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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 | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 82.50 | 80.00 | 85.00 | 82.50 | 82.50 | 82.50 | 5,000 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Employment Agencies | 71.91M | -351k | -0.0240 | -34.38 | 12.08M |
From Apr 2019 to Apr 2024
TIDMRTC
RNS Number : 4597N
RTC Group PLC
09 August 2017
9 August 2017
RTC Group Plc
("RTC", "the Company" or "the Group")
Interim Results for the Six Months Ended 30 June 2017
RTC Group Plc (AIM: RTC.L), the engineering and technical recruitment company, is pleased to announce its unaudited results for the six months ended 30 June 2017.
Highlights:
-- Group revenue from continuing operations: GBP35.1m (2016: GBP34.1m)
-- Group profit from operations (before amortisation of intangibles): GBP0.7m (2016: GBP0.6m)
-- Profit before tax increased by 32% to GBP0.6m: (2016: GBP0.4m) -- Cash inflow from operations GBP0.5m: (2016: GBP1.0m) -- Basic earnings per share 3.58p: (2016: 2.83p)
In line with the Company's progressive dividend policy, the Directors propose an interim dividend of 1.2p per share (2016: 1.1p). Subject to approval of the Directors, the interim dividend will be paid on 30 November 2017 to shareholders on the register on 10 November 2017.
Commenting on the results, Bill Douie, Chairman, said:
"I am pleased to report that the positive start to 2017, to which I alluded in my statement of 26(th) February, has continued throughout the remainder of the first half.
Ganymede continues to perform well and profits have grown in line with expectations. As announced on 25 July 2017, Ganymede Energy, has secured a significant contract with SSE Plc, commencing in November 2017, to source, train and provide dual fuel installers for its Smart-Meter roll-out programme.
ATA, like many companies in its sector, is experiencing tighter market conditions in permanent placements. However, it is growing its contract business ahead of expectations.
Global Staffing Solutions (GSS) continues to maintain its steady presence in Afghanistan and is enjoying promising new client opportunities both there and in other Middle East regions.
The refurbishment at the Derby Conference Centre (part of Central Services) has been completed and the Centre has returned to profitability.
The Directors are confident that trading in the second half of 2017 will be in line with expectations. The Board continues to implement ambitious growth initiatives across all group businesses and looks forward to the remainder of the year with optimism.
The interim report is available on the Company's website www.rtcgroupplc.co.uk.
SEnquiries:
RTC Group Plc Tel: 0133 286 1835 Bill Douie, Chairman Andy Pendlebury, Chief Executive SPARK Advisory Partners Limited Tel: 0203 368 3550 (Nominated Adviser) Matt Davis / Mark Brady www.Sparkadvisorypartners.com Whitman Howard Limited (Broker) Tel: 020 7659 1234 Nick Lovering / Francis North www.Whitman-howard.com
About RTC
RTC has three principal trading subsidiaries engaged in recruitment 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 focused on the supply and operation of blue collar contingent labour into safety critical markets; and
-- GSS predominantly provides managed service solutions for international clients.
www.rtcgroupplc.co.uk
Chairman's statement
Six months ended 30 June 2017
I am pleased to present the interim report of the Company for the six months to 30 June 2017 and to report on another successful half year for the Group.
I am pleased to report that the positive start to 2017, to which I alluded in my statement of 26(th) February, has continued throughout the remainder of the first half.
Ganymede continues to perform well and profits have grown in line with expectations. As announced on 25 July 2017, Ganymede Energy, has secured a significant contract with SSE Plc, commencing in November 2017, to source, train and provide dual fuel installers for its Smart-Meter roll-out programme.
ATA, like many companies in its sector, is experiencing tighter market conditions in permanent placements. However, it is growing its contract business ahead of expectations.
Global Staffing Solutions (GSS) continues to maintain its steady presence in Afghanistan and is enjoying promising new client opportunities both there and in other Middle East regions.
The refurbishment at the Derby Conference Centre (part of Central Services) has been completed and the Centre has returned to profitability.
