RTC Group Plc
("RTC", "the Company" or "the Group")
Interim results for the six months ended 30 June 2014
RTC Group Plc,the business services organisation focussing on white and blue collar recruitment providing temporary, permanent and contingent staff to a broad range of industries and clients in both domestic and international markets, is pleased to announce its interim results for the six months ended 30 June 2014.
Highlights
· Group revenue from continuing operations £25.3m (2013: £23.4m)
· Group operating profit £467k (2013: £66k)
· Significantly improved cash flow from operations of £1.3m (2013: outflow £1.3m)
· Basic earnings per share of 2.32p (2013: 0.04p)
The directors propose an interim dividend of 0.5p per share (2013: nil). The Company has a progressive dividend policy. Subject to approval of the Directors, the interim dividend will be paid on the 1 October 2014 to shareholders on the register on 5 September 2014.
Commenting on the results Bill Douie, Chairman, said:
"The staffing and structural changes in ATA Recruitment have settled in well and are continuing to deliver value to the Group. This coupled with the solid first half performance of all our core businesses give the Directors confidence that the year as a whole will meet market expectations."
Copies of the interim report will be available on the Company's website, www.rtcgroupplc.co.uk.
Enquiries:
RTC Group Plc |
01332 861 835 |
Bill Douie, Chairman |
|
Andy Pendlebury, Chief Executive Sarah Dye, Group Finance Director
|
|
Allenby Capital Limited - Nominated Adviser & Broker |
020 3328 5656 |
Jeremy Porter, Corporate Finance |
|
Michael McNeilly, Corporate Finance |
|
About RTC
RTC has three principal trading subsidiaries engaged in the recruitment of human capital resources and the provision of managed services.
ATA Recruitment is one of the UK's leading engineering and technical recruitment consultancies, supplying white and blue collar engineering and technical staff to a broad range of SME clients and vertical markets.
Ganymede Solutions is focussed on the supply and operation of blue collar contingent labour into safety critical markets.
Global Staffing Solutions predominantly provides managed service solutions.
Six months ended 30 June 2014
I am pleased to present the interim report of the Company for the six months to 30 June 2014.
Trading in the first six months of 2014 has exceeded expectations with pleasing results in all operational areas.
All of our core businesses have at least performed in line with expectations with Ganymede Solutions continuing to achieve accelerated growth. During the first half of 2013, we invested heavily in ATA Recruitment both in consultant headcount and the management team. The rewards from that investment began to emerge during the second half of 2013 and I am delighted to report that this has continued into 2014. Global Staffing Solutions has begun managing the gradual decline of contractors deployed in Afghanistan as NATO involvement in the region comes to a close. Whilst we anticipate some level of activity during 2015, precise numbers are not yet clear. However the business is continuing to secure other international opportunities to mitigate the anticipated reduction.
Given the solid performance in the first half we are now confident that the year as a whole will meet market expectations.
Management and Board
During the first half, our Non-Executive Director, John White, decided he had achieved the objectives he established when making a substantial and welcome investment in our Group. Accordingly, he sold his shares and resigned his position. We are happy to have secured, as a replacement Non-Executive Director, Tim Jackson, previously Finance Director at Staffline Plc. Tim brings a wealth of wisdom and experience in our industry which will provide a vital input to the overall effectiveness of the Group Board team at this strategically important time.
Dividends
The directors propose an interim dividend of 0.5p per share (2013: nil). The Company has a progressive dividend policy. Subject to approval of the Directors, the interim dividend will be paid on the 1 October 2014 to shareholders on the register on 5 September 2014.
Outlook & Strategy
All of our core businesses support sectors and industries are showing signs of long term sustainable growth. The United Kingdom's domestic manufacturing and construction sectors which fuel ATA Recruitment's branch network growth remain extremely buoyant and we will therefore continue throughout the year to invest in headcount and infrastructure to capitalise on the opportunities this optimism brings. The rail industry is set for another long term investment programme driven by the Government's continued commitment to invest in the sector. Both ATA Recruitment and Ganymede Solutions are becoming increasingly well placed to capture further growth with their respective clients as this spend emerges. The international landscape is also promising and whilst contracts are more difficult to secure and have longer lead times, the volumes and margins offer significant rewards where successful.
