Interim Results

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.

Companies

RTC Group (RTC)
UK 100

Latest directors dealings