Half Yearly Report

Released : 11/04/12 07:00

RNS Number : 0697B
Matchtech Group PLC
11 April 2012
 



11 April 2012

Matchtech Group plc

Half year financial report for the six months ended 31 January 2012

 

Matchtech Group plc ("Matchtech" or the "Group"), one of the UK's leading recruitment solutions specialists, today announces its unaudited results for the six months ended 31 January 2012.

 

Financial Headlines

·      Revenue:  Up 25% to £176.7m (2011 H1: £141.1m)

·      Net Fee Income (NFI) *: Up 26% to £17.2m (2011 H1: £13.6m)

·      Permanent recruitment fees: Up 33% to £5.6m (2011 H1: £4.2m)

·      Contract NFI: Up 23% to £11.6m (2011 H1: £9.4m)

·      Record number of contractors on placement **: Up 23% to 6,400 (31 Jan 2011: 5,200, 31 July 2011: 6,000)

·      Profit from Operations: Up 36% to £3.4m (2011 H1: £2.5m)

·      Profit before tax: Up 39% to £3.2m (2011 H1: £2.3m)

·      Interim dividend maintained at 5.0p (2011 H1: 5.0p)

·      Net debt ** of £11.0m (31 January 2011: £4.8m, 31 July 2011: £16.0m)

 

  * NFI is calculated as Revenue less Contractor Payroll Costs

** At end of period: 31 January 2012

 

Operational Highlights

·      Matchtech UK achieved NFI growth of 20%, with Engineering, Built Environment and Information Systems & Technology sectors all reporting significant progress in H1 2012

·      Professional Services, which comprises the Barclay Meade and Alderwood Education brands, benefited from the investment in sales force headcount in 2011 by delivering 82% growth in Permanent Recruitment fees

·      Permanent recruitment fees now represent 33% of Group NFI 

·      NFI per head in the period increased by 12%

·      Acquisition of certain business assets of Xchanging Resourcing Services Limited ("XRS") in January 2012 allows the Group to expand into new markets

 

Commenting on the results, George Materna, Chairman of the Group said:

"The Group delivered a strong performance in the first half of the year. 

Matchtech UK has seen unprecedented demand for contract staff within its core markets, with a record number of contractors on assignment, and Professional Services has fuelled strong growth in Permanent fees. 

Trading has continued to progress solidly since our last update on 2 February 2012 and the Board currently anticipates that the results for the year to 31 July 2012 will be in line with its previous expectations."

 

For further information please contact:

 

 

Matchtech Group plc       

01489 898989

Adrian Gunn, Chief Executive Officer


Tony Dyer, Chief Financial Officer


MHP Communications                                               

020 3128 8100

John Olsen / Ian Payne / Giles Robinson


Numis

020 7260 1000

Michael Meade / James Serjeant

 


 

 

  

Financial Summary 

 



Six months to

31 January 2012

Six months to

31 January 2011

Increase

 



unaudited

unaudited




£m

£m

%

Income Statement





Revenue


176.7

141.1

25%






NFI


17.2

13.6

26%

Permanent recruitment fees


5.6

4.2

33%

Contract NFI


11.6

9.4

23%






Overheads


13.8

11.1

24%






Profit from Operations


3.4

2.5

36%






Profit Before Tax


3.2

2.3

39%






Basic EPS (pence)


9.5p

6.9p

38%






Dividend per Share (pence)

A

5.0p

5.0p

-






Cash flow, Debtors & Net Debt





Cash flow from operations


9.4

3.6

161%

Debtors (days)

B

47

47

-

Net (Debt)

C

(11.0)

(4.8)

129%






Headcount





Contractors on placement (nos.)


6,400

5,200

23%

Sales Force Headcount (nos.)


278

257

8%






NFI conversion (%)

D

19.8%

18.4%

7.6%

 

Notes:

A: Interim dividend declared for the six months to 31 January

B: At end of period. 31 July 2011: 53 days

C: At end of period. 31 July 2011: (£16.0) m. Banking facilities of £35.0m are committed until April 2013

D: Profit from Operations as a % of NFI

 

 

Background on Matchtech Group

 

Established in 1984, the Group specialises in the provision of contract, temporary and permanent staff and has grown to become one of the UK's leading technical, professional and recruitment outsourcing specialists.

 

The Group is split into four dedicated brands: Matchtech, Barclay Meade, Alderwood Education and elemense, providing specialist recruitment solutions to a broad range of clients across the UK and Europe. The Group's Head Office is based in Fareham, Hampshire and it has office locations in London, St Albans, Aberdeen and Stuttgart.

 

The directors of Matchtech Group plc are as disclosed on page 26 in the Annual Report for the year ended 31 July 2011, save for Rudi Kindts who joined on 1 March 2012.

 

 

MATCHTECH GROUP PLC

 

Interim report for the period ended 31 January 2012

 

Chairman's statement

 

The Group delivered a strong performance in the first half of the year. 

 

Matchtech UK, our technical business, has seen unprecedented demand for contract staff within its core markets, with a record number of contractors on assignment. 

 

Our diversification strategy, particularly into Professional Services, has fuelled the strong growth in Permanent fees, which now represent 33% of Group NFI. 

 

The benefit of the Group's investment in sales force headcount during 2011 is reflected in NFI growth in H1 2012, with NFI per head increasing by 12%. 

 

NFI conversion rate (conversion of NFI to Profit from Operations) rose 8% to 19.8% (2011: 18.4%). The Group expects the NFI conversion rate to improve significantly in the second half of the year compared with the first half, as last year.

 

In January 2012 the Group acquired certain assets of Xchanging Resourcing Services Limited, the contingency recruitment business of Xchanging plc. This allows the Group to expand into new markets and to forge closer links with one of our largest clients.

