RNS Number:3193Q
Staffing Ventures PLC
30 September 2003
Staffing Ventures plc
30 September 2003
Chairman's Statement
For the year ended 31 March 2003
I am pleased to announce our results for the year ended 31 March 2003.
The current year has been one of consolidation for the Group following the
acquisition of the six recruitment businesses in the previous year and has
resulted in an Operating Profit before Exceptional Items and Goodwill
Amortisation of #48,352 (2002: Loss of #353,737) which represents an acceptable
performance given the testing trading environment for recruitment companies over
the last 12-18 months.
Staffing Ventures Recruitment, which incorporates the major acquisition of the
Eagle group of companies last year (and includes the increasingly strong brands
of Wrencare and Sarah Harvey) contributed operating profits of #180,815 towards
central costs and interest. The performance of our other investments in Capital
Healthcare Associates Limited, Next Generation IT Recruitment Limited, Transcend
Recruitment Limited and Bluenose Limited, have performed less successfully and
action is being taken to improve profitability in the current year.
The recruitment market overall is not showing signs of recovery as the general
economy starts to improve. The market remains extremely competitive and it is
the Board's intention to concentrate its efforts into areas of activity where
our businesses offer a specialism and margins remain robust.
The centralisation of back office functions for our owned businesses is complete
and working efficiently and cost-effectively. We have been working during the
year on developing a back office support function to offer to other recruitment
companies and I am delighted to report that "Supporta" was officially launched
on 1 September 2003 and is already receiving interest within the marketplace.
All costs incurred on developing Supporta have been written off directly to the
profit and loss account as an exceptional item.
I can also report that the Group have accepted the resignation of Steve Wilden,
the Group's Chief Executive, who is being replaced by Gavin Kaye, who has
experience in both the healthcare market and in working on public company boards
in finance, operational management and acquisitions. Gavin is preparing a
business plan for the existing businesses to identify how best the Group can
develop a profitable base.
As I reported in December, the Board remain committed to building a profitable
platform for future growth and we remain in discussions with a number of
potential acquisition targets in the back-office and payroll market to
complement our existing group of businesses. It is anticipated that one or more
acquisitions will be made before the end of the current financial year.
I look forward to reporting progress on our existing businesses and to an
exciting year developing the Group.
Bob Holt
Chairman
30 September 2003
Staffing Ventures plc
Consolidated Profit and Loss Account
For the year ended 31 March 2003
Note 31 March 2003 31 March 2002
# #
Turnover 3 9,434,046 1,767,320
Cost of sales (7,315,246) (1,350,080)
Gross profit 3 2,118,800 417,240
Administrative expenses (2,374,193) (769,180)
Operating (loss) / profit 3 (255,393) (351,940)
Operating profit/(loss) before exceptional 48,352 (335,737)
items and goodwill amortisation
Exceptional items (209,595) -
Amortisation of goodwill (94,150) (16,203)
Operating (loss) (255,393) (351,940)
Net interest (84,258) (10,829)
Loss on ordinary activities before (339,651) (362,769)
taxation
Tax on loss on ordinary activities - -
Loss on ordinary activities after taxation (339,651) (362,769)
Equity minority interests 2,634 7,121
Loss transferred from reserves (337,017) (355,648)
Loss per share
Basic and diluted (2002 restated) 2 (7.04p) (16.61p)
There were no recognised gains or losses other than the loss for the financial
year.
Staffing Ventures plc
Consolidated Balance Sheet
For the year ended 31 March 2003
31 March 2003 31 March 2002
# #
Fixed assets
Intangible assets 1,907,624 1,694,428
Tangible assets 111,170 211,541
Investments 329,876 322,032
2,348,670 2,228,001
Current assets
Debtors 1,753,602 1,379,903
Cash at bank and in hand 1,420,941 1,088,512
3,174,543 2,468,415
Creditors: amounts falling due within one (2,796,740) (2,849,026)
year
Net current assets / (liabilities) 377,803 (380,611)
Total assets less current liabilities 2,726,473 1,847,390
Creditors: amounts falling due after
more than one year (70,082) (144,091)
2,656,391 1,703,299
Capital and reserves
Called up share capital 383,761 237,477
Share premium account 3,102,122 1,955,663
Profit and loss account (791,345) (454,328)
Equity shareholders' funds 2,694,538 1,738,812
Minority interests (38,147) (35,513)
2,656,391 1,703,299
1. BASIS OF PREPARATION
The financial statements have been prepared under the historical cost convention
and in accordance with applicable accounting standards.
Basis of consolidation
The group financial statements consolidate those of the company and of its
subsidiary undertakings drawn up to 31 March. Acquisitions of subsidiaries are
dealt with by the acquisition method of accounting.
Investments in participating interests
A participating interest is an interest of a member of the group in the shares
of another undertaking which it holds on a long-term basis in order to secure a
contribution to its activities by the exercise of control or influence arising
from or relating to that interest.
Goodwill
Goodwill arising on consolidation representing the excess of the fair value of
the consideration given over the fair values of the identifiable net assets
acquired, is capitalized and is amortised on a straight line basis over its
estimated useful economic life of 20 years.
2. LOSS PER SHARE
Basic loss per share is based on equity losses of #337,017 and 4,789,635
ordinary shares 5p each, being the average number of shares in issue during the
year.
In 2002 the basic loss per share was based on equity losses of #355,648 and
2,140,625 re-based ordinary shares of 5p each. The above number of shares have
been adjusted to reflect the 1 for 100 share consolidation that took place on 24
March 2003.
3. OPERATING LOSS
The Operating Loss for the year ended 31 March 2002 is split between Continuing
Operations and Acquisitions as follows:
31 March 2002
Continuing Total
Operations Acquisitions
# # #
Turnover 48,000 1,719,320 1,767,320
Cost of sales - (1,350,080) (1,350,080)
Gross profit 48,000 369,240 417,240
Administrative expenses (432,798) (336,382) (769,180)
Operating (loss) / profit (384,798) 32,858 (351,940)
4. PUBLICATION OF STATUTORY ACCOUNTS
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in section 240 of the Companies Act
1985. The figures for the year ended 31 March 2003 have been extracted from the
statutory financial statements. Those financial statements have not yet been
delivered to the Registrar.
END
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