Skillsgroup PLC - Final Results
03 Février 2000 - 8:02AM
UK Regulatory
RNS Number:9174E
Skillsgroup PLC
3 February 2000
Skillsgroup plc
Preliminary Results for the year ended 30th November 1999
Highlights
Skillsgroup, a leading provider of information technology
services, is pleased to announce the following:
* Turnover from continuing businesses increased by 22.4% to
#198.7m (1998: #162.3m)
* Profit before tax for continuing operations* increased by
27.9% to #16.5m (1998: #12.9m)
* Adjusted* earnings per share increased by 29.1% to 14.2p
(1998: 11.0p). Basic earnings per share were 10.8p (1998:
12.5p)
* Total dividend increased by 14% to 5.7p per share (1998:
5.0p)
* Acquisitions well established within the group and
creating significant new opportunities
* Announcement of E-Business initiatives, including
qaglobal.com
* adjusted to exclude exceptional charges of #2.7m and
goodwill amortisation of #2.4m
Commenting on the results, David Southworth, Executive
Chairman said:
"The results announced today confirm that we have continued
to grow the business successfully despite the extreme
conditions created by the Year 2000 'microclimate'.
Following the restructuring and integration processes of
1999 our businesses are very strongly positioned to exploit
expected profitable growth opportunities."
"During 1999 we have invested in our internet capabilities
and we are now in a position to announce key elements of our
e-commerce initiatives, which will further position
Skillsgroup and especially QA Training as a global leader in
the provision of leading edge IT skills."
For further information, please contact:
Skillsgroup plc
David Southworth, on 3rd Feb 2000: 0171 253 2252
Executive Chairman thereafter: 01625 591200
Colin Gibson, Finance Director www.skillsgroup.co.uk
Ludgate Communications Ltd
Reg Hoare / Edward Macquisten 0171 253 2252
Chairman's Statement
Introduction
1999 was a year of considerable achievement for the Group
with four important acquisitions at a total cost of #81.7
million marking a further significant stage in the
transition to a high quality, high margin, skills-based
business. The acquisitions are well established within the
Group and we now have three operating businesses with
distinct branding and strong market positions.
The acquisition and integration process has taken place
against a trading environment in the second half of the year
made more difficult for most IT businesses by the extreme
conditions created by the Y2K 'microclimate'. We issued a
statement on 1 October 1999 highlighting the effects of
these conditions on our business. Our results announced
today are in line with that announcement and confirm that we
have continued to grow the business successfully despite the
external difficulties.
During 1999 we have invested in our internet capabilities
and we are now in a position to announce key elements of our
e-commerce initiatives, which will further position
Skillsgroup and especially QA Training as a global leader in
the provision of leading edge IT skills.
Business Performance and Acquisitions
Skillsgroup
The overall performance of continuing businesses was
encouraging with turnover increasing by 22.4% from #162.3
million to #198.7 million, profits before tax, adjusted to
exclude exceptionals and goodwill amortisation ("adjusted
profits") increasing by 27.9% from #12.9 million to #16.5
million and adjusted eps increasing by 29.1% from 11.0 pence
to 14.2 pence. After a particularly strong first half,
trading proved more difficult than anticipated in the second
half of the year, traditionally the period which contributes
most to the Group's profits. Two trends were evident -
firstly a number of major corporates postponed large IT
development projects into the new year, in some cases
deferring related training requirements and secondly, a
number of businesses, particularly in the finance and IT
services sectors, cut back on discretionary spending.
Resource Management - QA Group
In the year ended 30 November 1999, QA Group increased
operating profits before exceptional charges and goodwill
amortisation by 31.3% from #8.3 million to #10.9 million on
turnover which was up 10.9% at #104.9 million, including all
acquisitions. Within these overall figures, QA Training's
turnover increased by 44.8% while QA Myriad, our staffing
business, showed turnover down by 4.0%. The effect of the
acquisitions and of measures taken to improve utilisation
and efficiency meant that QA Training's profitability
improved significantly with an excellent operating margin of
18.2% against 15.6% last year. As a result of difficult
trading conditions, QA Myriad's operating margin was down to
5.2% compared with 5.8%. Steps were taken during the year
to reduce overheads significantly as part of a refocus of
the business into specialist skills and the staffing needs
of the Group's own businesses.
The acquisitions in March and April respectively of The
Knowledge Centre and Cap Gemini's UK Training business have
created significant new opportunities for QA Training.
During 1999 we estimated that the market size for IT
training was #550 million. In terms of market position QA
is now the clear market leader with an 8% market share of IT
Technical and Professional training. QA now supplies an
unrivalled portfolio of approximately 400 courses covering
both the technical courses for which it already had a
leading reputation, as well as the professional skills
courses for which Cap Gemini's training operation had great
recognition. The Knowledge Centre added a set of
specialised courses and expertise in the fast growing
telecommunications sector.