W J C Douie 24 July 2014
Chairman
Six months ended 30 June 2014
Revenue
In the period ended 30 June 2014, Group revenue increased to £25.3m (2013:£23.4m) reflecting a solid performance across all Group companies. Overall gross margin is up slightly to 20% (2013: 19%).
Gross profit
Following a review by the directors of the group's policy for presenting costs arising within the recruitment segments against companies within the same industry the group has restated the prior year consolidated statement of comprehensive income in order to re-allocate certain expenses within cost of sales to administrative expenses in order to enhance comparability with those companies (refer note 1 d).
Profit from operations
Overall group profit from operations was £467k (2013: £66k).
ATA Recruitment
In 2013 the Group invested in staffing and structural changes in ATA Recruitment. Profit from operations of £502k (2013: £385k) is testament to the success of those changes. Gross margin is also showing improvement at 22% (2013: 20%).
Ganymede Solutions
Profit from operations has improved by in excess of 80% at £510k (2013:£274k), reflecting a continuation of the increased levels of activity with existing customers that we saw in the second half of 2013. Gross margin is also showing improvement at 17% (2013: 16%).
Global Staffing Solutions
Increased profit from operations of £463k (2013:364k) reflects continuing efficiencies in managing the contract in Afghanistan offsetting a slight decline in number of contractors as the contract begins to draw down, coupled with an increase in income from other sources. Those efficiencies reflected in gross margin of 16% (2013:14%).
Taxation
The total tax charge for the period is estimated at £92k (2013: nil).
Earnings per share
The basic earnings per share figure has increased significantly to 2.32p (2013: 0.04p). The diluted earnings per share also increased significantly to 2.14p (2013: 0.04p). Profit before tax is £405k (2013: £5k).
Dividends
The directors propose an interim dividend of 0.5p per share (2013: nil). The Company has a progressive dividend policy. Subject to approval of the Directors, the interim dividend will be paid on the 1 October 2014 to shareholders on the register on 5 September 2014.
Finance Director's statement
For the year ended 31 December 2014
Statement of financial position
We have worked very closely with key customers during the period to improve processes and speed up payment and I am very pleased to report a decrease in trade receivables since 31 December 2013 of £0.9m against a backdrop of increasing turnover.
As a direct consequence, the Group balance sheet strengthened significantly compared to the same period last year, with net working capital increasing by £1.0m to £1.6m (2013: £0.6m) and an increased ratio of current assets to current liabilities of 1.24 (2013: 1.07).
The Group's gearing ratio has fallen to 1.2 times (2013: 4.1 times). Interest cover has increased to 7.5 times (2013: 6.5 times) further evidence of improvement in the Group's financial position.
Cash flow
Cash generation over the period has improved significantly as a result of our work with customers and our pro-active approach to debtor management. We are now reporting positive cash flows from operations of £1.3m versus a net outflow of £1.3m in the corresponding period in 2013.
Financing
The Group's current bank facilities include an overdraft of £50,000 and a confidential invoice discounting facility of up to £7.0m with HSBC. The Group is currently operating well within its facility cap.
The Board closely monitors the level of facility utilisation and availability to ensure that there is sufficient headroom to manage current operations and support the growth of the business.
The Group continues to be focussed on cash generation and building a robust balance sheet to support the growth of the business.
