STAFFLINE GROUP PLC
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2010
Staffline Group plc ("Staffline" or "the Group"), a national outsourcing organisation providing people and operational expertise to industry, today announces its interim results for the half year ended 30 June 2010.
Financial highlights
· Revenue up 70% to £83.4m (2009: £49.1m)
· Profit pre tax and amortisation up by 71% to £2.4m (2009: £1.4m)
· Pre tax profit up 50% to £2.1m (2009: £1.4m)
· Basic earnings per share up by 56% to 7.0p (2009: 4.5p)
· EPS before amortisation up by 76 % to7.9p (2009: 4.5p)
· Interim dividend increased by 71% to 2.4p (2009: 1.4p)
· Net debt reduced to £4.8m (Dec 2009: £5.0m)
Operational highlights
· Significant growth in demand from existing customers due to a range of factors including general uncertainty in the marketplace favouring temporary labour
· Excellent new business wins in the period together with the full impact of the wins last year
· Acquisitions completed last year are performing ahead of expectations
· Two further acquisitions completed at the end of the first half
· Number of OnSites risen to 129 at 30 June 2010
Current trading and prospects
· Trading in the first few weeks of the second half of 2010 has continued to be extremely strong and the Board now expects earnings for the full financial year to be significantly ahead of current expectations.
Commenting on the results and prospects for 2010, Andy Hogarth, Chairman and Chief Executive, said:
"The Group has had a successful first half year with trading in line with management's earlier heightened expectations and we have benefitted from the impact of a number of new business wins, recent acquisitions and increased demand from existing clients.
Trading in the first few weeks of the second half of 2010 has continued to be extremely strong with the two latest acquisitions starting to have an impact. In addition we have opened a further 6 OnSites during July and August, bringing the current total of OnSite locations to 135. The Board now expects earnings for the full financial year to be significantly ahead of current expectations.
Overall we continue to be encouraged by the level of interest in our products and services from new clients and, whilst we expect the economic backdrop to remain tough in the markets where we operate, we remain confident that our model will allow us to operate profitably and continue to grow. We are in a strong financial position; net debt has continued to fall during 2010 and we expect to continue to generate significant cash from operations in the coming years. We continue to look for acquisition opportunities and look forward to the challenges ahead with optimism."
For further information, please contact: |
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Staffline Group plc |
0115 950 0885 |
Andy Hogarth, Chairman and Chief Executive |
07931 175775 |
Tim Jackson, Finance Director |
07720 458626 |
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Altium |
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Phil Adams / Paul Lines |
0845 505 4343 |
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Smithfield |
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Debbie Potts / Rebecca Whitehead |
020 7360 4900 |
About Staffline
Staffline Group plc is a recruitment organisation specializing in food processing, manufacturing, e-retail and logistics. Staffline provides and manages industrial workforces and uses training and business improvement techniques to ensure increased levels of efficiency to give their clients a significant commercial advantage. Clients include Tesco, Sainsbury's, Premier Foods, Cranswick Country Foods, Pirelli and Nestle. Operating from 150 locations in the UK Staffline supply in excess of 17,000 blue collar workers each day, peaking at over 20,000 in December. Brands include Staffline Express, the High Street branch operation, OnSite based on client's premises, Peter Rowley, a national training and consultancy organisation and OSP, a specialist volume recruitment call centre.
An analyst presentation is being held at 9.30am at the offices of Smithfield, 10 Aldersgate Street EC1A 4HJ
Print resolution images are available for the media to view and download from
Chairman and Chief Executive's Statement
Introduction
The first six months of 2010 have been an exciting time for the group, with many of our clients experiencing an increase in demand for their products and services which has resulted in considerable growth for us. Growth at this rate has given us considerable challenges but I'm very pleased to report that our IT systems and other infrastructure have enabled us to continue to manage, motivate and pay our enlarged workforce as efficiently as ever. I continue to be both amazed at and very appreciative of the lengths to which our staff go to ensure we give our clients the very best possible service.
The Period in Review
The total number of OnSite locations continued to increase during the period, rising by 10 to 129, representing growth from both existing and new clients. In addition the number of branches increased by 1 to 14. Overall profit before tax and amortisation increased to £2.4m (2009: £1.4m); profits before tax rose to £2.1m (2009: £1.4m) and profit after tax was £1.5m (2009:£1.0m).