Consulting - Pontis Consulting
Pontis traded well in the period immediately following its
acquisition in March then faltered slightly against high
expectations during late summer as some major clients
imposed budget constraints on their IT departments. In the
last quarter the business started to pick up momentum again
and is now strongly placed as it goes into the new financial
year. Combined with QA Consulting, which had a good year,
the total result for the Consulting division was an
operating profit before exceptionals and goodwill of #3.2
million on turnover of #13.3 million at a margin of 24.1%.
This compares with a profit of #0.7 million on #5.1 million
of turnover for QA Consulting alone in 1998.
Pontis has brought an important new dimension to the Group
with technical consulting expertise of the highest level in
the niche area of distributed systems migration. Operating
principally in the financial sector, the business works at
a strategic level with a small number of large customers
delivering the highest quality of service. Within
Skillsgroup, the business has significant potential to grow
its customer base and its business consulting capabilities
and following the recently completed integration with QA
Consulting it is ready to take advantage of the
opportunities currently in the marketplace.
Enterprise Solutions - Acuma Group
Acuma reported a reduction in operating profits before
exceptionals and goodwill from #4.1 million to #3.2 million
despite a turnover increase from #62.6 million to #80.5
million resulting from strong hardware sales in the first
half of the year. However, the higher margin solutions
businesses proved vulnerable to the Y2K downturn due to a
lack of critical mass. This weakness has now been addressed
through the acquisition of GA Information Systems ("GAIS"),
the disposal of our small Swedish subsidiary Synergica AB
and the subsequent integration and restructuring of the
business.
Acuma's solution offering is now based on a model which aims
to help customers Access, Deploy and Exploit information
within their organisations. The acquisition late in the
year of GAIS, in combination with the acquisition of ISL in
November 1998, gives Acuma true critical mass in the
knowledge management solutions market. Both GAIS and ISL
have leading positions in the market for implementing
business intelligence tools. These tools and the templates
developed from them commonly using web-based technology
interfaces, pull information from a client's system and
allow it to be analysed, collated and presented in a
meaningful way before distribution to selected users.
Financial Position, Gearing
The acquisitions made during the year had a total cost of
#81.7 million including a related cash and borrowings impact
of #61.2 million. Positive cashflow from operations has
limited our year end net borrowings to #20.4 million
(compared with net cash of #34.1 million at 30 November
1998), a position which still leaves us with a strong
balance sheet, particularly with the cash generative nature
of our businesses. Year end gearing was 27% compared with a
net cash surplus in 1998. Shareholders funds have increased
from #52.6 million to #74.6 million. The Group remains in a
position to make further acquisitions should appropriate
opportunities be identified.
Dividend
The Board is recommending that the final dividend for the
year ended 30 November 1999 should be increased by 14.3% to
4.0p per share compared with 3.5p in 1998. This makes an
overall total of 5.7p for the year, a 14% increase on 1998.
The final dividend will be payable on 15 April 2000 to
shareholders on the register at 10 March 2000.
E-business Initiatives
Following a review across the Group on how all our
businesses should address the changes in the market
resulting from the impact of web-based technologies, the
Board has identified a number of major opportunities. These
will require a short term investment of between #8-10
million over the next 12 to 15 months and will allow us to
accelerate the pace of change and stake a much greater claim
in the web-based markets of the future. We are prepared to
invest in order to establish a leading position in our
chosen markets.
In our view the winning companies of the future will be
those that translate a successful formula in traditional
business practice into a coherent combination of "clicks and
mortar" i.e. web-based business linked to traditional
brands, content and infrastructure.
qaglobal.com
We aim to take QA Training's leading market position in
instructor-led IT training and use its brand strength and
intellectual capital to develop and deliver best of breed
web-based learning content. Based around qaglobal.com, a
new company and an addition to the web site from which we
already sell courseware internationally, we intend to
develop a number of potential opportunities, including
partnerships, in delivering web-based learning content.
These opportunities will include delivery of courseware and
related products and services developed by others not
necessarily limited to IT content. We have partnered with
the UK subsidiary of a leading US based e-commerce
consultancy to assist us with this process.
QA Training Business to Business
We also intend to transform the way IT technical and
professional training is booked, paid for and delivered in
the UK. We have a successful pilot extranet-based booking
system which is operating with a major customer which we
will further develop and extend. This system already allows
IT staff to view course availability directly and book in
real-time using QA's own systems. This facility will be
available for all of QA's customers by the end of this year,
producing considerable efficiencies for both the customer
and for QA Group. We will be adding features during 2000
which will enhance our volumes and competitiveness through
interactive trading with our customers. We are confident
that these measures will materially increase the
profitability of this business.
