit for 
  the period                                -                     -          -                        -         -             -             -               605        605 
 Other 
  comprehensive 
  income                                    -                     -          -                        -         -             -           206                 -        206 
 Shares 
  purchased 
  for treasury                              -                     -       (86)                        -         -             -             -                 -       (86) 
 Shares issued 
  from treasury                             -                     -         11                        -         -     -                     -                 -         11 
 Adjustment 
  on share 
  disposal                                  -                     -         83                        -         -             -             -              (83)          - 
 Adjustment 
  in respect 
  of share 
  options                                   -                     -          -                        -         -            59             -                 -         59 
----------------  ---------------------------  --------------------  ---------  -----------------------  --------  ------------  ------------  ----------------  --------- 
 
   At 30 
   September 
   2016                                 1,229                     9       (13)                    5,371       173           359           669             6,414     14,211 
----------------  ---------------------------  --------------------  ---------  -----------------------  --------  ------------  ------------  ----------------  --------- 
 
 Profit for 
  the period                                -                    .-          -                        -         -             -             -              1007       1007 
 Other 
  comprehensive 
  income                                    -                     -          -                        -         -             -            64                 -         64 
 Adjustment 
  in respect 
  of share 
  options                                   -                     -          -                        -         -          (79)             -               108         29 
 Shares 
  purchased 
  for treasury                              -                     -       (25)                        -         -             -             -                 -       (25) 
 Shares issued 
  from treasury                             -                     -          2                        -         -             -             -                 -          2 
 Adjustment 
  on share 
  disposal                      -                         -                 15                        -         -             -             -              (15)          - 
 Dividend                                   -                     -          -                        -         -             -             -             (215)      (215) 
----------------  ---------------------------  --------------------  ---------  -----------------------  --------  ------------  ------------  ----------------  --------- 
 
   At 31 March 
   2017                                 1,229                     9       (21)                    5,371       173           280           733             7,299     15,073 
----------------  ---------------------------  --------------------  ---------  -----------------------  --------  ------------  ------------  ----------------  --------- 
 
 Profit for 
  the period                                -                     -          -                        -         -             -             -               508        508 
 Other 
  comprehensive 
  (loss)/income                             -                     -          -                        -         -             -         (170)                 -      (170) 
 Shares 
  purchased 
  for treasury                              -                     -       (24)                        -         -             -             -                 -       (24) 
 Adjustment 
  in respect 
  of share 
  options                                   -                     -          -                        -         -            49             -                 -         49 
 Dividend                                   -                     -          -                        -         -             -             -             (397)      (397) 
 
   At 30 
   September 
   2017                                 1,229                     9       (45)                    5,371       173        329              564             7,410     15,039 
----------------  ---------------------------  --------------------  ---------  -----------------------  --------  ------------  ------------  ----------------  --------- 
 

PRIME PEOPLE PLC

UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOW

For the six months ended 30 September 2017

 
                                                                         Six months ended             Year ended 
                                                      30 September 2017        30 September             31 March 
                                                                                       2016                 2017 
                                               Note             GBP'000             GBP'000              GBP'000 
 
 
 Cash generated from underlying operations       7                1,028                 517          1,981 
 Income tax paid                                                  (128)               (240)                (521) 
--------------------------------------------  -----  ------------------  ------------------  ------------------- 
 
 Net cash from operating activities                                 900                 277          1,460 
 
 
 Cash flows from investing activities 
 Net purchase of property, plant and equipment                    (149)                (25)                 (53) 
 
 
 Net cash used in investing activities                            (149)                (25)                 (53) 
--------------------------------------------  -----  ------------------  ------------------  ------------------- 
 
 Cash flows from financing activities 
 Issue of ordinary share capital                                      -                   -                 2 
 Shares issued from treasury                                          -                  11                  115 
 Shares purchased for treasury                                     (24)                (86)                (111) 
 Dividend paid to shareholders                                    (397)                   -                (215) 
 
 
 Net cash used in financing activities                            (421)                (75)                (209) 
---------------------------------------------------  ------------------  ------------------  ------------------- 
 
 Net increase in cash and cash equivalents                          330                 177                1,198 
 
 Cash and cash equivalents at beginning of 
  period/year                                                     2,409                 953                  953 
 
 Effect of foreign exchange rate changes                  (170)                         206                  258 
---------------------------------------------------  ------------------  ------------------  ------------------- 
 
 Cash and cash equivalents at end of period/year                  2,569               1,336                2,409 
---------------------------------------------------  ------------------  ------------------  ------------------- 
 
 

The notes to the financial statements form an integral part of this unaudited condensed consolidated interim report.