Basic earnings per share have also risen in the period, to 7.0p (2009:4.5p).
Strategy
The Group's success has again been influenced by the effects of the recession and we have benefitted from many employers' reluctance to engage permanent workers while there remains a real danger of a double dip recession. We are increasingly looking to bolt on acquisition opportunities as they arise, as well as maintaining organic growth to enhance shareholder value.
We expect that the cost pressures already being experienced by our clients and target customer base will endure and therefore the need for our services has never been greater. As consumers demand increased value for money, our services enable our clients to operate more efficiently and maintain their competitiveness and this should ensure that we are able to continue to grow.
Acquisitions
During the first half of 2010 we have continued to identify potential acquisitions. We concluded two purchases during May, A la Carte Recruitment, based in Leicester, and DKM Labour Solutions in Nottingham. Whilst neither acquisition has contributed to the first half results we are confident they will make a positive contribution during the rest of the year.
Our staged payment model for acquisition consideration can greatly increase the level of payment made to the vendor while allowing us to minimise the risk to Staffline and increase earnings almost immediately. These acquisitions have partly been responsible for the increase in the numbers of OnSites, but our greatest emphasis remains organic growth.
Operational Review
The number of OnSite locations continued to grow, to 129 at the end of June compared to 119 six months earlier. As in previous years, organic growth has been driven by existing clients taking on additional OnSites as well as new client wins. Clients continue to be attracted to a combination of the benefits of outsourcing their temporary recruitment function, allowing them to focus on managing their core business, together with the operating efficiencies that Staffline delivers.
Our core area of food distribution and processing has remained relatively resilient, and the majority of new sites won in the year have been in this sector. We have also experienced an increase in demand from existing customers in the automotive and manufacturing sectors.
Share Based Payment Plan
The Company has implemented a share based payment plan on 6 September 2010. The details are disclosed in a separate announcement made on that date and will also be set out in the Financial Statements for the full year.
Health & Safety
The first half of 2010 has been a very successful period for us. We are ensuring full compliance in all areas of Health and Safety by undertaking regular audits and promoting effective communication relating to Health and Safety throughout the Group. This is supplemented by thorough induction processes for all workers and regular 'on the job' training in all aspects of Health and Safety.
Our reportable Accident Frequency Rate at the half year stage was 0.22. This is an improvement on last year and is comparable with a full year industry rate of 6.1. We consider that Health and Safety has equal status with other primary business objectives and should an apparent conflict arise with other values and priorities we will always support employees making a decision in favour of Health and Safety.
Travel and Subsistence Schemes
We, along with some other recruitment businesses, have campaigned for three years to ensure the use of travel and subsistence schemes for workers at or near minimum wage is stopped. The Government has now stated that they consider these schemes to be an exploitation of temporary workers and that legislation will be enacted which will ensure that the use of any scheme of this nature will contravene the Minimum Wage Act from 1 January 2011.
ISO 9001 and Investors in People
We have now achieved BS EN ISO 9001 status for the first time and have maintained IIP status, which we have held for over 10 years.
Dividends
Given the continued increased profitability of the group, the Board is recommending an interim dividend of 2.4p (2009: 1.4p). This 71% increase in payment reflects the increase in profitability before amortisation and also represents the Board's confidence in the Group's future trading.
The dividend will be paid on 12 November 2010 to shareholders on the register as at 15 October 2010.
Current Trading and Prospects
Trading in the first few weeks of the second half of 2010 has continued to be extremely strong, with the two latest acquisitions starting to have an impact. In addition we have opened a further 6 OnSites during July and August, bringing the total to 135 locations. Overall we continue to be encouraged by the levels of interest in our products and services from new clients and, whilst we expect the recession to continue to provide a tough economic backdrop in the markets where we operate, we remain confident that our model will allow us to operate profitably and indeed continue to grow. The operational savings and improvements which are being constantly implemented will allow us to continue to underpin our profitability in 2010 and beyond. The Board now expects earnings for the full financial year to be significantly ahead of current expectations, further to the trading update released on 18 June 2010.
We are in a strong financial position; we have continued to reduce net debt and we expect to continue to generate significant cash from operations in the foreseeable future. Our operational and financial fundamentals remain robust, with strong cash flow alongside our overdraft facilities and term loan, which does not mature until 2013, allowing us to capitalise on opportunities for both organic and acquisitional growth. We continue to look forward to the challenges ahead with optimism.