 

 

Operating review

 

The Group's divisional results may be analysed as follows:

 

Six months to

31 January 2012

Engineering

Built

Environment

Information Systems & Technology

Science & Medical

Matchtech UK

Matchtech Germany

Professional Services

elemense

Matchtech Group plc


£m

£m

£m

£m

£m

£m

£m

£m

£m

Turnover

79.8

37.8

37.3

4.0

158.9

1.4

11.4

5.0

176.7











Contract NFI

4.8

2.5

2.1

0.4

9.8

0.3

0.8

0.8

11.6

Perm NFI

1.0

0.4

1.5

0.5

3.4

0.1

2.0

-

5.6

Total NFI

5.8

2.9

3.6

0.9

13.2

0.4

2.8

0.8

17.2

Overheads

(3.2)

(1.8)

(2.5)

(0.9)

(8.4)

(0.7)

(3.7)

(1.0)

(13.8)

Profit/(loss) from Operations

2.6

1.1

1.1

-

4.8

(0.3)

(0.9)

(0.2)

3.4

 

Six months to

31 January 2011

Engineering

Built

Environment

Information Systems & Technology

Science & Medical

Matchtech UK

Matchtech Germany

Professional Services

Elemense

Matchtech Group plc


£m

£m

£m

£m

£m

£m

£m

£m

£m

Turnover

64.5

30.9

26.5

2.9

124.8

0.6

9.1

6.6

141.1











Contract NFI

4.0

2.2

1.6

0.3

8.1

0.1

0.6

0.6

9.4

Perm NFI

0.7

0.3

1.3

0.6

2.9

0.1

1.1

0.1

4.2

Total NFI

4.7

2.5

2.9

0.9

11.0

0.2

1.7

0.7

13.6

Overheads

(2.3)

(1.5)

(1.8)

(0.9)

(6.5)

(0.3)

(3.3)

(1.0)

(11.1)

Profit/(loss) from Operations

2.4

1.0

1.1

-

4.5

(0.1)

(1.6)

(0.3)

2.5

 

 

 

Matchtech UK

 

The strong growth in contractor numbers seen in the second half of last year has continued, with contractors on assignment at 31 January 2012 of 5,600 (31 January 2011: 4,400, 31 July 2011: 5,200).

 

Matchtech UK delivered NFI of £13.2m, a 20% increase compared with 2011 H1, with strong growth in both Contract (up 21%) and Permanent fees (up 17%). Profit from Operations improved to £4.8m, up £0.3m.

 

Engineering, the largest sector in Matchtech UK, representing 43% of its NFI, grew Permanent fees by 43% and Contract NFI by 20%.  Contractors on assignment at the end of the period were 2,800, up 27% on the same period last year. 

 

The Built Environment sector grew contractor numbers by 17% to 1,400, with Contract NFI up 14%. Permanent fees were stable.

 

The Information Systems & Technology sector reported a very strong performance, with NFI of £3.6m up 24% on 2011 H1.  Contract NFI was up 31% and Permanent fees were up 15%.

 

Science & Medical reported unchanged NFI of £0.9m compared with 2011 H1.

 

Matchtech Germany

 

Continued penetration of the Group's chosen sectors of Aerospace, Automotive and Energy in Germany, where the Group established a presence in 2009, resulted in an increase in NFI from £0.2m to £0.4m.

 

Professional Services

 

The Professional Services brands of Barclay Meade and Alderwood Education, are developing well, extending their client base and diversifying into new markets. In the first half NFI for Professional Services was £2.8m, up 65% against 2011 H1, with strong growth of 82% in Permanent fees and Contract NFI up 33%.

 

Professional Services reduced its losses compared with the same period last year by 44% to£0.7m (2012: £0.9m loss, 2011: £1.6m loss).

 

elemense

 

elemense, which manages a number of  the major framework contracts for the Group as a whole, continued to develop its Recruitment Process Outsourcing (RPO) business with NFI increasing by £0.1m to £0.8m in 2012 H1.  

 

Around 17% of the Group's revenues are generated from accounts that elemense manages.

 

Acquisition

 

The Group completed the purchase of certain business assets of Xchanging Resourcing Services Limited ("XRS"), the contingency recruitment arm of Xchanging plc, on 16 January 2012 for a total cash consideration of £0.4m.

 

As part of the deal the Group secured an exclusive two year contract to January 2014 to supply contractors to Xchanging's business in the UK and the novation of existing XRS client contracts.

 

In the two weeks between acquisition and the period end the Group benefited from £11,000 of NFI from XRS.

 

 

People

 

The Group invested significantly in sales force headcount in 2011, with the majority of the headcount recruited at the start of the current financial year. The benefits of this increase in headcount have been reflected in both the NFI growth achieved by the Group in H1 2012, and in the improvement in NFI per head, as noted above.   

 

Total staff numbers at the end of the period were 361 (31 January 2011: 341, 31 July 2011: 350).

 

 

Headcount may be analysed as follows:

 


31 January 2012

31 January 2011

Increase

% Change

31 July 2011

Increase

% Change









Matchtech UK

176

155

+21

+14%

167

+9

+5%

Matchtech Germany

8

8

-

-

8

-

-

Professional Services

71

72

-1

-1%

68

+3

+4%

elemense

23

22

+1

+5%

24

-1

-4%

Sales force

278

257

+21

+8%

267

+11

+4%

Shared Services

83

84

-1

-1%

83

-

-

Total Headcount

361

341

+20

+6%

350

+11

+3%

 

 

Financial Overview

 

Revenue for the period was £176.7m up 25% (2011 H1: £141.1m), with NFI of £17.2m up 26% (2011 H1: £13.6m). Permanent recruitment fees of £5.6m were up 33% (2011 H1: £4.2m) and Contract NFI was up 23% to £11.6m (2011 H1: £9.4m). Contract NFI margin was broadly stable at 6.8% (2011 H1: 6.9%).

 

Overheads were £13.8m, up by 24%. Further analysis is provided below.

Profit from Operations of £3.4m was up 36% (2011 H1: £2.5m).  Of the £0.9m improvement, £0.7m (78%) came from reduced losses in Professional Services (2012: £0.9m loss, 2011: £1.6m loss).

Interest costs remain relatively low at £0.3m (2011 H1: £0.2m).

 

Profit before tax of £3.2m was up 39% (2011 H1: £2.3m).