PRIME PEOPLE PLC

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM REPORT

For the six months ended 30 September 2017

   1.   General information 

Prime People Plc ('the Company') and its subsidiaries (together 'the Group') is an international recruitment services organisation with offices in the United Kingdom, the Middle East and the Asia Pacific region from which it serves an international client base. The Group offers both permanent and contract specialist recruitment consultancy for large and medium sized organisations.

Prime People Plc is the Group's ultimate parent company. The Company is a limited liability company incorporated and domiciled in the United Kingdom. The address of Prime People Group's registered office and its principal place of business is 2 Harewood Place, London, W1S 1BX, England. Prime People Group's shares are quoted on the Alternative Investment Market (AIM) of the London Stock Exchange. The registered number of the company is 1729887.

This unaudited condensed consolidated interim report for the six months ended 30 September 2017 (including comparatives) is presented in GBP'000, and was approved and authorised for issue by the Board of Directors on 8 November 2017.

Copies of the interim results are available at the Company's registered office and on the Company's website - www.prime-people.co.uk.

This unaudited condensed consolidated interim report does not constitute statutory accounts of the Group within the meaning of section 434 of the Companies Act 2006. The financial information for the year ended 31 March 2017 has been extracted from the statutory accounts for that year, which have been filed with the Registrar of Companies. The auditor's report on those accounts was unqualified and did not contain a statement under section 498 of the Companies Act 2006.

   2.   Basis of preparation 

The unaudited condensed consolidated interim report for the six months ended 30 September 2017 has been prepared using accounting policies consistent with International Financial Reporting Standards ("IFRSs") and in accordance with 'IAS 34, Interim financial reporting', as adopted by the European Union. The condensed consolidated interim report should be read in conjunction with the annual financial statements for the year ended 31 March 2017 which were prepared in accordance with IFRSs as adopted by the European Union.

The Group was profitable for the period and has considerable financial resources comprising GBP2.57m of net cash at 30 September 2017. After making enquiries, the Directors have formed a judgement, at the time of approving the six months results, that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, a period of not less than 12 months. For this reason the Directors continue to adopt the going concern basis in preparing the condensed set of financial statements.

These financial statements have been prepared under the historical cost convention, using the same accounting policies as those used in the preparation of the financial statements for the year ended 31 March 2017 and which are also expected to apply for the year ended 31 March 2018.

The directors expect the adoption of IFRS 15 may have an impact on revenue recognition and related disclosures. It is not practicable to provide a reasonable estimate of the impact of IFRS 15 until a detailed review has been completed. The detailed review will be disclosed in the Annual Report for financial year ending 31.03.2018.

The accounting policies have been applied consistently throughout the Group for the purposes of preparation of the condensed consolidated interim report.

   3.   Segment reporting 

(a) Revenue and net fee income by geographical region

 
                           Revenue                                 Net fee income 
                      Six months ended          Year ended        Six months ended            Year ended 
               30 September   30 September   31 March 2017   30 September   30 September   31 March 2017 
                       2017           2016                           2017           2016 
                    GBP'000        GBP'000         GBP'000        GBP'000        GBP'000         GBP'000 
 
 UK                   8,963          8,547          18,558          3,840          3,396           7,443 
 
 Asia                 2,121          2,601           5,075          2,121          2,601           5,075 
 
 Rest of World          187            329             580            187            329             580 
---------------   ---------  -------------  --------------  -------------  -------------  -------------- 
 
                     11,271         11,477          24,213          6,148          6,326          13,098 
---------------   ---------  -------------  --------------  -------------  -------------  -------------- 
 
 
 

All revenues disclosed by the group are derived from external customers and are for the provision of recruitment services. The accounting policies of the reportable segments are the same as the Group's accounting policies. Segment profit before taxation represents the profit earned by each segment after allocations of central administration costs.

