Prime People PLC
23 November 2007
23 November 2007
Prime People Plc
Interim Results for the six months ended 30 September 2007
Prime People Plc ('Prime People' or the 'Group'), the international real estate,
infrastructure and commercial property recruitment specialist, today announces
its interim results for the year half ended 30 September 2007.
Highlights:
---------------------- ----------- ----------- --------
Gross fee income £11.97m £9.29m + 29%
Net fee income £7.11m £4.91m + 45%
Pre-tax profit £1.02m £0.78m + 31%
Fully diluted earnings per share 5.63p 4.40p + 28%
Interim dividend* 1.35p 1.25p + 8%
---------------------- ----------- ----------- --------
*The interim dividend will be paid on 21 December 2007 to shareholders on the
register on 7 December 2007
Peter Moore Managing Director of Prime People, commented:
'I am very pleased with this set of results, which reflect continued growth in
the UK and excellent progress on our international expansion strategy. Demand
for our services remained solid through the period, driven by the ongoing
pipeline of major UK infrastructure projects and, in commercial property
internationally, by the demand for increasingly sophisticated expertise in
property management and investment. We anticipate that there will continue to be
opportunities for good organic growth both in the UK and internationally.
'Looking forward, our order books are at record levels, but we are mindful of
the current macroeconomic environment and will manage our operations as future
circumstances may require. However, I have confidence that our continued
commitment to the globalisation of our business and our market leading position
will provide access to further opportunities for good growth.'
-Ends-
For further information please contact:
Prime People 020 74935689
Robert Macdonald, Executive Chairman
Peter Moore, Managing Director
Hogarth Partnership 020 7357 9477
James Longfield
Arbuthnot Securities 020 7012 2000
Andrew Fullerton
Ian Williams
Prime People plc
Interim Results for the six months ended 30 September 2007
Chairman's Statement
Introduction
I am pleased to report the results for Prime People for the half year ended 30
September 2007, with continuing good progress made in our core UK market as well
as on our international expansion strategy. Our principal business activity is
the provision of recruitment services to the UK and international real estate,
infrastructure and commercial property sectors. This activity is operated
through our main trading subsidiary, Macdonald & Company.
Reflecting the positive conditions in the half year within the markets the Group
serves, gross fee income increased 29 per cent to £11.97 million (2006: £9.29
million). This translated to net fee income ('NFI') for the half year of £7.11
million, a 45 per cent increase on the previous year (2006: £4.91 million).
Pre tax profit for the half year was £1.02 million, which is a 31 per cent
increase on the pre tax profit for the previous half year of £0.78 million.
Fully diluted earnings per share for the period have increased by 28 per cent to
5.63p from 4.40p in 2006.
In the UK, demand for property professionals remained strong in the period being
reported. The people we place are involved in the investment, development and
management of all types of property asset. Our main revenues are generated from
placing permanent and contract staff who are specialists in disciplines such as
fund management, investment, development and financing, project management,
quantity surveying and building surveying, facilities management, town and
country planning, architecture and social housing. With a steady pipeline of
development, infrastructure and regeneration projects already committed to in
the UK and in the Middle and Far East, we currently continue to see strong
demand for candidates. Our recently established architecture and social housing
businesses have strengthened our offering and provide good opportunities for
future revenue growth.
The fulfilment of our plans to broaden the Group's business overseas in the
Middle and Far East, Australasia and Africa have made a substantial contribution
to our half year outcome and our overseas offices, accessing areas of continuing
high economic growth, are expected to provide strong support to performance in
the second half. In the period being reported, the four overseas offices
contributed 21 per cent of Group NFI (2006: 6 per cent). We expect NFI derived
from these offices to continue to increase as a proportion of total NFI in the
years ahead.
Chairman's Statement (continued)
Dividend
The Board declares an interim dividend of 1.35p per ordinary share (2006:1.25p).
This will be paid on 21 December 2007 to shareholders on the register on 7
December 2007.
Results summary
The net fee income split is:
--------------------- ------------ ----------- ---------
Permanent
-UK 4,358 3,352 +30%
-International 1,519 310 +390%
--------------------- ------------ ----------- ---------
5,877 3,662 +60%
Temporary (UK only) 1,063 1,065 -
Other 172 182 -5%
--------------------- ------------ ----------- ---------
Total 7,112 4,909 +45%
--------------------- ------------ ----------- ---------
Longer-term growth opportunities
In pursuing our overall growth strategy, we continue to focus on organic
expansion - adding new consultants in existing and complementary areas in the UK
and internationally. The opening of further offices in new overseas locations is
being investigated.