 

 

Overheads

 

The Group has invested in sales force headcount and shared service departments to help support the Group's diversification strategy. Overheads in each of the three half years to 31 January 2012 may be analysed as follows:

 


2011 H1

2011 H2

2012 H1


£m

£m

£m

Staff and Sales & Marketing Costs

9.5

10.1

11.4

Establishment and Administration Expenses

1.1

1.3

1.4

Financial & Professional Costs

0.5

0.4

1.0

Total Overheads

11.1

11.8

13.8

 

Overheads as % of NFI

82%

73%

80%

 

Financial & Professional Costs in 2012 H1 have been impacted by one-off acquisition expenses £0.1m and fees relating to certain senior management incentive plans £0.1m together with an exchange loss of £0.1m on an inter-company loan from the UK to of Matchtech Germany. 

 

 

Effective Rate of Tax

 

The effective rate of tax for the period was 29.5% (2011 H1: 28.7%), up slightly due to overseas tax losses and higher disallowable expenses.

 

 

Earnings per share

 

Basic earnings per share were 9.5p, up 38% (2011 H1: 6.9p).

 

Fully diluted earnings per share were 9.1p, up 34% (2011 H1: 6.8p).

 

 

Cash flow

 

Debtor days at the end of the period were 47 (31 January 2011: 47; 31 July 2011: 53), with no unimpaired debtors over 90 days overdue (31 January 2011: £nil; 31 July 2011: £0.3m).

 

Cash inflows from operations of £9.4m (2011 H1: £3.6m) representing cash conversion of 276% (2011 H1: 144%).

 

Capital expenditure for the period was £1.0m (2011 H1: £0.4m), including the acquisition of certain assets of XRS for £0.4m in January 2012.

 

 

Net Debt and Banking

 

The Group ended the period with net debt of £11.0m (31 January 2011: £4.8m; 31 July 2011: £16.0m), with the fall since 31 July 2011 due to a combination of reduced debtor days and the seasonal impact of lower billing in the Christmas / New Year period.

 

The Group has a committed Confidential Invoice Discounting ("CID") facility with Barclays Bank until 7 April 2013. The facility allows the Group to borrow up to 90% of its qualifying UK invoiced debtors capped at £35.0m, with a single debtor cap of 20% of total debtor book.

 

As at 31 January 2012 the Group's qualifying invoiced debtor book stood at £41.3m, with a further £12.3m of accrued invoices.

 

Interest is charged on borrowings at Barclays Bank Base Rate plus 2.25%. 

 

Peak net debt in the period was £29.7m.

 

The Group's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Group should be able to operate within the level of its current facility.

 

The Group has opened renewal negotiations with Barclays, but has, at this stage, not sought any written commitment that the facility will be renewed. However, during the discussions with its bankers about its future borrowing needs no matters have been drawn to the Group's attention to suggest that renewal may not be forthcoming on acceptable terms.

 

The Board has a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the interim financial statements.

 

 

Dividend

 

The Board has today declared an unchanged interim dividend of 5.0 pence per share reflecting the strength and resilience of the core business and the Board's confidence in the future.

 

The Board has declared an interim dividend of 5.0p (2011: 5.0p) payable on 19 June 2012 to shareholders on the register at 1 June 2012.

 

 

Risk

 

The Group considers strategic, financial and operational risks and identifies actions to mitigate those risks.  Key risks and their mitigation have not changed in the period from those disclosed on pages 32 and 33 of the Annual Report for the year ended 31 July 2011. The Board remains actively engaged in monitoring and seeking to mitigate these potential risks, in particular the impact of the continuing recessionary and liquidity issues in our major markets.

 

As previously disclosed, change in the economic environment is one of the principal key risks for the Group and the Board remains vigilant in this regard.

 

 

Outlook

 

Trading continues to progress solidly and, for the first two months of H2, has been in line with our expectations.  The number of contractors on assignment continues to increase, having risen 8% in the first two months ofH2, and demand for permanent recruitment has increased in Q3 compared with the previous quarter.

 

We believe our core markets will remain strong due to:

·      Strong global demand for our clients' products and services.

·      Major UK infrastructure projects which we support provide us with long term visibility.

·      Increasing trend of designing international infrastructure in the UK.

 

Our strategy of diversification is showing encouraging results, with our newer business areas - including our Professional Services activities under the Alderwood and Barclay Meade brands and our German operation - continuing to gain traction. 

 

The Board currently anticipates that the results for the year to 31 July 2012 will be in line with its previous expectations, with profits, as usual, significantly weighted towards the second half.

 

The Board remains committed to its strategy and our robust business model, on-going sector diversification and developing international network all continue to give the Board confidence in the medium term prospects for the Group.

 

 

George Materna

Chairman

 

11 April 2012

 

 

 

Cautionary Statement

 

This interim 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. 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 countries, sectors and business segments 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.

 

 

 

CONDENSED CONSOLIDATED INCOME STATEMENT

for the period ended 31 January 2012

 


Note


 6 months


 6 months


 12 months




 to 31/01/12


 to 31/01/11


 to 31/07/11




 unaudited


 unaudited


audited




 £'000


 £'000


 £'000

CONTINUING OPERATIONS








Revenue

2


176,690


141,062


301,806

Cost of Sales



(159,483)


(127,414)


(272,048)

GROSS PROFIT

2


17,207


13,648


29,758









Administrative expenses



(13,768)


(11,188)


(22,939)

PROFIT FROM OPERATIONS

2


3,439


2,460


6,819









Finance income



12


5


30

Finance cost 



(290)


(190)


(461)

PROFIT BEFORE TAX



3,161


2,275


6,388









Income tax expense

3


(932)


(654)


(1,654)

PROFIT FOR THE PERIOD



2,229


1,621


4,734

 

All of the activities of the group are classed as continuing.

