Interim Results
PRIME PEOPLE PLC
14 September 1999
PRIME PEOPLE DOUBLES PROFIT AT INTERIM STAGE:
PRESENT TRADING CONTINUES TO ENCOURAGE
A more than doubling of pre-tax profit to £450,486 (£216,946) at the June 30
interim stage is announced today by Prime People Plc, the specialist leisure
industry recruitment and training group. Turnover on continuing operations rose
23p.c. to £1.72m (£1.4m).
First half results were helped by a continued improvement in trading performance
at Portfolio International the permanent recruitment business which operates in
the hospitality sector. The contribution from Prime People's share of profit in
financial recruitment consultancy, Cameron Kennedy Associates, bolstered trading
figures by £205,000 against a contribution of £272,591 for last year. Harper
Craven, the sales training division, continued to perform well.
Chairman Mr. Richard Lee comments: 'Present trading is continuing to encourage
us and we look forward to another satisfactory outcome for the full year. With
significant cash balances in hand and continuing profitability we are in a good
position to make further acquisitions and investments where we believe they will
be appropriate for the continued steady growth of the company'.
Following the receipt of £835,000 received from the sale of Sherwoods, group
cash at 30th June stood at £1.4m compared with £0.5m at 31 December, 1998.
Earnings per share are stated at 0.87p (0.46p).
For furtber information, please contact:
David Coubrough
Group Chief Executive
0171 520 5000
A printed copy of the Interim Report will be sent out to all shareholders next
week.
Prime People Interim Report 1999
Consolidated Profit and Loss Account
for the six months ended 30 June 1999
Notes Six months Six months Year
ended ended ended
30 June 30 June 31 December
1999 1998 1998
Unaudited Unaudited Audited
£ £ £
Turnover
- continuing operations 1,722,439 1,399,912 2,781,771
- discontinued operations - 748,416 1,457,585
1,722,439 2,148,328 4,239,356
Cost of sales (97,122) (575,998) (1,093,320)
Gross profit 1,625,317 1,572,330 3,146,036
Administrative expenses (1,405,333) (1,363,284) (2,699,838)
Group operating profit
- continuing operations 219,984 171,732 373,882
- discontinued operations - 37,314 72,316
219,984 209,046 446,198
Share of operating profit
in associate 205,000 - 272,591
Total operating profit 424,984 209,046 718,789
Profit on sale of
discontinued operation - - 581,679
Interest receivable and
similar income 27,388 9,804 22,766
Interest payable and
similar charges (1,886) (1,904) (4,785)
Profit on ordinary activities
before taxation 450,486 216,946 1,318,449
Tax on profit on ordinary
activities 2 (133,000) (48,000) (124,614)
Profit on ordinary activities
after taxation 317,486 168,946 1,193,835
Dividends - - -
Retained profit for the period
transferred to reserves 4 317,486 168,946 1,193,835
Earnings per ordinary share
- Basic and diluted 3 0.87p 0.46p 3.33p
Consolidated Balance Sheet
30 June 1999
Notes 30 June 30 June 31 December
1999 1998 1998
Unaudited Unaudited Audited
£ £ £
Fixed assets
Tangible assets 160,095 170,754 152,186
Investments 30,000 30,000 30,000
Interest in associated
undertaking 494,977 - 353,977
685,072 200,754 536,163
Current assets
Work in progress 243,096 354,226 209,491
Debtors 931,591 1,087,829 1,656,131
Cash at bank and in hand 1,410,348 544,890 565,915
2,585,035 1,986,945 2,431,537
Creditors: Amounts falling
due within one year (745,056) (1,009,729) (755,885)
Net current assets 1,839,979 977,216 1,675,652
Creditors: Amounts falling
due after one year (8,523) (3,817) (12,773)
Net assets £2,516,528 £1,174,153 £2,199,042
Capital and reserves
Called up share capital 4 363,467 363,467 363,467
Share premium account 4 864,925 864,925 864,925
Merger reserve 4 816,536 816,536 816,536
Profit and loss account 4 471,600 (870,775) 154,114
Shareholders' funds 5 £2,516,528 £1,174,153 £2,199,042
Consolidated Cash Flow Statement
for the six months ended 30 June 1999
Notes Six months Six months Year
ended ended ended
30 June 30 June 31 December
1999 1998 1998
Unaudited Unaudited Audited
£ £ £
Net cash inflow from
operating activities 6 33,799 344,828 730,878
Return on investments and
servicing of finance
Interest received 27,382 9,804 24,007
Interest element of finance
lease rental payments (1,880) (1,904) (4,785)
25,502 7,900 19,222
Capital expenditure and
financial investment
Purchase of tangible fixed
assets (69,281) (77,364) (84,913)
Receipts from sales of tangible
fixed assets 20,000 - 18,462
Purchase of minority interests
in subsidiary undertaking - - (23,132)
(49,281) (77,364) (89,583)
Acquisitions and disposals
Purchase of interest in
associated undertaking - - (166,500)
Sale of subsidiary undertaking 835,000 - 20,000
Cash disposed of in sale of
subsidiary - - (40,866)
835,000 - (187,366)
Net cash inflow before financing 845,020 275,364 473,151
Financing
Capital element of finance
lease contracts (9,828) (9,650) (23,619)
Net cash outflow from financing (9,828) (9,650) (23,619)
Increase in cash 7 £835,192 £265,714 £449,532
Notes to the Interim Financial Statements
for the six months ended 30 June 1999
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 1998.
