Public Recruitment Share Discussion Threads

[cloudfall] 07/11/2005 09:00

A couple of the PRG acquisitions were on an "earn out" basis and those earn outs have been awarded or are about to be or something - however instead of paying out the remaining dough with cash or loan notes they are going to be paid out with shares in PRG. This is a good deal for PRG, it conserves cash and is one of the major point in having a quoted stock, so that you can use it for aquisitions. Because a few more shares are going to be issued, earnings per share will be bit lower.

[james t kirk] 07/11/2005 08:59

Found the answer, looks like £3.5m worth of new shares to come. Won't dent the p/e too much:-

We are currently finalising the deferred consideration terms in relation to the
acquisition of JCJ Holdings Plc, with the objective of making a final payment in
January 2006 of #1.75m, payable in PRG shares rather than loan notes, as
provided for in the original agreement. This amount is provided in the 1 July
2005 balance sheet, under the heading creditors greater than one year.

Social Work Division

The Group is in the top three providers of qualified social workers in the UK
through its two subsidiaries, Action First and Academy. Both of these businesses
were acquired in the second half of 2004. Turnover has risen to #10.8m, which
represents organic revenue growth of 7%. There is a noticeable increase in the
number of permanent fees earned during the period, accounting for 10% of
divisional gross margin (2004: 5%).

Action First has performed well and we expect a final cash deferred
consideration payment of #1.75m (max) in first quarter of 2006. Any remaining
deferred consideration will be met by the issue of PRG shares.

Adjusted earnings per share

Adjusted earnings per share, excluding the effects of the amortisation of
goodwill and exceptional items, amounts to 6.6p (2004: 4.8p), an increase of
38%.

[james t kirk] 07/11/2005 08:53

Anyone know the details of this?


"Earnings per share for 2006 will also be impacted by the
number of shares to be issued as deferred consideration during that year; this
number will depend on the share price prevailing at the time the shares are
issued."

[cloudfall] 07/11/2005 08:26

Yes P/E seems incredibly, incredibly low. I would be surprised if someone didn't start buying in, in a big way soon.

[james t kirk] 07/11/2005 08:10

Profit this year of £3.9m shows a p/e of 5, except for new shares to be issued. Bounce seems likely at some stage??

[cloudfall] 07/11/2005 07:59

Well that's not a good thing to wake up to on a Monday morning.

[deswalker] 04/11/2005 17:25

absolutely mdchand. just about as blatant as I've ever seen. should be reported to FSA. glad I ain't a holder.

[mdchand] 04/11/2005 16:44

if no one believes in insider trading look at this share price before the rns came out.....bloody ridiculous

[amberspyglass] 05/10/2005 17:49

Oh oh...
Apparently all the employees / companies they bought that have shares, can now sell them... funny how there are so many small sells?

[amberspyglass] 21/9/2005 12:55

here comes the sun.. this must go up and stay up this time?!

[ashmok] 23/6/2005 12:53

Hmm, waking up for no apparent reason. Will we break out of the current trading range this time?

[steve bond] 22/5/2005 12:10

in a wary market people sell shares in companys with large debt!

[amberspyglass] 22/5/2005 11:31

does anyone know why the lowest price ever?

[happyjoe] 03/5/2005 23:27

Now I wonder who bought 5000 shares today? Bet we find out tomorrow.

[amberspyglass] 20/4/2005 08:49

anyone know why price is dropping?

[gonnabuildmeahouse] 18/3/2005 09:40

Nice write up in IC.

Gbamh

[gonnabuildmeahouse] 17/3/2005 08:16

Thanx Penpont,
Guessed it must have been from the amount of buys.

Agree as well an IC update should move it a little more as well.

Gbmah

[penpont] 16/3/2005 22:12

Was tipped on www.growthcompany.co.uk today - subscription only but headline reads:

' Buy
Public sector recruiter Public Recruitment (PRG), which floated on AIM last April, following a £9m funding, is making great strides towards hitting its target of becoming a £100m-plus turnover operation. Maiden preliminaries to December revealed a 136.....'

As a previous IC tip it should certainly be updated as a buy either this week or next.

[gonnabuildmeahouse] 16/3/2005 18:28

IC & shares mag will do nicely thankyou , 156p to lock in a 20% profit for my club.

Gbmah

[diogenesj] 16/3/2005 18:18

I expect it will be. :-)

[gonnabuildmeahouse] 16/3/2005 17:32

It does my man , better read up some more on accounting :0)

Nice rise today though , was it tipped somewhere?

Gbmah

[diogenesj] 15/3/2005 21:49

I'm not sure, but I think it's just because amortisation of goodwill is not deductible for tax purposes, G. Makes the tax look very large as a percentage of what's left.

[gonnabuildmeahouse] 15/3/2005 19:37

I cant see it turning down myself , only what I read in the papers and on the web to go by of course.

The UK Gov cant get Teachers , Social workers etc for love nor money at the moment so I'd say they're at least going to get a good chance of making it work.

Plus - Interest cover at 3.9x EBITA - so as you say , as long as they can generate the cash they should be ok.

Tax bill looks large though or am I reading the wrong bit?

Gbmah

[diogenesj] 15/3/2005 18:53

Alf: looks to me as though they've expanded too fast on inadequate capital. If they don't raise some more cash, they will be in deep trouble if their business turns down. It may not turn down, of course (in fact it appears to be doing very well) - but this has to be seen as a very high risk investment, especially as the company consists almost entirely of recent acquisitions.