Dividends
In line with the Company's progressive dividend policy, the Directors propose an interim dividend of 1.2p per share (2016: 1.1p). Subject to approval of the Directors, the interim dividend will be paid on the 30 November 2017 to shareholders on the register on 10 November 2017.
Outlook
The Directors are confident that trading in the second half of 2017 will be in line with market expectations. The Board continues to implement ambitious growth initiatives across all group businesses
and looks forward to the remainder of the year with optimism.
W J C Douie 9 August 2017
Chairman
Finance Director's statement
Six months ended 30 June 2017
Revenue and gross margin
In the period ended 30 June 2017, Group revenue increased by to GBP35.1m (2016: GBP34.1m). Profit before tax increased by 32% to GBP0.6m (2016: GBP0.4m).
Ganymede
Profit from operations (before amortisation of intangibles on acquisition) was consistent with the prior year GBP1.1m (2016: GBP1.1m).
Revenue increased by 2.4%, as Ganymede's Rail division continued to provide Network Rail with contingent labour for maintenance at the top end of their five-year contract value. Ganymede Energy doubled the number of permanent placements made, compared to the same period in 2016 and steadily increased contractor numbers. Due to the change in mix in its Energy business, overall gross margin improved 0.4% from the same period in 2016. Considerable investment has been made in the growth strategies for Ganymede's Rail and Energy divisions.
ATA
Profit from operations was slightly behind the prior year GBP0.5m (2016: GBP0.6m).
Revenue has increased by 6.5% as ATA's strategy to build a much more substantial contract base really starts to deliver results. However, the slow-down in permanent recruitment in UK based engineering that has been seen in other recruitment businesses recent announcements and that was referred to in our 2016 annual report is still hampering absolute growth in permanent performance in ATA. The resulting change in mix between contract and permanent recruitment has led to a slight dip in gross profit for the period. Administrative expenses have been held at 2016 levels.
GSS
Profit from operations was slightly behind the same period prior year GBP0.2m (2016: GBP0.3m).
Revenue decreased by 6.1% as anticipated, with the tightened pricing effective from October 2016 when GSS' key contract in Afghanistan was successfully rebid. Contractors numbers have largely been maintained at 2016 levels and overheads carefully managed. Investment in pursuing new opportunities has been rewarded with a new contract secured to supply candidates for roles in Afghanistan similar to those currently provided.
Central Services
Following the refurbishment of the Derby site in 2016, revenue from the site has increased by 28.2% on the same period last year and administrative costs have been reduced.
Taxation
The total tax charge for the period is estimated at GBP93,000 (2016: GBP60,000). This is lower than would be expected if the standard tax rate was applied to the profits for the period, as explained in note 3.
Finance Director's statement
Six months ended 30 June 2017
Earnings per share
The basic earnings per share figure is 3.58p (2016: 2.83p). The diluted earnings per share 3.39p (2016: 2.71p).
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 GBP1.8m (2016: GBP1.4m). The ratio of current assets to current liabilities was maintained at 1.2x (2016: 1.2x) and the gearing ratio reduced to 1.0 times (2016: 1.2 times). The gearing ratio in 2016 largely reflected 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. Interest cover is 16.9 times (2016: 8.6 times)
Cash flow
Profit from operations of GBP0.6m was nearly all converted to a cash inflow from operations of GBP0.5m, which represented good cash generation. The higher cash inflow in the first half of 2016 of GBP1.0m was largely a result of the marked improvement in debtors during that period.
Financing
The Group's current bank facilities include an overdraft of GBP50,000 and a confidential invoice discounting facility of up to GBP9.0m with HSBC. The Group is currently operating well within its facility cap.
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.
