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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Rtc Group Plc | LSE:RTC | London | Ordinary Share | GB0002920121 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-2.50 | -2.63% | 92.50 | 90.00 | 95.00 | 95.00 | 92.50 | 95.00 | 14,202 | 12:51:17 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Employment Agencies | 71.91M | -351k | -0.0240 | -38.54 | 13.55M |
TIDMRTC
RNS Number : 9546T
RTC Group PLC
24 July 2015
RTC Group Plc
("RTC", "the Company" or "the Group")
Interim Results for the Six Months Ended 30 June 2015
RTC Group Plc is pleased to announce its interim results for the six months ended 30 June 2015.
Highlights:
-- Group revenue from continuing operations GBP29.5m (2014: GBP25.3m) -- Group profit from operations (before amortisation of intangibles) GBP507k (2014: GBP467k) -- Cash outflow from operations GBP0.8m (2014: GBP1.4m inflow) -- Basic earnings per share 2.36p (2014: 2.32p)
The Directors propose an interim dividend of 1.0p per share (2014: 0.5p). The Company has a progressive dividend policy. Subject to approval of the Directors, the interim dividend will be paid on the 30 November 2015 to shareholders on the register on 6 November 2015.
Commenting on the results Bill Douie, Chairman, said:
"I am pleased to report that the Group has performed in line with expectations for the half year.
Ganymede's core contract to provide contingent labour for Network Rail for maintenance is not expected to be impacted by any rescheduling of Network Rail Infrastructure Projects and early volumes on the new contract are in line with expectations.
The new staff in ATA have settled in well and market conditions are buoyant.
GSS has delivered a solid performance from new and existing contracts and it is anticipated new business levels will increase in the second half of the year.
We remain confident that for the full year the Group will perform in line with current market expectations."
The interim report is available on the Company's website www.rtcgroupplc.co.uk.
ENDS
Enquiries:
RTC Group plc Bill Douie, Executive Chairman Tel: 01332 861 Andy Pendlebury, CEO 844 Sarah Dye, Group Finance Director WH Ireland (Nominated Adviser and Broker) Tel: 0113 394 Katy Mitchell / Liam Gribben 6600
About RTC
RTC has three principal trading subsidiaries engaged in the recruitment of human capital resources and the provision of managed services.
ATA is one of the UK's leading engineering and technical recruitment consultancies. Supplying white and blue collar engineering and technical staff to a broad range of SME clients and vertical markets.
Ganymede is focussed on the supply and operation of blue collar contingent labour into safety critical markets.
Global Staffing Solutions (GSS) predominantly provides managed service solutions for international clients.
Chairman's statement
Six months ended 30 June 2015
I am pleased to present the interim report of the Company for the six months to 30 June 2015.
Group
Trading in the first six months of 2015 was in line with expectations and on a like for like basis profits from operations have increased by 8.6% (excluding amortisation of intangibles relating to the acquisition of RIG Energy in December 2014). This is despite the fact that during the period we incurred significant start-up costs in preparation for the commencement of our recently awarded five year contract with Network Rail. These costs included enhancement of our management team and the establishment of additional locations to support recruitment in new regions won under the contract.
Recruitment
All our recruitment businesses have performed as expected in the first half with Ganymede enjoying a full six month contribution from its new Energy division and initial investment and mobilisation for the five year Network Rail contract all but complete.
Ganymede was awarded the contract to supply contingent labour to Network Rail for track maintenance on 25 February 2015 and on 20 March 2015 we confirmed that the contract had been signed.
During the second half of 2014, we took the opportunity to enhance the number of consultants in ATA. The rewards from that investment began to come through in the second half of 2014 and have continued into 2015, and given the continuing positive economic environment in the UK, we are continuing with our strategy to invest in additional headcount in what is a very competitive market.
For GSS, the drawing to a close of NATO involvement in Afghanistan has reduced the headcount to a planned level that is expected to be maintained throughout 2015 and current indications suggest this will continue throughout 2016. In addition to our core contract in Afghanistan, we have secured a number of smaller contracts in the region and we continue to pursue other opportunities for our 'Ethical Managed Service Solution' overseas.
Business levels for the Derby Conference centre (DCC) were consistent with the equivalent period in 2014.