(b) Revenue and net fee income by classification

 
                                     Revenue                                          Net fee income 
                                Six months ended            Year ended               Six months ended             Year ended 
                       30 September      30 September    31 March 2017       30 September      30 September    31 March 2017 
                               2017              2016                                2017              2016 
                            GBP'000           GBP'000          GBP'000            GBP'000           GBP'000          GBP'000 
 
 Permanent 
 - UK                         3,227             2,724            6,004              3,152             2,721            5,991 
  - Asia                      2,121             2,601            5,075              2,121             2,601            5,075 
  - Rest of World               187               329              580                187               329              580 
 
 Contract (UK)                5,736             5,823           12,554                688               675            1,452 
 
                             11,271            11,477           24,213              6,148             6,326           13,098 
-------------------  ----  --------  -----  ---------  ----  ---------  -----  ----------  -----  ---------  ----  --------- 
 
 
 

(c) Profit before taxation by geographical region

 
                                         Six months ended                 Year ended 
                                    30 September   30 September 2016   31 March 2017 
                                            2017 
                                         GBP'000             GBP'000         GBP'000 
 
 UK                                          508                 103             823 
 
 Asia                                        256                 600           1,035 
 
 Rest of World                             (117)                  57              46 
 
   Profit before taxation                    647                 760           1,904 
---------------------------------  -------------  ------------------  -------------- 
 
 
 

Operating profit is the measure of profitability regularly viewed by the Board, which collectively acts as the Chief Decision Maker. Consequently, no segmental analysis of interest or tax expenses is provided.

(d) Segment Assets and Liabilities by Geographical Region

 
                              Total assets                        Total liabilities 
                   30September 2017   30September 2016   30September 2017   30September 2016 
                            GBP'000            GBP'000            GBP'000            GBP'000 
 
 UK                       13,153             12,680               1,834              1,645 
 Asia                       3,683             3,381                  435               632 
 Rest of World                508               684                   36                77 
----------------  -----------------  -----------------  -----------------  ----------------- 
 
   Total             17,344             16,745             2,305              2,363 
----------------  -----------------  -----------------  -----------------  ----------------- 
 

The analysis above is of the carrying amount of reportable segment assets and liabilities. Segment assets and liabilities include items directly attributable to a segment and include income tax assets and liabilities.

   4.   Income tax expense 

The charge for taxation on profits for the interim period amounted to GBP139k (2016: GBP155k) an effective rate of 19% (2016: 20%).

   5.   Dividends 
 
                                 Six months ended                                    Year ended 
                                                     30 September   30 September       31 March 
                                                             2017           2016           2017 
                                                          GBP'000        GBP'000        GBP'000 
 
 Final dividend for 2017: 3.25p per share                397                   -              - 
  (2016: 0.00p per share) 
 Interim dividend for 2017 1.75p per share 
 (2016: 1.75p per share)                                  -                    -          215 
 
                                                              397              -            215 
 
 
 
 

The interim dividend for 2018 of 1.75 pence (2017: 1.75 pence paid on 25 November 2016), was approved by the board on 8 November 2017 and will be paid on 24 November 2017 to those shareholders whose names are on the register on 17 November 2017.

   6.   Earnings per share 

Earnings per share (EPS) are calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the period.

Fully diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares by existing share options assuming dilution through conversion of all existing options.

Earnings and weighted average number of shares from continuing operations used in the calculations are shown below:

 
                                                                       Six months ended             Year ended 
                                                                   30 September    30 September       31 March 
                                                                           2017            2016           2017 
                                                                        GBP'000         GBP'000        GBP'000 
 
   Retained profit for basic and diluted earnings per share            508                  605          1,612 
-------------------------------------------------------------  ----------------  --------------  ------------- 
 
 
                                                 Number                                  Number         Number 
 
 Weighted average number of shares used for basic earnings 
  per share                                                        12,244,023        12,274,923     12,271,923 
                             Dilutive effect of share options         302,018           334,998        195,634 
-------------------------------------------------------------  ----------------  --------------  ------------- 
 
   Diluted weighted average number of shares used for diluted 
                                           earnings per share        12,546,041      12,609,921     12,467,557 
-------------------------------------------------------------  ----------------  --------------  ------------- 
 
 
 
 
                                                 Six months ended                     Year ended 
                                                 30 September   30 September            31 March 
                                                         2017           2016                2017 
                                                      GBP'000        GBP'000             GBP'000 
                                                    Pence              Pence               Pence 
 
 Basic earnings per share                       4.16p               4.92p               13.14p 
 Diluted earnings per share                      4.05p                 4.79p            12.97p 
------------------------------  ----  -----------------------  -------------  ------------------ 
 
 
 
   7.   Reconciliation of profit before tax to cash flow from operating activities 
 
                                                                  Six months ended                      Year ended 
                                                               30 September      30 September             31 March 
                                                                       2017              2016                 2017 
                                                                    GBP'000           GBP'000              GBP'000 
 
