Half-year Report

RNS Number : 8853S
Prime People PLC
19 November 2021
 

 

 

 

19 November 2021

 

 

Prime People Plc

 

Interim Results

 

Prime People Plc ("Prime People" or the "Group"), a global group of specialist recruitment businesses operating in depth, across the Real Estate & Built Environment sectors, announces its unaudited interim results for the six months ended 30 September 2021.

 

CHAIRMAN'S STATEMENT

 

Overview

 

Despite Covid-19 restrictions continuing for part of the period to 30 September 2021, in all of the markets in which the Group operates, I am pleased to report an improvement in trading, which we see as a combination of general market recovery and a backlog of client demand positively impacting performance.

 

The Group's cash collection has been robust and, consequently, the Board made the decision to accelerate repayment of £1m (50%) of the CBILS loan prior to the period end.

 

 

Financial Results

 

Group Revenues were £10.58m (H1 2021: £8.66m), up 22.2% compared to the prior year.

 

The Group's Net Fee Income ("NFI"), which is Management's key focus, increased to £7.36m (H1 2021: £5m), an increase of 47.2% over the prior year; NFI for the UK business was £3.36m (H1 2021: £2.15m). Our overseas performance was comprised of Asia NFI of £2.83m (H1 2021: £2.67m) and the Rest of World NFI £1.17m (H1 2021: £0.17m).

 

During the period contract NFI represented 4.0% of Group NFI (H1 2021: 7.12%).

 

Administrative costs for the Group in the period were £6.28m (H1 2021: £4.87m).

 

Profit before taxation amounted to £1.06m (H1 2021 £0.10m).

 

The charge for Group taxation of £0.20m (H1 2021: £0.02m) is based on the expected annual effective tax rate of 19% in the UK (H1 2021: 19%), 19% in Hong Kong (H1 2021: 16.50%), and 19% in Singapore (H1 2021: 17%).

 

Basic earnings per share for the period were 7.39p (H1 2021: 0.95p).

 

Cash Flow

 

At the start of the current financial year the Group had cash of £3.98m. At the period end the Group had available cash of £2.89m and net cash, after the CBILS loan, of £1.94m (H1 2021: £2.15m).

 

Dividend

 

The Board will not be declaring an interim dividend this year (H1 2021: Nil).

 

Outlook

 

Although our markets are not fully back to pre-pandemic levels, we are encouraged by the recovery we have experienced in the six month period to 30 September 2021. We believe that the Group is well positioned to respond quickly as markets strengthen, but we remain cautious, as any reimposition of Covid related restrictions are likely to be negative for our business.

 

Our cash position is sound, all Government taxes deferred due to Covid will be fully paid by January 2022 and we intend to redeem our remaining CBILS loan, which is now bearing interest.

 

Our management team and staff have adapted positively and quickly to the new operating backdrop necessitated by Covid, and we are looking forward to achieving long term positive returns for all our stakeholders.

 

 

The information communicated in this announcement contains inside information for the purposes of Article 7 of the UK version of the EU Market Abuse Regulation (2014/596) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time.

 

Robert Macdonald

Executive Chairman

18 November 2021

 

For further information please contact:

 

Prime People

020 7318 1785

Robert Macdonald, Executive Chairman


Dugald Macdonald, Commercial Director

 


Cenkos Securities

020 7397 8900

Katy Birkin

Nicholas Wells

 


 

 

PRIME PEOPLE PLC

UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 September 2021

 




Six months ended


Year ended



30 September

2021


30 September

2020

 

 

31 March

2021








(audited)


Note


£'000


£'000


£'000









Revenue

3


10,575

 

 

8,660


17,802

Cost of Sales



(3,213)


(3,665)


(6,870)

 









Net Fee Income



7,362


4,995


10,932

 

Administrative expenses

Other operating income (Covid related Governmental support)



 

(6,277)


 

(4,866)

-


 

(11,756)

 

707









Operating profit/ (loss)

Interest payable



1,085

(25)


129

(32)


(117)

(56)

















Profit/(loss) before taxation



1,060


97


(173)

 

Income tax expense

 

4


(202)


(15)


5

 

 