Change of emphasis for the DCC
Over the next twelve months, we expect to engage in extensive improvement and re-organisation of the premises on the Derby site to accommodate the Company's current and planned growth and to facilitate a move away from party and wedding events in favour of more business related customer activities and an increase in providing flexible office accommodation for local businesses.
Management and Board
During the period, Non-Executive Director, Tim Jackson, left the Company to pursue other projects in the charitable sector. In his time with us Tim played an important role in the strategic development of the Group. I and the Board thank Tim for his contribution and wish him well for the future. We have initiated the search for a replacement.
Long-term strategic reward programme
During the period the Company bought back 675,581 Ordinary Shares to enable it to implement its long term strategic reward programme to incentivise key employees as the Group enters the next phase of its exciting growth plan. The shares are being held in an Employee Benefit Trust (EBT).
Dividends
The Directors propose an interim dividend of 1.0p per share (2014: 0.5p). The Company has a progressive dividend policy. Subject to approval of the Directors, the interim dividend will be paid on the 30 November 2015 to shareholders on the register on 6 November 2015.
Outlook
Ganymede's core contract to provide contingent labour for Network Rail for maintenance is not expected to be impacted by any rescheduling of Network Rail Infrastructure Projects and early volumes on the new contract are in line with expectations.
The new staff in ATA have settled in well and market conditions are buoyant.
GSS has delivered a solid performance from new and existing contracts and it is anticipated new business levels will increase in the second half of the year.
We remain confident that for the full year the Group will perform in line with market expectations.
W J C Douie 24 July 2015
Chairman
Finance Director's statement
Six months ended 30 June 2015
Revenue and gross margin
In the period ended 30 June 2015, Group revenue increased to GBP29.5m (2014:GBP25.3m) with all Group companies performing to expectations. Overall gross margin increased slightly to 20.5% (2014: 20.0%).
Profit from operations
Overall group profit from operations was GBP441k (2014: GBP467k). Like for like profit from operations was GBP507k, an increase of 8.6% on 2014 (excluding the amortisation of intangibles relating to the acquisition of RIG Energy Limited in 2014).
ATA
The headcount investments made in ATA during the latter part of 2014 coupled with the positive UK economy have delivered encouraging results. Profit from operations is up 46% at GBP734k (2014: GBP502k). Gross margin is also showing improvement at 23.9% (2014: 22%).
Ganymede
A significant up-front investment programme was required for the five year contract to supply Network Rail with contingent labour for maintenance. This investment programme, together with the contract mobilisation has largely been completed. As a result the impact of the contract on the first half results is not significant and the increase in profit from operations to GBP639k (2014: GBP510k) predominantly reflects the inclusion of Ganymede Energy, coupled with consistent levels of activity from other clients. Despite the investment required for the Network Rail contract, gross margin has been maintained near 2014 levels at 16% (2014: 16.5%).
GSS
Profit from operations of GBP275k (2014: GBP463k) reflects the planned reduction of contractor numbers in Afghanistan following the drawdown of NATO involvement. Continuing efficiencies in managing that core contract are reflected in an improved gross margin of 16.4% (2013: 15.7%).
Taxation
The total tax charge for the period is estimated at GBP75k (2014: GBP92k).
Earnings per share
The basic earnings per share figure is 2.36p (2014: 2.32p). The diluted earnings per share 2.34p (2014: 2.14p). Profit before tax is GBP398k (2014: GBP405k).
Dividends
During the period the company paid an interim dividend of GBP67,558 (2014: GBPNil) to its equity shareholders. This represents a payment of 1.0p (2014: nil) per share.
The Directors propose an interim dividend of 1.0p per share (2014: 0.5p). The Company has a progressive dividend policy. Subject to approval of the Directors, the interim dividend will be paid on the 30 November 2015 to shareholders on the register on 6 November 2015.
Purchase of own shares and formation of EBT
During the period the Company purchased 675,581 Ordinary Shares to implement a long term strategic reward programme to incentivise key employees as the Group enters the next phase of its exciting growth plan. The Company established an EBT to hold the shares. The EBT is considered an extension of the Company's activities and therefore assets (except investments in the Company's shares) and liabilities which are the subject of the trust are included in the consolidated accounts on a line-by-line basis. The cost of shares held by the EBT is presented as a separate debit reserve within equity named 'Own Shares Held'.
Statement of financial position
The Group statement of financial position has further strengthened compared to the same point last year with net working capital increasing to GBP6.6m (2014: GBP1.6m) due to the increased activity on the Network Rail contract and increased revenue in ATA.
