ATA Group PLC
23 August 2000
ATA Group plc
Interim results for the six months ended 30 June 2000
ATA Group plc ('ATA') is a human resource support services group,
which provides employment solutions and training services to
client companies in England, Scotland and Wales.
HIGHLIGHTS
* Turnover up 9.9% to £3.4m (1999: £3.1m)
* Pre-tax profit up 68.4% to £0.32m (1999: £0.19m)
* Earnings per share up 63.5% to 3.31p (1999: 2.03p)
* Maintained interim dividend of 2.0p
Commenting on the results Bill Douie, Chairman, said:
'The recovery in profits in the first six months has materialised
as expected and has been achieved with no overall increase in
consultant numbers. Headcount growth has now resumed and the
launch of our Internet recruitment service, ATA-B2B, is imminent.
ATA Group is well placed to take advantage of current favourable
economic conditions and the Directors view the future with
confidence.
23 August 2000
ENQUIRIES:
ATA Group plc
Bill Douie, Chairman Tel: (01959) 525118
Clive Chapman, Chief Executive Tel: (0117) 924 1600
College Hill Tel: (020) 7457 2020
Richard Pearson
Chairman's Statement
I am pleased to present the interim report of the Company for the
period to 30 June 2000.
Progress
The recovery in profits in the first six months of 2000 has
materialised as expected.
Your group has continued to enjoy more favourable trading
conditions than were current in the same period of 1999. More
importantly, the reorientation of our contingency database and
consultancy businesses towards growth markets in the technology,
software and telecoms sectors and the consequent reduction of
exposure to the motor industry, continues to pay dividends.
The first six months of 2000 has seen the continued consolidation
of the consultant base and rapid management development. The
continuing recovery in profitability has therefore been achieved
with no overall increase in consultant numbers. At the start of
the period all trading divisions were transferred into separate
subsidiary companies with their own management structures, led by
operations directors.
The development of our training companies continues. The schools
business continues to expand at a satisfactory pace. In contrast
the build up of revenues from Corporate clients has been
disappointingly slow. The recently acquired Occupational
Psychology business has acquired new premises and increased staff
and continues to make progress in integrating the activities of
all three companies in this division.
Work continues on the development of our Internet recruitment
site, ATA-B2B. At the time of writing the final version is at the
testing stage and is expected to go live within the next few
weeks.
Trading results
Pretax profits have risen to £320,359 (1999: £191,499) on turnover
of £3,408,290 (1999: £3,101,416). Earnings after corporation tax
of £105,718 (1999: £60,000 ) are £214,641 (1999: £131,407 )
resulting in earnings per share of 3.31 p (1999: 2.03 p). Your
directors are pleased with the recovery in profits in the first
half and remain confident in the outcome for the year.
Dividends
Accordingly a maintained interim dividend of 2.0p per share net
will be paid on 22nd September 2000 to shareholders on the
register of members on 8th September 2000.
Outlook for the remainder of 2000
The Group recruitment and consultancy companies have continued to
perform well in the second half and growth in consultant numbers
has resumed. Conditions remain favourable and the outlook for the
rest of the year is good. Developments in the training companies
continue and profitable trading in those subsidiaries is expected
to be achieved in the second half.
The launch of ATA-B2B is imminent and we are confident that early
results from this internet recruitment site will serve to reduce
the costs of candidate acquisition and improve operating
efficiencies.
ATA Group is well placed to take advantage of current favourable
economic conditions and your Directors view the future with
confidence.
