Connecting to LinkedIn...


Prime People Plc Preliminary Results Show Tough Trading

Prime People Plc Preliminary Results Show Tough Trading

Prime People Plc the built environment sector recruitment specialist, has announced its preliminary results for the year ended 31 March 2009.

Highlights: Gross fee income 20.67m down 14.9%, net fee income down 25% to 10.41m and profits before tax down 70% to 0.73 million.

Peter Moore Managing Director of Prime People, commented: "Our lower profitability this year reflects continuing demanding trading conditions in our sector but our early recognition of the challenges ahead finds us with our market leading teams well focused and the Company ready to exploit cyclical opportunities as they arise. Our strong cash position and experienced management team can be expected to provide the opportunity of an overall increase in future market share.
We continue to concentrate on managing the costs of the business in relation to fee income and having consideration for the long term good of the Company."

Chairman's statement

The results for Prime People Plc for the year ended 31 March 2009 show profit before tax of 0.73m compared to 2.43m in 2008.

Our principal business activity is the provision of recruitment services to the UK and international real estate, infrastructure and commercial property sectors. This activity is operated through our main trading subsidiary, Macdonald & Company.

As has been widely reported and as was referred to in our Interim report for the six months ended 30 September 2008, global market conditions for Macdonald's activity have become increasingly difficult. These results reflect the challenging operating conditions we face and the impact of costs associated with ensuring that the Company is the correct size for the business it expects to do in 2009/10. However, they also reflect the early defensive steps taken by the Company to position itself to be sustainable, to be able to exploit cyclical opportunities that present themselves, and to be prepared for the upturn in its markets when they come. The results show a strong cash position and reduced but still significant Net fee Income ("NFI") for the year ended 31 March 2009 of 10.41m (2008: 14.04m).

In all our markets we experienced a marked decline in demand for permanent placements and a weakening demand in our UK freelance business. We expect that the worldwide global recession will continue to have a significant impact on our business. However, the dedication and performance of our market leading teams can be expected to provide the opportunity of an overall increase in future market share. During the year being reported, UK Permanent business represented 44.7 per cent (2008: 58.0 per cent) and Freelance recruitment activity, which is wholly UK based, represented 24.7 per cent (2008:17.8 per cent) of total NFI in the year. Our overseas offices contributed 30.7 per cent. of the Group's NFI (2008: 24.2 per cent.).

In the second half of the year an opportunity was identified to enter a new revenue area addressing recruitment in the Insights Industry, focussing on quantitative market researchers. This has been incubated over some six months and enters the new financial year with four fee earners, branded as Prime Insight.


Articles similar to

Articles similar to