Profit/(loss) for the period/year

 



 

858


 

82


 

(168)

 

Other comprehensive income

Exchange gain /(loss)on translating foreign operations

 

 

61


 

(81)


 

(267)

 

 

Other Comprehensive income/(loss) for the period/ year, net of tax

 

 

 

61


 

 

(81)


 

 

(267)

 

 

Total comprehensive income/ (loss) for the period/year

 

 

919


 

1


 

(435)

 









Profit/ (loss) attributable to:

Equity shareholders of the parent

Non-controlling interest

 



 

898

(40)


 

116

(34)


 

(36)

(132)









Total Comprehensive Income /(loss) attributable to:








Equity shareholders of the parent

Non-controlling interest

 



959

(40)


35

(34)


(303)

(132)

 

Earnings /(loss) per share

6







Basic earnings/(loss) per share



7.39p


0.95p


(0.30)p

Diluted earnings/(loss) per share



7.32p


0.95p


(0.30)p









The above results relate to continuing operations.

The notes below form an integral part of this unaudited condensed consolidated interim report.

 

 

PRIME PEOPLE PLC

UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

 

As at 30 September 2021

 



30 September

2021

30 September

2020

31 March

2021





(audited)


Note

£ ' 000

£ ' 000

£ ' 000






Assets





Non-current assets





Goodwill


6,509

6,509

6,509

Property, plant and equipment


1,126

1,632

1,284



7,635

8,141

7,793






Current assets





Trade and other receivables

9

3,994

3,250

3,061

Deferred tax asset


40

40

40

Cash and cash equivalents

 


2,890

4,149

3,980



6,924

7,439

 

7,081

 






Total assets

 


14,559

15,580

14,874






Liabilities





Current Liabilities





Trade and other payables

10

3,036

2,576

3,140

Lease liabilities


552

542

533

Current tax liabilities

Deferred tax liability


175

22

225

22

95

22

 

 


3,785

3,365

3,790

Non-current liabilities





Financial Liabilities - borrowings


750

2,000

1,733

Lease liabilities


270

811

520

Total liabilities

 


4,805

6,176

6,043






Net assets

 


9,754

9,404

8,831

 






Called up share capital


1,231

1,231

1,231

Capital redemption reserve


9

9

9

Treasury shares


(99)

(42)

(103)

Share premium account


3,376

3,376

3,376

Merger reserve


173

173

173

Share option reserve


239

187

239

Currency translation differences


285

410

224

Retained earnings


4,048

3,430

3,150

Equity shareholders' funds

Non-controlling interest

 


9,262

492

8,774

630

8,299

  532

Total Equity


  9,754

9,404

  8,831






The notes below form an integral part of this unaudited condensed consolidated interim report.  

 

 

PRIME PEOPLE PLC

UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 September 2021

-

Called up share capital

Capital Redemption reserve

Treasury shares

Share premium account

Merger reserve

Share option reserve

Translation reserve

Retained Earnings

Total attributable to equity holders of the parent

Non-controlling interest

Total

equity


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000













 

At 1 April 2020

 

1,231

 

9

 

-

 

 

3,376

 

173

 

187

 

491

 

3,314

 

8,781

 

664

 

9,445













Profit for the period

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

116

 

116

 

(34)

 

82













Other comprehensive income

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(81)

 

 

-

 

 

(81)

 

 

-

 

 

(81)

Shares purchased for treasury

 

 

-

 

 

-

 

 

(42)

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(42)

 

 

-

 

 

(42)













 

At 30 Sept 2020

 

 

1,231

 

9

 

(42)

 

 

3,376

 

173

 

187

 

410

 

3,430

 

 

8,774

 

630

 

9,404

























 


Called up

share capital

Capital

Redemption

reserve

Treasury

shares

Share

premium

account

Merger

reserve

Share

option

reserve

Translation

reserve

Retained

Earnings

Total attributable to equity holders of the parent

Non-controlling interest

Total equity


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 

At 30 Sept

2020

 

 

 

1,231

 

 

9

 

 

(42)

 

 

3,376

 

 

173

 

 

187

 

 

410

 

 

3,430

 

 

8,774

 

 