Sarah Dye 24 July 2014
Group Finance Director
Six months ended 30 June 2014
|
|
Six month period ended 30 June 2014 |
Six month period ended 30 June 2013 |
Year ended 31 December 2013 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
Restated |
Restated |
|
Notes |
|
£'000 |
£'000 |
|
|
|
|
|
Revenue |
2 |
25,268 |
23,386 |
48,817 |
Cost of sales |
2 |
(20,225) |
(19,013) |
(39,552) |
Gross profit |
2 |
5,043 |
4,373 |
9,265 |
Administrative expenses |
|
(4,576) |
(4,307) |
(8,394) |
Profit from operations |
|
467 |
66 |
871 |
Financing expense |
|
(62) |
(61) |
(135) |
Profit before tax |
|
405 |
5 |
736 |
Tax expense |
3 |
(92) |
- |
(224) |
Net profit and total comprehensive income for the year |
|
313 |
5 |
512 |
|
|
|
|
|
|
|
|
|
|
Earnings per ordinary share |
6 |
|
|
|
Basic |
|
2.32p |
0.04p |
3.79p |
Diluted |
|
2.14p |
0.04p |
3.69p |
Six months ended 30 June 2014
|
Share capital |
Share premium |
Capital redemption reserve |
Share based payment reserve |
Accumulated losses |
Total equity |
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
At 1 January 2014 (audited) |
135 |
2,468 |
50 |
18 |
(970) |
1,701 |
Profit and total comprehensive income for the period |
- |
- |
- |
- |
313 |
313 |
Share based payment reserve |
- |
- |
- |
8 |
- |
8 |
At 30 June 2014 (unaudited) |
135 |
2,468 |
50 |
26 |
(657) |
2,022 |
Six months ended 30 June 2013
|
Share capital |
Share premium |
Capital redemption reserve |
Share based payment reserve |
Accumulated losses |
Total equity |
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
At 1 January 2013 (audited) |
135 |
2,468 |
50 |
- |
(1,482) |
1,171 |
Profit and total comprehensive income for the period |
- |
- |
- |
- |
5 |
5 |
Share based payment reserve |
- |
- |
- |
15 |
- |
15 |
At 30 June 2013 (unaudited) |
135 |
2,468 |
50 |
15 |
(1,477) |
1,191 |
Consolidated statement of changes in equity
Year ended 31 December 2013
|
Share capital |
Share premium |
Capital redemption reserve |
Share based payment reserve |
Accumulated losses |
Total equity |
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
At 1 January 2013 (audited) |
135 |
2,468 |
50 |
- |
(1,482) |
1,171 |
Profit and total comprehensive income for the year |
- |
- |
- |
- |
512 |
512 |
Share based payment reserve |
- |
- |
- |
18 |
- |
18 |
At 31 December 2013 (audited) |
135 |
2,468 |
50 |
18 |
(970) |
1,701 |
The share based payment reserve comprises the cumulative share option charge under IFRS 2 less the value of any share options that have been exercised or have lapsed.
As at 30 June 2014
|
|
Six month period ended 30 June 2014 Unaudited |
Six month period ended 30 June 2013 Unaudited |
Year ended 31 December 2013 Audited |
|
|
|
|
|
|
Note |
£'000 |
£'000 |
£'000 |
Assets |
|
|
|
|
Non-current |
|
|
|
|
Property, plant and equipment |
|
389 |
378 |
431 |
Deferred tax asset |
4 |
70 |
238 |
110 |
|
|
459 |
616 |
541 |
Current |
|
|
|
|
Cash and cash equivalents |
|
69 |
|
232 |
Inventories |
|
12 |
10 |
15 |
Trade and other receivables |
|
8,193 |
9,092 |
9,127 |
|
|
8,274 |
9,102 |
9,374 |
Total assets |
|
8,733 |
9,718 |
9,915 |
|
|
|
|
|
Liabilities |
|
|
|
|
Current |
|
|
|
|
Trade and other payables |
|
(4,141) |
(3,642) |
(4,230) |
Corporation tax |
|
(147) |
- |
(95) |
Current borrowings |
|
(2,406) |
(4,885) |
(3,867) |
Total liabilities |
|
(6,694) |
(8,527) |
(8,192) |
|
|
|
|
|
Non-current liabilities |
|
|
|
|
Creditors falling due after one year - finance leases |
(17) |
- |
(22) |
|
Net assets |
|
2,022 |
1,191 |
1,701 |
|
|
|
|
|
Equity |
|
|
|
|
Share capital |
|
135 |
135 |
135 |
Share premium |
|
2,468 |
2,468 |
2,468 |
Capital redemption reserve |
|
50 |
50 |
50 |
Share based payment reserve |
|
26 |
15 |
18 |
Accumulated losses |
|
(657) |
(1,477) |
(970) |
Total equity |
|
2,022 |
1,191 |
1,701 |
Six months ended 30 June 2014
|
Six month period ended 30 June 2014 Unaudited |
Six month period ended 30 June 2013 Unaudited |
Year ended 31 December 2013 Audited |
|
£'000 |
£'000 |
£'000 |
|
|
|
|
Cash flows from operating activities |
|
|
|
Profit before tax |
405 |
5 |
736 |
Adjustments for: |
|
|
|
Depreciation, loss on disposal and amortisation |
107 |
94 |
181 |
Profit on sale of property, plant and equipment |
- |
1 |
3 |
Employee equity settled share options |
8 |
15 |
18 |
Change in inventories |
3 |
3 |
(2) |
Change in trade and other receivables |
934 |
(1,036) |
(1,068) |
Change in trade and other payables |
(94) |
(382) |
245 |
Cash generated from operations |
1,363 |
(1,300) |
113 |
Net cash from/(used) in operating activities |
1,363 |
(1,300) |
113 |
Cash flows from investing activities |