 Profit before taxation                                                 647            760                1,904 
 Adjust for: 
 Depreciation                                                            56                88                158 
 Share option reserve movement                                           50                59                 89 
 
 Operating cash flow before changes in working 
  capital                                                               753          907                   2,151 
 
 Decrease/(increase) in receivables                                     365           (536)                 (162) 
 (Decrease)/increase in payables                                       (90)             146                    (8) 
------------------------------------------------  -------------------------  ----------------  ------------------- 
 
   Cash generated from underlying operations                          1,028          517                  1,981 
------------------------------------------------  -------------------------  ----------------  ------------------- 
 
 
 
   8.   Reconciliation of net cash flow to movement in net funds 
 
                                                                  Six months ended                      Year ended 
                                                                30 September     30 September             31 March 
                                                                        2017             2016                 2017 
                                                                     GBP'000          GBP'000              GBP'000 
 
 Increase in cash and cash equivalents in 
  period/year                                                         330                 177                1,198 
 Net funds at the start of the period/year                             2,409              953                  953 
 Other non-cash changes                                            (170)                  206                  258 
-------------------------------------------------  -------------------------  ---------------  ------------------- 
 
 Net funds at the end of the period/year                          2,569                 1,336             2,409 
 
 
 
   9.   Trade and other receivables 
 
                                          30 September   30 September 2016          31 March 2017 
                                                  2017 
                                               GBP'000             GBP'000                GBP'000 
 
 Trade receivables                             2,521            2,866                    2,435 
 Allowance for doubtful debts                    (20)              (42)                   (24) 
 Prepayments and accrued income               2,167                2,577                 2,618 
 Other receivables                                  67              72                         72 
--------------------------------  --------------------  ------------------  --------------------- 
 
                                             4,735                 5,473                   5,101 
--------------------------------  --------------------  ------------------  --------------------- 
 
 

10. Trade and other payables

 
                                           30 September    30 September 2016   31 March 2017 
                                                   2017 
                                                GBP'000              GBP'000         GBP'000 
 
 Trade payables                                    182                   182             108 
 Other taxes and social security                  774                    590             667 
 Other payables                                     328                  290             330 
 Accruals and deferred income                       937               1,301            1,205 
---------------------------------  --------------------  -------------------  -------------- 
                                                2,221                 2,363            2,310 
---------------------------------  --------------------  -------------------  -------------- 
 
 

11. Treasury Shares

At 30 September 2017, the total number of ordinary shares held in Treasury and their values were as follows:

 
                                            30 September 2017             30 September 
                                                                              2016 
                                               Number   GBP'000      Number            GBP'000 
 
 As at 1 April                                 21,276   21           21,276                 21 
 Shares purchased for treasury                 27,900   24          101,000                 86 
 Shares issued from treasury                        -       -     (107,000)               (11) 
 Equity reclassification on disposal of 
  treasury shares                           -                 -           -               (83) 
----------------------------------------  -----------  --------  ----------  ----------------- 
                      As at 30 September       46,176   45           21,276                13 
----------------------------------------  -----------  --------  ----------  ----------------- 
  Nominal value                                          5                            2 
 Market value                                           47                                  15 
----------------------------------------  -----------  --------  ----------  ----------------- 
 

12. Related Party Transactions

Prime People Plc provides various management services to its subsidiary undertakings. These services take the form of centralised finance and operations support. The total amount charged by the Company to its subsidiaries during the period is GBP352k (2016: GBP262k). The balance owed to the subsidiary undertakings at the year end is GBP689k (2016: GBP837k).

13. Subsequent events

On 11(th) October 2017, shortly after the half year's end, our Hong Kong subsidiary, Macdonald and Company Limited acquired 60 per cent of the equity capital of Command Recruitment Group (H.K.) Limited ("CMD") for consideration of HK$9.9 million (GBP1.0 million).

The consideration for the acquisition was funded from the Group's existing cash reserves. The key management of CMD will remain with the business post-acquisition and they, as a group, will retain the remaining 40 per cent of CMD's equity capital.

The disclosure required under IFRS3 paragraph B64 have not been made because the initial accounting for the business combination is still ongoing, in particular, the fair value of the separable intangibles is still being considered

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR OKFDBFBDDDDK

(END) Dow Jones Newswires

November 09, 2017 02:00 ET (07:00 GMT)

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