630

 

 

9,404

Total Comprehensive loss for the period

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(128)

 

 

 

(128)

 

 

 

(98)

 

 

 

(226)

Other comprehensive income

 

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(186)

 

 

-

 

 

(186)

 

 

-

 

 

(186)

Adjustments in respect of share schemes

 

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

76

 

 

-

 

 

-

 

 

76

 

 

-

 

 

76

Adjustment in respect of share options

 

 

-

 

-

 

-

 

-

 

-

 

(24)

 

-

 

-

 

 

(24)

 

-

 

  (24)

Adjustment in respect of minority dividend

 

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(152)

 

 

(152)

 

 

-

 

 

(152)

Shares purchased for treasury

 

 

-

 

 

-

 

 

(61)

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(61)

 

 

-

 

 

(61)

 

At 31 March 2021

 

 

 

1,231

 

 

9

 

 

(103)

 

 

3,376

 

 

173

 

 

239

 

 

224

 

 

3,150

 

 

8,299

 

 

532

 

 

8,831

Profit/ (loss) for the period

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

898

 

898

 

(40)

 

858

 

Other comprehensive gain

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

61

 

 

-

 

 

61

 

 

-

 

 

61

 

Shares issued from treasury

 

 

-

 

 

-

 

 

4

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

4

 

 

-

 

 

4

At 30 Sept

2021

 

 

1,231

 

9

 

(99)

 

3,376

 

173

 

239

 

285

 

4,048

 

9,262

 

492

 

9,754

 

PRIME PEOPLE PLC

UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOW

For the six months ended 30 September 2021

 



Six months ended

Year ended



30 September

2021

30 September

2020

31 March

2021


Note


£'000


£'000


£'000









Cash generated from underlying operations

 

7


 

430


 

572


 

2,016

Income tax paid

Income tax received

 



(62)

-


-

-


(125)

-









Net cash from operating activities



368


572


1,891

















Cash flows from investing activities







Interest received






5

Net purchase of property, plant and equipment and software


(184)


(32)


(75)









 

Net cash used in investing activities

 



 

(184)


 

(32)


 

(70)









Cash flows from financing activities







Purchase of investment



(24)


-


-

Shares issued from treasury



4


-


-

Shares purchased for treasury



-


(42)


(103)

Dividend paid to non-controlling interest



-


-


(152)

Lease payments



(248)


(289)


(519)

Repayment of Invoice discounting facility



3


(30)


(822)

Finance Interest paid



(8)


(4)


(13)

Coronavirus Business Interruption Loan



(1,050)


  2,000


2,000









Net cash (used)/generated by financing activities

 


(1,323)


1,635


391









Net (decrease)/increase in cash and cash equivalents

(1,139)


2,175


2,212







Cash and cash equivalents at beginning of period/year

3,980


2,055


2,055







Effect of foreign exchange rate changes

 

49


(81)


(287)









Cash and cash equivalents available at end of period/year

 

2,890


4,149


3,980

 

Debt borrowing at the beginning of period/year

 

 

(2,000)


 

-


 

-

Decrease/(Increase) - CBILS loan

 

1,050


(2,000)


(2,000)

 

Debt borrowing at the end of the period/year

 

 

(950)


 

(2,000)


 

(2,000)

 

Net cash after CBILS loan at period/year end

 

1,940


 

2,149


 

1,980















The notes below form an integral part of this unaudited condensed consolidated interim report.

 

 

PRIME PEOPLE PLC

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM REPORT

For the six months ended 30 September 2021

 

1.  General information

 

Prime People Plc ('the Company') and its subsidiaries (together 'the Group') is an international recruitment services organisation with offices in the United Kingdom, the USA, Germany, the Middle East and the Asia Pacific region from which it serves an international client base. The Group offers both permanent and contract specialist recruitment consultancy for large and medium sized organisations.

 

Prime People Plc is the Group's ultimate parent company. The Company is a limited liability company incorporated and domiciled in the United Kingdom. The address of Prime People Group's registered office and its principal place of business is 2 Harewood Place, London, W1S 1BX, England.  Prime People Group's shares are quoted on the AIM Market of the London Stock Exchange ("AIM"). The registered number of the Company is 1729887.