The ratio of current assets to current liabilities dipped slightly to 1.1 (2014: 1.2) and the gearing ratio rose to 2.1 times (2014: 1.2 times) largely reflecting the timing of GBP2.2m of customer receipts relating to three key clients that were overdue at the end of June but received in July. Customer receipts in the first two weeks of July were GBP1.6m higher than the two weeks prior to that date.
Interest cover has increased to 10.3 times (2014: 7.5 times).
Cash flow
There was a cash outflow from operations of GBP0.8m (2014: GBP1.4m inflow). The outflow is predominantly a result of the timing of customer receipts noted above, the up-front investment required to mobilise the new network rail contract and the purchase of own shares.
Financing
The Group's current bank facilities include an overdraft of GBP50,000 and a confidential invoice discounting facility of up to GBP7.0m with HSBC. The Group is currently operating well within its facility cap and has negotiated a 0.25% reduction on its discount margin.
The Board closely monitors the level of facility utilisation and availability to ensure that there is sufficient headroom to manage current operations and support the growth of the business.
The Group continues to be focussed on cash generation and building a robust statement of financial position to support the growth of the business.
Sarah Dye 24 July 2015
Group Finance Director
Consolidated statement of comprehensive income
Six months ended 30 June 2015
Six month Six month Year ended period ended period ended 31 December 30 June 30 June 2014 2014 2015 Unaudited Unaudited Audited Notes GBP'000 GBP'000 GBP'000 -------------------------- ------- ---------------------- ---------------------- -------------- Revenue 2 29,475 25,268 50,932 Cost of sales 2 (23,442) (20,225) (40,756) -------------------------- ------- ---------------------- ---------------------- -------------- Gross profit 2 6,033 5,043 10,176 Administrative expenses (5,592) (4,576) (9,067) -------------------------- ------- ---------------------- ---------------------- -------------- Profit from operations 441 467 1,109 Financing expense (43) (62) (91) -------------------------- ------- ---------------------- ---------------------- -------------- Profit before tax 398 405 1,018 Tax expense 3 (75) (92) (218) -------------------------- ------- ---------------------- ---------------------- -------------- Net profit and total comprehensive income for the year 323 313 800 -------------------------- ------- ---------------------- ---------------------- -------------- Earnings per ordinary share 7 Basic 2.36p 2.32p 5.92p -------------------------- ------- ---------------------- ---------------------- -------------- Diluted 2.34p 2.14p 5.42p -------------------------- ------- ---------------------- ---------------------- --------------
Consolidated statement of changes in equity
Six months ended 30 June 2015
Six months ended 30 June 2015
Share Share Own Capital Share Profit Total capital premium shares redemption based and equity held reserve payment loss reserve GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At 1 January 2015 (audited) 135 - - 50 26 2,230 2,441 ----------------------- ---------- ---------- --------- ------------- ---------- --------- --------- Profit and total comprehensive income for the period - - - - - 323 323 ----------------------- ---------- ---------- --------- ------------- ---------- --------- --------- Dividends - - - - - (136) (136) ----------------------- ---------- ---------- --------- ------------- ---------- --------- --------- Own shares purchased in EBT - - (472) - - - (472) ----------------------- ---------- ---------- --------- ------------- ---------- --------- --------- Share options exercised 8 66 - - - - 74 ----------------------- ---------- ---------- --------- ------------- ---------- --------- --------- Share based payment reserve - - - - - - - ----------------------- ---------- ---------- --------- ------------- ---------- --------- --------- At 30 June 2015 (unaudited) 143 66 (472) 50 26 2,417 2,230 ----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Six months ended 30 June 2014
Share Share Capital Share Accumulated Total capital premium redemption based losses equity reserve payment reserve GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At 1 January 2014 (audited) 135 2,468 50 18 (970) 1,701 ---------------------- ---------- ---------- ------------- ---------- ------------- --------- Profit and total comprehensive income for the period - - - - 313 313 ---------------------- ---------- ---------- ------------- ---------- ------------- --------- Share based payment reserve - - - 8 - 8 ---------------------- ---------- ---------- ------------- ---------- ------------- --------- At 30 June 2014 (unaudited) 135 2,468 50 26 (657) 2,022 ---------------------- ---------- ---------- ------------- ---------- ------------- ---------
Consolidated statement of changes in equity
Six months ended 30 June 2015
Year ended 31 December 2014
Share Share Capital Share Profit and Total capital premium redemption based loss equity reserve payment reserve GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At 1 January 2014 (audited) 135 2,468 50 18 (970) 1,701 ---------------------- ---------- ---------- ------------- ---------- ------------ --------- Profit and total comprehensive income for the year - - - - 800 800 ---------------------- ---------- ---------- ------------- ---------- ------------ --------- Dividends - - - - (68) (68) ---------------------- ---------- ---------- ------------- ---------- ------------ --------- Share premium cancellation - (2,468) - - 2,468 - ---------------------- ---------- ---------- ------------- ---------- ------------ --------- Share based payment reserve - - - 8 - 18 ---------------------- ---------- ---------- ------------- ---------- ------------ --------- At 31 December 2014 (audited) 135 - 50 26 2,230 2,441 ---------------------- ---------- ---------- ------------- ---------- ------------ ---------
The share based payment reserve comprises the cumulative share option charge under IFRS 2 less the value of any share options that have been exercised or have lapsed.