Acuma Solutions
In the knowledge solutions arena we are evolving a strategy
based around information portals which will soon go into
full implementation for business to business applications.
These extend traditional business intelligence applications
to enable the deployment of information within a business
across its own intranets and potentially also across
extranets to its customers and suppliers. These software
applications are already at production stage with some sales
achieved and we will be making investment to package and
market them more aggressively in 2000 as part of a further
drive to achieve a genuine solutions focus.
Skillsgroup Board
Following the acquisitions made during the year and the
addition of our new Consulting division, based around Pontis
Consulting, Charles Grant, the managing director of the
division and David Ince, the managing director of Acuma,
joined the main board in December 1999. Claes Hofmann
resigned from the Board in October, after leading a
management buyout of Synergica AB, our small Swedish
solutions business. We wish him well in the future and
thank him for his contribution to the progress of the Group.
The Board now comprises five executive directors - myself,
the Group finance director and the managing directors of the
three operating divisions - along with three non-executive
directors.
Employees
Our employees have played a key role in our progress during
what has been a year of transformation. I am delighted with
the positive response of our staff, new and old, to the
challenges of the acquisitions and the subsequent
integration processes. Over 50% of our staff have taken the
opportunity during the year to participate in the Group's
new savings-related share option scheme and I look forward
to seeing them benefit as the Group makes progress.
Current Trading and Prospects
The current year has started off better than expected in QA
Group, satisfactorily in Pontis Consulting and lower than
expected in Acuma. As a result of the previously identified
Y2K effect, our first quarter financial results will be
lower than last year but will be in line with our
expectations. There is likely to be a material change to
the mix of profits between the first and second halves
reflecting the expected recovery in IT spend.
Despite this short term situation, we remain optimistic for
the year as a whole and for future years. Following the
restructuring and integration processes of 1999, our
businesses are very strongly positioned to exploit expected
profitable growth opportunities.
David R Southworth
Chairman
3 February 2000
Consolidated Profit and Loss Account (Unaudited)
1999 1998
Notes #m #m
Turnover
Continuing operations
Existing 1 187.7 162.3
Acquisitions 1 11.0 -
_________________
198.7 162.3
Discontinued operations 1 - 46.1
_________________
198.7 208.4
_________________
Operating profit
Continuing operations
Existing 1 9.5 12.2
Acquisitions 1 1.5 -
_________________
11.0 12.2
Discontinued operations 1 - 0.2
_________________
11.0 12.4
Exceptional profit on disposal of
businesses - 0.3
Provisions made in prior periods - 0.7
_________________
- 1.0
Profit on ordinary activities
before interest 11.0 13.4
Net interest receivable 0.4 1.0
_________________
Profit on ordinary activities
before taxation 11.4 14.4
Tax on profit on ordinary activities (2.1) (4.2)
_________________
Profit on ordinary activities
after taxation 9.3 10.2
_________________
Dividends (5.0) (4.1)
_________________
Transfer to reserves 4.3 6.1
_________________
Basic earnings per share 3 10.8p 12.5p
_________________
Fully diluted earnings per share 3 10.7p 12.3p
_________________
Adjusted earnings per share * 3 14.2p 11.0p
_________________
Adjusted fully diluted earnings
per share * 3 14.1p 10.9p
_________________
* adjusted to exclude discontinued operations, exceptional
items and goodwill amortisation
There are no recognised gains or losses other than the
profit for the year.