 

This unaudited condensed consolidated interim report for the six months ended 30 September 2021 (including comparatives) is presented in GBP '000 and was approved and authorised for issue on behalf of the Board of Directors on 18 November 2021.

 

Copies of the interim results are available at the Company's registered office and on the Company's website - www.prime-people.co.uk .

 

This unaudited condensed consolidated interim report does not constitute statutory accounts of the Group within the meaning of section 434 of the Companies Act 2006. The financial information for the year ended 31 March 2021 has been extracted from the statutory accounts for that year, which have been filed with the Registrar of Companies.  The auditor's report on those accounts was unqualified and did not contain a statement under section 498 of the Companies Act 2006.

 

2.    Basis of preparation

 

The unaudited condensed consolidated interim report for the six months ended 30 September 2021 has been prepared using accounting policies consistent with International Financial Reporting Standards ("IFRSs") and in accordance with 'IAS 34, Interim financial reporting', in conformity with the requirement of the Companies Act.  The condensed consolidated interim report should be read in conjunction with the annual financial statements for the year ended 31 March 2021 which were prepared in accordance with IFRSs as adopted by the European Union.

 

The Group was profitable for the period and has financial resources comprising £2.89m of net cash as at 30 September 2021.  After making enquiries, the Directors have formed a judgement, at the time of approving the six months results, that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, a period of not less than 12 months. For this reason, the Directors continue to adopt the going concern basis in preparing the condensed set of financial statements.

These financial statements have been prepared under the historical cost convention.

 

3.  Segment reporting

 

(a)  Revenue and net fee income by geographical region

 



Revenue



Net fee income




Six months ended

Year ended


Six months ended

Year ended

30 September 2021

30 September 2020

31 March 2021

30 September 2021

30 September 2020

31 March 2021



£ ' 000


£ ' 000


£ ' 000


£ ' 000


£ ' 000


£ ' 000














UK


6,570


5,780


11,668


3,357


2,154


4,894














Asia


2,831


2,706


5,105


2,831


2,667


5,009














Rest of World


1,174


174



1,174


174


1,029
















10,575

 


8,660


17,802


7,362


4,995


10,932














 

All revenues disclosed by the Group are derived from external customers and are for the provision of recruitment services. The accounting policies of the reportable segments are the same as the Group's accounting policies. Segment profit before taxation represents the profit earned by each segment after allocations of central administration costs.

 

(b)  Revenue and net fee income by classification

 



Revenue



Net fee income




Six months ended

Year ended


Six months ended

Year ended

30 September

2021

30 September 2020

31 March 2021

30 September 2021

30 September 2020

31 March 2021



£ ' 000


£ ' 000


£ ' 000


£ ' 000


£ ' 000


£ ' 000














Permanent













- UK

- Asia

- Rest of World


3,062

2,831

1,174


1,807

2,658

  174


4,257

4,995

1,029


3,062

2,831

1,174


1,807

2,658

174


4,257

4,995

1,029














Contract (UK)


3,508


  3,973


7,411


295


346


637

Contract (Asia)


-


48


110


-


10


14

 

 


10,575


8,660


17,802


7,362


4,995


 

10,932

 














 

(c)  Profit before taxation by geographical region

 

 


Six months ended

Year ended


30 September

2021

30 September

2020

 

31 March

2021




£ ' 000


£ ' 000


£ ' 000









UK



886


121


(33)









Asia



167


209


47









Rest of World



32

 

 

(201)


(131)

 

Operating profit / (loss)

 



 

1,085


 

  129


 

(117)

Interest paid



(25)


(32)


(56)

 

Profit/(loss) before taxation



 

1,060


 

97


 

(173)

 

(d)  Segment Assets and Liabilities by Geographical Region

 



Total assets

Total liabilities



30 September 2021

30 September 2020

30 September 2021

30 September 2020



£'000

£'000

£'000

£'000







UK

 


7,452

10,289

2,409

4,403

Asia

 


6,311

5,210

1,988

1,740

Rest of World

 


796

81

408

33

 

Total


 

14,559

 

15,580

 

4,805

 

6,176

 

The analysis above is of the carrying amount of reportable segment assets and liabilities. Segment assets and liabilities include items directly attributable to a segment and include income tax assets and liabilities.

