Profits Growth For Networkers International
The Board of Networkers International Plc the AIM-listed technology recruitment company, is pleased to announce final results for the year ended 31 December 2008.
Ninth successive year of unbroken profits growth
Pre-tax profits increased by 20.3% to 5.57m (2007: 4.63m)
Basic earnings per share roseby 19.4% to 3.75p (2007: 3.14p)
Improvement in gross profit margins to 15.9% (2007: 13.7%)
Net fee income (gross profit) has increased by 6.8% to 26.1m (2007: 24.4m)
Total net borrowings have decreased by 40% (7.4m) to 10.9m (2007:18.3m, which was itself down from 20.7m immediately after the very successful MSB acquisition)
Good cash management resulting in operating cash flows before financing of 9.15m (2007: 2.00m)
Strong balance sheet and good liquidity with net tangible assets of 9.9m and net current assets of 15.0m
Strategic focus on international expansion has seen international business conducted in the second half of the year increase to 46% from 35% in the same period in 2007 and we confidently expect overseas earnings to go over 50% in the current 12 months
Growth continues within our international markets, assisted by contractor growth and a weakened sterling and
Further three international offices opened Mexico, South Africa and Malaysia.
Commenting on today's results, Spencer Manuel, CEO, said "In 2007 we made a strategic decision to focus our efforts on improving and diversifying our sales mix and to continue to deliver solid international expansion. These 2008 results indicate the success of this strategy and we have achieved significant improvements to our gross profit margin percentages with almost half of the Group's net fee income now being derived from international placements. During the period we have seen our profit before tax increase by over 20% and our net debt reduced by 40% to 10.9 million.
2009 is clearly going to be a challenging period for the staffing sector however, our trend towards international contract recruitment, and strong cash generation, provides us with a sound base to weather these difficult economic times and exploit opportunities for when market conditions improve. We continue to look at opportunities to expand our network of international offices in the emerging markets."