Consolidated Balance Sheet (Unaudited)
1999 1999 1998 1998
#m #m #m #m
Fixed assets
Intangible assets 78.5 -
Tangible assets 17.6 17.3
______ _____
96.1 17.3
______ _____
Current assets
Stock 0.9 1.9
Debtors 48.3 37.1
Cash at bank and in hand 3.6 35.4
______ _____
52.8 74.4
Creditors - amounts due
within one year
Borrowings (17.9) (0.7)
Other creditors (47.6) (32.8)
______ _____
(65.5) (33.5)
______ _____
Net current (liabilities)
/assets (12.7) 40.9
Total assets less current
liabilities 83.4 58.2
Creditors - amounts due
after one year
Borrowings (6.1) (0.6)
Other creditors (1.2) (0.5)
______ _____
(7.3) (1.1)
Provisions for liabilities
and charges (1.5) (4.5)
______ _____
Net assets 74.6 52.6
______ _____
Capital and reserves
Called up share capital 8.8 8.2
Deferred share capital 4.6 -
Share premium 44.5 32.2
Other reserves 1.5 1.3
Profit and Loss account 15.2 10.9
______ _____
Equity shareholders' funds 74.6 52.6
______ _____
Consolidated Cashflow Statement (Unaudited)
1999 1998
#m #m
Reconciliation of operating profit to
net cash flow from operating activities
Operating profit 11.0 12.4
Goodwill amortisation 2.4 -
Depreciation 3.7 2.5
Profit on fixed assets disposals (0.2) -
Decrease in stock 1.0 2.4
Increase in debtors (1.6) (4.6)
Increase/(decrease) in creditors 0.4 (9.7)
Decrease in provisions (0.5) (6.6)
_________________
Net cash inflow/(outflow)
from operating activities 16.2 (3.6)
_________________
Consolidated cash flow statement 1999 1998
#m #m
Net cash inflow/(outflow)
from operating activities 16.2 (3.6)
Returns on investments and
servicing of finance
Net interest received/(paid) 0.9 1.0
Taxation
Corporation tax paid (3.5) (1.6)
Capital expenditure and
financial investment
Purchase of fixed assets (3.4) (3.5)
Fixed assets disposals 0.4 0.4
_________________
(3.0) (3.1)
Acquisition and disposals
Acquisition of businesses
- total impact on net cash/ borrowings (61.2) (1.4)
- increase in borrowings
(excluding overdrafts) 22.5 -
Cash outflow from acquisitions
(including net cash acquired of
#3.2 million) (38.7) (1.4)
Disposal of businesses 0.2 53.7
_________________
(38.5) 52.3
Equity dividend paid (4.4) (3.6)
_________________
Net cash outflow before financing (32.3) 41.4
_________________
Notes
1. Segmental report
The analysis of turnover and operating profit by business
group is as follows:
1999 1998
Turnover Turnover
Before
Exceptional
Costs &
Goodwill
amortisation
#m #m #m
Continuing operations
Resource management
- existing 103.1 94.6 10.4
- acquired 1.8 - 0.5
_______________________________
104.9 94.6 10.9
Enterprise Solutions
- existing 79.5 62.6 3.1
- acquired 1.0 - 0.1
_______________________________
80.5 62.6 3.2
Consulting
- existing 5.1 5.1 0.8
- acquired 8.2 - 2.4
_______________________________
13.3 5.1 3.2
Discontinued operations - 46.1 -
_______________________________
Before central costs 198.7 208.4 17.3
Central costs
- base - - (1.2)
- exceptional - - -
_______________________________
198.7 208.4 16.1
_______________________________
1999 1998
Operating Operating
profit profit
After
exceptional
costs &
Exceptional Goodwill goodwill
costs amortisation amortisation
#m #m #m #m
Continuing
operations
Resource
management
- existing (0.8) (1.0) 8.6 8.3
- acquired - (0.1) 0.4 -
________________________________________
(0.8) (1.1) 9.0 8.3
Enterprise Solutions
- existing (0.2) - 2.9 4.1
- acquired - (0.1) - -
________________________________________
(0.2) (0.1) 2.9 4.1
Consulting
- existing (0.2) - 0.6 0.7
- acquired (0.1) (1.2) 1.1 -
________________________________________
(0.3) (1.2) 1.7 0.7
Discontinued
operations - - - 1.0
________________________________________
Before central
costs (1.3) (2.4) 13.6 14.1
Central costs
- base - - (1.2) (1.2)
- exceptional (1.4) - (1.4) (0.5)
________________________________________
(2.7) (2.4) 11.0 12.4
________________________________________
2. The 1998 accounts are abridged from the Group's full
accounts on which the auditors have given an
unqualified opinion. The 1999 statutory accounts will
be filed with the Registrar of Companies in due course.
3. The calculation of basic earnings per share is based
upon profits on ordinary activities after taxation and
a weighted average of 86,005,790 shares and the fully
diluted earnings per share is based on a weighted
average of 86,571,076 shares. The calculation of
adjusted earnings per share excludes the discontinued
operations (net of tax), exceptional costs (net of tax)
and goodwill amortisation.
4. Copies of the Group's full report and accounts will be
sent to all shareholders in due course. Additional
copies will be available from the Company's registered
office, Skillsgroup plc, Bridgford House, Heyes Lane,
Alderley Edge, Cheshire, SK9 7JP.
5. The AGM will be held on 14 April 2000.
6. At a meeting held on 3 February 2000, the Board of
Skillsgroup plc recommended payment of a final dividend
of 4.0 pence per share to holders of 10 pence ordinary
shares on the register at the close of business on 10
March 2000.
7. The recommended final dividend, together with the
interim dividend already paid, make a total dividend for
the year of 5.7 pence, compared with 5.0 pence for 1998.
8. This statement, which is unaudited, constitutes non-
statutory accounts within the meaning of Section 240 of
the Companies Act 1985 and was approved by the
Directors and agreed with the Company's auditors
PricewaterhouseCoopers on 3 February 2000.
END
FR UUUWWPUPUGBP
Smurfit Kappa (LSE:SKG)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
Smurfit Kappa (LSE:SKG)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024
