Networkers The Group Has Performed Strongly
The Board of Networkers International Plc, the AIM-listed technology recruitment company, is pleased to announce final results for the year ended 31 December 2009.
Pre-tax profits for the year of 4.37m (2008: 5.57m)
Pre-tax profits excluding profit on disposal of Joint venture of 3.98m
Basic earnings per share of 2.83p (2008: 3.75p)
Improvement in gross profit margins to 16.3% (2008: 15.9%)
Net fee income (gross profit) of 21.16m (2008: 26.1m)
Good cash management resulting in operating cash flows before financing of 8.86m (2008: 9.15m) used to reduce borrowings by 8m to 2.9m (2008: 10.9m) after the payment of a 2m special dividend
Strong balance sheet and good liquidity with net assets of 15.1m and net current assets of 9.6m
Strategic focus on international expansion has seen international business conducted in the second half of the year increase to 57% from 46% in the same period in 2008 and we expect overseas earnings to go over 60% in the current 12 months
Growth continues within our international markets, assisted by contractor growth and a weakened sterling
Further four international offices opened in India, Russia and Canada and a second office in China bringing the total number of offices to 14 in 11 countries and
Overall stabilisation in net fee income during the latter part of 2009.
Commenting on today's results, Spencer Manuel, CEO, said "2009 was clearly a difficult year for the staffing sector in general, particularly in the UK. However, the steps we have taken over the last few years in diversifying our sales mix, together with our international expansion, has meant that the Group has performed strongly and profitably despite the economic downturn.
Moving into 2010, there has been some upturn in demand from our clients. Whilst it is too early to determine whether this pace of recovery will be sustainable, it is encouraging that the improvement has occurred across all our main revenue streams including permanent recruitment."