TIDMRTC
RNS Number : 8726P
RTC Group PLC
10 October 2011
The following amendments have been made to the "Half Yearly
Report" announcement released on 9 September 2011 at 07:00 under
RNS No 8924N:
There was an error in the allocation of costs between cost of
sales and administrative expenses. The resultant adjustment
increases the Recruitment division cost of sales by GBP1.4 million
with a corresponding decrease in administrative expenses.
All other details remain unchanged.
The full amended text is shown below.
CHAIRMAN'S STATEMENT
RTC Group Plc
CHAIRMAN'S STATEMENT
I am pleased to present the interim report of the Company for
the six months to 30 June 2011.
Group
The period has been one of continuing recovery. Throughout the
difficult trading conditions experienced in 2008 to 2010 a
programme to simplify the Group and to focus on recruitment has
been pursued which included the termination of our Railway Training
activities. Over the same period significant changes have been made
at The Derby Conference Centre which have changed the emphasis of
that company towards a more satisfactory balance between long term
sublets and short term conferencing and event activities.
These initiatives have served to eliminate the trading losses
incurred in training and conferencing permitting the recruitment
businesses, consistently profitable at trading level, to expand in
both volume and operating profit levels, both in the UK and
overseas.
Trading
Recruitment
As presaged in our Report and Accounts in March, trading
conditions have continued to improve. We have therefore succeeded
in moving forward on all fronts in recruitment but particular
mention is appropriate in connection with our rapidly expanding
business in India, serving a variety of locations in support of
NATO activities and our contract and permanent business in the
Railway and other technical Industries. Accordingly, during the
first six months of 2011, gross profits in this sector have
advanced at a most pleasing rate.
The Derby Conference Centre
We have concluded new arrangements with our Landlord and have
secured significant sublet agreements, both commencing in the first
half of this year. Normal conferencing and event business continues
to be hard to achieve but we have succeeded in utilising space at
similar levels to 2010. The result of both these factors has all
but eliminated losses in the division which is now making a
satisfactory contribution to Group results.
Central costs
In response to the changing shape of the Group's business
portfolio, major efficiencies have been achieved in administration
and finance. Improving cash flows both actual and in prospect are
permitting a review of systems and hardware and we expect to make
material updates in both over the months to come.
Non - recurring item
Towards the end of 2010, Ganymede Solutions diversified into a
new area of telecommunications providing contract recruitment, to
the telecoms industry, with particular emphasis on installation and
test. Although the ultimate clients were of undoubted quality, the
business was arranged through a third party agent. After an initial
modest and successful start, demand from this agent accelerated
sharply and payment of our invoices deteriorated. This has resulted
in a GBP370,000 write off including bad debt provision and an
element for potential fraud pending the outcome of documentation
submitted to the authorities. Without this the Group would have
posted a profit in the first half of GBP286,000
Capital Raising
During the period fast expansion of our trading volumes caused
strains on our working capital resources. In order to deal with
those and to provide further room for growth, we decided to avail
ourselves of the Authority granted at the Annual General Meeting in
2010 and completed an issue of shares to raise GBP396,000 after
costs. A material number of the shares issued were taken up by
directors and management of the Group.
Dividends
Your Directors consider that it would be inappropriate to
declare an interim dividend.
Outlook & Strategy
Notwithstanding the unfortunate exceptional factor mentioned
above, prospects for the Group are encouraging. Although progress
is expected to continue in the second half, the Global economic
landscape remains challenging. It continues to be my view that
there is still a way to go before the present debt problems, both
Sovereign and domestic, are finally solved. Although I cannot be
optimistic about the Global situation I am convinced that we are
servicing the less vulnerable industrial and commercial areas both
in the UK and overseas which can be expected to give us strengths
which others may be lacking.