Andy Hogarth
Chairman and Chief Executive
6 September 2010
Finance Director's Statement
Financial Results
Sales revenues have grown by 70% to £83.4m (2009: £49.1m) reflecting the impact of strong demand from existing customers, new business wins in 2009 and 2010 and also the impact of the acquisitions made in 2009. The charge for amortisation of intangible assets has increased by £255k to £268k during the half year.
Whilst gross margins have been impacted by the implementation costs of this new business the pre tax profit has increased by 50% to £2.1m (2009: £1.4m). Post tax profit has improved 50% to £1.5m (2009: £1.0m).
Earnings per share
Basic earnings per share have increased by 56% to 7.0p (2009: 4.5p).The diluted earnings per share also improved to 6.6p (2009: 4.4p) and the diluted earnings per share before amortisation increased by 76% to 7.9p (2009: 4.5p).
Balance sheet and cash flow
The Group's balance sheet has strengthened considerably during the first half although net current assets have fallen by £0.8m to £2.4m (2009: £3.2m) due to the impact of deferred acquisition consideration. The significant growth in trade receivables and trade payables is due entirely to the growth in sales, with the average number of debtor and creditor days remaining steady. Goodwill has increased by £516k and intangible assets by £449k as a result of the acquisitions during the period.
Net debt has decreased during the period to £4.8m at 30 June 2010 (Dec 2009: £5.0m). The Group generated £2.5m cash from operations before working capital movement in the first half (2009: £1.5m); of this amount £0.5m (2009: £0.8m) was used in working capital to fund the growth and £1.3m (2009: £0.1m) was invested in acquisitions. In addition Corporation Tax accounted for £0.4m (2009: £0.4m), interest payments £0.1m (2009: £0.1m) and capital expenditure £0.1m (2009: £Nil).
Financing
The Group has financing facilities in place to support the future growth of the business. The current facilities include a term loan of £3.1m, repayable in quarterly instalments up to 2013, and an overdraft facility of £7.5m.
At 30 June 2010, £5.8m of the overdraft was undrawn. The average daily bank balance during the first half was an overdraft of £161,000, compared to an average cash balance of £697,000 last year. The overdraft facility was renewed in March 2010 for a period of 12 months.
Employees
The average number of employees has increased by 65 to 269 compared to the same period in 2009, with average sales per employee in the last 6 calendar months rising to £308,000 (2009: £241,000).
We are continuing to invest significant sums in both internal and external training courses for our staff and always promote from within wherever possible. A further 22 members of staff passed their Certificate in Recruitment Practice during the period.
Tim Jackson
Finance Director
06 September 2010
Consolidated statement of comprehensive income
For the six months ended 30 June 2010
|
|
|
|
|
|
Note |
Six month period ended 30 June 2010 Unaudited |
Six month period ended 30 June 2009 Unaudited |
Year ended 31 December 2009 Audited |
|
|
£'000 |
£'000 |
£'000 |
|
|
|
|
|
Continuing Operations |
|
|
|
|
Sales revenue |
|
83,358 |
49,136 |
115,025 |
Cost of sales |
|
(73,993) |
(42,534) |
(100,189) |
Gross profit |
|
9,365 |
6,602 |
14,836 |
Administrative expenses Amortisation of intangibles |
|
(6,951) (268) |
(5,161) (13) |
(11,111) (142) |
|
|
|
|
|
Profit from operations |
|
2,146 |
1,428 |
3,583 |
|
|
|
|
|
Finance costs |
|
(62) |
(63) |
(108) |
|
|
|
|
|
Profit for the period before taxation |
|
2,084 |
1,365 |
3,475 |
|
|
|
|
|
Tax expense |
4 |
(600) |
(406) |
(1,030) |
|
|
|
|
|
Net profit and total comprehensive income for the period |
|
1,484 |
959 |
2,445 |
|
|
|
|
