The Board of Networkers International Plc
The Board of Networkers International Plc the AIM-listed international recruitment company, is pleased to announce interim results for the six months ended 30 June 2009.
Pre-tax profits for the period down by 25.4% to 2.20m (2008: 2.95m)
Total net borrowings (including drawdown on invoice discounting facilities) have been reduced to 2.9m (June 2008: 17.0m)
Basic earnings per share down by 26.7% to 1.56p (2008: 2.13p)
Improvement in gross profit margins to 16.6% (2008: 15.3%)
Net fee income (gross profit) down by 9.7% to 11.48m (2008: 12.7m)
Good cash management together with the proceeds from the disposal of the Middle East joint venture has resulted in operating cash flows before financing of 8.55m (2008: 1.95m)
Strong balance sheet and good liquidity with net tangible assets of 11.0m and net current assets of 11.5m
Strategic focus on overseas expansion has seen the mix of international net fee income increase from 46% to 55% in 6 months and
Continued growth within the international markets, with additional office openings planned for second half of the year.
Commenting on todays results, Spencer Manuel, CEO, said As expected, the first half of the year has proved to have been a challenging period however, I am pleased to report that our geographical diversification and our higher mix of contract sales has provided us with some resilience to these difficult market conditions.
With net borrowings now reduced to below 3m from 17m a year ago, together with our profitable trading, solid balance sheet and strong cash generation, the Group has a sound platform to continue to operate successfully throughout the current climate.