RTC Group Plc improving All-round
RTC Group Plc improving All-round
Unaudited interim results for the six months ended 30th June 2012
I am pleased to present the interim report of the Company for the six months ended 30 June 2012.
The period has been one of continuing revenue growth in the recruitment division and consolidation at the Derby Conference Centre, with a pleasing increase in gross profits in both divisions.
Action taken to solve teething problems in the administration of rapidly increasing numbers of contractors in our international business and an improvement in group financial resources has eliminated the consequential temporary blip in indirect costs experienced mainly in the second half of 2011 but has resulted in an increased level of continuing costs resulting in broadly unchanged pre-exceptional operating profits.
There have been no exceptional items in the period.
As presaged in our Report and Accounts in May, trading has continued to improve. We have therefore succeeded in moving forward on all fronts in recruitment, particularly in our rapidly expanding business in India, serving NATO installations in Afghanistan. Additionally our new Indian subsidiary is trading ahead of expectations and has posted a small maiden profit. Accordingly, during the first six months of 2012, gross profits in this sector have again advanced at a most pleasing rate.
The Derby Conference Centre
Normal conferencing and event business continues to be hard to achieve but we have succeeded in utilising space at similar levels to 2011. The result of both these factors has resulted in modest profits from this division.
We did not respond fast enough to the rapid increases in volumes in Afghanistan during H2 2011 resulting in operating inefficiencies which have since been eliminated. We have now completed the establishment of an effective, all embracing, administration department, based in Derby, capable of handling further significant increases in overseas contract business.
Management and Board
During the first half, Gary Hewett left the Group to pursue other business interests. Senior management are to be congratulated for stepping up and filling the gaps.
Your Directors consider that it would be inappropriate to declare an interim dividend.
Outlook & Strategy
It is pleasing to be able to report a profit for the first half, free of any exceptional items, and to confirm that progress is continuing. Not, however, without some irritations and diversions in the shape of disruptions to the smooth running of the national economy caused by events such as the Jubilee and Olympic Games. We continue to believe that these items are, however, advantageous in the longer term and have raised the national mood during times of considerable financial turmoil both globally and in the United Kingdom. Although there seems to be no reason to expect solutions to all international problems in the near future, calmer waters will emerge and we are pursuing a strategy designed to continue our rapid growth in all areas of recruitment.
Consolidated Condensed Statement of Comprehensive Income
6 Months ended 30th June 2012
to 30 Jun 2012
to 30 Jun 2011
to 31 Dec 2011
Cost of sales
Analysed as operating profit/(loss) before exceptional items
Administrative expenses - exceptional
Operating profit/(loss) after exceptional items
Profit/(loss) on ordinary activities before taxation
Net profit/(loss) from continuing operations
Loss from discontinued operations
Profit/(loss) for the period and total comprehensive income for the period attributable to equity holders of the parent