RNS Number:1644Z
Public Recruitment Group plc
02 March 2006
PUBLIC RECRUITMENT GROUP PLC
Results for the year ended 31 December 2005
HIGHLIGHTS
* Turnover of #80.2m (2004: #53.8m), an increase of 49%
* Top 2 position in our three chosen markets of education, health care and
social work
* Strong organic revenue growth in all markets (education 10%, health care
17%, social work 7%)
* Normalised EBITA* increased by 109% to #5.5m (2004: #2.6m)
* Organic operating profit growth was 24%
* Conversion of net fee income to normalised EBITA* increased to 32.2%
(2004: 23.4%)
* Adjusted earnings per share of 12.5p (2004: 7.7p)
* Basic earnings per share of 2.6p (2004: 2.6p)
* Net debt #18.8m (2004: #18.5m)
* Interest cover at 5x normalised EBITA*
Commenting on the results, Rich Benton, Non-executive Chairman said:
"PRG has made steady progress in the period since it became a public company.
We occupy a prominent position in each of our chosen markets; being the largest
provider of qualified teachers in education, number two supplier of doctors to
the health service and in the top two providers of qualified social workers. We
have shown strong organic growth in revenues, up 11% and normalised profits have
more than doubled. The outlook is for continued progress in the three divisions
and we look forward to 2006 and beyond with renewed confidence."
* Normalised EBITA is operating profit before amortisation of goodwill and
exceptional administrative expenses.
Contact: Darren McLaney
Chief Executive, Public Recruitment Group PLC
Nick Williams
Group Finance Director, Public Recruitment Group PLC
Ginny Pulbrook, Justin Griffiths
Citigate Dewe Rogerson
Telephone: Citigate Dewe Rogerson, +44 (0) 207 638 9571 until 17:30 on 2 March
Thereafter: Katharine Spedding, Company Secretary, 0114 283 4925
Chairman's Statement
I am pleased to report another year of solid growth for the Group with
normalised EBITA more than doubled to #5.5m. The year has seen good progress in
all three sectors, acquisitions are performing well and the benefits of
integration, leading to a reduced overhead base, are being realised.
We have seen strong organic revenue growth of 11% overall, with the education,
health and social work sectors all showing a marked increase over the previous
year. In a typical week we provide over 3,500 staff to over 1,750 customers.
The Group's turnover for the period was #80.2m (2004: #53.8m), an increase of
49%. Gross margin has increased to 21.2% (2004: 20.8%) and the conversion of net
fee income to normalised EBITA increased to 32.2% (2004: 23.4%), reflecting our
tight control over costs.
Normalised EBITA of #5.5m (2004: #2.6m) was an increase of 109%.
Adjusted earnings per share have increased to 12.5p (2004: 7.7p) up 62% on the
previous year.
PRG is now the largest provider of supply teachers, the second largest provider
of locum doctors and one of the top two providers of qualified social workers in
the UK.
Education Division
In the education division, turnover increased by 34% to #33.7m (2004: #25.2m)
with organic revenue growth at 10%.
The trading levels in the South of England are very encouraging, and Kellis,
which was acquired in September 2005, has performed beyond our expectations. In
the North, the practice of using classroom assistants rather than teachers
remains more prevalent.
The division achieved margins of 26.8% (2004: 24.9%) representing a continuing
improvement.
Health Care Division
Turnover has increased by 17% to #23.8m (2004: #20.3m).
The new National Framework Agreement, which regulates the provision of locum
doctors, came into effect on 1 October 2005. The market is still digesting the
implications of the new framework and trading activity was lower than expected
through the second half of 2005. This market remains extremely difficult to
predict. However, the early signs for 2006 are encouraging and whilst there
appears to be fewer opportunities in the market overall, we are securing a
higher percentage of those that are available, thereby increasing market share.
Our three subsidiaries, JCJ, BML and Just Us, now operate out of one major site
in Yorkshire with an ancillary support site in India, which allows 24 hour
coverage. The offices in Birmingham and Worthing having been closed during 2005
with all contracts now managed centrally.
Social Work Division
The two social work businesses, Action First and Academy, position the Group as
one of the two leading providers of qualified social workers in the UK. Turnover
has risen substantially to #22.7m (2004: #8.3m), which represents organic
revenue growth of 7%. Margins are slightly lower at 18.8% (2004: 20.2%), but
profits have grown organically by 7%.
Adjusted earnings per share
Adjusted earnings per share amounts to 12.5p (2004: 7.7p), an increase of 62%.
Cash flow and net debt
Net cash inflow from operating activities of #5.6m compares to a small net cash
outflow in 2004. The Group has spent #1.2m on interest, #1.4m on tax payments
and #0.3m on tangible assets in the year.