 

4.  Income tax expense

 

The charge for taxation on profits for the interim period amounted to £202k (2020: £15k) an effective rate of 19.00% (2020: 15%).

 

5.  Dividends

 



Six months ended

Year ended


30 September

2021

30 September

2020

31 March

2021



£'000


  £'000


£'000







Final dividend for 2021: nil per share

-


-


-

Interim dividend for 2022: nil per share

-


-


-



-


-


-








 

6.  Earnings per share

 

Earnings per share (EPS) are calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the period.

 

Fully diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares by existing share options assuming dilution through conversion of all existing options.

 

Earnings and weighted average number of shares from continuing operations used in the calculations are shown below:

 



Six months ended

Year ended


  30 September

  2020

30 September

2020

31 March

2021



  £'000


£'000


£'000

 

Profit/(loss) for basic and diluted earnings per share

 

 

898


 

116


 

(36)

















  Number


Number


Number








Weighted average number of shares used for basic earnings per share

 

12,157,273


 

12,222,273


 

12,266,005

Dilutive effect of share options

 

107,319


-


-








Diluted weighted average number of shares used for

 diluted earnings per share

 

 

12,264,592


 

12,222,273


12,266,005








 



Six months ended

Year ended


  30 September

  2021

30 September

2020



£'000


£'000


£'000



Pence


  Pence


Pence








Basic earnings/(loss) per share


7.39p


0.95p


(0.30)p

 

Diluted earnings/(loss) per share


7.32p


  0.95p


(0.30)p







 

 

7.  Reconciliation of profit before tax to cash flow from operating activities

 



Six months ended

Year ended


30 September

2021

30 September

2020

31 March

2021



£'000


£'000


£'000








Profit/(loss) before taxation


1,060


97


(173)

Adjustments for:







Depreciation of property, plant and equipment and software amortisation


129


134


258

Depreciation of right-of-use assets


225


-


443

Share based payment expense


-


-


76

Finance costs


25


32


56

(Profit)/Loss on sale of tangible asset


-


-


-








Operating cash flow before changes in working capital

 

1,439


 

263


660







(Increase)/decrease in receivables

(969)


618


866

(Decrease)/ increase in payables

 

(40)


(309)


490

 

Cash generated from underlying operations

 

 

430


 

572


 

2,016







 

8.  Reconciliation of net cash flow to movement in net funds

 



Six months ended

Year ended


30 September

2021

30 September

2020

31 March

  2021



£'000


£'000


  £'000








Net (decrease)/increase in cash and cash equivalents in period/year

(1,139)


2,180


2,212

Net funds at the start of the period/year


3,980


2,055


2,055

Effect of foreign exchange changes


49


(81)


(287)








Net funds at the end of the period/year

 


2,890


4,154


3,980








 

9.  Trade and other receivables

 


30 September

2021

30 September

2020

31 March

2021


£'000

£'000

£'000





Trade receivables

3,792

2,608

2,582

Allowance for doubtful debts

(625)

(378)

(380)

Prepayments

465

755

406

Other receivables

362

265

453





 

 

3,994

3,250

3,061





 

 

10. Trade and other payables

 


30 September

2021

30 September

2020

31 March

2021


£'000

£'000

£'000





Trade payables

119

504

203

Taxation and social security

597

663

796

Other payables

540

510

539

Accruals

1,580

899

1,335

Coronavirus Business Interruption Loan

200

-

267


3,036

2,576

3,140





 

 

11. Treasury Shares

 

At 30 September 2021, the total number of ordinary shares held in Treasury and their values were as follows:

 


30 September 2021

30 September 2020


Number

£'000

Number

£'000






As at 1 April

190,000

103

-

-

Shares purchased for treasury

-

-

85,000

42

Shares issued from treasury

(40,000)

(4)

-

-

 

As at 30 September

 

150,000

 

99

 

85,000

 

42

 

Nominal value

 

9

 

 

 

-

 

9

 

Market value

72.5


-

41

 

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