Outlook
The performance of the Group in the year to date has been encouraging and in
line with our expectations, with both our international and UK operations
continuing to perform well.
Whilst our order books and business are at record levels, we are mindful of the
current macroeconomic environment and will manage operations as future
circumstances may require. However, we have confidence that our continued
commitment to the globalisation of our business and our market leading position
will provide access to further opportunities for good growth.
R J G Macdonald
Executive Chairman
23 November 2007
Consolidated income statement
for the six months ended 30 September 2007 (unaudited)
________________________________________________________________________________
Notes Six months Six months Year
ended ended ended
30 September 30 September 31 March
2007 2006 2007
£000 £000 £000
Continuing operations
Gross fee income 11,966 9,289 20,179
Direct costs (4,854) (4,380) (9,344)
---------- ---------- ---------
Net fee income 7,112 4,909 10,835
Administrative expenses (6,044) (4,088) (8,748)
---------- ---------- ---------
Operating profit 1,068 821 2,087
Interest receivable and
similar income 1 5 18
Interest payable and
similar charges 2 (49) (50) (96)
---------- ---------- ---------
Profit before taxation 1,020 776 2,009
Taxation 3 (306) (247) (665)
---------- ---------- ---------
Profit for the period 714 529 1,344
---------- ---------- ---------
Profit attributable to
equity shareholders 714 529 1,344
========== ========== =========
Earnings per share 5
- Basic 5.94p 4.56p 11.38
- Diluted 5.63p 4.40p 10.93p
========== ========== =========
Consolidated statement of changes in shareholders equity
for the six months ended 30 September 2007 (unaudited)
Called up Share Shares to be Share premium Other reserve Share option Retained Total
capital issued account reserve earnings
£'000 £'000 £'000 £'000 £'000 £'000 £'000
-------- ------- -------- ------- ------- -------- -------
At 1 1,084 1,000 6,214 173 - 1,816 10,287
April
2006
===
New
shares 119 (1,000) 881 - - - -
issued
Profit
for the - - - - - 529 529
period
Share
option - - - - 23 - 23
charge
Equity
dividends - - - - - (120) (120)
-------- ------- -------- ------- ------- -------- -------
At 30
September 1,203 - 7,095 173 23 2,225 10,719
2006
Profit
for the - - - - - 815 815
period
Share
option - - - - 55 - 55
charge
Equity
dividends - - - - - (151) (151)
-------- ------- -------- ------- ------- -------- -------
At 31
March 1,203 - 7,095 173 78 2,889 11,438
2007
Profit
for the - - - - - 714 714
period
Share
option - - - - 26 - 26
charge
Equity
dividends - - - - - (271) (271)
-------- ------- -------- ------- ------- -------- -------
At 30
September 1,203 - 7,095 173 104 3,332 11,907
2007 ======== ======= ======== ======= ======= ======== =======
Consolidated balance sheet
at 30 September 2007 (unaudited)
As at As at As at
30 September 30 September 31 March
2007 2006 2007
£'000 £'000 £'000
Assets
Non-current assets
- Intangible assets 9,769 9,769 9,769
- Property, plant and equipment 341 281 316
- Deferred tax asset 141 70 91
---------- ---------- ----------
10,251 10,120 10,176
---------- ---------- ----------
Current assets
Trade and other receivables 5,907 3,838 4,601
Cash and cash equivalents 260 35 304
---------- ---------- ----------
6,167 3,873 4,905
---------- ---------- ----------
Total assets 16,418 13,993 15,081
---------- ---------- ----------
--- ---
Liabilities
Current liabilities
--- ---
Financial liabilities - borrowings 916 394 308
Trade and other payables 2,353 1,654 2,034
Current tax liabilities 542 246 461
---------- ---------- ----------
=== ===
3,811 2,294 2,803
---------- ---------- ----------
=== ===
Non current liabilities
===
Financial liabilities - borrowings 700 980 840
---------- ---------- ----------
700 980 840
---------- ---------- ----------
Total liabilities 4,511 3,274 3,643
---------- ---------- ----------
Net assets 11,907 10,719 11,438
========== ========== ==========
--- ---
Capital and reserves
=== ===
Called up share capital 1,203 1,203 1,203
Share premium account 7,095 7,095 7,095
Other reserve 173 173 173
Share option reserve 104 23 78
Retained earnings 3,332 2,225 2,889
---------- ---------- ----------
=== ---
Equity shareholders' funds 11,907 10,719 11,438
========== ========== ==========
Consolidated Cash Flow Statement
for the six months ended 30 September 2007(unaudited)
Notes Six months Six months Year
ended ended ended
30 September 30 September 31 March
2007 2006 2007
£'000 £'000 £'000
Cash flows from operating
activities
Cash generated by operations 6 177 270 1,266
Corporation tax paid (275) (300) (525)
--- ---------- ---------- ----------
Net cash (used)/from
operating activities (98) (30) 741