 

 

EARNINGS PER ORDINARY SHARE




pence


pence


pence









Basic

5


9.53


6.94


20.26

Diluted

5


9.09


6.84


19.74

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the period ended 31 January 2012

 


 6 months


 6 months


 12 months


 to 31/01/12


 to 31/01/11


 to 31/07/11


 unaudited


 unaudited


audited


 £'000


 £'000


 £'000







PROFIT FOR THE PERIOD

2,229


1,621


4,734







OTHER COMPREHENSIVE INCOME






Exchange differences on translating foreign operations

22


(12)


(28)

OTHER COMPREHENSIVE INCOME FOR THE PERIOD

22


(12)


(28)







TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

2,251


1,609


4,706

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEET

as at 31 January 2012

 


Note


 31/01/2012


31/01/2011


31/07/2011




unaudited


 unaudited


audited

ASSETS



£'000


 £'000


 £'000

Non-current assets








Property, plant and equipment



1,658


1,653


1,530

Intangible assets

6


633


126


106

Deferred tax assets 



192


172


188




2,483


1,951


1,824

Current Assets








Trade and other receivables

7


54,241


39,811


56,452

Cash and cash equivalents 



925


778


475




55,166


40,589


56,927









TOTAL ASSETS 



57,649


42,540


58,751









LIABILITIES








Current liabilities








Trade and other payables



(19,811)


(13,257)


(16,577)

Current tax liability



(884)


(697)


(690)

Bank loans and overdrafts



(11,904)


(5,607)


(16,430)




(32,599)


(19,561)


(33,697)









TOTAL LIABILITIES



(32,599)


(19,561)


(33,697)









NET ASSETS 



25,050


22,979


25,054









EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT








Called-up equity share capital

8


234


233


234

Share premium account



3,126


3,125


3,126

Other reserves



966


811


993

Retained earnings



20,724


18,810


20,701









TOTAL EQUITY 



25,050


22,979


25,054

 

 

 

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

for the period ended 31 January 2012

 


 6 months


 6 months


 12 months


 to 31/01/12


 to 31/01/11


 to 31/07/11


 unaudited


 unaudited


audited


 £'000


 £'000


 £'000

CASH FLOWS FROM OPERATING ACTIVITIES






Profit after taxation

2,229


1,621


4,734

Adjustments for:






Depreciation and amortisation

297


258


516

Profit/(loss) on disposal of property, plant and equipment

2


(16)


8

Interest income

(12)


(5)


(30)

Interest expense

290


190


461

Taxation expense recognised in profit and loss

932


654


1,654

Decrease/(increase) in trade and other receivables

2,211


1,227


(15,414)

Increase/(decrease) in trade and other payables

3,234


(445)


2,875

Unrealised foreign exchange losses/(gains), net

22


(16)


(28)

Share based payment charge 

222


140


288

Cash generated from/(used in) operations

9,427


3,608


(4,936)

Interest paid

(290)


(190)


(461)

Income taxes paid

(741)


(1,013)


(2,040)

NET CASH FROM OPERATING ACTIVITES

8,396


2,405


(7,437)







CASH FLOWS FROM INVESTING ACTIVITIES






Purchase of plant and equipment

(402)


(331)


(484)

Purchase of intangibles

(597)


(43)


(45)

Proceeds from sale of plant and equipment

45


91


107

Interest received

12


5


30

NET CASH USED IN INVESTING ACTIVITIES

(942)


(278)


(392)







CASH FLOWS FROM FINANCING ACTIVITIES






Proceeds from issue of share capital

-


28


29

Dividends paid

(2,480)


(2,476)


(3,646)

NET CASH USED IN FINANCING ACTIVITIES

(2,480)


(2,448)


(3,617)







Effects of exchange rates on cash and cash equivalents

2


3


2







NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS

4,976


(318)


(11,444)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

(15,955)


(4,511)


(4,511)

CASH AND CASH EQUIVALENTS AT END OF PERIOD

(10,979)


(4,829)


(15,955)

 

 

CASH AND CASH EQUIVALENTS








Cash



925


778


475

Bank overdrafts



(226)


(266)


(172)

Working capital facility used



(11,678)


(5,341)


(16,258)

CASH AND CASH EQUIVALENTS IN CASH FLOW STATEMENT 



(10,979)


(4,829)


(15,955)

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the period ended 31 January 2012






 Share



 Translation




 based



 of foreign

 Share

 Share

 Other

payment

 Retained


 operations

 capital

 premium

 reserve

 reserve

 earnings

 Total


 £'000

 £'000

 £'000

 £'000

 £'000

 £'000

 £'000









Balance at 1 August 2010

18

233

3,098

224

466

19,633

23,672









Profit for the period

-

-

-

-

-

1,621

1,621

Other comprehensive income

(12)

-

-

-

-

-

(12)

Total comprehensive income

(12)

-

-

-

-

1,621

1,609





Dividends in the period

-

-

-

-

-

(2,476)

(2,476)

Deferred tax movement re share options

-

-

-

-

-

7

7

IFRS 2 charge

-

-

-

-

140

-

140

IFRS 2 reserves transfer

-

-

-

-

(25)

25

-

Shares issued

-

-

27

-

-

-

27

Transactions with owners

-

-

27

-

115

(2,444)

(2,302)









Balance at 31 January 2011

6

233

3,125

224

581

18,810

22,979









Balance at 1 August 2010

18

233

3,098

224

466

19,633

23,672









Profit for the year

-

-

-

-

-

4,734

4,734

Other comprehensive income

(28)

-

-

-

-

-

(28)

Total comprehensive income

(28)

-

-

-

-

4,734

4,706





Dividends in the period

-

-

-

-

-

(3,646)

(3,646)

Deferred tax movement re share options

-

-

-

-

-

5

5

IFRS 2 charge

-

-

-

-

288

-

288

IFRS 2 reserves transfer

-

-

-

-

25

(25)

-

Shares issued

-

1

28

-

-

-

29

Transactions with owners

-

1

28

-

313

(3,666)

(3,324)









Balance at 31 July 2011

(10)

234

3,126

224

779

20,701

25,054









Balance at 1 August 2011

(10)

234

3,126

224

779

20,701

25,054









Profit for the year

-

-

-

-

-

2,229

2,229

Other comprehensive income

22

-

-

-

-

-

22

Total comprehensive income

22

-

-

-

-

2,229

2,251





Dividends in the period

-

-

-

-

-

(2,480)

(2,480)

Deferred tax movement re share options

-

-

-

-

-

3

3

IFRS 2 charge

-

-

-

-

222

-

222

IFRS 2 reserves transfer

-

-

-

-

(271)

271

-

Transactions with owners

-

-

-

-

(49)

(2,206)

(2,255)









Balance at 31 January 2012

12

234

3,126

224

730

20,724

25,050



 

NOTES

forming part of the financial statements

 

1        THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES

 

i         The business of the Group

 

Matchtech Group plc is a human capital resources business dealing with contract and permanent recruitment in the Private and Public sectors.

