RNS Number:3079P
Prime People PLC
03 September 2003
For Immediate release 3rd September 2003
Prime People Plc
Interim results for the six months ended 30 June 2003
(Operations: principally specialist recruitment of senior managers for the
leisure industry, together with a related training business)
KEY POINTS
* Hotel and leisure sector recruitment continues to be very difficult
* The Group records disappointing results
* Operating loss from continuing operations of #367,157 (2002: profit of
#183,441), which includes a one off payment of #298,206 made to the Chief
Executive who resigned on 30 April 2003
* A small operating loss from discontinued operations of #7,870 (2002: loss
of #10,348)
* Share of operating loss of #79,133 from associate company Cameron Kennedy
comparable to previous period's loss of #83,914
* The Group retains a strong balance sheet with net cash funds of #0.83m
(2002: #1m)
Richard Lee, Chairman of Prime People commented:-
"Despite some signs of stability, trading for the remainder of the year is
expected to continue to be difficult. Portfolio International continues to be a
leading player in its sector and remains well placed to take advantage of any
sector upturn when it does arise."
Press enquiries:-
Press enquiries
Richard Lee, Chief Executive, Prime People Plc 020 7520 5000
Chris Heayberd, Finance Director, Prime People Plc 020 7520 5000
Prime People Interim Report 2003
Chairman's Statement
________________________________________________________________________________
Chairman's statement
As indicated in my statement at the time of the Annual General Meeting, the
results for the first half of the year show a significant downturn in trading.
Turnover for the period is some 27% down on the same period last year, falling
from #2.1m to #1.5m, and, as a consequence the group has incurred a significant
loss on ordinary activities before taxation of #443,135 (2002: profit of
#75,904). A substantial portion of this loss arose from the contractual
termination payment of #298,206 made to Mr Coubrough, who resigned as Chief
Executive of the group on 30th April.
Portfolio International, our hotel and leisure related management recruitment
business operates in a market place which is currently difficult and uncertain
for reasons well documented in the press. Portfolio's international division has
experienced significant problems and is unlikely to see any marked improvement
in the foreseeable future. The leisure division continues to show some buoyancy
and we will continue to invest in this area, whilst recruitment in the hotel
sector remains flat.
Harper Craven, our training business started the year slowly. However, the
second half of the year has seen improved activity.
Our associate company, Cameron Kennedy, continues to find trading difficult in
the financial services sector in which it operates. Our share of losses amounted
to #79,133 (2002: loss of #83,914). There is unlikely to be an improvement in
their results in the second half of the year.
Despite some signs of stability, trading for the remainder of the year continues
to be difficult. We shall continue to keep a tight control on overheads.
Portfolio International continues to be a leading player in its sector and
remains well placed to take advantage of any sector upturn when it does arise.
On behalf of shareholders and the board I would like to thank our employees for
their commitment during a difficult time for the group.
RICHARD E M LEE
Chairman
3rd September 2003
Prime People Interim Report 2003
Consolidated Profit and Loss Account
for the six months ended 30 June 2003
_________________________________________________________________________________________________________________
Six months Six months Year
Ended Ended Ended
30 June 30 June 31 December
2003 2002 2002
Notes Unaudited Unaudited Audited
# # #
Turnover
- Continuing operations 1,508,855 2,062,752 3,933,886
- Discontinued operations 26,166 113,571 168,348
___________ ___________ ___________
1,535,021 2,176,323 4,102,234
Cost of Sales
___________ ___________ ___________
- Continuing operations (81,925) (82,600) (169,285)
- Discontinued operations (546) (2,522) (3,366)
___________ ___________ ___________
(82,471) (85,122) (172,651)
___________ ___________ ___________
Gross Profit 1,452,550 2,091,201 3,929,583
Administrative expenses (1,827,577) (1,918,108) (3,608,981)
___________ ___________ ___________
Group operating (loss) / profit
___________ ___________ ___________
- Continuing operations (367,157) 183,441 348,878
