Trading Statement

RNS Number : 1115K

Prime People PLC

15 August 2012

 



Prime People plc

Trading Update

15 August 2012

Prime People plc (AIM:PRP) (the "Company") is today issuing a trading update in advance of the half year ended 30 September 2012.  

As referred to in the Company's most recent report and accounts, the political and economic background to our UK activity had become more rather than less uncertain. Consistent with this and performance in the last half of 2012, in the four months of trading since the year end, Group net fee income (NFI) has declined by 8.6 per cent on a like for like basis with the comparable period in 2012. The UK business has continued to experience challenging conditions and NFI from this region declined by 24% whilst Internationally NFI has grown by 31% in the four months. 

The Company is committed to growing its business internationally and to supporting newer teams. As a result of the strategic decision to continue to develop in these areas, our fixed cost base and the 8.6 per cent overall decline in NFI, operating profit will be impacted in the short term.

The establishment of the Singapore office is now complete and Peter Moore, the Group Managing Director, will be based there from the end of this month. The headcount in our Hong Kong office has also been increased.

The Board has confidence that the strength of the business and relationships in the UK and the steps being taken to provide continued growth in our fee generation outside of the UK will ensure the business is well positioned in the medium term. 

Net cash at the date of this statement is £2.27m (after payment of the July dividend of £0.27m), down from the year-end position of £2.82m but considered to be strong in relation to foreseeable business requirements.

For further information, please contact: 

Prime People Robert Macdonald, Chairman	020 7318 1785
Chris Heayberd, Finance Director
Cenkos Securities plc	020 7397 8900
Ivonne Cantu

 

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