S L Dye 9 August 2017
Group Finance Director
Consolidated statement of comprehensive income
Six months ended 30 June 2017
Hot Features
Premium
Six month Six month Year ended
period period 31 December
ended ended 2016
30 June 30 June
2017 2016
Unaudited Unaudited Audited
Notes GBP'000 GBP'000 GBP'000
------------------------- ------- ----------- ----------- --------------
Revenue 2 35,127 34,062 67,900
Cost of sales 2 (29,126) (28,082) (55,794)
------------------------- ------- ----------- ----------- --------------
Gross profit 2 6,001 5,980 12,106
Administrative
expenses (5,374) (5,474) (10,929)
------------------------- ------- ----------- ----------- --------------
Profit from operations 627 506 1,177
Financing expense (37) (59) (104)
------------------------- ------- ----------- ----------- --------------
Profit before
tax 590 447 1,073
Tax expense 3 (93) (60) (273)
------------------------- ------- ----------- ----------- --------------
Net profit and
total comprehensive
income for the
period 497 387 800
------------------------- ------- ----------- ----------- --------------
Earnings per
ordinary share 5
Basic 3.58p 2.83p 5.80p
------------------------- ------- ----------- ----------- --------------
Diluted 3.39p 2.71p 5.44p
------------------------- ------- ----------- ----------- --------------
Consolidated statement of changes in equity
Six months ended 30 June 2017
Six months ended 30 June 2017:
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
2017 (audited) 145 96 (473) 50 95 3,455 3,368
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Profit and
total comprehensive
income for
the period - - - - 497 497
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Share options
exercised - - - - - -
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Share based
payment
reserve - - - 58 - 58
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
At 30 June
2017 (unaudited) 145 96 (473) 50 153 3,952 3,923
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
The following describes the nature and purpose of each reserve within equity:
Reserve description and purpose
Share capital
Nominal value of share capital subscribed for.
Share premium account
Amount subscribed for share capital in excess of nominal value.
Capital Redemption Reserve
An amount of money that a company in the UK must keep when it buys back shares, and which it cannot pay to shareholders as dividends.
Own shares held
Cost of company's own shares purchased through the EBT Trust shown as a deduction from equity.
Share based payment reserve
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.
Retained earnings
All other net gains and losses and transactions with owners (e.g. dividends) not recognised elsewhere.
Consolidated statement of changes in equity
Six months ended 30 June 2017
Six months ended 30 June 2016:
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
2016 (audited) 143 66 (473) 50 54 3,080 2,920
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Profit and
total comprehensive
income for
the period - - - - - 387 387
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Share options
exercised 2 31 - - (4) 4 33
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Share based
payment
reserve - - - - 15 - 15
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
At 30 June
2016 (unaudited) 145 97 (473) 50 65 3,471 3,355
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Consolidated statement of changes in equity
Six months ended 30 June 2017
Year ended 31 December 2016:
Share Share Own Capital Share Retained Total
capital premium shares redemption based earnings equity
held reserve payment
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------- ---------- --------- ------------- ---------- ----------- ---------
At 1 January
2016 143 66 (473) 50 54 3,080 2,920
---------------------- ---------- ---------- --------- ------------- ---------- ----------- ---------
Total comprehensive
income for
the year - - - - - 800 800
---------------------- ---------- ---------- --------- ------------- ---------- ----------- ---------
Dividends - - - - - (430) (430)
---------------------- ---------- ---------- --------- ------------- ---------- ----------- ---------
Share options
exercised 2 30 - - (5) 5 32
---------------------- ---------- ---------- --------- ------------- ---------- ----------- ---------
Share based
payment
charge - - - - 46 - 46
---------------------- ---------- ---------- --------- ------------- ---------- ----------- ---------
At 31 December
2016 145 96 (473) 50 95 3,455 3,368
---------------------- ---------- ---------- --------- ------------- ---------- ----------- ---------
Consolidated statement of financial position
As at 30 June 2017
Six month Six month Year
period period ended
ended ended 31 December
30 June 30 June 2016
2017 2016 Audited
Unaudited Unaudited
GBP'000 GBP'000 GBP'000
-------------------------------- ------------ ------------ --------------