- Discontinued operations (7,870) (10,348) (28,276)
___________ ___________ ___________
(375,027) 173,093 320,602
Share of operating loss in associate (79,133) (83,914) (53,522)
Loss arising from dilution of interest in
associates - (20,250) (20,250)
Amortisation of goodwill (6,000) (6,000) (12,000)
___________ ___________ ___________
(Loss) / profit on ordinary activities before
interest (460,160) 62,929 234,830
Interest receivable and similar income 17,025 13,511 32,452
Interest payable and similar charges - (536) (536)
___________ ___________ ___________
(Loss) / profit on ordinary activities before
taxation (443,135) 75,904 266,746
Tax on (loss) / profit on ordinary activities 2 85,935 (26,839) (91,906)
___________ ___________ ___________
(Loss) / profit on ordinary activities after
taxation transferred to reserves
5 (357,200) 49,065 174,840
(Loss) / earnings per ordinary share
___________ ___________ ___________
- Basic 4 (0.97)p 0.13p 0.48p
- Diluted (0.97)p 0.13p 0.48p
___________ ___________ ___________
Prime People Interim Report 2003
Consolidated Balance Sheet
at 30 June 2003
_________________________________________________________________________________________________________________
30 June 30 June 31 December
2003 2002 2002
Notes Unaudited Unaudited Audited
# # #
fixed assets
Tangible assets 80,746 200,670 142,449
Investment in associate 552,454 615,377 630,652
___________ ___________ ___________
633,200 816,047 773,101
Current assets
Debtors 1,022,827 1,381,653 1,235,628
Cash at bank and in hand 845,282 1,077,259 1,228,340
___________ ___________ ___________
1,868,109 2,458,912 2,463,968
Creditors: Amounts falling due within one year (388,397) (980,620) (796,955)
___________ ___________ ___________
Net current assets 1,479,712 1,478,292 1,667,013
___________ ___________ ___________
Net assets 2,112,912 2,294,339 2,440,114
___________ ___________ ___________
Capital and reserves
Called up share capital 368,467 363,467 363,467
Share premium account 5 909,925 864,925 884,925
Merger reserve 5 173,077 173,077 173,077
Profit and loss account 5 661,443 892,870 1,018,645
___________ ___________ ___________
Shareholders' funds 6 2,112,912 2,294,339 2,440,114
___________ ___________ ___________
Prime People Interim Report 2003
Consolidated Cash Flow Statement
for the six months ended 30 June 2003
_________________________________________________________________________________________________________________
Six months Six months Year
Ended ended ended
30 June 30 June 31 December
2003 2002 2002
Notes Unaudited Unaudited Audited
# # #
Net cash (outflow) / inflow from operating
activities 7 (367,071) 406,541 502,582
Return on investment and servicing of finance
Interest received 17,025 13,511 32,452
___________ ___________ ___________
Interest paid - (536) (536)
17,025 12,975 31,916
Taxation - - (7,963)
Capital expenditure and financial investment
Purchase of tangible fixed assets
(11,750) (20,176) (33,313)
Sale of tangible fixed assets
6,500 23,011 30,300
___________ ___________ ___________
(5,250) 2,835 (3,013)
___________ ___________ ___________
Net cash (outflow) / inflow before management of
liquid resources and financing (355,296) 422,351 523,522
Management of liquid resources
Sale / (purchase) of treasury deposits 285,000 (510,000) (600,000)
Financing
Capital element of finance lease payments - (9,620) (13,828)
Issue of ordinary share capital
30,000 - -
___________ ___________ ___________
Decrease in cash 8 (40,296) (97,269) (90,306)
___________ ___________ ___________
Prime People Interim Report 2003
Notes To The Interim Financial Statements
for the six months ended 30 June 2003
________________________________________________________________________________
1. Accounting Policies
The interim results have been prepared on the same basis and using the same
accounting policies as those used in the preparation of the accounts for
the year ended 31 December 2002.
2. Taxation on profit on ordinary activities Group
2003 2002
# #
UK corporation tax repayable / (payable) 79,000 (53,000)
Share of associate's tax 6,935 26,161
________ ________
85,935 (26,839)
________ ________
3. Dividends
The directors recommend that no interim dividend be paid.
4. Loss per share
The loss per share is calculated based on a weighted average number of
shares of 36,846,692 (2002: 36,346,692) and the loss of #357,200 (2002:
profit of #49,065) giving a loss per share of 0.97p (2002: earning per
share of 0.13p).