|
Earnings per ordinary share |
5 |
|
|
|
Basic |
|
7.0p |
4.5p |
11.5p |
Diluted |
|
6.6p |
4.4p |
11.3p |
Consolidated statement of financial position
|
|
30 June 2010 Unaudited |
30 June 2009 Unaudited |
31 December 2009 Audited |
|
|
£'000 |
£'000 |
£'000 |
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
Non current |
|
|
|
|
Goodwill |
|
25,938 |
24,518 |
25,422 |
Other intangible assets |
|
1,175 |
12 |
726 |
Property, plant and equipment |
|
757 |
792 |
725 |
|
|
27,870 |
25,322 |
26,873 |
|
|
|
|
|
Current |
|
|
|
|
Trade and other receivables |
|
26,660 |
12,695 |
18,609 |
Cash and cash equivalents |
|
1,178 |
1,837 |
859 |
|
|
27,838 |
14,532 |
19,468 |
|
|
|
|
|
Total assets |
|
55,708 |
39,854 |
46,341 |
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Current |
|
|
|
|
Trade and other payables |
|
(18,976) |
(8,123) |
(12,030) |
Borrowings |
|
(3,747) |
(2,798) |
(3,177) |
Other current liabilities |
|
(1,833) |
(17) |
(608) |
Current tax liabilities |
|
(860) |
(400) |
(627) |
|
|
(25,416) |
(11,338) |
(16,442) |
|
|
|
|
|
Non current |
|
|
|
|
Borrowings |
|
(2,195) |
(3,127) |
(2,639) |
Other non-current liabilities |
|
(462) |
(129) |
(1,124) |
|
|
|
|
|
Total liabilities |
|
(28,073) |
(14,594) |
(20,205) |
|
|
|
|
|
Equity |
|
|
|
|
Share capital |
|
(2,123) |
(2,123) |
(2,123) |
Share premium |
|
(14,525) |
(14,525) |
(14,525) |
Share based payment reserve |
|
(185) |
(164) |
(170) |
Profit and loss account |
|
(10,802) |
(8,448) |
(9,318) |
Total equity |
|
(27,635) |
(25,260) |
(26,136) |
|
|
|
|
|
Total equity and liabilities |
|
(55,708) |
(39,854) |
(46,341) |
|
|
|
|
|
|
Share capital |
Share premium |
Share based payment reserve |
Profit and loss account |
Total |
||
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
||
|
|
|
|
|
|
||
At 1 January 2010 (audited) |
2,123 |
14,525 |
170 |
9,318 |
26,136 |
|
|
|
|
|
|
|
|
||
Share options issued |
- |
- |
15 |
- |
15 |
||
|
|
|
|
|
|
||
Transactions with owners |
- |
- |
15 |
- |
15 |
||
|
|
|
|
|
|
||
Profit for the period |
- |
- |
- |
1,484 |
1,484 |
||
|
|
|
|
|
|
||
Total comprehensive income for the period |
- |
- |
- |
1,484 |
1,484 |
||
|
|
|
|
|
|
||
Balance at 30 June 2010 |
2,123 |
14,525 |
185 |
10,802 |
27,635 |
||
|
|
|
|
|
|
||
|
Share capital |
Share premium |
Share based payment reserve |
Profit and loss account |
Total |
||
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
||
|
|
|
|
|
|
||
At 1 January 2009 (audited) |
2,123 |
14,525 |
149 |
7,489 |
24,286 |
|
|
|
|
|
|
|
|
||
Share options issued |
- |
- |
15 |
- |
15 |
||
Transactions with owners |
- |
- |
15 |
- |
15 |
||
|
|
|
|
|
|
||
Profit for the period |
- |
- |
- |
959 |
959 |
||
|
|
|
|
|
|
||
Total comprehensive income for the period |
- |
- |
- |
959 |
959 |
||
|
|
|
|
|
|
||
Balance at 30 June 2009 |
2,123 |
14,525 |
164 |
8,448 |
25,260 |
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
Share capital |
Share premium |
Share based payment reserve |
Profit and loss account |
Total |
||
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
||
|
|
|
|
|
|
||
At 1 January 2009 (audited) |
2,123 |
14,525 |
149 |
7,489 |
24,286 |
||
|
|
|
|
|
|
||
Dividends |
- |
- |
- |
(616) |
(616) |
||
Share options issued |
- |
- |
21 |
- |
21 |
||
Transactions with owners |
- |
- |
21 |
(616) |
(595) |
||
|
|
|
|
|
|
||
Profit for the period |
- |
- |
- |
2,445 |
2,445 |
||
|
|
|
|
|
|
||
Total comprehensive income for the period |
- |
- |
- |
2,445 |
2,445 |
||
|
|
|
|
|
|
||
Balance at 31 December 2009 |
2,123 |
14,525 |
170 |
9,318 |
26,136 |
|
|
|
|
|
|
|
|
||
|
|
Note |
Six month period ended 30 June 2010 Unaudited |
Six month period ended 30 June 2009 Unaudited |
Year ended 31 December 2009 Audited |
|
||||||||
|
|
|
£'000 |
£'000 |
£'000 |
|
||||||||
