TIDMRTC
RNS Number : 3293L
RTC Group PLC
09 August 2013
RTC Group Plc ("RTC", "the Company" or "the Group")
Interim results for the six months ended 30 June 2013
RTC Group Plc, a support services group which provides
recruitment and conferencing services, is pleased to announce its
interim results for the six months ended 30 June 2013.
Highlights
-- Group revenue from continuing operations up 14.4% to GBP23.39m (2012: GBP20.45m)
-- Group operating profit from continuing operations of GBP66k (2012: GBP262k)
-- Profit for the six months attributable to equity holders of GBP5k (2012: GBP201k)
-- Profit per share from continued operations of 0.037p (2012: 1.49p)
The Board does not believe that it would be prudent to use its
financial resources to recommend a dividend at this time (2012:
nil).
Commenting on the results Bill Douie, Chairman, said:
"During the six months ended 30 June 2013, we have taken the
opportunity to establish, by internal promotion, an enlarged and
enhanced quality middle management team in the ATA Recruitment UK
division in order to permit future expansion in staff numbers and
business volumes. This has involved the replacement of high
performing consultants with new intake and has, as expected,
reduced the performance in this division in the six months to 30
June 2013. Accordingly, Group profits in the period are modest at
GBP5k as we build for the future.
The staffing and structural changes in the ATA Recruitment UK
division have settled in well and give the directors confidence
that a much improved performance for the six months to 31 December
2013 can be achieved. Coupled with solid progress at Global
Staffing Solutions Limited and continuing growth at Ganymede
Solutions Limited, we remain confident that for the year as a
whole, the Company will perform in line with market
expectations."
Enquiries:
RTC Group Plc 01332 861 835
Bill Douie, Chairman
Andy Pendlebury, Chief Executive
Allenby Capital Limited - Nominated
Adviser & Broker 020 3328 5656
Jeremy Porter, Corporate Finance
Mark Connelly, Corporate Finance
Chairman's statement
Six months ended 30 June 2013
I am pleased to present the interim report of the Company for
the six months ended 30 June 2013.
Group
During the six months ended 30 June 2013, we have taken the
opportunity to establish, by internal promotion, an enlarged and
enhanced quality middle management team in the ATA Recruitment UK
division in order to permit future expansion in staff numbers and
business volumes. This has involved the replacement of high
performing consultants with new intake and has, as expected,
reduced the performance in this division in the six months to 30
June 2013. Accordingly, Group profits in the period are modest at
GBP5k as we build for the future.
Trading
Recruitment
All areas of our recruitment division have performed in
accordance with management's expectations in the first half with
particularly pleasing results from Ganymede Solutions Limited.
Conferencing
The Derby Conference Centre
The market for conferencing and event activities continues to be
slow resulting in a slight deterioration of expected results from
this part of the Group.
Central costs
Strict attention to cost control has permitted a limitation of
administrative and central costs to substantially the same figure
as in the comparable period in 2012.
Management and Board
In January 2013, Andrew Bailey left the Group; we wish him well
and thank him for his years of service. Sarah Dye joined us in
February 2013 as Group Finance Director and is already making a
significant contribution in accounting and administrative matters
and to the overall effectiveness of the Group Board team.
Dividends
The directors consider that it would be inappropriate to declare
an interim dividend.
Outlook & Strategy
The staffing and structural changes in the ATA Recruitment UK
division have settled in well and give the directors confidence
that a much improved performance for the six months to 31 December
2013 can be achieved. Coupled with solid progress at Global
Staffing Solutions Limited and continuing growth at Ganymede
Solutions Limited, we remain confident that for the year as a
whole, the Company will perform in line with market
expectations.
W J C Douie 8 August 2013
Chairman
Consolidated statement of comprehensive income
Six months ended 30 June 2013
Six month Six month Year ended
period ended period ended 31 December
30 June 30 June 2012 Audited
2013 Unaudited 2012 Unaudited
Note GBP'000 GBP'000 GBP'000
Revenue 2 23,386 20,452 42,963
Cost of sales (20,920) (17,882) (37,735)
------------------------------------ ----- ------------------------ ---------------- --------------
Gross profit 2,466 2,570 5,228
Administrative expenses (2,400) (2,308) (4,636)
------------------------------------ ----- ------------------------ ---------------- --------------
Operating profit 66 262 592
Financing expense (61) (61) (118)
------------------------------------ ----- ------------------------ ---------------- --------------
Profit before tax 5 201 474
Tax expense 3 - - 101
------------------------------------ ----- ------------------------ ---------------- --------------
Net profit and total comprehensive
income for the period 5 201 575
------------------------------------ ----- ------------------------ ---------------- --------------
Earnings per ordinary
share 5
Basic 0.037p 1.49p 4.26p
------------------------------------ ----- ------------------------ ---------------- --------------
Diluted 0.036p - -
------------------------------------ ----- ------------------------ ---------------- --------------