Net debt slightly increased in the period to #18.8m (2004: #18.5m), despite
spending #7.6m on acquisitions. In December 2005, we redeemed #4.6m of loan
notes held by funds managed by Granville Baird Capital Partners by the issue of
equity. Debtors represent 40 days sales at the year end (2004: 45 days).
During the first four months of 2006, we are forecasting to make earn out
payments amounting to #3m in relation to the acquisitions of Action First, JCJ
and Kellis. New banking facilities are currently being negotiated. The
successful completion of these negotiations will enable the company to settle
the earn outs in cash and avoid an earnings dilution arising from the issue of
new shares.
Outlook
The Group expects further progress in the current year, both organically and
through the continued benefits of the reduced overheads arising from the
recently implemented integration initiatives.
The outlook for 2006 remains positive and the Board looks forward to the future
with confidence.
Rich Benton
Non-executive Chairman
1 March 2006
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2005
2005 2004
Note Existing Acquisitions Total Total
Operations
#000 #000 #000 #000
Turnover 2 75,775 4,449 80,224 53,825
Cost of sales (60,312) (2,922) (63,234) (42,653)
___________ ___________ ___________ ___________
Gross profit 15,463 1,527 16,990 11,172
Administrative
expenses (13,252) (704) (13,956) (9,468)
___________ ___________ ___________ ___________
Operating profit
before the
amortisation of
goodwill and exceptional
administrative expenses 4,397 1,066 5,463 2,611
Exceptional
administrative
expenses 3 (555) - (555) -
Amortisation of
goodwill (1,631) (243) (1,874) (907)
___________ ___________ ___________ ___________
Operating profit 2,211 823 3,034 1,704
Reorganisation
costs 4 (235) (177)
Net interest
payable and similar
charges (1,100) (674)
___________ ___________
Profit on ordinary
activities before
taxation 1,699 853
Tax on profit on
ordinary activities (1,059) (563)
___________ ___________
Profit on ordinary
activities after
taxation 640 290
Minority interest -
non equity - 228
___________ ___________
Retained profit for
the financial year 640 518
___________ ___________
Basic earnings per
ordinary share 5 2.6p 2.6p
Diluted earnings
per ordinary share 5 2.3p 2.6p
All recognised gains and losses in the current and prior year are included in
the profit and loss account.
All amounts relate to continuing activities.
CONSOLIDATED BALANCE SHEET
AT 31 DECEMBER 2005
2005 2004
#000 #000
Fixed assets
Intangible 43,905 29,371
Tangible 731 713
____________ ____________
44,636 30,084
____________ ____________
Current
assets
Debtors 11,918 10,612
Cash at bank 2,113 2,072
and in hand
____________ ____________
14,031 12,684
Creditors:
amounts falling (25,809) (15,563)
due within one
year
____________ ____________
Net current (11,778) (2,879)
liabilities
____________ ____________
Total assets 32,858 27,205
less current
liabilities
Creditors: amounts
falling due after (13,435) (12,768)
more than one year
Provisions - (3)
for liabilities
and charges
____________ ____________
Net assets 19,423 14,434
____________ ____________
Capital and
reserves
Called up 2,828 2,452
share capital
Share premium 12,316 8,302
account
Shares to be - 419
issued
Merger (425) (425)
reserve
Other reserve 3,506 3,128
Profit and 1,198 558
loss account
____________ ____________
Shareholders' 19,423 14,434
funds
____________ ____________
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2005
Note 2005 2004
#000 #000
Net cash inflow/(outflow) from
operating 6 5,613 (12)
activities
Returns on investments and servicing
of finance (1,218) (448)
Taxation (1,354) (185)
Capital expenditure and financial
investment (326) (455)
Acquisitions and disposals 7 (7,616) (9,807)
____________ ____________
Cash outflow before financing (4,901) (10,907)
Financing 3,964 5,612
____________ ____________
Decrease in cash in the year (937) (5,295)
____________ ____________
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
Decrease in cash in the year (937) (5,295)
Cash (inflow)/outflow from debt (3,974) 3,481
financing
____________ ____________
Change in net debt resulting from
cash (4,911) (1,814)
flows
Conversion of loan stock 4,620 -
Conversion of preference shares - (4,769)
Issue of guaranteed loan notes - (8,310)
Net debt acquired with (30) (5)
subsidiaries
____________ ____________
Movement in net debt (321) (14,898)
Opening net debt (18,483) (3,585)
____________ ____________
Net debt at end of year (18,804) (18,483)
____________ ____________
NOTES
1 Basis of preparation
The financial statements have been prepared under the historic cost
convention and are in accordance with applicable accounting
standards. They have been drawn up using accounting policies and
principles consistent with those applied in the preparation of the
audited accounts of Public Recruitment Group PLC for the year ended
31 December 2004, except that the group has adopted FRS 21 'Events
after the Balance Sheet date', FRS 22 'Earnings per Share', and FRS
25 'Financial Instruments: Disclosure and Presentation', for the
first time.