Consolidated statement of financial position
As at 30 June 2015
Six month Six month Year ended period period 31 December ended 30 ended 30 2014 Audited June 2015 June 2014 Unaudited Unaudited Note GBP'000 GBP'000 GBP'000 --------------------------------- ------ ------------ ------------ --------------- Assets Non-current Goodwill 132 - 132 Other intangible assets 596 - 662 Property, plant and equipment 459 389 466 Deferred tax asset 4 40 70 62 --------------------------------- ------ ------------ ------------ --------------- 1,227 459 1,322 Current Cash and cash equivalents 158 69 41 Inventories 14 12 19 Trade and other receivables 11,212 8,193 9,267 --------------------------------- ------ ------------ ------------ --------------- Total current assets 11,384 8,274 9,327 Total assets 12,611 8,733 10,649 --------------------------------- ------ ------------ ------------ --------------- Liabilities Current Trade and other payables (5,263) (4,141) (4,713) Corporation tax (251) (147) (186) Current borrowings (4,742) (2,406) (3,166) --------------------------------- ------ ------------ ------------ --------------- Total current liabilities (10,256) (6,694) (8,065) Non-current liabilities Creditors falling due after one year - finance leases (5) - (132) Deferred tax liabilities 5 (120) (17) (11) --------------------------------- ------ ------------ ------------ --------------- Net assets 2,230 2,022 2,441 --------------------------------- ------ ------------ ------------ --------------- Equity Share capital 143 135 135 Share premium 66 2,468 - Own shares held (472) - - Capital redemption reserve 50 50 50 Share based payment reserve 26 26 26 Profit and loss account 2,417 (970) 2,230 Total equity 2,230 1,709 2,441 --------------------------------- ------ ------------ ------------ ---------------
Consolidated statement of cash flows
Six months ended 30 June 2015
Six month Six month Year ended period ended period ended 31 December 30 June 30 June 2014 Audited 2015 Unaudited 2014 Unaudited GBP'000 GBP'000 GBP'000 Cash flows from operating activities Profit from operations 441 467 1,109 Adjustments for: Depreciation, loss on disposal and amortisation 150 107 217 Employee equity settled share options - 8 8 Change in inventories 4 3 (4) Change in trade and other receivables (1,944) 934 734 Change in trade and other payables 550 (89) 207 ----------------------------------------- ----------------- ----------------- --------------- Cash (outflow)/inflow from operations (799) 1,430 2,271 Income tax paid - - (80) Net cash (outflow)/inflow from operating activities (799) 1,430 2,191 ----------------------------------------- ----------------- ----------------- --------------- Cash flows from investing activities Purchases of property, plant and equipment (77) (65) (245) Acquisition of business - cash paid - - (875) Debt acquired on acquisition - - (391) ----------------------------------------- ----------------- ----------------- --------------- Net cash used in investing activities (77) (65) (1,511) Cash flows from financing activities Interest payments (43) (62) (91) Lease purchase payments (6) (5) (11) Dividends paid (136) - (68) Proceeds from exercise of share options 74 - - Purchase of own shares (472) - - ----------------------------------------- ----------------- ----------------- --------------- Net cash outflow from financing activities (583) (67) (170) ----------------------------------------- ----------------- ----------------- --------------- Net (decrease)/increase in cash and cash equivalents from operations (1,459) 1,298 510 ----------------------------------------- ----------------- ----------------- --------------- Total net (decrease) / increase in cash and cash equivalents (1,459) 1,298 (360) ----------------------------------------- ----------------- ----------------- --------------- Cash and cash equivalents at beginning of period (3,125) (3,635) (3,635) ----------------------------------------- ----------------- ----------------- --------------- Cash and cash equivalents at end of period (4,584) (2,337) (3,125) ----------------------------------------- ----------------- ----------------- ---------------
Notes to the interim statement
Six months ended 30 June 2015
1. Accounting policies a) General information
RTC Group PLC is incorporated and domiciled in England and its shares are publicly traded on AIM. The registered office address is The Derby Conference Centre, London Road, Derby, DE24 8UX. The company's registered number is 02558971. The principal activities of the Group are described in note 2.