---------- ---------- ----------
Cash flows from investing
activities
Interest received 1 4 18
Interest paid (49) (50) (96)
Disposal of investment held
for resale - 178 178
Net purchase of property,
plant and equipment (95) (70) (164)
---------- ---------- ----------
Net cash (used)/from
investing activities (143) 62 (64)
---------- ---------- ----------
Cash flows from financing
activities ---
Repayment of borrowings (140) (140) (280)
Capital element of hire purchase
obligations (3) (4) (7)
Dividends paid to shareholders (271) (120) (271)
---------- ---------- ----------
Net cash used in financing
activities (414) (264) (558)
---------- ---------- ----------
=== ===
=== ===
Net (decrease)/increase in cash
and cash equivalents (655) (232) 119
===
Cash and cash equivalents at start
of period 279 160 160
---------- ---------- ----------
=== ===
(Net debt)/cash and cash
equivalents
at end of period (376) (72) 279
========== ========== ==========
=== === ===
Notes to the Interim Financial Statements
for the six months ended 30 September 2007(unaudited)
1. Accounting Policies
The consolidated interim financial statements are for the six months ended 30
September 2007. They have been prepared in accordance with International
Financial Reporting Standards (IFRS) using the same accounting policies as those
used in the preparation of the accounts for the year ended 31 March 2007.
2. Interest
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2007 2006 2007
£'000 £'000 £'000
Interest expense:
Interest payable on bank borrowings 49 49 95
Interest payable on finance leases - 1 1
---------- ---------- ----------
49 50 96
========== ========== ==========
3. Taxation on profit on ordinary activities
Taxation has been provided by applying the standard rate of corporation tax in
the UK.
4. Dividends
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2007 2006 2007
£'000 £'000 £'000
Final dividend for 2006 of 1.00 pence
per share - 120 120
Interim dividend for 2007 of
1.25 pence per share - - 151
Final dividend for 2007 of
2.25 pence per share 271 - -
---------- ---------- ----------
271 120 271
========== ========== ==========
An interim dividend for 2008 of 1.35 pence per ordinary share will be paid on 21
December 2007 to those shareholders whose names are on the register on 7
December 2007.
Notes to the Interim Financial Statements (continued)
for the six months ended 30 September 2007 (unaudited)
5. Earnings per share
Earnings per share (EPS) has been calculated in accordance with IAS 33 'Earnings
per share' and is calculated by dividing the profit attributable to ordinary
shareholders by the weighted average number of ordinary shares in issue during
the period.
Earnings and weighted average number of shares used in the calculations are
shown below:
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2007 2006 2007
£'000 £'000 £'000
Retained profit for basic earnings
per share 714 529 1,344
========== ========== ==========
Number Number Number
'000 '000 '000
Weighted average number of shares used
for
basic and continuing earnings per
share 12,029 11,593 11,810
Dilutive effect of share options and
shares
to be issued 653 434 483
---------- ---------- ----------
Diluted weighted average number of
shares ---------- ---------- ----------
used for diluted earnings per share 12,682 12,027 12,293
========== ========== ==========
Pence Pence Pence
Basic diluted earnings per share 5.94p 4.56p 11.38p
Diluted earnings per share 5.63p 4.40p 10.93p
Notes to the Interim Financial Statements (continued)
for the six months ended 30 September 2007 (unaudited)
6. Reconciliation of operating profit to net cash inflow from operating
activities
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2007 2006 2007
£'000 £'000 £'000
Operating profit 1,068 821 2,087
Depreciation 69 49 108
Share option reserve movement 26 23 78
Increase in debtors (1,306) (505) (1,268)
Increase/(decrease) in creditors 320 (118) 261
---------- ---------- ---------
Net cash inflow from operating
activities 177 270 1,266
========== ========== =========
7. Nature of the financial information
The interim financial information for the six months ended 30 September 2007,
was approved by the board on 23 November 2007.
The financial information set out above does not constitute full accounts within
the meaning of Section 240 of the Companies Act 1985. The comparative results
for the year ended 31 March 2007 have been extracted from the Group's financial
statements for that period which have received an unqualified audit report and
have been filed with the Registrar of Companies.
A copy of the interim results will be available on the company's website:
www.prime-people.co.uk
This information is provided by RNS
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