Assets
Non-current
Goodwill 132 132 132
Other intangible assets 576 670 642
Property, plant and equipment 1,418 1,274 1,260
Deferred tax asset 59 16 33
--------------------------------- ------------ ------------ --------------
2,185 2,092 2,067
Current
Cash and cash equivalents - - 60
Inventories 12 11 12
Trade and other receivables 10,606 10,217 11,183
--------------------------------- ------------ ------------ --------------
Total current assets 10,618 10,228 11,255 Total assets 12,803 12,320 13,322 --------------------------------- ------------ ------------ -------------- Liabilities Current Trade and other payables (4,631) (4,758) (5,429) Corporation tax (141) (180) (132) Current borrowings (4,051) (3,931) (4,289) --------------------------------- ------------ ------------ -------------- Total current liabilities (8,823) (8,869) (9,850) Non-current liabilities Deferred tax liabilities (57) (96) (104) --------------------------------- ------------ ------------ -------------- Net assets 3,923 3,355 3,368 --------------------------------- ------------ ------------ -------------- Equity Share capital 145 145 145 Share premium 96 97 96 Capital redemption reserve 50 50 50 Own shares held (473) (473) (473) Share based payment reserve 153 65 95 Profit and loss account 3,952 3,471 3,455 Total equity 3,923 3,355 3,368 --------------------------------- ------------ ------------ --------------
Consolidated statement of cash flows
Six months ended 30 June 2017
Six month Six month Year
period period ended
ended ended 31 December
30 June 30 June 2016
2017 2016 Audited
Unaudited Unaudited
Notes GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Profit from operations 2 627 506 1,177
Adjustments for:
Depreciation and amortisation 199 150 382
Loss on disposal - - 5
Employee equity settled
share options charge 58 15 46
Change in inventories - 2 1
Change in trade and other
receivables 577 1,510 560
Change in trade and other
payables (955) (1,151) (483)
---------------------------------- ------- ------------ ------------ --------------
Cash inflow from operations 506 1,032 1,688
Income tax paid - - (270)
Net cash inflow from operating
activities 506 1,032 1,418
---------------------------------- ------- ------------ ------------ --------------
Cash flows from investing
activities
Purchases of property,
plant and equipment (291) (1,013) (1,129)
Purchase of intangible
assets - - (79)
Net cash used in investing
activities (291) (1,013) (1,208)
Cash flows from financing
activities
Interest payments (37) (59) (104)
Lease purchase payments - - (11)
Dividends paid - - (430)
Proceeds from exercise
of share options - 33 30
Net cash outflow from financing
activities (37) (26) (515)
---------------------------------- ------- ------------ ------------ --------------
Net increase / (decrease)
in cash and cash equivalents
from operations 178 (7) (305)
---------------------------------- ------- ------------ ------------ --------------
Total net increase / (decrease)
in cash and cash equivalents 178 (7) (305)
---------------------------------- ------- ------------ ------------ --------------
Cash and cash equivalents
at beginning of period (4,229) (3,924) (3,924)
---------------------------------- ------- ------------ ------------ --------------
Cash and cash equivalents
at end of period 6 (4,051) (3,931) (4,229)
---------------------------------- ------- ------------ ------------ --------------
Notes to the interim statement
Six months ended 30 June 2017
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 2016. 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 2016.
b) Basis of preparation
The unaudited interim group financial information of RTC Group PLC is for the six months ended 30 June 2017 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 2016, 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 18 August 2017. No significant events, other than those disclosed in this document, have occurred between 30 June 2017 and this date.
c) Comparatives
The comparative figures for the year ended 31 December 2016 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
There have been no significant changes in the basis upon which policies and estimates have been applied, compared to those applied at 31 December 2016. A full description of our accounting policies is contained with our 2016 Annual Report available on our website.
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 2017.
Notes to the interim statement
Six months ended 30 June 2017
2. Segment analysis
The Group is a provider of recruitment services that has its headquarters at the Derby Conference Centre which is contained within the Central Services segment. The recruitment business comprises three distinct business units - ATA predominantly servicing the UK engineering market; GSS servicing the international market and Ganymede supplying labour into safety critical environments.
