Interim Results

Prime People PLC
12 September 2000


PRIME PEOPLE TO PAY 4P PER SHARE 'ONE-OFF' SPECIAL DIVIDEND
AND REPORTS 'STRONG TRADING' IN ALL BUSINESSES

Shareholders To Receive £1.45m Leaving Funds Of £1.6m After Dividend Payout

A 'one-off' special dividend of 4p per share is being paid at the interim
stage by Prime People Plc, the leisure industry recruitment and training
group, as a way of both acknowledging more than 10 years patience by
shareholders and also to show confidence in the current strength of the
business.

Pre-tax profit for the six months to 30th June, 2000 amounted to £400,379
(£450,486) on turnover of £2.23m (£1.72m) with the slight profit fall
attributed to the recruitment businesses as they continued to invest in staff
and technology to support current and future expansion.  Earnings per share
amounted to 0.78p (0.87p). 

'The recruitment businesses have significantly increased fee earners in this
period to provide the base for further growth which we are confident will be
reflected in the full year's results', state chairman Richard Lee and chief
executive David Coubrough in the company's interim report. 

Even after the special dividend to shareholders on the register on 22nd
September - and payable on 1st November - shareholders' funds will remain 'in
excess of £1.6m' which directors consider appropriate to support projected
growth of existing businesses into the foreseeable future.

Harper Craven performed well exceeding its profit for last year and it is
expected that this performance will continue through to the end of the year.  
Portfolio Design International, started last year, is looking to break even
in the second half, state the directors.    Cameron Kennedy Associates, in
which Prime People has a 46.5p.c. interest, paid the company a dividend of
£223,200 earlier in the year which, together with existing cash reserves,
provided the opportunity 'to acknowledge the support given to us by our
shareholders over the years'.

Directors say the half-year has been one of continued investment in the
existing businesses.  Other investment opportunities have been investigated
but none identified as suitable for recommendation to shareholders.

'Current activity levels are strong in all the businesses which we anticipate
will be reflected in the final results for the year', add the Prime People
directors.   The company is seeking shareholder approval for a new Employee
Share Option Scheme.

Further Information:       David Coubrough, Group Chief Executive, Prime
People Plc,                0171 520 5000

CHAIRMAN'S & CHIEF EXECUTIVE'S STATEMENT

We are pleased to report that profit on ordinary activities before taxation
for the six month period to 30th June is £400,379 (£450,486 - 1999).  This is
a small reduction of 11% which is attributed to our recruitment businesses
where we have significantly increased fee earners in this period to provide
the base for further growth which we are confident will be reflected in the
full year results.  

Our training subsidiary, Harper Craven has performed well, exceeding its
profit for last year, and we expect that this will continue through to the end
of the year.  Our hotel and leisure design consultancy, Portfolio Design
International, which was started last year, is now beginning to see positive
returns from their efforts and our aim is for the business to break even by
the end of its second year of operation.  

There have been two Board changes during this period under review.  John
Greenhalgh, who has been a non-Executive Director for seven years, resigned in
May and we would like to thank him for his support to the company.  Chris
Heayberd, who was formerly Finance Director and left to join PSD Group plc,
has returned as Finance Director, bringing with him considerable experience.
In order to acknowledge the importance of retaining and incentivising certain
key employees, the company will be seeking shareholder approval for a new
Employee Share Option Scheme at an Extraordinary General meeting convened for
1st November.

Earlier in the year we received a dividend payment of £223,200 from Cameron
Kennedy and this, together with existing cash reserves, provides us with an
opportunity to acknowledge the support given to us by our shareholders over
the years.  We will therefore be paying a 'one off' special dividend of 4
pence per ordinary share to shareholders whose names are on the register on
22nd September, which will be payable on 1st November 2000 and which amounts
to £1.45m.  Shareholders' funds subsequent to this payment will remain in
excess of £1.6m, which the Board considers is appropriate to support the
projected growth of the existing businesses which remain cash generative into
the foreseeable future.  We shall be considering our future dividend policy at
the end of the year.

Whilst the period under review has been one of continued investment in the
existing businesses, your Board has also been alert to alternative investment
opportunities but has not as yet identified a situation which is suitable for
a recommendation to shareholders.  

Current activity levels are strong in all the businesses which we anticipate
will be reflected in the final results for the year.  