|
|
|
Purchases of property, plant and equipment |
(65) |
(76) |
(212) |
Purchases of shares in subsidiary companies |
- |
- |
- |
Net cash used in investing activities |
(65) |
(76) |
(212) |
Cash flows from financing activities |
|
|
|
Net cash inflow/(outflow) from financing activities |
- |
- |
(27) |
Net increase/(decrease) in cash and cash equivalents from operations |
1,298 |
(1,376) |
(126) |
|
|
|
|
Total net (decrease) in cash and cash equivalents |
1,298 |
(1,376) |
(126) |
Cash and cash equivalents at beginning of period |
(3,635) |
(3,509) |
(3,509) |
Cash and cash equivalents at end of period |
(2,337) |
(4,885) |
(3,635) |
Six months ended 30 June 2014
1. Accounting policies
a) General information
RTC Group PLC incorporated and domiciled in England whose shares are publicly traded on AIM. The registered office address is The Derby Conference Centre, London Road, Derby, DE24 8UX. The company's registered number is 02558971. The principal activities of the Group are described in note 2.
The Board consider the principal risks and uncertainties relating to the Group for the next six months to be the same as detailed in our last Annual Report and Accounts to 31 December 2013. The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the year ended 31 December 2013.
b) Basis of preparation
The unaudited interim group financial statements of RTC Group PLC are for the six months ended 30 June 2014 and do not comprise statutory accounts within the meaning of S.435 of the Companies Act 2006. The unaudited interim group financial statements have been prepared in accordance with the AIM rules. This report should be read in conjunction with the Group's Annual Report and Accounts for the year ended 31 December 2013, which have been prepared in accordance with IFRS's as adopted by the European Union.
These unaudited interim group financial statements were approved for issue on 24 July 2014. No significant events, other than those disclosed in this document, have occurred between 30 June 2014 and this date.
c) Comparatives
The comparative figures for the year ended 31 December 2013 do not constitute statutory accounts within the meaning of S.435 of the Companies Act 2006, but they have been derived from the audited financial statements for that year, which have been filed with the Registrar of Companies. The report of the auditor was unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006 nor a reference to any matters which the auditor drew attention by way of emphasis of matter without qualifying their report.
d) Accounting policies
Other than the reallocation of certain expenses from cost of sales to administrative expenses, as explained below, the accounting policies adopted are consistent with those described in the annual financial statements for the year ended 31 December 2013. There have been no significant changes in the basis upon which estimates have been determined, compared to those applied at 31 December 2013 and no change in estimate has had a material effect on the current period. Other than the restatement of gross profit as explained below.
Restatement of gross profit
Following a review by the directors of the group's policy for presenting costs arising within the recruitment segments against companies within the same industry the group has restated the prior year consolidated statement of comprehensive income in order to re-allocate certain expenses within cost of sales to administrative expenses in order to enhance comparability with those companies. The expenses reallocated to administrative expenses are those not directly attributable to contractors. The effect of the re-allocation was to increase administrative expenses for the year ended 31 December 2013 by £3.7m and reduce cost of sales by £3.7m and increasing gross profit by £3.7m. There was no change to reported revenue or profit from operations. Segment reporting in note 2 has been restated to reflect the change in basis of allocation.
The following enhancements to the accounting policy on revenue have also been made and will be reflected in the annual financial statements for the year ended 31 December 2014:
Cost of sales
Cost of sales consists of the salary cost of temporary staff, direct costs associated with temporary staff including equipment and work wear, travel and training costs and direct costs associated with conferencing revenue.
Gross profit
Gross profit represents revenue less cost of sales and consists of the total placement fees of permanent candidates, the margin earned on the placement of temporary candidates and the margin on conferencing revenue.