 

The Group's address is: Matchtech Group plc, 1450 Parkway, Whiteley, Fareham, PO15 7AF.

 

ii        Basis of preparation of interim financial information

 

These interim condensed consolidated financial statements are for the six months ended 31 January 2012. They have been prepared in accordance with IAS 34 "Interim Financial Reporting". They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements for the year ended 31 July 2011. The comparative figures for the financial year ended 31 July 2011 are not the company's statutory accounts for that financial year. Those accounts have been reported on by the company's auditor and delivered to the registrar of companies. The report of the auditor was (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

 

These condensed consolidated interim financial statements ('the interim financial statements') have been prepared in accordance with the accounting policies set out below which are based on the recognition and measurement principles of IFRS in issue as adopted by the European Union (EU) and are effective at 31 July 2012 or are expected to be adopted and effective at 31 July 2012.

 

These financial statements have been prepared under the historical cost convention. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these condensed interim financial statements. A summary of the principal accounting policies of the group are set out below.

 

iii       Going concern

 

The directors have reviewed forecasts and budgets for the coming year, which have been drawn up with appropriate regard for the current macroeconomic environment and the particular circumstances in which the Group operates. These were prepared with reference to historic and current industry knowledge, taking future strategy of the Group into account.

 

The Group has a committed Confidential Invoice Discounting ("CID") facility with Barclays Bank until 7 April 2013. The facility allows the Group to borrow up to 90% of its qualifying UK invoiced debtors capped at £35.0m, with a single debtor cap of 20% of total debtor book.

 

The Group's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Group should be able to operate within the level of its current facility.

 

The Group has opened renewal negotiations with Barclays, but  has, at this stage, not sought any written commitment that the facility will be renewed. However, during the discussions with its bankers about its future borrowing needs no matters have been drawn to the Group's attention to suggest that renewal may not be forthcoming on acceptable terms.

 

The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.As with all business forecasts, the directors' statement cannot guarantee that the going concern basis will remain appropriate given the inherent uncertainty about future events.

 

iv       New standards and interpretations

 

New standards and amendments to existing standards applicable for the period ending 31 January 2012 are:

 

-      IAS 24 Related party disclosures

-      IFRS 7 Financial Instruments: Disclosures

 

The adoption of the above standards has had no impact on the financial statements.

 

New standards in issue, not yet effective

 

Standard


Effective date (Annual

periods beginning on or after)

IAS 12

Income Taxes

1 January 2012

IAS 1

Financial Statement Presentation

1 July 2012

IAS 19

Employee Benefits

1 January 2013

IAS 27

Separate Financial Statements

1 January 2013

IAS 28

Associates and Joint Ventures

1 January 2013

IFRS 9

Financial instruments

1 January 2013

IFRS 10

Consolidated Financial Statements

1 January 2013

IFRS 11

Joint Arrangements

1 January 2013

IFRS 12

Disclosure of Interests in Other Entities

1 January 2013

IFRS 13

Fair Value Measurements

1 January 2013

IFRS improvements

Various

Various

 

Based on the Group's current business model and accounting policies, the Directors do not expect material impacts on the figures in the Group's financial statements when the interpretations become effective.

 

The Group does not expect to apply any of these pronouncements early.

 

v        Basis of consolidation

 

The Group Financial Statements consolidate those of the Company and all of its subsidiary undertakings drawn up to the balance sheet date. Subsidiaries are entities over which the Group has power to control the financial and operating policies so as to obtain benefits from its activities. The Group obtains and exercises control through voting rights.

 

Acquisitions of subsidiaries are dealt with by the purchase method. The purchase method involves the recognition at fair value of all identifiable assets and liabilities, including contingent liabilities of the subsidiary, at the acquisition date, regardless of whether or not they were recorded in the Financial Statements of the subsidiary prior to acquisition. On initial recognition, the assets and liabilities of the subsidiary are included in the consolidated balance sheet at their fair values, which are also used as the bases for subsequent measurement in accordance with Group accounting policies.

 

Transactions between Group companies are eliminated on consolidation.

 

vi       Revenue

 

Revenue is measured by reference to the fair value of consideration received or receivable by the Group for services provided, excluding VAT and trade discounts.

Revenue on temporary placements is recognised upon receipt of a client approved timesheet or equivalent.

Revenue from permanent placements, which is based on a percentage of the candidate's remuneration package, is recognised when candidates commence employment, at which point it is probable that the economic benefits associated with the transaction will be transferred.

Other fees are recognised on confirmation from the client committing to the agreement.

 

vii       Property, plant and equipment

 

Property, plant and equipment is stated at cost or valuation, net of depreciation and any provision for impairment.

 

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset in terms of annual depreciation as follows:

 

Motor vehicles

25.0%

Reducing balance

Computer equipment

25.0%

Straight line

Equipment

12.5%

Straight line

 

Residual value estimates are updated as required, but at least annually, whether or not the asset is revalued.

 

viii      Intangible assets

 

Separately acquired software licences are included at cost and amortised on a straight-line basis over the useful economic life of that asset at 20%-33%.

 

Other intangible assets that are acquired by the Group and have finite useful lives are measured at cost less accumulated amortisation and accumulated.

 

Amortisation is recognised in the income statement under administrative expenses.

 

Provision is made against the carrying value of intangible assets where an impairment in value is deemed to have occurred.