The Board consider the principal risks and uncertainties relating to the Group for the next six months to be the same as detailed in our last Annual Report and Accounts to 31 December 2014. The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the year ended 31 December 2014.
b) Basis of preparation
The unaudited interim group financial information of RTC Group PLC is for the six months ended 30 June 2015 and does not comprise statutory accounts within the meaning of S.435 of the Companies Act 2006. The unaudited interim group financial statements have been prepared in accordance with the AIM rules and have not been reviewed by the Group's auditors. This report should be read in conjunction with the Group's Annual Report and Accounts for the year ended 31 December 2014, which have been prepared in accordance with IFRS's as adopted by the European Union.
These unaudited interim group financial statements were approved for issue on 24 July 2015. No significant events, other than those disclosed in this document, have occurred between 30 June 2015 and this date.
c) Comparatives
The comparative figures for the year ended 31 December 2014 do not constitute statutory accounts within the meaning of S.435 of the Companies Act 2006, but they have been derived from the audited financial statements for that year, which have been filed with the Registrar of Companies. The report of the auditor was unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006 nor a reference to any matters which the auditor drew attention by way of emphasis of matter without qualifying their report.
d) Accounting policies
Other than the set up of the Employee Benefit Trust (EBT) explained below, there have been no significant changes in the basis upon which estimates have been determined, compared to those applied at 31 December 2014 and no change in estimate has had a material effect on the current period.
This interim announcement has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards issued by the International Accounting Standards Board, as adopted by the European Union as effective for periods beginning on or after 1 January 2015.
EBT
During the year the company set up an EBT. The EBT is considered an extension of the company's activities and therefore assets (except investments in the company's shares) and liabilities which are the subject of the trust are included in the consolidated accounts on a line-by-line basis. The cost of shares held by the EBT is presented as a separate debit reserve within equity entitled 'own shares held'.
2. Segment analysis
The Group is a provider of recruitment services and conferencing services that is based at the Derby Conference Centre (DCC). The recruitment business comprises three distinct business units - ATA predominantly servicing the UK SME engineering market and a number of vertical markets; GSS servicing the international market and Ganymede supplying labour into safety critical environments, mainly rail.
Segment information is provided below in respect of ATA, GSS, Ganymede and the DCC which, as well as being the head office for the Group, provides hotel and conferencing facilities.
The Group manages the trading performance of each segment by monitoring operating contribution and centrally manages working capital, borrowings and equity.
Revenues are generated from permanent and temporary recruitment in the Recruitment division. Revenue is analysed by origin of customer/point of invoicing and as such all recruitment division revenues are supplied in the United Kingdom. Hotel and conferencing services are wholly provided in the UK at the DCC.
All revenues have been invoiced to external customers. During 2015, one customer in GSS contributed 10% or more of that segment's revenues being GBP5.0m (2014: GBP6.9m) and one customer in Ganymede also contributed 10% or more of that segment's revenues being GBP5.4m (2014: GBP3.4m).
