Networkers International releases trading update & pre-close year-end statement
Trading activity during the second half of the year was much improved compared with H1. This was driven by improved market conditions in the Group's Telecoms division as well as continued strong growth in the Energy and Engineering division. The second half of the year's trading also showed an improvement compared to H2 last year.
On a full year basis, the Group expects net fee income and underlying business performance to be in line with management expectations.
As a result of the increase in trading activities during the second half of the year, particularly in the Group's Telecoms contract division where payment terms with clients tend to be longer, the Group's working capital requirements have increased by approximately £2.5m in the period.
The Group expects to take an exceptional charge of £0.2m for the final costs in relation to the Group's US litigation settlement which was finalised and fully settled in the period. A further £0.25m charge is expected to be taken in relation to the restructuring and integration of business units.
In total, the Group's net debt (relating entirely to draw down on invoice discounting facilities) increased by approximately £5m since the Interim Report.