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Networkers International Some Improvement In The UK

Networkers International Some Improvement In The UK

Unaudited Interim Results for the 6 month period to 30 June 2013

The Board of Networkers International Plc ('Networkers' or 'the Group'), the AIM-listed international recruitment company, is pleased to announce interim results for the six months ended 30 June 2013.

Financial Highlights

•      Adjusted* pre-tax profits for the period reduced by 3.2% to &pound3.34m (2012: &pound3.45m) against strong H1 comparatives

•      Pre-tax profits of &pound3.11m (2012: &pound3.29m)

•      Adjusted earnings per share (see note 3) up 3.8% to 2.43p (2012: 2.34p)

•      Gross profit (net fee income) down by 7.7% to &pound14.67m (2012: &pound15.89m)

•      Permanent placements represent 25.6% (2012: 20.0%) of net fee income and contract placements 74.4% (2012: 80.0%)  

•      Favourable change in sales mix has resulted in gross profit margins increasing to 18.5% (2012: 17.5%) 

•      Strong balance sheet with net assets of &pound20.7m and net current assets of &pound15.1m  

•      Net cash inflow from operating activities of &pound2.7m (2012: &pound4.1m)

•      Net debt relating entirely to drawdown on invoice discounting for working capital purposes, reduced to &pound5.9m from &pound6.9m at the start of the year (June 2012: &pound5.9m).  This is after making own share purchases of &pound0.33m, acquiring shares of minority interests of &pound0.31m and making dividend payments of &pound0.54m and

•      Increase of 16.7% in the interim dividend resulting in an interim dividend of 0.70p per share totalling &pound0.58m (2012: 0.60p per share totalling &pound0.53m).  

Operational Highlights

•      Share of net fee income derived from markets outside of the UK marginally reduced to 70% (2012: 72%)

•      Overall group headcount has remained broadly unchanged from the corresponding period last year, with the numbers of staff located in our international offices increasing to 45% (June 2012: 42%) 

•      Successful expansion of Energy & Engineering divisions both within the UK and into the Group's International offices resulting in its net fee income increasing to 11% (2012: 6%) of the Group's total and

•      Successful opening of Singapore and Brazil offices during the period. 

Commenting on today's results, Spencer Manuel, CEO, said "I am satisfied with the progress the Group has made during the period particularly in increasing our permanent placement revenue stream which now counts for over 25% of our net fee income and the continued expansion of our energy & engineering division which now represents 11% of Group net fee income, up from 6% last year.   

"As outlined in our July trading update, the telecoms market remains flat albeit with some more positive sentiment in terms of future investment expectations from our key telecoms clients.  I am also pleased to report some improvement in market conditions within our UK IT and Energy & Engineering divisions.

"Whilst total net fee income was down by 7.7% against record H1 comparative figures, there remain significant opportunities to grow throughout the rest of this year, which would place us in a stronger position for growth as we enter 2014."

"With our strong balance sheet, profitable trading and good cash generation we are pleased, once again to announce an increase in our interim dividend of 16.7% on the corresponding period, which was itself up 33% on the previous year."


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