Diluted loss per share is based on the above earnings and adjusts the basic
weighted average number of shares to 36,866.861 (2002: 36,616,783) as a
result of dilutive share options, giving a loss per share of 0.97p (2002:
earning per share of 0.13p).
The weighted average number of shares in issue calculated under the
different methods reconcile as follows:-
30th June 30th June 31st December
2003 2002 2002
Unaudited Unaudited Audited
# # #
Basic 36,846,692 36,346,692 36,346,692
Number of shares under option 500,000 1,043,298 1,043,298
Number of shares which would have been issued
at fair value (479,831) (773,207) (818,609)
___________ ___________ ___________
36,866,861 36,616,783 36,571,381
___________ ___________ ___________
Prime People Interim Report 2003
Notes To The Interim Financial Statements
continued
____________________________________________________________________________________________________________
5. Reserves
Share Premium Merger Profit and Loss
Account Reserve Account
# # #
At 1 January 2003 884,925 173,077 1,018,643
Premium on share options exercised in period 25,000 - -
Transfer from Profit and Loss Account - - (357,200)
___________ __________ ___________
At 30 June 2003 909,925 173,077 661,443
___________ __________ ___________
6. Reconciliation of movement in shareholders' funds
30 June 2003 30 June 2002 31 December 2002
Unaudited Unaudited Audited
# # #
(Loss) / profit for the period (357,200) 49,065 174,840
Issue of share capital 30,000 - -
Release of accruals in respect of issue costs - - 20,000
___________ __________ ___________
(327,200) 49,065 194,840
Opening shareholders' funds 2,440,112 2,245,274 2,245,274
___________ __________ ___________
Closing shareholders' funds 2,112,912 2,294,339 2,440,114
___________ __________ ___________
7. Reconciliation of operating (loss) / profit to net cash inflow from
operating activities
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2003 2002 2002
Unaudited Unaudited Audited
# # #
Group operating (loss) / profit (375,027) 173,093 320,602
Depreciation 47,994 80,653 151,205
Loss / (profit) on sale of tangible fixed assets 18,959 ( 813) (7,296)
Decrease / (Increase) in debtors 212,799 (185,800) (39,775)
(Decrease) / Increase in creditors (271,796) 339,408 77,846
___________ __________ ___________
Net cash (outflow) / inflow from operating
activitie (367,071) 406,541 502,582
___________ __________ ___________
Prime People Interim Report 2003
Notes To The Interim Financial Statements (Continued)
continued
____________________________________________________________________________________________________________
8. Reconciliation of net cash outflow to movement in net funds
Six months Six months Year
ended ended ended
30 June 2003 30 June 2002 31 December
Unaudited Unaudited 2002
Audited
# # #
Decrease in cash in the period (40,296) (97,269) (90,306)
Cash outflow from decrease in financing - 9,620 13,828
Cash (inflow) / outflow from (decrease) / increase
in liquid resources (285,000) 510,000 600,000
___________ __________ ___________
Increase in net funds resulting from cash flows (325,296) 422,351 523,522
Opening net funds 1,156,626 633,104 633,104
___________ __________ ___________
Closing net funds 831,330 1,055,455 1,156,626
___________ __________ ___________
9. Analysis of net funds
At 1 January Cash flow At 30 June
2003 2003
# # #
Cash at bank and in hand 128,340 (98,058) 30,282
Bank Overdraft (71,714) 57,762 (13,952)
___________ __________ ___________
56,626 (40,296) 16,330
Liquid resources 1,100,000 (285,000) 815,000
___________ __________ ___________
TOTAL 1,156,626 (325,296) 831,330
___________ __________ ___________
Prime People Interim Report 2003
Notes To The Interim Financial Statements (Continued)
continued
________________________________________________________________________________
10. Nature of the financial information
The interim financial information for the six months ended 30 June 2003,
was approved by the board on 2nd September 2003.
The financial information set out above does not constitute full accounts
within the meaning of Section 254 of the Companies Act 1985. The results
for the year to 31 December 2002 are extracts from the published accounts
for that year which have received an unqualified audit report and have
been filed with the Registrar of Companies.
Copies of the interim results are being sent to shareholders. Further
copies can be obtained from the company's registered office at: 5 Bream's
Buildings, Chancery Lane, London EC4A 1DY.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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