W.J.C.Douie, Chairman. 8th September 2011
CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME
6 Months 6 Months 12 Months
to 30 Jun to 30 Jun to 31 Dec
2011 2010 2010
(unaudited) (unaudited)
Notes GBP'000 GBP'000 GBP'000
Revenue 2 14,235 8,541 19,959
Cost of sales (12,117) (7,416) (17,001)
------------- ------------ ----------
Gross Profit 2 2,118 1,125 2,958
Administrative
expenses - normal (1,832) (1,500) (3,448)
------------- ------------ ----------
Operating
profit/(loss) before
exceptional items 2 286 (375) (490)
Administrative
expenses -
exceptional 3 (370) - 58
------------- ------------ ----------
Operating loss after
exceptional items (84) (375) (432)
Financing expense (45) (6) (18)
------------- ------------ ----------
Loss on ordinary
activities before
taxation (129) (381) (450)
Income tax expense 4 - - 18
------------- ------------ ----------
Net loss from
continuing
operations (129) (381) (432)
Loss from discontinued
operations - loss
from the period 5 - (526) (526)
Loss for the period (129) (907) (958)
Other elements of
comprehensive income /
expense for the
period - - -
------------- ------------ ----------
Total comprehensive
expense for the
period (129) (907) (958)
------------- ------------ ----------
Loss per share -
continuing operations
(pence) 7 (1.24) (4.22) (4.79)
Loss per share -
discontinued
operations (pence) 7 - (5.83) (5.83)
Loss per share -
continuing and
discontinued
operations (pence) 7 (1.24) (10.05) (10.62)
There is no dilutive impact of share options.
CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION
As at As at
30 Jun 30 Jun
2011 2010 As at
(unaudited) (unaudited) 31 Dec 2010
GBP'000 GBP'000 GBP'000
Assets
Non current
Property, plant & equipment 217 361 279
Deferred tax asset 70 70 70
------------- ------------- -------------
287 431 349
------------- ------------- -------------
Current
Inventories 8 10 10
Trade and other receivables 6,895 3,312 4,787
Cash and cash equivalents 469 194 -
------------- ------------- -------------
7,372 3,516 4,797
------------- ------------- -------------
Total assets 7,659 3,947 5,146
------------- ------------- -------------
Liabilities
Current
Trade and other payables (1,788) (1,755) (2,066)
Current borrowings (4,755) (1,271) (2,231)
Tax liabilities - (13) -
------------- ------------- -------------
Total Liabilities (6,543) (3,039) (4,297)
------------- ------------- -------------
Net Assets 1,116 908 849
------------- ------------- -------------
Equity
Called up share capital 135 90 90
Share premium account 2,468 2,117 2,117
Capital redemption reserve 50 50 50
Share based payment reserve 30 38 30
Retained earnings (1,567) (1,387) (1,438)
------------- ------------- -------------
Total equity 1,116 908 849
------------- ------------- -------------
CONSOLIDATED CONDENSED STATEMENT OF CASHFLOWS
6 Months 6 Months
to to 12 Months
30 Jun 30 Jun to
2011 2010 31 Dec
Notes (unaudited) (unaudited) 2010
GBP'000 GBP'000 GBP'000
Operating activities
Operating loss (84) (375) (432)
Employee equity settled
share options - - (8)
Depreciation of property,
plant & equipment 82 100 153
Change in inventories 2 1 1
Change in trade and other
receivables (2,108) (300) (2,400)
Change in trade and other
payables (278) (299) 652
Taxes received - 107 97
Interest paid (45) (6) (18)
------------- ------------- ----------
Net cash (outflow) from
operating activities (2,431) (772) (1,955)
------------- ------------- ----------
Investing activities
Purchases of property,
plant & equipment (20) (13) (24)
Proceeds from sale of
property, plant &
equipment - - 40
------------- ------------- ----------
Net cash used in investing
activities (20) (13) 16
------------- ------------- ----------
Cash (outflow) before
financing (2,451) (785) (1,939)
------------- ------------- ----------
Financing activities
Issue of ordinary share
capital net of associated
expenses 396 - -
Net cash from/(used) from
financing activities 396 - -
------------- ------------- ----------
Net (decrease)/increase in
cash and cash equivalents
from continuing
operations (2,055) (785) (1,939)
------------- ------------- ----------
Cash movement from
discontinued operations
operating activities - (130) (130)
Cash movement from
discontinued operations
investing activities - (14) (14)
------------- ------------- ----------
Net (decrease)/increase in
cash and cash equivalents
from discontinued
operations - (144) (144)
------------- ------------- ----------
Total net
(decrease)/increase in
cash and cash equivalents (2,055) (929) (2,083)
------------- ------------- ----------
Cash and cash equivalents
at the beginning of the
period 8 (2,231) (148) (148)
------------- ------------- ----------
Cash and cash equivalents
at the end of the period 8 (4,286) (1,077) (2,231)
------------- ------------- ----------
NOTES TO THE INTERIM STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2011
1. ACCOUNTING POLICIES
a) General information
RTC Group Plc is a public limited company incorporated and
domiciled in England whose shares are publicly traded on AIM. The
registered office address is The Derby Conference Centre, London
Road, Derby, DE24 8UX. The company's registered number is 02558971.