 

xi       Disposal of assets

 

The gain or loss arising on the disposal of an asset is determined as the difference between the disposal proceeds and the carrying amount of the asset and is recognised in the income statement.

 

x        Operating lease agreements

 

Rentals applicable to operating leases are charged against profits on a straight line basis over the lease term. Lease incentives are spread over the term of the lease.

 

xi       Taxation

 

Current tax is the tax currently payable based on taxable profit for the year.

 

Deferred income taxes are calculated using the liability method on temporary differences. Deferred tax is generally provided on the difference between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill, nor on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting profit.     

 

Deferred tax liabilities are provided in full, with no discounting. Deferred tax assets are recognised to the extent that it is probable that the underlying deductible temporary differences will be able to offset against future taxable income. Current and deferred tax assets and liabilities are calculated at tax rates that are expected to apply to their respective period of realisation, provided they are enacted or substantively enacted at the balance sheet date.

 

Deferred tax on temporary differences associated with shares in subsidiaries is not provided if these temporary differences can be controlled by the Group and it is probable that reversal will not occur in the foreseeable future.

 

Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the income statement, except where they relate to items that are charged or credited directly to equity (such as the revaluation of land) in which case the related deferred tax is also charged or credited directly to equity.

 

xii      Pension costs

 

The Group operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the Group. The annual contributions payable are charged to the income statement as they accrue.

 

xiii     Share based payment

 

The transitional arrangements of IFRS 1 have been applied to all grants of equity instruments after 7 November 2002 that were unvested at 1 August 2006. All share-based remuneration is ultimately recognised as an expense in the income statement with a corresponding credit to "share-based payment reserve". All goods and services received in exchange for the grant of any share-based remuneration are measured at their fair values. Fair values of employee services are indirectly determined by reference to the fair value of the share options awarded. Their value is appraised at the grant date and excludes the impact of non-market vesting conditions (for example, profitability and sales growth targets).

 

If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of the number of share options expected to vest. Estimates are subsequently revised if there is any indication that the number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the current period. No adjustment is made to any expense recognised in prior periods if share options ultimately exercised are different to that estimated on vesting. Upon exercise of share options, proceeds received net of attributable transaction costs are credited to share capital and share premium.

 

The Group operates a Share Incentive Plan (SIP) which is HMRC approved, and enables employees to purchase company shares out of pre-tax salary. For each share purchased the company grants an additional share at no cost to the employee. The expense in relation to these 'free' shares is recorded as employee remuneration and measured at fair value of the shares issued as at the date of grant.

 

xiv      Business combinations completed prior to date of transition to IFRS

 

The Group has elected not to apply IFRS 3 Business Combinations retrospectively to business combinations prior to 1 August 2006.

 

Accordingly the classification of the combination (merger) remains unchanged from that used under UK GAAP. Assets and liabilities are recognised at date of transition if they would be recognised under IFRS, and are measured using their UK GAAP carrying amount immediately post-acquisition as deemed cost under IFRS, unless IFRS requires fair value measurement. Deferred tax is adjusted for the impact of any consequential adjustments after taking advantage of the transitional provisions.

 

xv      Financial assets

 

All financial assets are recognised when the Group becomes a party to the contractual provisions of the instrument. Financial assets are recognised at fair value plus transaction costs.

 

In the Company financial statements, investment in the subsidiary company is measured at cost, and provision made where an impairment value is deemed to have occurred.

 

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Trade receivables are classified as loans and receivables. Loans and receivables are measured subsequent to initial recognition at amortised cost using effective interest method, less provision for impairment. Any change in their value through impairment or reversal of impairment is recognised in the income statement.

 

Provision against trade receivables is made when there is objective evidence that the Group will not be able to collect all amounts due to it in accordance with the original terms of those receivables. The amount of the write-down is determined as the difference between the asset's carrying amount and the present value of estimated future cash flows.

 

A financial asset is derecognised only where the contractual rights to cash flows from the asset expire or the financial asset is transferred and that transfer qualifies for derecognition. A financial asset is transferred if the contractual rights to receive the cash flows of the asset have been transferred or the group retains the contractual rights to receive the cash flows of the asset but assumes a contractual obligation to pay the cash flows to one or more recipients. A financial asset that is transferred qualifies for derecognition if the group transfers substantially all the risks and rewards of ownership of the asset, or if the group neither retains nor transfers substantially all the risks and rewards of ownership but does transfer control of that asset.

 

Trade receivables subject to the invoice discounting facility are recognised in the balance sheet until they are settled by the customer.

 

xvi      Financial liabilities

 

Financial liabilities are obligations to pay cash or other financial assets and are recognised when the Group becomes a party to the contractual provisions of 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 method.

 

A financial liability is derecognised only when the obligation is extinguished, that is, when the obligation is discharged or cancelled or expires.

 

xvii     Cash and cash equivalents

 

Cash and cash equivalents comprise cash on hand, on demand deposits and bank overdrafts.

 

xviii    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.

 

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 determined.

 

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 assets and liabilities in the financial statements of foreign subsidiaries are translated at the rate of exchange ruling at the balance sheet date. Income and expenses are translated at the actual rate. The exchange differences arising from the retranslation of the opening net investment in subsidiaries are taken directly to "Translation of foreign operations" in equity. On disposal of a foreign operation the cumulative translation differences are transferred to the income statement as part of the gain or loss on disposal.

 

As permitted by IFRS 1, the balance on the cumulative translation adjustment on retranslation of subsidiaries' net assets has been set to zero at the date of transition to IFRS.

 

xx      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.

-      "Translation of foreign operations" represents the foreign currency differences arising on translating foreign operations into the presentational currency of the Group.

-      "Retained earnings" represents retained profits.

 

xxi     Significant Accounting Estimates and Judgements

 

Estimates and assumptions concerning the future and judgments are made in the preparation of financial statements.  They affect the application of the Group's accounting policies, reported amounts of assets, liabilities, income and expenses, and disclosures made.  They are assessed on an on-going basis and are based on experience and relevant factors, including expectations of future events that are believed to be reasonable under the circumstances.