2. Taxation
Taxation has been provided for at 30% (1998: 21%).
3. Earnings per share
Earnings per share have been calculated by dividing profit on ordinary
activities after taxation by 36,346,692 (1998: 36,346,692) ordinary shares being
the weighted average number of ordinary shares in issue.
4. Reserves
Share Merger Profit and
Premium Reserve Loss
Account Account
£ £ £
At 1 January 1999 864,925 816,536 154,114
Retained profit for the period - - 317,486
At 30 June 1999 £864,925 £816,536 £471,600
5. Reconciliation of movement in shareholders' funds
30June 30June 31 December
1999 1998 1998
Unaudited Unaudited Audited
£ £ £
Profit for the period 317,486 168,946 1,193,835
Opening shareholders' funds 2,199,042 1,005,207 1,005,207
Closing shareholders' funds £2,516,528 £1,174,153 £2,199,042
6. Reconciliation of operating profit to net cash inflow from operating
activities
Six months Six months
ended ended
30 June 30 June
1999 1998
Unaudited Unaudited
£ £ £ £
Continuing Discontinued Total Continuing
Operating profit 219,984 - 219,984 171,732
Depreciation charge 44,688 - 44,688 30,220
Loss/(profit) on disposal
of tangible fixed assets 2,684 - 2,684 -
Decrease/(increase) in
debtors (110,460) - (110,460) (36,848)
Increase/(decrease) in
creditors (89,492) - (89,492) 113,467
Increase in work in
progress (33,605) - (33,605) (136,618)
Net cash inflow/
(outflow) from
operating activities £33,799 £- £33,799 £141,953
Six months Year
ended ended
30 June 31 December
1998 1998
Unaudited Audited
£ £ £ £
Discontinued Total Continuing Discontinued
Operating profit 37,314 209,046 373,882 72,316
Depreciation charge 4,337 34,557 67,799 8,084
Loss/(profit) on disposal
of tangible fixed assets - - (6,450) -
Decrease/(increase) in
debtors 179,876 143,028 241,362 118,880
Increase/(decrease) in
creditors (10,917) 102,550 117,346 (257,095)
Increase in work in
progress (7,735) (144,353) (401) (4,845)
Net cash inflow/
(outflow) from
operating activities £202,875 £344,828 £793,538 £(62,660)
Year
ended
31 December
1998
Audited
£
Total
Operating profit 446,198
Depreciation charge 75,883
Loss/(profit) on disposal
of tangible fixed assets (6,450)
Decrease/(increase) in
debtors 360,242
Increase/(decrease) in
creditors (139,749)
Increase in work in
progress (5,246)
Net cash inflow/
(outflow) from
operating activities £730,878
Notes to the Interim Financial Statements (continued)
for the six months ended 30 June 1999
7. Analysis of net cash
At 1 January Cash flow At 30 June
1999 1999
£ £ £
Cash in hand and at bank 565,915 844,433 1,410,348
Bank overdraft (9,241) (9,241) (13,086)
Total £556,674 £835,192 £1,397,262
8. Year 2000
The group's programme to ensure that its systems are Year 2000 compliant is
progressing well and we do not anticipate that the group will incur exceptional
costs above our normal replacement costs.
9. Nature of the financial information
The interim financial information for the six months ended 30 June 1999, was
approved by the Board on 13 September 1999.
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 1998 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.
Chairman's and Chief Executive's Statement
We are pleased to report a significantly increased profit for the six months to
30 June 1999. Pre-tax profits improved from £216,946 in 1998 to £450,486 in
1999.
Turnover excluding discontinued operations increased from £1,399,912 to
£1,722,439.
Despite having sold our temporary staff placement division at the year end the
profits made by that division have been more than made up by improvements at our
principal business Portfolio Invernational and a significant contribution
from our investment in Cameron Kennedy. Our sales training company Harper
Craven continued to perform well.
With significant cash balances in hand and continuing profitability we are in a
good position to make further acquisitions and investments where we believe they
will be appropriate for the continued steady growth of the company.
We look forward with confidence to another satisfactory outcome for the full
year.
RICHARD E M LEE DAVID C COUBROUGH
Chairman Chief Executive
13 September 1999
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