There was no dilutive effect of share options at 30 June 2012 or
31 December 2012.
Consolidated statement of changes in equity
Six months ended 30 June 2013
Six months ended 30 June 2013
Share Share Capital Share Accumulated Total
capital premium redemption based losses equity
reserve payment
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2013
(audited) 135 2,468 50 - (1,482) 1,171
-------------------------------- --------- --------- ------------ --------- ------------ --------
Profit and total comprehensive
income for the period - - - - 5 5
-------------------------------- --------- --------- ------------ --------- ------------ --------
Share based payment
reserve - - - 15 - 15
-------------------------------- --------- --------- ------------ --------- ------------ --------
At 30 June 2013 (unaudited) 135 2,468 50 15 (1,477) 1,191
-------------------------------- --------- --------- ------------ --------- ------------ --------
Six months ended 30 June
2012
Share Share Capital Share Accumulated Total
capital premium redemption based losses equity
reserve payment
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2012
(audited) 135 2,468 50 33 (2,049) 637
-------------------------------- --------- --------- ------------ --------- ------------ --------
Profit and total comprehensive
income for the period - - - - 201 201
-------------------------------- --------- --------- ------------ --------- ------------ --------
Share options cancelled - - - (33) 33 -
-------------------------------- --------- --------- ------------ --------- ------------ --------
Share based payment
reserve - - - 10 - 10
-------------------------------- --------- --------- ------------ --------- ------------ --------
At 30 June 2012 (unaudited) 135 2,468 50 10 (1,815) 848
-------------------------------- --------- --------- ------------ --------- ------------ --------
Consolidated statement of changes in equity
Six months ended 30 June 2013
Year ended 31 December 2012
Share Share Capital Share Accumulated Total
capital premium redemption based losses equity
reserve payment
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2012
(audited) 135 2,468 50 33 (2,049) 637
-------------------------------- --------- --------- ------------ --------- ------------ --------
Profit and total comprehensive
income for the year - - - - 575 575
-------------------------------- --------- --------- ------------ --------- ------------ --------
Share acquisition - - - - (41) (41)
-------------------------------- --------- --------- ------------ --------- ------------ --------
Share based payment
reserve - - - (33) 33 -
-------------------------------- --------- --------- ------------ --------- ------------ --------
At 31 December 2012
(audited) 135 2,468 50 - (1,482) 1,171
-------------------------------- --------- --------- ------------ --------- ------------ --------
The share based payment reserve comprises the cumulative share
option charge under IFRS 2 less the value of any share options that
have been exercised or have lapsed.
Consolidated statement of financial position
As at 30 June 2013
As at 30 As at 30 As at 31
June 2013 June 2012 December
Note Unaudited Unaudited 2012 Audited
GBP'000 GBP'000 GBP'000
Assets
Non-current
Property, plant and equipment 378 271 403
Deferred tax asset 238 132 239
------------------------------- ----- ----------- ----------- --------------
616 403 642
Current
Inventories 10 11 13
Trade and other receivables 9,092 6,471 8,059
------------------------------- ----- ----------- ----------- --------------
9,102 6,482 8,072
Total assets 9,718 6,885 8,714
------------------------------- ----- ----------- ----------- --------------
Liabilities
Current
Trade and other payables (3,642) (3,150) (4,034)
Current borrowings 6 (4,885) (2,887) (3,509)
------------------------------- ----- ----------- ----------- --------------
Total liabilities (8,527) (6,037) (7,543)
------------------------------- ----- ----------- ----------- --------------
Net assets 1,191 848 1,171
------------------------------- ----- ----------- ----------- --------------
Equity
Share capital 135 135 135
Share premium 2,468 2,468 2,468
Capital redemption reserve 50 50 50
Share based payment reserve 15 10 -
Accumulated losses (1,477) (1,815) (1,482)
Total equity 1,191 848 1,171
------------------------------- ----- ----------- ----------- --------------
Consolidated statement of cash flows
Six months ended 30 June 2013
Six month Six month Year ended
period ended period ended 31 December
30 June 30 June 2012 Audited
2013 Unaudited 2012 Unaudited
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Operating profit 66 262 592
Adjustments for:
Depreciation, loss on disposal and
amortisation 94 72 149
Profit on sale of property, plant
and equipment 1 - -
Change in inventories 3 3 1
Change in trade and other receivables (1,036) (27) (1,621)
Change in trade and other payables (382) 54 938
------------------------------------------ ---------------- ---------------- --------------
Cash generated from operations (1,254) 364 59
Interest paid (61) (61) (118)
Employee equity settled share options 15 10 -
Net cash from/(used) in operating
activities (1,300) 313 (59)