The financial information set out herein does not constitute the
Group's financial statements for the year ended 31 December 2005
and 31 December 2004, but is derived from those financial
statements. The financial statements for the year ended 31 December
2004 have been delivered to the Registrar of Companies, and those
for the year ended 31 December 2005 will be delivered following the
Annual General Meeting to be held on 3 May 2006. The auditors have
reported on those financial statements; their reports were
unqualified and did not contain statements under section 237 (2) or
(3) of the Companies Act.
2 Turnover 2005 2004
#000 #000
The segmental analysis of turnover
is as follows:
Education 33,691 25,174
Health Care 23,839 20,343
Social Work 22,694 8,308
__________ __________
80,224 53,825
__________ __________
3 Exceptional administrative 2005 2004
expenses
#000 #000
Rental dispute with landlord 217 -
Termination and office closure 338 -
costs
__________ __________
555 -
__________ __________
4 Reorganisation costs
During the year, the Group incurred redundancy and office closure
costs of #235,000 (2004: #177,000) as part of a reorganisation. Tax
relief of #70,000 (2004: #53,000) is available in respect of these
costs. As the reorganisation had a material effect of the nature
and focus of the Group's operations, the costs have been charged
after operating profit in accordance with FRS 3 'Reporting
Financial Performance'.
5 Basic and adjusted earnings 2005 2004
per share
pence pence
Basic earnings 2.6 2.6
Exceptional and reorganisation costs 2.3 0.6
(net of tax)
Amortisation of goodwill 7.6 4.5
________ _______
Adjusted earnings per share 12.5 7.7
________ _______
Diluted earnings per share 2.3 2.6
________ _______
The calculation of basic earnings per share is based on the retained profit
for the year of #640,000 (2004: #518,000) divided by the weighted average
number of ordinary shares in issue of 24,653,000 (2004: 20,193,000). Diluted
earnings per share is based on the retained profit for the year of #640,000
(2004: #518,000) divided by the weighted average number of ordinary shares
in issue, including potentially dilutive shares, amounting to 27,942,000
(2004: 20,222,000). Adjusted earnings per share, before exceptional
administrative expenses, reorganisation costs and the amortisation of
goodwill, is disclosed to indicate the underlying profitability of the Group
and is based on profit of #3,070,000 (2004: #1,549,000).
2005 2004
#000 #000
Basic earnings 640 518
Exceptional and reorganisation 556 124
costs (net of tax)
Amortisation of goodwill 1,874 907
_______ _______
Adjusted earnings for the year 3,070 1,549
_______ _______
Number of shares 2005 2004
000's 000's
Weighted average number of ordinary shares in 24,653 20,193
issue during the year
Weighted average number of potentially
dilutive shares in issue during the year as a
result of:
Exercise of options - 29
Contingent consideration on the acquisition 2,202 -
of Kellis Group Limited
Contingent consideration on the acquisition 1,087 -
of JCJ Holdings Plc
_______ _______
Total number of shares used in calculating 27,942 20,222
diluted earnings per share
_______ _______
Net cash flow from operating 2005 2004
activities
6 #000 #000
Operating profit 3,034 1,704
Reorganisation costs (235) (177)
Amortisation of goodwill 1,874 907
Depreciation 362 202
Profit on sale of tangible fixed (11) (16)
assets
Increase in debtors (151) (2,831)
Increase in creditors 740 199
____________ ____________
Net cash flow from operating 5,613 (12)
activities
____________ ____________
7 Acquisitions
During the year the Group acquired Kellis Group Limited and Just Us
Specialist Locums Limited companies for a combined consideration of
#14.8m.This consideration includes both initial and performance related
deferred consideration. These acquisitions have resulted in an increase
in goodwill, before amortisation, of #14.6m.
8 Post Balance Sheet Event
The deferred consideration due to the vendors of Kellis Group Limited
and the contingent consideration due to the vendors of JCJ Holdings Plc
during the first four months of 2006 have been subject to variation
agreements. The variations allow the payment of the outstanding
consideration to be settled in a mixture of cash, non guaranteed loan
notes and shares rather than solely in shares. The effect of these
variations is to avoid a significant dilution of the existing
shareholdings. The Annual Report and Accounts will be posted to
shareholders as soon as practicable and will be available to the public
from the Company's registered office; Public Recruitment Group PLC,
Fives Court, Hillsborough Barracks, Penistone Road, Sheffield S6 2GZ.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UARWRNWRORAR
Public Recruitment (LSE:PUG)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Public Recruitment (LSE:PUG)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024