The segment information for the reporting period is as follows:
Six months ended 30 June 2015:
Recruitment Conferencing Total ATA GSS Ganymede DCC Group Unaudited Unaudited Unaudited Unaudited Unaudited GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 ------------------- ----------- ------------- ----------- -------------- ----------- External sales revenue 12,625 5,079 10,982 789 29,475 Cost of sales (9,606) (4,244) (9,223) (369) (23,442) ------------------- ----------- ------------- ----------- -------------- ----------- Gross profit 3,019 835 1,759 420 6,033 Administrative expenses (2,258) (560) (1,116) (412) (4,346) Depreciation (27) - (4) (24) (55) ------------------- Segment profit from operations 734 275 639 (16) 1,632 Amortisation of intangibles (66) Group costs (1,125) ----------- Profit from operations per statement of comprehensive income 441 -----------
Notes to the interim statement
Six months ended 30 June 2015
Six months ended 30 June 2014:
<--------- Recruitment --------> Conferencing Total ATA GSS Ganymede DCC Group Unaudited Unaudited Unaudited Unaudited Unaudited GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 ------------------- ------------ ------------- ----------- -------------- ----------- External sales revenue 11,139 7,040 6,291 798 25,268 Cost of sales (8,683) (5,937) (5,252) (353) (20,225) ------------------- ------------ ------------- ----------- -------------- ----------- Gross profit 2,456 1,103 1,039 445 5,043 Administrative expenses (1,928) (639) (524) (416) (3,507) Depreciation (26) (1) (5) (39) (71) ------------------- ------------ ------------- ----------- -------------- ----------- Segment profit from operations 502 463 510 (10) 1,465 Group costs (998) ----------- Profit from operations per statement of comprehensive income 467 -----------
Year ended 31 December 2014:
<-------- Recruitment --------> Conferencing ATA GSS Ganymede DCC Total Group GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 ------------------- ----------- ----------- ----------- -------------- ------------- External sales revenue 23,867 12,772 12,534 1,759 50,932 Cost of sales (18,703) (10,815) (10,446) (792) (40,756) ------------------- ----------- ----------- ----------- -------------- ------------- Segment gross profit 5,164 1,957 2,088 967 10,176 Administrative expenses (3,858) (1,064) (1,130) (802) (6,854) Depreciation (128) - (9) (69) (206) Segment profit from operations 1,178 893 949 96 3,116 Group costs (2,007) ------------- Profit from operations per statement of comprehensive income 1,109 -------------
All assets and liabilities are held in the United Kingdom.
3. Income tax
Six month Six month Year ended period period 31 December ended 30 ended 30 2014 Audited June 2015 June 2014 Continuing operations Unaudited Unaudited GBP'000 GBP'000 GBP'000 ------------------------------------------- ------------ ------------ --------------- Analysis of tax:- Current tax UK corporation tax 81 52 185 Adjustment in respect of previous period (16) - (15) ------------------------------------------- ------------ ------------ --------------- 65 52 170 Deferred tax Origination and reversal of temporary differences 22 40 48 Intangible asset permanent difference (12) Tax 75 92 218 ------------------------------------------- ------------ ------------ ---------------
Factors affecting the tax expense
The tax assessed for the six month period ended 30 June 2015 is less than would be expected by multiplying profit on ordinary activities by the standard rate of corporation tax in the UK of 20.5% (2014: 21.5%). The differences are explained below:
Six month Six month Year ended period period 31 December ended 30 ended 30 2014 Audited June 2015 June 2014 Unaudited Unaudited Factors affecting tax expense GBP'000 GBP'000 GBP'000 ------------------------------------------- ------------ ------------ --------------- Result for the year before tax 398 405 1,018 ------------------------------------------- ------------ ------------ --------------- Profit multiplied by standard rate of tax of 20.5% (2014: 21.5%) 82 87 214 Non-deductible expenses 21 5 23 Intangible asset permanent difference (12) Utilisation of losses - - (29) Adjustment in respect of previous period (16) - 10 ------------------------------------------- ------------ ------------ --------------- Tax charge for the year 75 92 218 ------------------------------------------- ------------ ------------ --------------- 4. Deferred tax asset Six month Six month Year ended period period 31 December ended 30 ended 30 2014 Audited June 2015 June 2014 Unaudited Unaudited GBP'000 GBP'000 GBP'000 At 1 January 62 110 110 Charge to the profit or loss for the year (22) (40) (48) ----------------------------------------------- ------------ ------------ --------------- At 30 June 40 70 62 ----------------------------------------------- ------------ ------------ --------------- The deferred tax asset is analysed as: Depreciation in excess of capital allowances 40 64 62 Tax losses carried forward - 6 - ----------------------------------------------- ------------ ------------ --------------- 40 70 62 ----------------------------------------------- ------------ ------------ --------------- Unrecognised Tax losses carried forward 83 83 83 ----------------------------------------------- ------------ ------------ --------------- 5. Deferred tax liability Six month Six month Year ended period period 31 December ended 30 ended 30 2014 Audited June 2015 June 2014 Unaudited Unaudited GBP'000 GBP'000 GBP'000 At 1 January 132 - - Charge to the profit or loss for the (12) - - year Addition in year - - 132 ----------------------------------------- ------------ ------------ --------------- At 30 June 120 - 132 ----------------------------------------- ------------ ------------ --------------- The deferred tax liability is analysed as: Liability arising on intangible assets 120 - 132 120 - 132 ----------------------------------------- ------------ ------------ --------------- 6. Dividends
During the period the company paid an interim dividend of GBP67,558 (2014: GBPnil) to its equity shareholders. This represents a payment of 1.0p (2014: nil) per share.