Segment information is provided below in respect of ATA, Ganymede, GSS and Central Services which, as well as being the head office and providing all central services for the Group, generates income from excess space at the Derby site including rental 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.
All revenues have been invoiced to external customers. During the first half of 2016, one customer in GSS contributed 10% or more of that segment's revenues being GBP4.8m (2016: GBP5.1m) and one customer in Ganymede also contributed 10% or more of that segment's revenues being GBP11.7m (2016: GBP10.3m).
Notes to the interim statement
Six months ended 30 June 2017
The segment information for the reporting period is as follows:
Six months ended 30 June 2017:
Recruitment Central Total
Unaudited ATA GSS Ganymede Services Group
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- ------------- --------- ---------- ---------- ----------
External sales
revenue 13,674 4,832 15,862 759 35,127
Cost of sales (11,126) (4,319) (13,327) (354) (29,126)
---------------------- ------------- --------- ---------- ---------- ----------
Gross profit 2,548 513 2,535 405 6,001
Administrative
expenses* (1,973) (305) (1,427) (1,470) (5,175)
Amortisation of
intangibles* (24) - (66) - (90)
Depreciation* (16) - (15) (78) (109)
---------------------- ------------- --------- ---------- ---------- ----------
Profit / (loss)
from operations 535 208 1,027 (1,143) 627
---------------------- ------------- --------- ---------- ---------- ----------
Finance expense (37)
---------------------- ------------- --------- ---------- ---------- ----------
Profit before tax 590
---------------------- ------------- --------- ---------- ---------- ----------
Tax expense 93
---------------------- ------------- --------- ---------------------- ----------
*combine to represent administrative expenses of GBP5,374,000 in the consolidated statement of comprehensive income.
All assets and liabilities are held in the United Kingdom.
Six months ended 30 June 2016:
Recruitment Central Total
Unaudited ATA GSS Ganymede Services Group
(Restated**) (Restated**)
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------- ---------- --------- --------------- --------------- ----------
External sales
revenue 12,837 5,147 15,486 592 34,062
Cost of sales (10,206) (4,458) (13,063) (355) (28,082)
------------------------- ---------- --------- --------------- --------------- ----------
Gross profit 2,631 689 2,423 237 5,980
Administrative
expenses* (1,979) (439) (1,350) (1,556) (5,324)
Amortisation of
intangibles* - - (66) - (66)
Depreciation* (36) - (2) (46) (84)
-------------------------
Profit / (loss)
from operations 616 250 1,005 (1,365) 506
Finance expense (59)
Profit before
tax 447
Tax expense 60
----------------------------------------------------------------- --------------- ----------
*combine to represent administrative expenses of GBP5,474,000 in the consolidated statement of comprehensive income.
** Restatement to reflect presentation as at 31 December 2016. Ganymede to include amortisation of intangibles and Derby Conference Centre included as part of Central Services.
All assets and liabilities are held in the United Kingdom.
Notes to the interim statement
Six months ended 30 June 2017
Year ended 31 December 2016:
Recruitment Central Total
Audited ATA GSS Ganymede Services Group
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------- ---------- --------- ---------- ---------- ----------
External sales
revenue 25,692 9,575 31,345 1,288 67,900
Cost of sales (20,469) (8,409) (26,190) (726) (55,794)
-------------------- ---------- --------- ---------- ---------- ----------
Gross profit 5,223 1,166 5,155 562 12,106
Administrative
expenses* (3,854) (787) (2,795) (3,105) (10,541)
Amortisation
of intangibles* (41) - (132) - (173)
Depreciation* (87) (1) (28) (99) (215)
-------------------- ---------- --------- ---------- ---------- ----------
Profit / (loss)
from operations 1,241 378 2,200 (2,642) 1,177
-------------------- ---------- --------- ---------- ---------- ----------
Finance expense (104)
-------------------- ---------- --------- ---------- ---------- ----------
Profit before
tax 1,073
-------------------- ---------- --------- ---------- ---------- ----------
Tax expense (273)
-------------------- ---------- --------- ---------- ---------- ----------
*combine to represent administrative expenses of GBP10,929,000 in the consolidated statement of comprehensive income.
