REG-Matchtech Group PLC Half Yearly Report - Part 2

Released : 02/04/09 06:00

Part 2 : For preceding part double click [nRn1B9710P]  
the instrument and comprise trade and other payables and bank loans. Financial 
liabilities are recorded initially at fair value, net of direct issue costs and 
are subsequently measured at amortised cost using the effective interest rate 
A financial liability is derecognised only when the obligation is extinguished, 
that is, when the obligation is discharged or cancelled or expires.  
xvi  Cash and cash equivalents  
           Cash and cash equivalents comprise cash on hand, on demand deposits 
and bank overdrafts.  
xvii Dividends  
Dividend distributions payable to equity shareholders are included in "other 
short term financial liabilities" when the dividends are approved in general 
meeting prior to the balance sheet date.  
xviii Equity   
           Equity comprises the following:  
 * "Share capital" represents the nominal value of equity shares. 
 * "Share premium" represents the excess over nominal value of the fair value of 
consideration received for equity shares, net of expenses of the share issue. 
 * "Share based payment reserve" represents equity-settled share-based employee 
remuneration until such share options are exercised. 
 * "Other reserve" represents the equity balance arising on the merger of 
Matchtech Engineering and Matchmaker Personnel. 
 * "Profit and loss reserve" represents retained profits.  
xix Foreign currencies  
Transactions in foreign currencies are translated at the exchange rate ruling at 
the date of the transaction. Monetary assets and liabilities in foreign 
currencies are translated at the rates of exchange ruling at the balance sheet 
date. Non-monetary items that are measured at historical cost in a foreign 
currency are translated at the exchange rate at the date of the transaction. 
Non-monetary items that are measured at fair value in a foreign currency are 
translated using the exchange rates at the date when the fair value was 
Any exchange differences arising on the settlement of monetary items or on 
translating monetary items at rates different from those at which they were 
initially recorded are recognised in the profit or loss in the period in which 
they arise.    
    The revenue and profit before tax are attributable to the one principal 
activity of the company.         
  (i)   Segmental                                            
                    6 months      6 months      12 months    
                    to 31/01/09   to 31/01/08   to 31/07/08  
                    Unaudited     Unaudited     Unaudited    
                    £'000         £'000         £'000        
A segmental analysis of revenue is given below:  
  Engineering             78,151    67,276    147,977  
  Built Environment       35,916    31,463    69,186   
  Professional Services   23,948    17,823    41,667   
  Total                   138,015   116,562   258,830  
A segmental analysis of gross profit is given below:  
  Engineering             8,588    7,803    16,786  
  Built Environment       4,170    4,226    9,039   
  Professional Services   3,822    3,243    7,409   
  Total                   16,580   15,272   33,234  
A segmental analysis of operating profit is given below:  
  Engineering             3,674   3,468   7,562   
  Built Environment       1,694   1,820   3,977   
  Professional Services   970     865     2,253   
  Total                   6,338   6,153   13,792  
    (ii) Seasonality              
 With the first half of the financial year including holiday seasons in August 
and at Christmas when recruitment activity is quieter  
             than normal, the second half of the year generally produces 
stronger results. Turnover in the 6 months to 31 January 2008  
             represented 45% of the annual total.  
  Analysis of charge in the period   6 months      6 months      12 months    
                                     to 31/01/09   to 31/01/08   to 31/07/08  
                                     Unaudited     Unaudited     Unaudited    
                                     £'000         £'000         £'000        
  Total income tax expense           1,645         1,745         3,705        
The total tax charge is lower than the standard rate of corporation tax. The 
differences are detailed below:        
  Profit before tax                                                     6,065   5,671   12,797  
  Corporation Tax at current rate 28% (31/01/08:30%, 31/07/08:29.33%)   1,698   1,701   3,753   
  Expenses not deductable for tax purposes                              1       33      18      
  Change in deferred tax rate                                           0       11      11      
  Adjustments to tax charge in respect of previous periods              (54)    0       (77)    
  Total UK tax charge                                                   1,645   1,745   3,705   
4    DIVIDENDS               
  Dividends on shares classed as equity:   6 months      6 months      12 months    
                                           to 31/01/09   to 31/01/08   to 31/07/08  
                                           Unaudited     Unaudited     Unaudited    
                                           £'000         £'000         £'000        
  Paid during the period                                                            
  Equity dividends on ordinary shares      2,462         2,148         3,309        
5        EARNINGS PER SHARE             
Earnings per share has been calculated by dividing the consolidated profit after 
taxation attributable to ordinary shareholders by the weighted average number of 
ordinary shares in issue during the period.  