The principal activities of the Group are described in note 2.
The Board consider the principal risks and uncertainties
relating to the Group for the next six months to be the same as
detailed in or last Annual Report and Accounts to 31 December 2010.
The Group's financial risk management objectives and policies are
consistent with those disclosed in the consolidated financial
statements as at and for the year ended 31 December 2010.
b) Basis of preparation
The unaudited interim group financial statements of RTC Group
Plc are for the six months ended 30 June 2011 and do not comprise
statutory accounts within the meaning of S.435 of the Companies Act
2006. The unaudited interim group financial statements have been
prepared in accordance with the AIM rules. This report should be
read in conjunction with the Group's Annual Report and Accounts for
the year ended 31 December 2010, which have been prepared in
accordance with IFRS's as adopted by the European Union.
These unaudited interim group financial statements were approved
for issue on 8 September 2011. No significant events, other than
those disclosed in this document, have occurred between 30 June
2011 and this date.
c) Comparatives
The comparative figures for the year ended 31 December 2010 do
not constitute statutory accounts within the meaning of S.435 of
the Companies Act 2006, but they have been derived from the audited
financial statements for that year, which have been filed with the
Registrar of Companies. The report of the auditors was unqualified
and did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006 nor a reference to any matters which the auditor
drew attention by way of emphasis of matter without qualifying
their report.
d) Accounting policies
The accounting policies adopted are consistent with those
described in the annual financial statements for the year ended 31
December 2010. There have been no significant changes in the basis
upon which estimates have been determined, compared to those
applied at 31 December 2010 and no change in estimate has had a
material effect on the current period.
This interim announcement has been prepared based on IFRS's
which are in issue that are effective or available for early
adoption at the Group's annual reporting date as at 31 December
2011.
2. SEGMENTAL ANALYSIS
The Group's continuing activities relate to Recruitment and
Conferencing business activities. Segmental analysis of business
activity is shown below.
6 Months 6 Months 12 Months
to to to
30 Jun 30 Jun 31 Dec
2011 2010 2010
(unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
REVENUE
Recruitment 13,421 8,108 18,664
Conferencing 814 433 1,295
----------- ----------- ---------
14,235 8,541 19,959
----------- ----------- ---------
GROSS MARGIN
Recruitment 1,636 1,015 2,395
Conferencing 482 110 563
----------- ----------- ---------
2,118 1,125 2,958
----------- ----------- ---------
OPERATING PROFIT / (LOSS) BEFORE
EXCEPTIONAL ITEMS
Recruitment 449 (30) 212
Conferencing (19) (207) (277)
Group costs (144) (138) (425)
----------- ----------- ---------
286 (375) (490)
----------- ----------- ---------
GBP3.7m of the revenue of the recruitment segment arose to a
single customer.
The exceptional administrative item in the current period
relates to the recruitment segment. In the year to 31 December 2010
the exceptional administrative items relate to the conferencing
division.
In the view of the directors, there is not a seasonal aspect to
the performance of the business.
3. EXCEPTIONAL ADMINSTRATIVE EXPENSE / (INCOME)
6 Months 6 Months 12 Months
to to to
30 Jun 30 Jun 31 Dec
2011 2010 2010
(unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
Provision for doubtful debt 370 - -
Profit on disposal of fixed
assets - - (121)
Restructuring costs - - 63
----------- ----------- ---------
370 - (58)
----------- ----------- ---------
As further explained in the chairman's statement during the
period the Group has experienced a probable bad debt of GBP370,000
from an isolated customer. This has been provided in full in the
interim results and is subject to tax relief.
4. INCOME TAX EXPENSE
No provision has been made for tax in the period, as a result of
the losses incurred. Tax charges in the previous periods were
estimated at the anticipated effective rate.
