Penna Consulting publishes interim results
Penna Consulting today announces its interim unaudited results for the six months ended 30 September 2013.
• Profits after tax 36% £0.8m (2012:£0.6m)
• Revenue - 3% £31.9m (2012: £32.8m)
• Earnings per Share 38% 3.3p (2012: 2.4p)
• Debt No Debt (2012: £0.5m)
• Cash at period end 33% £2.0m (2012: £1.5m)
• Interim Dividend 50% 1.5p (2012: 1.0p)
• Steady growth of earnings
• Important client contract renewals and new client wins
• Further progress within Recruitment Solutions
Commenting on the results and outlook for the international human resources consulting group, Stephen Rowlinson, chairman, said, "I am pleased with the performance of the business for the first six months of the year with a positive year on year increase in earnings. The UK economy is now growing and we are seeing benefits from this and from a series of important client contract renewals and new client wins. We intend and expect all of our service lines to capitalise on this improving economic outlook to expand both by organic growth and by carefully planned acquisitions."
RECOMMENDED CASH OFFER
Savile Group plc ("Savile")
Penna Consulting plc ("Penna")
• The boards of Penna and Savile are pleased to announce that they have reached agreement on the terms of a recommended cash offer for Savile, pursuant to which Penna will acquire the entire issued and to be issued ordinary share capital of Savile (the "Offer").
• Under the terms of the Offer, Savile Shareholders will be entitled to receive 7 pence in cash for every Savile Share.
• The Offer values the entire issued and to be issued share capital of Savile (fully diluted for the exercise of all options and/or awards considered to be 'in the money' at the Offer Price under the Savile Share Option Scheme) at approximately £1.1 million.
• The Offer Price represents a premium of approximately 115 per cent. to the Closing Price of 3.25 pence at the close of business on 11 November 2013, being the latest practicable date prior to this Announcement.
• Penna has obtained irrevocable undertakings to accept, or procure the acceptance of, the Offer in respect of 4,083,445 Savile Shares representing, in aggregate, approximately 27.3 per cent. of the issued share capital of Savile. These irrevocable undertakings will remain binding in the event of a competing offer being made for Savile.
• The cash consideration payable under the Offer is being financed from Penna's existing financial resources.
• The Savile Directors, who have been so advised by Cairn Financial Advisers, consider the terms of the Offer to be fair and reasonable. In providing its advice, Cairn Financial Advisers has taken into account the commercial assessments of the Savile Directors. Accordingly, the Savile Directors intend to recommend unanimously that Savile Shareholders accept the Offer.
• Penna is an international provider of human capital management consultancy services. It is organised into two service groups, HR Consulting and Recruitment Solutions. Savile is an AIM-quoted UK human resources consulting group with a focus on outplacement, talent management and the provision of board and senior leadership development services.
• The Offer Document setting out further details of the Offer and the procedures to be followed in connection with the acceptance of the Offer will be made available to Savile Shareholders today.
Commenting on the Offer, Stephen Rowlinson, chairman of Penna, said, "Penna and Savile have complementary businesses. Both companies are committed to providing their clients with the highest possible standards of service and providing their employees with the opportunity to pursue satisfying, stimulating and rewarding careers. The Enlarged Group will provide clients with a broad range of Human Resource services and could benefit from opportunities to reduce costs by elimination of duplicated administrative functions. The Board of Penna believes the merger will be earnings enhancing in the first full financial year following the Offer becoming, or being declared, unconditional in all respects*."
Commenting on the Offer, David Harrel, Chairman of Savile, said, "We are pleased to be teaming up with Penna who we believe will provide our businesses with the scale and resources needed to compete more effectively in their respective markets."
Penna CEO Gary Browning said, "The Savile Group is a respected brand with over 200 clients. This move consolidates our position as the UK's leading provider of career transition service, and will allow us to develop even stronger propositions within careers advice and development, Learning and Development, talent management, coaching, and assessment. We know that the tradition and culture of both companies is about offering the highest quality consultancy and we look forward exciting future together, delivering an exceptional and highly competitive blend of services to our clients."
*This statement should not be construed as a profit forecast or be interpreted to mean that the future earnings per share, profits, margins or cash flows of Penna will necessarily be greater or less than the historical published earnings per share, profits, margins or cash flows of Penna.