W.J.C.Douie
Chairman
23 August 2000
Consolidated Profit and Loss Account
Note 6 Months 6 Months 12 Months
to to to
30/6/00 2/7/99 31/12/99
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
TURNOVER 2 3408.3 3101.4 6640.5
OPERATING PROFIT 302.8 172.1 686.8
Net interest receivable 17.5 19.3 34.7
PROFIT ON ORDINARY
ACTIVITIES BEFORE 320.3 191.4 721.5
TAXATION
Taxation 3 (105.7) (60.0) (250.3)
PROFIT ON ORDINARY
ACTIVITIES AFTER TAXATION 214.6 131.4 471.2
Dividends 4 129.6 129.6 376.0
RETAINED PROFIT 85.0 1.8 95.2
EARNINGS PER SHARE 5 3.31 2.03 7.27
(pence)
Consolidated Balance Sheet
Note 30/6/00 2/7/99 31/12/99
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
FIXED ASSETS
Intangible assets 66.5 89.2 72.3
Tangible assets 855.8 789.4 719.3
922.3 878.6 791.6
CURRENT ASSETS
Stock 14.7 13.0 17.4
Debtors 875.4 805.5 888.2
Short term deposits 0.0 950.0 0.0
Cash at bank 1013.9 110.5 1106.7
1904.0 1879.0 2012.3
CREDITORS: Due within (1463.5) (1622.7) (1600.5)
one year
NET CURRENT ASSETS
(LIABILITIES) 440.5 256.3 411.8
TOTAL ASSETS LESS
CURRENT LIABILITIES 1326.8 1134.9 1203.4
CREDITORS: Due after
more than one year (233.0) (183.8) (158.6)
NET ASSETS 1129.8 951.1 1044.8
CAPITAL AND RESERVES
Called up share capital 64.8 64.8 64.8
Capital redemption 50.0 50.0 50.0
reserve
Share premium account 433.2 433.2 433.2
Profit and loss account 581.8 403.1 496.8
SHAREHOLDERS' FUNDS 1129.8 951.1 1044.8
Consolidated Cash Flow Statement
Note 6 Months 6 Months 12 Months
to to to
30/6/00 2/7/99 31/12/99
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
CASH INFLOW FROM
OPERATING ACTIVITIES 443.5 68.3 625.1
Returns on investments 17.5 28.7 34.6
and servicing of finance
Taxation (49.2) 0.0 (343.2)
Capital expenditure (225.2) (119.5) (163.2)
Acquisitions - - -
Equity dividends paid (246.3) (246.3) (376.00)
Net cash inflow (59.7) (268.8) (222.7)
(outflow) before use of
liquid resources and
financing
(Increase) decrease in - (200.0) 750.0
short term deposits
Increase (decrease) in
medium term loan (27.7) (27.7) (57.7)
INCREASE (DECREASE) IN
CASH BALANCES (87.4) (496.5) 469.6
Notes to the Interim Report
1 Accounting Policies
The accounting policies used in the preparation of the interim
accounts are consistent with those used in the preparation of
the audited annual accounts for the year ended 31 December 1999.
The group financial information consolidates the accounts of ATA
Group Plc and all of its material subsidiary undertakings using
the acquisition method.
The comparative figures for the year ended 31 December 1999 do
not constitute statutory accounts within the meaning of S.240 of
the Companies Act 1995, but they have been derived from the
audited financial statements for that year, which have been
filed with the Registrar of Companies, and on which our auditors
gave an unqualified report.
2 SEGMENTAL ANALYSIS 6 Months 6 Months 12 Months
to to to
30/6/00 2/7/99 31/12/99
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
TURNOVER
Recruitment and 3070.2 2789.1 6018.1
consultancy
Training 338.1 312.3 622.4
3408.3 3101.4 6640.5
OPERATING PROFIT
Recruitment and 356.6 206.7 738.7
consultancy
Training (53.7) (34.6) (51.9)
302.9 172.1 686.8
3 Taxation On Profit On Ordinary Activities
The taxation charge for the period to 30 June 2000 has been
provided at the estimated rate applicable to the group for the
year.
4 Dividends
An interim dividend of 2.0p per ordinary share will be paid on
22nd September 2000 to shareholders on the register of members
on 8th September 2000.
5 Earnings Per Share
The earnings per share have been calculated on the profit on
ordinary activities after taxation and on the number of shares
in issue (6,482,400) during the period. The fully diluted
earnings per share (arising from the share option schemes
detailed in the Prospectus) are not materially different from
the basic earnings per share and have not been disclosed.
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