Diluted earnings per share has been calculated, on the same basis as above, 
except that the weighted average number of ordinary shares that would be issued 
on the conversion of all the dilutive potential ordinary shares (arising from 
the Group's share option schemes) into ordinary shares has been added to the 
denominator. There are no changes to the profit (numerator) as a result of the 
dilutive calculation.  
    The earnings per share information has been calculated as follows:          
                                                                                          6 months      6 months      12 months    
                                                                                          to 31/01/09   to 31/01/08   to 31/07/08  
                                                                                          Unaudited     Unaudited     Unaudited    
  Profits                                                                                 £'000         £'000         £'000        
  Profit for the period                                                                   4,420         3,926         9,092        
  Number of Shares                                                                        000's         000's         000's        
  Weighted average number of ordinary shares in issue                                     23,231        23,070        23,111       
  Effect of dilutive potential ordinary shares under option                               1,184         777           660          
                                                                                          24,415        23,847        23,771       
  Earnings per Share                                                                      pence         pence         pence        
  Earnings per ordinary share from continuing operations   - Basic                        19.03         17.02         39.34        
                                                           - Diluted                      18.10         16.46         38.25        
6    SHARE CAPITAL              
  Authorised share capital                   31/01/2009   31/01/2008   31/07/2008  
                                             £'000        £'000        £'000       
  40,000,000 Ordinary shares of £0.01 each   400          400          400         
  Allotted, called up and fully paid         31/01/2009   31/01/2008   31/07/2008  
                                             £'000        £'000        £'000       
  Ordinary shares of £0.01 each              232          231          232         
The company issued the following shares in the periods:  
                         Ordinary shares of £0.01 issued   Share premium received   Consideration Received  
                                                           pence per share          £                       
  6 months to 31/01/08                                                                                      
  30/08/2007             436                               nil                      4                       
  28/09/2007             447                               nil                      4                       
  26/10/2007             454                               nil                      5                       
  05/11/2007             70,872                            89                       63,781                  
  30/11/2007             17,131                            nil                      171                     
  6 months to 31/07/08                                                                                      
  08/04/2008             9,174                             133                      12,293                  
  15/04/2008             4,587                             145                      6,697                   
  12/05/2008             5,692                             145                      8,310                   
  05/06/2008             75,336                            145                      109,991                 
  28/07/2008             16,619                            145                      24,264                  
  6 months to 31/01/09                                                                                      
  30/11/2008             3,571                             nil                      4                       
  05/01/2009             2,218                             nil                      2                       
  30/01/2009             2,433                             nil                      2                       
                  31/01/2009   31/01/2008   31/07/2008  
                  £'000        £'000        £'000       
  Trade debtors   33,887       28,823       38,298      
  Other debtors   23           16           49          
  Prepayments     176          200          218         
                  34,086       29,039       38,565      
Included in the Group's trade receivable balance are debtors with a carrying 
amount of £3,952,000 (2008: £7,075,000) which are past due at the reporting date 
for which the Group has not provided as the Directors do not believe there has 
been a significant change in credit quality and consider the amounts to be 
recoverable in full. The Group does not hold any collateral over these balances. 
