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