All assets and liabilities are held in the United Kingdom.
Notes to the interim statement
Six months ended 30 June 2017
3. Income tax
Six month Six month Year
period period ended
ended ended 31 December
30 June 30 June 2016
2017 2016 Audited
Continuing operations Unaudited Unaudited
GBP'000 GBP'000 GBP'000
--------------------------- ------------ ------------ --------------
Analysis of tax:
Current tax
UK corporation tax 141 73 235
Adjustment in respect of
previous period - - 35
--------------------------- ------------ ------------ --------------
141 73 270
Deferred tax (29) (13) 3
Adjustment in respect of
previous period (19)
Tax 93 60 273
--------------------------- ------------ ------------ --------------
Factors affecting the tax expense
The tax assessed for the six-month period ended 30 June 2017 is lower than would be expected by multiplying profit on ordinary activities by the standard rate of corporation tax in the UK of 19.25% (2016:20%). The differences are explained below:
Six month Six month Year
period period ended
ended ended 31 December
30 June 30 June 2016
2017 2016 Audited
Unaudited Unaudited
Factors affecting tax expense GBP'000 GBP'000 GBP'000
-------------------------------- ------------ ------------ --------------
Result for the period before
tax 590 447 1,073
-------------------------------- ------------ ------------ --------------
Profit multiplied by standard
rate of tax of 19.25% (2016:
20%) 114 89 215
Non-deductible expenses (1) 4 45
Tax credit on exercise of
options - (23) (22)
Corporation tax rate change (1) (10) -
Adjustment in respect of
previous period (19) - 35
-------------------------------- ------------ ------------ --------------
Tax charge for the period 93 60 273
-------------------------------- ------------ ------------ --------------
Notes to the interim statement
Six months ended 30 June 2017
4. Dividends
During the period, the company made no dividend payments (2016: Nil) to its equity shareholders. This represents a payment of 0.0p (2016: 0.0p) per share.
The Directors propose an interim dividend of 1.2p per share (2016: 1.1p). Subject to approval of the Directors, the interim dividend will be paid on 30 November 2017 to shareholders on the register on 10 November 2017.
5. 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 Six-month Six month
period period period ended period
ended 30 ended 30 June 2017 ended
June 2017 30 June 30 June
2016 2016
Unaudited Unaudited Unaudited Unaudited
Earnings
GBP'000 497 387 497 387
----------------- ------------ ------------ --------------- ------------
Basic weighted
average
number
of shares 13,868,126 13,679,975 13,868,126 13,679,975
----------------- ------------ ------------ --------------- ------------
Dilutive
effect
of share
options - - 792,794 582,545
----------------- ------------ ------------ --------------- ------------
Fully diluted
weighted
average
number
of shares - - 14,660,920 14,262,920
----------------- ------------ ------------ --------------- ------------
Earnings
per share
(pence) 3.58p 2.83p 3.39p 2.71p
----------------- ------------ ------------ --------------- ------------
The basic earnings per share at 31 December 2016 was 5.80p and diluted earnings per share was 5.44p.
Notes to the interim statement
Six months ended 30 June 2017
6. Reconciliation of cash and cash equivalents in cash flow to cash balances in statement of financial position
At Cash and At
1 January cash equivalents 30 June
2017 2017
Audited Unaudited
GBP'000 GBP'000 GBP'000
----------------------------- ------------ ------------------- ------------
Overdraft and invoice
discounting arrangements (4,289) 238 (4,051)
Cash 60 (60) -
----------------------------- ------------ ------------------- ------------
Cash and cash equivalents (4,229) 178 (4,051)
----------------------------- ------------ ------------------- ------------
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 GBP9.0m and an overdraft facility of GBP50,000.
7. Borrowings
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 all Group companies. There have been no defaults or breaches of interest payable during the current or prior period.
8. 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PPMPTMBJMBPR
(END) Dow Jones Newswires
August 09, 2017 02:00 ET (06:00 GMT)
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