 

Critical Judgements

 

The judgements made which, in the opinion of the Directors, are critical in drawing up the financial statements are as follows:

 

Invoice Discounting Facility

 

The terms of this arrangement are judged to be such that the risks and rewards of ownership of the trade receivables do not pass to the finance provider.  As such the receivables are not derecognised on draw-down of funds against this facility.  This facility is recognised as a liability for the amount drawn.

 

Key Sources of Estimation Uncertainty

 

The key assumptions concerning the future and other key sources of estimation uncertainty at the Statement of Financial Position date are discussed below.  These are included for completeness, although it is the Director's view that none of these have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

 

Estimated Useful Lives of Property, Plant and Equipment

 

The cost of equipment is depreciated on a straight line basis and the cost of motor vehicles is depreciated on a reducing balance basis over their useful lives.  Management estimates the useful lives of property, plant and equipment to be within 2 and 8 years.  These are common life expectancies applied in the industry in which the Group operates.  Changes in the expected level of usage and technological development could impact the economic useful lives and the residual values of these assets, therefore future depreciation charges could be revised.

 

Impairment Loss of Trade and Other Receivables

 

The Group's policy for doubtful receivables is based on the on-going evaluation of the collectability and ageing analysis of the trade and other receivables and on management's judgements.  Considerable judgement is required in assessing the ultimate realisation of these receivables, including the current creditworthiness and the past collection history of each debtor.  If the financial conditions of the Group's receivables were to deteriorate, resulting in an impairment of their ability to make payments, additional impairment loss of trade and other receivables may be required.  The carrying amounts of these assets are shown in Note 7.



 

2        SEGMENTAL INFORMATION

 

The chief operating decision maker, as defined in IFRS 8, has been identified as the Board of Directors of Matchtech Group plc. The information reported below for the current period is consistent with the reports regularly provided to the Board of Directors.

 

Reportable segments

 

6 months to 31 January 2012









unaudited

 

All amounts in £'000

Engineering

Built Environment

Information Systems & Technology

Science & Medical

Total Matchtech UK

Matchtech Germany

Professional Services

elemense

Total











Revenue

79,725

37,794

37,320

4,052

158,891

1,344

11,436

5,019

176,690

Gross profit

5,820

2,862

3,612

941

13,235

350

2,791

831

17,207

Profit/(loss) from Operations

2,607

1,065

1,137

(7)

4,802

(285)

(866)

(212)

3,439

Finance cost, net

(125)

(58)

(57)

(6)

(246)

(7)

(18)

(7)

(278)

Profit/(loss) before tax

2,482

1,007

1,080

(13)

4,556

(292)

(884)

(219)

3,161











Depreciation and amortisation

58

41

68

24

191

25

58

23

297

Segment net assets

21,030

8,552

8,433

933

38,948

175

975

1,150

41,248

Unallocated net liabilities









(16,198)

Total net assets









25,050

 

6 months to 31 January 2011









unaudited

 

All amounts in £'000

Engineering

Built Environment

Information Systems & Technology

Science & Medical

Total Matchtech UK

Matchtech Germany

Professional Services

elemense

Total











Revenue

64,562

30,889

26,492

2,986

124,929

581

9,121

6,431

141,062

Gross profit

4,736

2,428

2,835

843

10,842

197

1,757

852

13,648

Profit/(loss) from Operations

2,452

995

1,068

17

4,532

(120)

(1,659)

(293)

2,460

Finance cost, net

(84)

(38)

(33)

(3)

(158)

(5)

(10)

(12)

(185)

Profit/(loss) before tax

2,368

957

1,035

14

4,374

(125)

(1,669)

(305)

2,275











Depreciation and amortisation

56

45

49

24

174

3

56

25

258

Segment net assets

19,837

7,955

7,390

1,056

36,238

429

1,149

1,356

39,172

Unallocated net liabilities









(16,193)

Total net assets









22,979


Year to 31 July 2011









audited

 

All amounts in £'000

Engineering

Built Environment

Information Systems & Technology

Science & Medical

Total Matchtech UK

Matchtech Germany

Professional Services

elemense

Total











Revenue

138,865

65,429

57,191

6,982

268,467

1,740

19,430

12,169

301,806

Gross profit

10,183

5,254

6,037

1,897

23,371

625

4,281

1,481

29,758

Profit/(loss) from Operations

5,391

2,271

2,367

168

10,197

(32)

(2,764)

(582)

6,819

Finance cost, net

(166)

(80)

(70)

(11)

(327)

(28)

(45)

(31)

(431)

Profit/(loss) before tax

5,225

2,191

2,297

157

9,870

(613)

(60)

(2,809)

6,388











Depreciation and amortisation

113

87

97

49

346

8

111

51

516

Segment net assets

28,342

11,366

10,559

1,509

51,776

654

1,534

1,769

55,733

Unallocated net liabilities









(30,679)

Total net assets









25,054

 

Two operating segments, Barclay Meade Limited and Alderwood Education Limited, have been aggregated into the Professional Services segment above.  Central overhead costs are allocated across all segments and are included in the analysis above.

 

A segmental analysis of total assets has not been included as this information is not available to the Board; trade receivables represent the majority of net assets and are included as segment net assets above.  Other net assets are centrally held and are not allocated across the reportable segments.  Unallocated net liabilities include non-current assets, other receivables, cash and cash equivalents and current liabilities.

 

Geographical information

 



UK



Matchtech Germany



Total


All amounts in £'000

6 months to

31 Jan 12

6 months

to

31 Jan 11

12 months

to

31 Jul 11

6 months to

31 Jan 12

6 months to

31 Jan 11

12months

to

31 Jul 11

6 months to

31 Jan 12

6 months to

31 Jan 11

12 months

to

31 Jul 11











Revenue

175,346

140,481

300,066

1,344

581

1,740

176,690

141,062

301,806

Gross profit

16,857

13,451

29,133

350

197

625

17,207

13,648

29,758

Operating profit

3,724

2,580

6,851

(285)

(120)

(32)

3,439

2,460

6,819

Finance cost, net

(271)

(180)

(403)

(7)

(5)

(28)

(278)

(185)

(431)

Profit/(loss) before tax

3,453

2,400

6,448

(292)

(125)

(60)

3,161

2,275

6,388











Depreciation and amortisation

272

255

508

25

3

8

297

258

516











Non-current assets

2,445

1,940

1,815

38

11

9

2,483

1,951

1,824

Net current assets

23,331

20,573

23,654

(764)

455

(424)

22,567

21,028

23,230

Total net assets

25,776

22,513

25,469

(726)

466

415

25,050

22,979

25,054

 

Revenue and non-current assets are allocated to the geographic market based on the domicile of the respective subsidiary. The Directors are of the opinion that the Group does not generate material cross-border revenues.

