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Another Successful Year For Networkers International plc

Another Successful Year For Networkers International plc

Networkers International, the AIM quoted technical and professional staffing company, today issues its pre-close statement and updates the market on current trading.


• The board expects pre-tax profits and earnings per share before exceptional items* to be in line with board expectations for the year ended 31 December 2012

• Prior year's record level of net fee income ('gross margin' or 'NFI') is expected to be maintained for 2012

• Permanent net fee income has shown growth of approximately 19% for the year more than offsetting the expected reduction of 3.6% in contract placement net fee income. Permanent placements represent just over 20% of net fee income

• The Group has maintained its proportion of international business at over 70% of net fee income

• Strong balance sheet and good liquidity, with net current assets of approximately &pound14m

• Positive net cash inflow for the year of approximately &pound5m prior to own share purchases and dividend payments totalling &pound3m, resulting in net debt at the year end reducing to approximately &pound7m (2011: &pound9m) which is fundamentally all invoice discounting and

• The Company expects to announce an increase of 18% on the final dividend to 0.650p per share (2011 final dividend: 0.550p per share) when it reports it preliminary results.

* as reported on 17 December 2012, the board considers it prudent to make a provision of &pound1m in the full year accounts for the year to 31 December 2012 in relation to ongoing litigation. The detail of this is outlined in the Litigation Update announcement made on 17 December 2012.

Commenting on today's announcement, Spencer Manuel, CEO said "Overall, 2012 has been another successful year for the group, with a particularly strong H1. This is especially pleasing given the backdrop of a challenging global economic environment.

In the Group's mobile telecoms division (approximately 55% of NFI), as previously reported in our interim results, there was an overall softening in market conditions going into the second half of the year, this was particularly prevalent in Asia. Encouragingly, market conditions in the Americas improved towards the end of the year. Overall, the last quarter has seen the telecoms division stabilise.

Specialist IT in the UK (26% of NFI) has shown modest growth throughout 2012 and our international IT division (7% of NFI) has performed very well. We anticipate this trend continuing throughout 2013.

Energy & Engineering (6% of NFI) has performed well across the world in 2012 and we believe the group is well positioned geographically to continue to build upon this success during 2013.

Notwithstanding the challenging global economic environment, there remain a number of opportunities for the Group to benefit from including the imminent opening of our Brazil office and building upon our initial success within our emerging energy and international IT divisions.

As we stand at the moment, we anticipate that trading for 2013 will be broadly similar to the year just gone but at this juncture includes nothing for the very real potential of the global investment in 4G networks which should have a positive impact for our telecoms division. At the moment it is too early to say precisely when this will occur."

The Company expects to announce its preliminary results on 15 April 2013.


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