OPD Group plc, has announced its preliminary results for the year to 31st December 2008.
NET FEE INCOME DECREASED BY 4% TO 90.9 MN
DETERIORATING ECONOMIC CONDITIONS IN SECOND HALF OF YEAR HAD SIGNIFICANT IMPACT ON GROUP'S TRADING
PRE TAX PROFIT BEFORE EXCEPTIONAL ITEMS DECREASED BY 39% TO 9.3 MN (PROFIT BEFORE TAX AND AFTER EXCEPTIONAL ITEMS 1.4 MN)
EARNINGS PER SHARE BEFORE EXCEPTIONAL ITEMS DECREASED BY 46% TO 21.2P (BASIC AFTER EXCEPTIONAL ITEMS LOSS 8.9P)
NO FINAL DIVIDEND
Francesca Robinson, Chief Executive Officer of OPD Group plc, said
'Market conditions have deteriorated further since the start of the year and there are no signs of improvement. Net fee income across the Group has fallen by 20% in first two months of 2009 compared to the same period last year.'
The deteriorating economic conditions experienced during the second half of 2008, have had a significant impact on the Group's trading. Overall profits before exceptional items and tax decreased by 39% to 9.3 million from 15.3 million in 2007 and earnings per share before exceptional items decreased by 46% to 21.2 pence from 39.1 pence. The principal exceptional item is an impairment charge of 7.6 million in respect of goodwill arising from the acquisition of Odgers. Profit after exceptional items and before tax was 1.4 million (2007: 12.2 million). The Group incurred a loss after tax of 2.3 million (2007: profit 7.2 million) and basic loss per share was 8.9 pence (2007: earnings 27.5 pence).
Net fee income from the Odgers business increased by 3% to 54.3 million from 52.8 million in 2007. However, the Group's other businesses experienced a decline in income with PSD's net fee income falling by 15% from 34.3 million to 29.3 million and Hoggett Bowers by 6% from 7.8 million to 7.3 million.
Market conditions have deteriorated further since the start of the year and there are no signs of improvement. Net fee income across the Group has fallen by 20% in first two months of 2009 compared to the same period last year. The Board keeps under review the cost base of the Group. We will continue to take prompt and decisive action where necessary to maintain the appropriate balance of revenues and costs for the long term success of the business.
In the face of the uncertain economic conditions and the falling revenue we have taken action to reduce the Group's costs and at the end of the year the Group employed 750 staff, down from 860 at 30 June 2008.
In the light of the current trading situation, the Board is not proposing to pay final dividend for 2008 (2007: 6 pence). An interim dividend of 3 pence (2007: 3 pence) per share was paid in October 2008. The payment of dividends in respect of 2009 will depend on the trading outlook and likely cash requirement of the Group at the relevant time. Should the current trading conditions continue the Board will not be in a position to declare a dividend for 2009.