|
Cash flows from operating activities |
|
|
|
|
|
||||||||
Profit before taxation |
|
2,084 |
1,365 |
3,475 |
|
|||||||||
Adjustments for: |
|
|
|
|
|
|||||||||
Finance costs |
|
62 |
63 |
108 |
|
|||||||||
Depreciation and amortisation of property, plant and equipment and intangible assets |
|
387 |
120 |
413 |
|
|||||||||
Operating profit before changes in working capital and provisions |
|
2,533 |
1,548 |
3,996 |
|
|||||||||
Change in trade and other receivables |
|
(6,312) |
3,110 |
(2,804) |
|
|||||||||
Change in trade and other payables |
|
5,864 |
(2,278) |
2,306 |
|
|||||||||
|
Cash generated from operations |
|
2,085 |
2,380 |
3,498 |
|
||||||||
|
|
|
|
|
|
|
||||||||
Adjustment for debt issue costs |
|
- |
13 |
- |
|
|||||||||
|
Employee equity settled share options |
|
- |
- |
21 |
|||||||||
Taxes paid |
|
(430) |
(377) |
(774) |
||||||||||
Net cash inflow from operating activities |
|
1,655 |
2,016 |
2,745 |
||||||||||
|
|
|
|
|
||||||||||
Cash flows from investing activities |
|
|
|
|
||||||||||
Acquisition of subsidiary, net of cash acquired |
|
(1,268) |
(90) |
(1,000) |
||||||||||
Purchases of property, plant and equipment |
|
(121) |
(9) |
(48) |
||||||||||
Net cash used in investing activities |
|
(1,389) |
(99) |
(1,048) |
||||||||||
|
|
|
|
|
||||||||||
Cash flows from financing activities |
|
|
|
|
||||||||||
Decrease in loans |
|
(456) |
(456) |
(906) |
||||||||||
Interest paid |
|
(62) |
(63) |
(108) |
||||||||||
Dividends paid |
|
- |
- |
(616) |
||||||||||
Net cash flows from financing activities |
|
(518) |
(519) |
(1,630) |
||||||||||
|
|
|
|
|
||||||||||
Net change in cash and cash equivalents |
|
(252) |
1,398 |
67 |
||||||||||
|
|
|
|
|
||||||||||
Cash and cash equivalents at beginning of period |
|
(1,396) |
(1,463) |
(1,463) |
||||||||||
|
|
|
|
|
||||||||||
Cash and cash equivalents at end of period |
|
(1,648) |
(65) |
(1,396) |
||||||||||
|
|
|
|
|
||||||||||
Cash and cash equivalents |
|
|
|
|
||||||||||
Cash and cash equivalents |
|
1,178 |
1,837 |
859 |
||||||||||
Bank overdraft |
|
(2,826) |
(1,902) |
(2,255) |
||||||||||
|
|
(1,648) |
(65) |
(1,396) |
||||||||||
Notes to the interim report
1 basis of preparation
Staffline Group plc, a Public Limited Company, is incorporated and domiciled in the United Kingdom.
The interim financial statements for the period ended 30 June 2010 (including the comparatives for the period ended 30 June 2009 and the year ended 31 December 2009) were approved by the board of directors on 3 September 2010. Under the Security Regulations Act of the EU, amendments to the financial statements are not permitted after they have been approved.
It should be noted that accounting estimates and assumptions are used in the preparation of the interim financial information. Although these estimates are based on management's best knowledge and judgement of current events, actual results may ultimately differ from those estimates. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the interim financial information are set out in note 3 to the interim financial information.
The interim financial information contained within this report does not constitute statutory accounts as defined in the Companies Act 2006. The full accounts for the year ended 31 December 2009 received an unqualified report from the auditors and did not contain a statement under Section 498 of the Companies Act 2006.
2 Accounting policies
The interim financial report has been prepared under the historical cost convention and in accordance with International Accounting Standard 34 'Interim Financial Reporting'.
The principal accounting policies and methods of computation adopted to prepare the interim financial information are consistent with those detailed in the 2009 financial statements.