The Directors propose an interim dividend of 1.0p per share (2014: 0.5p). Subject to approval of the Directors, the interim dividend will be paid on 30 November 2015 to shareholders on the register on 6 November.
7. Earnings per share
The calculation of basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year.
The calculation of diluted earnings per share is based on the basic earnings per share adjusted to allow for all dilutive potential ordinary shares.
Basic Diluted Six month Six month Total group Six month Six month Total group period period year ended period period year ended ended ended 31 December ended ended 31 December 30 June 30 June 2014 30 June 30 June 2014 2015 2014 2015 2014 Unaudited Unaudited Audited Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Earnings GBP'000 323 313 800 323 313 800 -------------------- ------------ ------------ -------------- ------------ ------------ -------------- Weighted average number of shares 13,663,126 13,511,626 13,511,626 13,820,904 14,633,961 14,747,458 -------------------- ------------ ------------ -------------- ------------ ------------ -------------- Earnings per share (pence) 2.36p 2.32p 5.92p 2.34p 2.14p 5.42p -------------------- ------------ ------------ -------------- ------------ ------------ --------------
A total of 675,581 own shares held in the EBT have been excluded from the weighted average number of shares above.
8. Analysis of changes in net debt At Cash Other non- At Flows cash movements 1 January 30 June 2015 2015 (Audited) (Unaudited) GBP'000 GBP'000 GBP'000 GBP'000 ---------------------------- ------------ --------- ----------------- -------------- Overdraft and invoice discounting arrangements (3,166) (1,576) - (4,742) Cash 41 117 - 158 ---------------------------- ------------ --------- ----------------- -------------- Net debt (3,125) (1,459) - (4,584) ---------------------------- ------------ --------- ----------------- --------------
The Group has a working capital facility with HSBC PLC that allows it to borrow up to 90% of the invoiced trade debtors of ATA, GSS and Ganymede up to GBP7.0m and an overdraft facility of GBP50,000.
9. Contingent liabilities
Included in current borrowings are bank overdrafts and an invoice discounting facility. During the year the Group has used its bank overdraft and invoice discounting facility, which is secured by a cross guarantee and debenture over the Group companies. There have been no defaults or breaches of interest payable during the current or prior period.
10. Related party transactions
RTC Group Plc is the parent company of the Group that includes the following trading entities that have been consolidated:
ATA Recruitment Limited
The Derby Conference Centre Limited
Ganymede Solutions Limited
ATA Global Staffing Solutions Limited
The Group, as permitted by the scope paragraph of IAS 24, Related Party Disclosures, has not disclosed transactions with other group companies that are eliminated on consolidation in the Group financial statements.
Transactions with related parties not consolidated
The accounts of Accurate Recruitment and Training Services PBT Limited (ATA India), a 90% owned subsidiary of the Group, have not been consolidated as the Directors consider the amounts involved are not material.
During the period ended 30 June 2015 ATA India invoiced ATA Global Staffing Solutions Limited GBP26,544 (2014: GBP30,637) in respect of recruitment support services provided.
At the 30 June 2015 ATA Global Staffing Solutions Limited owed ATA India GBP2,461 (2014: GBP4,131) in respect of recruitment support services provided.
At 30 June 2015 ATA Recruitment Limited was owed GBP13,205 (2014: GBP13,205) by ATA India.
At 30 June 2015 RTC Group PLC was owed GBP8,819 (2014: GBP8,819) by ATA India.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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