 

Largest customers

 

During the period ending 31 January 2012 revenues of £21,007,000 (31 January 2011: £17,063,000, year to 31 July 2011 £35,598,000) were generated from sales to the Group's largest client and its business process outsourcer. The majority of this revenue is included within the Engineering segment.

 

No other single client contributed more than 10% of the Group's revenues.

 

Seasonality

 

With the first half of the financial year including holiday seasons in August and at the Christmas and New Year period when recruitment activity is quieter than normal, the second half of the year traditionally produces stronger results.

 

Turnover in the 6 months to 31 January 2011 represented 47% of the annual total to 31 July 2011.

 

 

3        INCOME TAX EXPENSE

 

Analysis of charge in the period

 



 6 months


 6 months


 12 months



 to 31/01/12


 to 31/01/11


 to 31/07/11



 unaudited


 unaudited


audited



 £'000


 £'000


 £'000









Total income tax expense

932


654


1,654

 

The total tax charge is higher than the standard rate of corporation tax.  The differences are detailed below:

 


Profit before tax

3,161


2,275


6,388









Corporation Tax at average rate for the period 25.7%

(31/01/11: 27.67%, 31/07/11: 27.3%)

812


629


1,744









Expenses not deductible/(chargeable) for tax purposes

80


(3)


29


Temporary differences

9


-


(113)


Enhanced R&D tax relief

(22)


(25)


(49)


Overseas losses carried forward

53


33


13


Change in deferred tax on share options

-


-


11


Adjustments to tax charge in respect of previous periods

-


20


19


Total UK tax charge

932


654


1,654

 

 

4        DIVIDENDS

 


Dividends on shares classed as equity:

 6 months


 6 months


 12 months



 to 31/01/12


 to 31/01/11


 to 31/07/11



 unaudited


 unaudited


audited



 £'000


 £'000


 £'000


Paid during the period







Equity dividends on ordinary shares

2,480


2,476


3,646

 

 

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 31/01/12


 to 31/01/11


 to 31/07/11



 unaudited


 unaudited


audited


Profits

 £'000


 £'000


 £'000









Profit for the period

2,229


1,621


4,734









Number of Shares


 000's


 000's


 000's









Weighted average number of ordinary shares in issue

23,395


23,362


23,370


Effect of dilutive potential ordinary shares under option

1,115


336


612



24,510


23,698


23,982









Earnings per Share

 pence


 pence


 pence









Earnings per ordinary share from continuing operations








- Basic

9.53


6.94


20.26




- Diluted

9.09


6.84


19.74

 

 

6        INTANGIBLE ASSETS

 

The Group acquired certain business assets of Xchanging Resources Services Limited, the contingency recruitment arm of Xchanging plc in January 2012 for a total cash consideration of £0.4m.

 

The acquisition has been included within Intangible Assets at fair value. Amortisation will be recognised in the Income Statement over the assets' useful life which has been measured at 2 years.

 

 

7        TRADE AND OTHER RECEIVABLES

 



 31/01/2012


 31/01/2011


 31/07/2011



unaudited


unaudited


audited



£'000


£'000


£'000









Trade receivables

53,300


39,172


55,733


Other receivables

152


179


57


Prepayments

789


460


662



54,241


39,811


56,452

 

Included in the Group's trade receivable balance are debtors with a carrying amount of £5,943,000 (31 January 2011: £4,143,000, 31 July 2011: £7,561,000) 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 recoverable.


 

Ageing of past due but not impaired trade receivables:

 



 31/01/2012


 31/01/2011


 31/07/2011



unaudited


unaudited


audited



 £'000


 £'000


 £'000









0-30 days

4,960


3,035


5,977


30-60 days

699


972


925


60-90 days

284


136


345


90+ days

-


-


314



5,943


4,143


7,561

 

8        SHARE CAPITAL

 


Authorised share capital

 31/01/2012


 31/01/2011


 31/07/2011



unaudited


unaudited


audited



 £'000


 £'000


 £'000









40,000,000 Ordinary shares of £0.01 each

400


400


400
















Allotted, called up and fully paid

 31/01/2012


 31/01/2011


 31/07/2011



unaudited


unaudited


audited



 £'000


 £'000


 £'000









Ordinary shares of £0.01 each

234


233


234

 

The Company has issued shares, listed below, following the exercise of share options under the Company's share option schemes:

 



 Ordinary







 shares of


 Share





£0.01


premium


Consideration



 issued


 received


 received





 pence per







 share


 £


6 months to 31/01/11







04/08/2010

18,349


145


26,790


01/09/2010

648


nil


6


04/10/2010

2,460


nil


25


03/11/2010

2,055


nil


21


01/12/2010

1,839


nil


18


11/01/2011

991


145


1,447


20/01/2011

1,959


nil


20










6 months to 31/07/11







02/03/2011

4,928


nil


49


09/03/2011

2,076


nil


21


30/03/2011

1,765


69


1,236


30/03/2011

143


88


127


05/04/2011

3,045


nil


30


05/05/2011

1,843


nil


18


01/06/2011

3,077


nil


31


01/07/2011

2,203


nil


22









6 months to 31/01/12







10/08/2011

1,952


nil


20


04/09/2011

3,103


nil


31


03/10/2011

2,903


nil


29


03/11/2011

2,021


nil


20


05/12/2011

2,009


nil


20


10/01/2012

2,110


nil


21

 

 

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.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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