3 critical accounting estimates and judgments
Critical accounting estimates and assumptions
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next accounting year are as follows:
Impairment of goodwill
The annual impairment assessment in respect of goodwill requires estimates of the value-in-use of cash generating units to which goodwill has been allocated to be calculated. As a result, estimates of future cashflows are required, together with an appropriate discount factor for the purpose of determining the present value of those cashflows.
Deferred consideration
As part of the acquisition process a forecast is prepared which projects the financial performance of the business over the expected earn out period. These forecasts are reviewed and updated based on actual performance. Part of the cost of the acquisition is dependent on the trading performance of the acquired business following the transaction. The deferred contingent consideration is based on these estimates of the future performance of the acquired business.
Critical judgments in applying the Group's accounting policies
The Directors do not consider they have had to make any critical judgments in applying the accounting policies which have been adopted.
4 Tax expense
The relationship between the expected tax expense at 28% and the tax expense actually recognised in the income statement can be reconciled as follows:
|
Six month period ended 30 June 2010 Unaudited |
Six month period ended 30 June 2009 Unaudited |
Year ended 31 December 2009 Audited |
|
||||||
|
£'000 |
% |
£'000 |
% |
£'000 |
% |
||||
|
|
|
|
|
|
|
||||
Profit for the period before taxation |
2,084 |
|
1,365 |
|
3,475 |
|
||||
|
|
|
|
|
|
|
||||
Expected tax expense |
584 |
28.0 |
382 |
28.0 |
973 |
28.0 |
||||
|
|
|
|
|
|
|
||||
Adjustment for non-deductible expenses relating to short term timing differences |
(7) |
(0.3) |
15 |
1.1 |
30 |
0.9 |
||||
Other non-deductible expenses |
23 |
1.1 |
9 |
0.6 |
27 |
0.8 |
||||
|
600 |
28.8 |
406 |
29.7 |
1,030 |
29.7 |
||||
|
|
|
|
|
|
|
||||
Comprising: |
|
|
|
|
|
|
Current tax expense |
600 |
|
406 |
|
1,030 |
|
There is no tax expense or credit in relation to the share based payment reserve credited to equity.
5 Earnings per share
The calculation of the 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 period. The calculation of the diluted earnings per share is based on the basic earnings per share adjusted to allow for all dilutive potential ordinary shares.
Details of the earnings and weighted average number of shares used in the calculations are set out below:
|
Basic |
Diluted |
||||
|
Six months ended 30 June 2010 |
Six months ended 30 June 2009 |
Year ended 31 December 2009 |
Six months ended 30 June 2010 |
Six months ended 30 June 2009 |
Year ended 31 December 2009 |
|
|
|
|
|
|
|
Earnings (£'000) |
1,484 |
959 |
2,445 |
1,484 |
959 |
2,445 |
|
|
|
|
|
|
|
Weighted average number of shares |
21,229,081 |
21,229,081 |
21,229,081 |
22,611,454 |
21,690,230 |
21,854,101 |
|
|
|
|
|
|
|
Earnings per share (pence) |
7.0p |
4.5p |
11.5p |
6.6p |
4.4p |
11.2p |
|
|
|
|
|
|
|
The weighted average number of shares used for the diluted earnings per share calculation has increased by 1,382,373 (period ended 30 June 2009: 461,149 and 31 December 2009: 625,020) shares to take account of all dilutive potential ordinary shares that could be issued under the share option scheme.
6 DIVIDENDS
Staffline Group plc paid a final dividend of £360,894 as proposed in the annual report for the year ended 31 December 2009 on 7 July 2010. An interim dividend of £509,498 (2009: £297,500) has been proposed but has not been accrued within these financial statements. This represents a payment of 2.4 pence (2009:1.4 pence) per share and will be paid on 12 November 2010.
7 acquisitions
On 17 May 2010 the company acquired A La Carte Recruitment Limited, a competitor based in Leicester, and on 18 May 2010 the company acquired the trade and assets of DKM Labour Solutions Limited, based in Nottingham. Both these organizations have a great reputation in their local markets and are well established, professionally run businesses. These businesses will add, in aggregate, around £30m per annum to the Group's revenues and are expected to make a positive contribution to profitability in 2010. They have been acquired with small up-front payments and, in the case of A La Carte Recruitment Limited, profit related payments over the following 16 months. The fair values included in the interim results are provisional and will be finalised in the full year accounts.