TIDMPRP
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 GBP1m (50%)
of the CBILS loan prior to the period end.
Financial Results
Group Revenues were GBP10.58m (H1 2021: GBP8.66m), up 22.2%
compared to the prior year.
The Group's Net Fee Income ("NFI"), which is Management's key
focus, increased to GBP7.36m (H1 2021: GBP5m), an increase of 47.2%
over the prior year; NFI for the UK business was GBP3.36m (H1 2021:
GBP2.15m). Our overseas performance was comprised of Asia NFI of
GBP2.83m (H1 2021: GBP2.67m) and the Rest of World NFI GBP1.17m (H1
2021: GBP0.17m).
During the period contract NFI represented 4.0% of Group NFI (H1
2021: 7.12%).
Administrative costs for the Group in the period were GBP6.28m
(H1 2021: GBP4.87m).
Profit before taxation amounted to GBP1.06m (H1 2021
GBP0.10m).
The charge for Group taxation of GBP0.20m (H1 2021: GBP0.02m) 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
GBP3.98m. At the period end the Group had available cash of
GBP2.89m and net cash, after the CBILS loan, of GBP1.94m (H1 2021:
GBP2.15m).
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 30 September 31 March
2021 2020 2021
(audited)
Note GBP'000 GBP'000 GBP'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 (11,756)
(Covid related Governmental (4,866)
support) (6,277) - 707
------------------------------- ----- ---- ---------- ------------- -----------
Operating profit/ (loss) 1,085 129 (117)
Interest payable (25) (32) (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 898 116 (36)
Non-controlling interest (40) (34) (132)
------------------------------- ----- ---- ---------- ------------- -----------
Total Comprehensive
Income /(loss) attributable
to:
Equity shareholders
of the parent 959 35 (303)
Non-controlling interest (40) (34) (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 30 September 31 March
2021 2020 2021
(audited)
Note GBP ' 000 GBP ' 000 GBP ' 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 175 225 95
Deferred tax liability 22 22 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 9,262 8,774 8,299
Non-controlling interest 492 630 532
------------------------------------ ----- ------------- ------------- ----------------------------------
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 Capital Treasury Share Merger Share Translation Retained Total Non-controlling Total
up Redemption shares premium reserve option reserve Earnings attributable interest equity
share reserve account reserve to equity
capital holders
of the
parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'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 Capital Treasury Share Merger Share Translation Retained Total Non-controlling Total
up Redemption shares premium reserve option reserve Earnings attributable interest equity
share reserve account reserve to equity
capital holders
of the
parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'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 30 September 31 March
2021 2020 2021
Note GBP'000 GBP'000 GBP'000
Cash generated from underlying operations 7 430 572 2,016
Income tax paid (62) - (125)
Income tax received - - -
------------------------------------------------------ ------ ------------- ----------------- -----------
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 GBP2.89m 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 31 March 2021 30 September 30 September 2020 31 March 2021
2020 2021
GBP ' 000 GBP ' 000 GBP ' 000 GBP ' 000 GBP ' 000 GBP ' 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 1,029 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 30 September 31 March 2021 30 September 30 September 31 March 2021
2021 2020 2021 2020
GBP ' 000 GBP ' 000 GBP ' 000 GBP ' 000 GBP ' 000 GBP ' 000
Permanent
- UK 3,062 1,807 4,257 3,062 1,807 4,257
- Asia 2,831 2,658 4,995 2,831 2,658 4,995
- Rest of World 1,174 174 1,029 1,174 174 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 30 September 31 March
2021 2020 2021
GBP ' 000 GBP ' 000 GBP ' 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
GBP'000 GBP'000 GBP'000 GBP'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 GBP202k (2020: GBP15k) an effective rate of 19.00%
(2020: 15%).
5. Dividends
Six months ended Year ended
30 September 30 September 31 March
2021 2020 2021
GBP'000 GBP'000 GBP'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 30 September 31 March
2020 2020 2021
GBP'000 GBP'000 GBP'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 30 September 31 March
2021 2020 2021
GBP'000 GBP'000 GBP'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 30 September 31 March
2021 2020 2021
GBP'000 GBP'000 GBP'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 30 September 31 March
2021 2020 2021
GBP'000 GBP'000 GBP'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 30 September 31 March
2021 2020 2021
GBP'000 GBP'000 GBP'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 30 September 31 March
2021 2020 2021
GBP'000 GBP'000 GBP'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 GBP'000 Number GBP'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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END
IR DKFBPABDDNDD
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