5. DISCONTINUED OPERATIONS
On 25 June 2010, the Board decided to discontinue funding the
Group's Training Division and hence the board of Catalis Limited
put this company into Administration. The loss for the discontinued
operation is stated after charging:
6 Months 6 Months 12 Months
to to to
30 Jun 30 Jun 31 Dec
2011 2010 2010
(unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
Revenue - 1,138 1,138
Cost of sales - (763) (763)
----------- ----------- ---------
Gross Profit - 375 375
Administrative expenses - normal - (657) (657)
----------- ----------- ---------
Operating loss - (282) (282)
Financing income/(expense) - - -
----------- ----------- ---------
Loss on ordinary activities
before taxation - (282) (282)
Attributable income tax expense - - -
Loss on disposal of discontinued
operations - (244) (244)
----------- ----------- ---------
Net loss attributable to discontinued
operations - (526) (526)
----------- ----------- ---------
Details of net assets disposed as a result of the administration
of Catalis Limited and the associated loss for the period resulting
from this are as follows:
6 Months 6 Months 12 Months
to to to
30 Jun 30 Jun 31 Dec
2011 2010 2010
(unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
Non current assets
Property plant and equipment - 202 202
Current assets - 321 321
Current liabilities - (279) (279)
----------- ----------- ---------
Net assets disposed of - 244 244
Consideration - - -
----------- ----------- ---------
Loss on disposal - (244) (244)
----------- ----------- ---------
6. DIVIDENDS
The Board does not propose the payment of an interim
dividend.
7. LOSS PER SHARE
The losses per share have been calculated on both continuing and
discontinued operations after taxation, based on the weighted
average number of shares in issue during the period. The
outstanding share options are not considered to be dilutive in
either the current or comparative periods.
6 Months 6 Months
to to 12 Months
30 Jun 2011 30 Jun 2010 to
(unaudited) (unaudited) 31 Dec 2010
Weighted average
number of shares 10,411,444 9,022,564 9,022,564
Loss from continuing
operations (GBP'000) (129) (381) (432)
Loss per share from
continuing operations
(pence) (1.24) (4.22) (4.79)
Loss from discontinued
operations (GBP'000) - (526) (526)
Loss per share from
discontinued operations
(pence) - (5.83) (5.83)
Loss from continuing
and discontinued
operations (GBP'000) (129) (907) (958)
Loss per share from
continuing and discontinued
operations (pence) (1.24) (10.05) (10.62)
------------- ------------- -------------
8. ANALYSIS OF CHANGES IN NET DEBT
At At
1 Jan Cash Other 30 Jun
2011 Flows Movements 2011
GBP'000 GBP'000 GBP'000 GBP'000
Cash at bank and in
hand - 469 - 469
Bank overdraft (2,231) (2,524) - (4,755)
Finance leases - - - -
-------- -------- ----------- --------
Net debt (2,231) (2,055) - (4,286)
-------- -------- ----------- --------
The Group has a working capital facility with Lloyds TSB plc
that allows it to borrow up to 90% of the invoiced trade debtors of
ATA Recruitment Limited and Ganymede Solutions Limited up to
GBP5.2m and an overdraft facility of GBP50,000.
9. RECONCILIATION OF CONSOLIDATED EQUITY
As at As at As at
30 Jun 30 Jun 31 Dec
2011 2010 2010
(unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
Opening total equity 849 1,815 1,815
Total comprehensive expense
for the period (129) (907) (958)
Dividends - - -
Issue of shares 396 - -
Share based payment - - (8)
----------- ----------- -------
Closing total equity 1,116 908 849
----------- ----------- -------
On 6 May 2011 the Group issued 4,489,062 shares at 9p per share
under the authorisation granted in Resolution 7 of the AGM dated 22
June 2010. The issue raised GBP396,215 net of costs.
10. CONTINGENT LIABILITIES
Included in current borrowings are bank overdrafts and an
invoice discounting facility. During the year the Group has used
its bank overdraft and invoice discounting facility, which is
secured by a cross guarantee and debenture over the Group
companies. There have been no defaults or breaches of interest
payable during the current or prior period.
11. RELATED PARTY TRANSACTIONS
RTC Group Plc is the parent company of the Group that includes
the following entities that have been consolidated which are
related parties:
-- ATA Management Services Limited
-- ATA Recruitment Limited
-- The Derby Conference Centre Limited
-- Ganymede Solutions Limited
-- Global Choice Recruitment Limited
The Group's related parties also include key management
personnel who are the executive directors and non-executive
director.
RTC Group Plc
Registered Office
The Derby Conference Centre
London Road
Derby DE24 8UX
This information is provided by RNS
The company news service from the London Stock Exchange
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