This interim announcement has been prepared based on IFRS's which are in issue that are effective or available for early adoption at the Group's annual reporting date as at 31 December 2014.
2. Segment analysis
The Group is a provider of recruitment services that is based at the Derby Conference Centre. The recruitment business comprises three distinct business units - ATA Recruitment servicing the UK SME engineering market and a number of vertical markets; Global Staffing Solutions predominantly providing managed service solutions and Ganymede Solutions predominantly supplying blue collar labour into rail.
Segment information is provided below in respect of ATA Recruitment, Global Staffing Solutions, Ganymede Solutions and Derby Conference Centre which houses the Group's head office and also provides hotel and conferencing facilities.
The Group manages the trading performance of each segment by monitoring operating contribution and centrally manages working capital, borrowings and equity.
Revenues are generated from permanent and temporary recruitment in the Recruitment division. Revenue is analysed by origin of customer/point of invoicing and as such all recruitment division revenues are supplied in the United Kingdom. Hotel and conferencing services are wholly provided in the United Kingdom at the Derby Conference Centre.
All revenues have been invoiced to external customers. During 2014, one customer in the ATA Global Staffing Solutions segment contributed 10% or more of that segment's revenues being £6.9m (2013: £7.3m).
The segmental information for the reporting period is as follows:
Six months ended 30 June 2014
|
<--------- |
Recruitment |
--------> |
Conferencing |
Total |
|
ATA Recruitment |
Global Staffing Solutions |
Ganymede Solutions Limited |
Derby Conference Centre |
Group |
|
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
External sales revenue |
11,139 |
7,040 |
6,291 |
798 |
25,268 |
Cost of sales |
(8,683) |
(5,937) |
(5,252) |
(353) |
(20,225) |
Segment gross profit |
2,456 |
1,103 |
1,039 |
445 |
5,043 |
Administrative expenses |
(1,928) |
(639) |
(524) |
(416) |
(3,507) |
Depreciation |
(26) |
(1) |
(5) |
(39) |
(71) |
Segment operating profit |
502 |
463 |
510 |
(10) |
1,465 |
Group costs |
|
|
|
|
(998) |
Operating profit per statement of comprehensive income |
|
467 |
Six months ended 30 June 2013
|
<--------- |
Recruitment |
--------> |
Conferencing |
Total |
|
ATA Recruitment |
Global Staffing Solutions |
Ganymede Solutions Limited |
Derby Conference Centre |
Group |
|
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|
Restated |
Restated |
Restated |
Restated |
Restated |
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
External sales revenue |
10,973 |
7,377 |
4,257 |
779 |
23,386 |
Cost of sales |
(8,735) |
(6,359) |
(3,575) |
(344) |
(19,013) |
Segment gross profit |
2,238 |
1,018 |
682 |
435 |
4,373 |
Administrative expenses |
(1,820) |
(646) |
(394) |
(380) |
(3,240) |
Depreciation |
(33) |
(8) |
(14) |
(39) |
(94) |
Segment operating profit |
385 |
364 |
274 |
16 |
1,039 |
Group costs |
|
|
|
|
(973) |
Operating profit per statement of comprehensive income |
|
66 |
Year ended 31 December 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
<--------- |
Recruitment |
--------> |
Conferencing |
Total |
|
ATA Recruitment |
Global Staffing Solutions |
Ganymede Solutions Limited |
Derby Conference Centre |
Group |
|
Audited |
Audited |
Audited |
Audited |
Audited |
|
Restated |
Restated |
Restated |
Restated |
Restated |
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
External sales revenue |
22,500 |
14,840 |
9,938 |
1,539 |
48,817 |
Cost of sales |
(17,875) |
(12,645) |
(8,309) |
(723) |
(39,552) |
Segment gross profit |
4,625 |
2,195 |
1,629 |
816 |
9,265 |
Administrative expenses |
(3,624) |
(1,270) |
(839) |
(678) |
(6,411) |
Depreciation |
(27) |
- |
(8) |
(78) |
(113) |
Segment contribution |
974 |
925 |
782 |
60 |
2,741 |
Group costs |
|
|
|
|
(1,870) |
Operating profit per statement of comprehensive income |
|
871 |
All assets and liabilities are held in the United Kingdom.