RICHARD E M LEE                                   DAVID C COUBROUGH

Chairman                                          Chief Executive



CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 30 JUNE 2000

                            Six months    Six months      Year
                            Ended         Ended           ended
                            30 June       30 June         31 December 
                            2000          1999            1999
                            Unaudited     Unaudited       Audited
                                £             £              £  
Turnover                    2,227,368     1,722,439       3,448,677

Cost of sales               (135,169)      (97,122)       (127,538)

Gross Profit                2,092,199     1,625,317       3,321,139


Administrative expenses    (1,903,083)   (1,405,333)      (2,928,426)


Group operating profit       189,116      219,984          392,713

Share of operating profit 
in associate                 185,852      205,000          439,264


Amortisation of goodwill    (6,000)         -              (12,000)


Total operating profit      368,968       424,984           819,977

Interest receivable and 
similar income               32,541        27,388            59,715


Interest payable and 
similar charges             (1,130)        (1,886)          (4,942)


Profit on ordinary activities 
before taxation             400,379       450,486           874,750


Tax on profit on ordinary 
activities                 (115,381)     (133,000)        (236,447)


Profit on ordinary activities 
after taxation             284,998        317,486          638,303


Dividends                 (1,453,868)        -                - 

Retained profit for the 
period transferred to 
reserves                  (1,168,870)     317,486          638,303



Earnings per ordinary share                          
- Basic                       0.78p        0.87p            1.76p
- Diluted                     0.78p        0.87p            1.74p





       
CONSOLIDATED BALANCE SHEET
FOR THE SIX MONTHS ENDED 30 JUNE 2000

                         
                            30 June       30 June         31 December 
                            2000          1999            1999
                            Unaudited     Unaudited       Audited
                                £             £              £  
Fixed assets
Tangible assets             316,106       160,095         299,433
Investments                    -           30,000            -
Investment in associate     553,690       494,977         652,794

                            869,796       685,072         952,227

Current assets

Debtors                   1,651,379     1,174,687       1,090,460
Cash at bank and in hand  1,624,891     1,410,348       1,643,025
    
                          3,276,270     2,585,035       2,733,485



Creditors: Amounts falling 
due within one year      (2,458,135)     (745,056)      (822,147)


Net current assets          818,135     1,839,979      1,911,338


Creditors: Amounts falling 
due after one year          (19,456)       (8,523)       (26,220)


Net assets               £1,668,475      £2,516,52      £2,837,345


Capital and reserves
Called up share capital     363,467        363,467      363,467
Share premium account       864,925        864,925      864,925
Merger reserve              173,077        173,077      173,077
Profit and loss account     267,006      1,115,059    1,435,876


Shareholders' funds     £ 1,668,475    £ 2,516,528  £ 2,837,345





CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2000
                            
                            Six months    Six months      Year
                            Ended         Ended           ended
                            30 June       30 June         31 December 
                            2000          1999            1999
                            Unaudited     Unaudited       Audited
                                £             £              £  
Net cash(outflow) inflow 
from operating activities   (91,208)        33,799        311,864

Return on investments and 
servicing of finance
Dividend from associate     223,200           -              -
Interest received            32,541         27,388         59,715
Interest element of finance 
lease rental payments        (1,130)        (1,886)        (4,942)

                            254,611         25,502         54,773

Taxation                       -              -           (28,441)



Capital expenditure and 
financial investment


Purchase of tangible fixed 
assets                     (93,923)         (69,281)      (231,936)
Sale of tangible fixed 
assets                        -              20,000         38,250

                           (93,923)         (49,281)      (193,686)


Acquisitions and disposals 
Sale of subsidiary 
undertaking                   -             835,000        827,727
Proceeds from sale of 
investment                    -                -            30,000

                              -             835,000        857,727


Net cash inflow before 
management of liquid 
resources and financing     69,480          845,020      1,002,237


Management of liquid resources
Purchase of treasury 
deposits                  (200,000)            _        (1,300,000)  

Financing 
Capital element of finance 
lease contracts             (6,764)         (9,828)        (34,344)


Net Cash Outflow from 
financing                   (6,764)         (9,828)        (34,344)


Decrease) Increase in cash £(137,284)     £ 835,192      £(332,107)