The Directors consider all trade receivables not past due to be fully 
  Ageing of past due but not impaired trade receivables                                         
                                                          31/01/2009   31/01/2008   31/07/2008  
                                                          £'000        £'000        £'000       
  0-30 days                                               3,025        4,725        5,558       
  30-60 days                                              669          1,370        619         
  60-90 days                                              258          520          29          
  90+ days                                                0            460          87          
                                                          3,952        7,075        6,293       
Cautionary Statement   
This half year financial information has been prepared for the shareholders of 
the Company, as a whole, and its sole purpose and use is to assist shareholders 
to exercise their governance rights. In particular, this announcement has not 
been audited or otherwise independently verified. The Company and its directors 
and employees are not responsible for any other purpose or use or to any other 
person in relation to this announcement.   
The report contains indications of likely future developments and other 
forward-looking statements that are subject to risk factors associated with, 
among other things, the economic and business circumstances occurring from time 
to time in the sectors in which the Group operates. These and other factors 
could adversely affect the Group's results, strategy and prospects. 
Forward-looking statements involve risks, uncertainties and assumptions. They 
relate to events and/or depend on circumstances in the future which could cause 
actual results and outcomes to differ. No obligation is assumed to update any 
forward-looking statements, whether as a result of new information, future 
events or otherwise.  
Statement of Directors' Responsibilities   
The directors confirm that this condensed consolidated half year financial 
information has been prepared in accordance with IAS 34, as adopted by the 
European Union, and that the half year management report includes a fair review 
of the information required by DTR 4.2.7 and DTR 4.2.8.  
We have been engaged by the company to review the condensed set of financial 
statements in the half-yearly financial report for the six months ended 31 
January 2009 which comprise the condensed consolidated income statement, the 
condensed consolidated balance sheet, the condensed consolidated cash flow 
statement, the condensed consolidated statement of changes in equity and notes 1 
to 7. We have read the other information contained in the interim report which 
comprises only the Chairman's Statement and considered whether it contains any 
apparent misstatements or material inconsistencies with the financial 
This report is made solely to the company in accordance with guidance contained 
in ISRE (UK and Ireland) 2410, "Review of Interim Financial Information 
performed by the Independent Auditor of the Entity". Our review work has been 
undertaken so that we might state to the company those matters we are required 
to state to them in a review report and for no other purpose. To the fullest 
extent permitted by law, we do not accept or assume responsibility to anyone 
other than the company, for our review work, for this report, or for the 
conclusion we have formed.  
Directors' Responsibilities  
The half-yearly financial report is the responsibility of, and has been approved 
by, the directors. The directors are responsible for preparing the half-yearly 
financial report.   
As disclosed in Note 1, the annual financial statements of the group are 
prepared in accordance with IFRS as adopted by the European Union. The condensed 
set of financial statements included in this half-yearly financial report has 
been prepared in accordance with International Accounting Standard 34, 'Interim 
Financial Reporting,' as adopted by the European Union'.   
Our Responsibility  
Our responsibility is to express to the Company a conclusion on the condensed 
set of financial statements in the half yearly financial report based on our 
Scope of Review  
We conducted our review in accordance with International Standard on Review 
Engagements (UK and Ireland) 2410, Review of Interim Financial Information 
Performed by the Independent Auditor of the Entity issued by the Auditing 
Practices Board for use in the United Kingdom. A review of interim financial 
information consists of making enquiries, primarily of persons responsible for 
financial and accounting matters, and applying analytical and other review 
procedures. A review is substantially less in scope than an audit conducted in 
accordance with International Standards on Auditing (UK and Ireland) and 
consequently does not enable us to obtain assurance that we would become aware 
of all significant matters that might be identified in an audit. Accordingly, we 
do not express an audit opinion.  
Review Conclusion  
Based on our review, nothing has come to our attention that causes us to believe 
that the condensed set of financial statements in the half-yearly financial 
report for the six months ended 31 January 2009 is not prepared, in all material 
respects, in accordance with International Accounting Standard 34 as adopted by 
the European Union.  
Chartered Accountants & Registered Auditors  
No, 1 Dorset Street  
SO15 2DP  
2 April 2009              
This information is provided by RNS  
The company news service from the London Stock Exchange