3. Income tax
Continuing operations |
Six month period ended 30 June 2014 Unaudited |
Six month period ended 30 June 2013 Unaudited |
Year ended 31 December 2013 Audited |
|
£'000 |
£'000 |
£'000 |
Analysis of tax:- |
|
|
|
Current tax |
|
|
|
UK corporation tax |
52 |
- |
95 |
|
52 |
- |
95 |
Deferred tax |
|
|
|
Origination and reversal of temporary differences |
40 |
- |
129 |
Tax |
92 |
- |
224 |
Factors affecting the tax expense
The tax assessed for the six month period ended 30 June 2014 is less than would be expected by multiplying profit on ordinary activities by the standard rate of corporation tax in the UK of 21.5% (2013:23.5%). The differences are explained below:
Factors affecting tax expense |
Six month period ended 30 June 2014 Unaudited |
Six month period ended 30 June 2013 Unaudited |
Year ended 31 December 2013 Audited |
|
|
|
|
|
£'000 |
£'000 |
£'000 |
Result for the year before tax |
405 |
- |
736 |
Profit multiplied by standard rate of tax of 21.5% (2013: 23.5%) |
87 |
- |
173 |
Non-deductible expenses |
5 |
- |
17 |
Utilisation of losses |
- |
- |
34 |
Tax charge/ (credit) for the year |
92 |
- |
224 |
4. Deferred tax
|
Six month period ended 30 June 2014 Unaudited |
Six month period ended 30 June 2013 Unaudited |
Year ended 31 December 2013 Audited |
|
£'000 |
£'000 |
£'000 |
|
|
|
|
At 1 January 2014 |
110 |
- |
239 |
(Charge)/ credit to the profit or loss for the year |
(40) |
- |
(129) |
At 30 June 2014 |
70 |
- |
110 |
|
|
|
|
The deferred tax asset is analysed as: |
|
|
|
|
|
|
|
Depreciation in excess of capital allowances |
64 |
- |
98 |
Tax losses carried forward |
6 |
- |
11 |
|
70 |
- |
109 |
|
|
|
|
Unrecognised |
|
|
|
Tax losses carried forward |
83 |
- |
83 |
5. Dividends
The directors propose an interim dividend of 0.5p per share (2013: nil). The Company has a progressive dividend policy. Subject to approval of the Directors, the interim dividend will be paid on 1 October 2014 to shareholders on the register on 5 September 2014.
6. Earnings per share
The calculation of basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year.
The calculation of diluted earnings per share is based on the basic earnings per share adjusted to allow for all dilutive potential ordinary shares.
|
<------------- |
Basic |
-------------> |
<------------- |
Diluted |
-------------> |
|
Six month period ended 30 June 2014 |
Six month period ended 30 June 2013 |
Total group year ended 31 December 2013 |
Six month period ended 30 June 2014 |
Six month period ended 30 June 2013 |
Total group year ended 31 December 2013 |
|
Unaudited |
Unaudited |
Audited |
Unaudited |
Unaudited |
Audited |
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
Earnings £'000 |
313 |
5 |
512 |
313 |
5 |
512 |
Weighted average number of shares |
13,511,626 |
13,511,626 |
13,511,626 |
14,633,961 |
13,906,286 |
13,889,918 |
Earnings per share (pence) |
2.32p |
0.04p |
3.79p |
2.14p |
0.04p |
3.69p |
7. Analysis of changes in net debt
|
At 1 January 2014 (Audited) |
Cash Flows |
Other non- cash movements |
At 30 June 2014
(Unaudited) |
||
|
£'000 |
£'000 |
£'000 |
£'000 |
||
Cash in hand net of bank overdraft and invoice discounting arrangements |
(3,635) |
1,298 |
- |
(2,337) |
||
Net debt |
(3,635) |
1,298 |
- |
(2,337) |
||
|
|
|
|
|
||
The Group has a working capital facility with HSBC PLC that allows it to borrow up to 90% of the invoiced trade debtors of ATA Recruitment Limited, Ganymede Solutions Limited and Global Staffing Solutions Limited up to £7.0m and an overdraft facility of £50,000.
8. Contingent liabilities
Included in current borrowings are bank overdrafts and an invoice discounting facility. During the year the Group has used its bank overdraft and invoice discounting facility, which is secured by a cross guarantee and debenture over the Group companies. There have been no defaults or breaches of interest payable during the current or prior period.