------------------------------------------ ---------------- ---------------- --------------
Cash flows from investing activities
Purchases of property, plant and
equipment (76) (51) (260)
Purchases of shares in subsidiary
companies - - (41)
------------------------------------------ ---------------- ---------------- --------------
Net cash used in investing activities (76) (51) (301)
------------------------------------------ ---------------- ---------------- --------------
Cash flows from financing activities
Net cash inflow/(outflow) from financing
activities - - -
------------------------------------------ ---------------- ---------------- --------------
Net increase/(decrease) in cash and
cash equivalents from operations (1,376) 262 (360)
------------------------------------------ ---------------- ---------------- --------------
Total net (decrease) in cash and
cash equivalents (1,376) 262 (360)
------------------------------------------ ---------------- ---------------- --------------
Cash and cash equivalents at beginning
of period (3,509) (3,149) (3,149)
------------------------------------------ ---------------- ---------------- --------------
Cash and cash equivalents at end
of period (4,885) (2,887) (3,509)
------------------------------------------ ---------------- ---------------- --------------
Notes to the interim statement
Six months ended 30 June 2013
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 our last Annual Report and Accounts to 31 December
2012. 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 2012.
b) Basis of preparation
The unaudited interim group financial statements of RTC Group
PLC are for the six months ended 30 June 2013 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 2012, 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 August 2013. No significant events, other than those
disclosed in this document, have occurred between 30 June 2013 and
this date.
c) Comparatives
The comparative figures for the year ended 31 December 2012 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 auditor 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 2012. There have been no significant changes in the basis
upon which estimates have been determined, compared to those
applied at 31 December 2012 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
2013.
2. Segment analysis
The Group is a provider of recruitment and conferencing services
and operates a division for each.
The recruitment division comprises three distinct business units
- ATA Recruitment UK (ATA UK) servicing the UK SME engineering
market and a number of vertical markets; ATA Global Staffing
Solutions (ATA GSS) servicing the international market and Ganymede
Solutions (GSL) supplying blue collar labour into rail, trades and
labour and other markets.
Segmental information is provided below in respect of ATA UK,
ATA GSS, GSL and conferencing.
The Group manages the trading performance of each segment by
monitoring operating profit before exceptional items and centrally
manages working capital, borrowings and equity.
The Conferencing division services are wholly provided in the
UK. A growing proportion of the recruitment division revenues now
derive from overseas activity.
Revenues are generated from permanent and temporary recruitment
in the recruitment division and from the provision of a
conferencing and hotel facility in Derby at the Derby Conference
Centre (DCC) for the conferencing division.
All revenues have been invoiced to external customers other than
GBP27,000 (2012: GBP30,000) within the DCC which comprised rental
income from other Group segments. During 2013, one customer in the
ATA GSS segment contributed greater than 10% of that segment's
revenues being GBP7.3m (2012: GBP6.5m). Revenues are not
seasonal.
The segmental information for the reporting period is as
follows:
<-------------Recruitment-------------> Conferencing
ATA UK ATA GSS GSL six DCC six Total group
six month six month month month period six month
period period period ended 30 period
ended ended ended June 2013 ended 30
30 June 30 June 30 June June 2013
2013 2013 2013
Unaudited Unaudited Unaudited Unaudited Unaudited
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Segment continuing
operations
Sales revenue from
external customers 10,973 7,377 4,257 779 23,386
Cost of sales (10,130) (6,692) (3,754) (344) (20,920)
------------------------- -------------- -------------- ------------ -------------- ------------
Segment gross profit 843 685 503 435 2,466
Administrative expenses (920) (515) (375) (496) (2,306)
Depreciation (33) (8) (14) (39) (94)
Segment operating
profit (110) 162 114 (100) 66
------------------------- -------------- -------------- ------------ -------------- ------------
<-------------Recruitment-------------> Conferencing
ATA UK ATA GSS GSL six DCC six Total group
six month six month month month period six month
period period period ended 30 period
ended ended ended June 2012 ended 30
30 June 30 June 30 June June 2012
2012 2012 2012
Unaudited Unaudited Unaudited Unaudited Unaudited
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Segment continuing
operations
Sales revenue from
external customers 9,908 6,571 3,139 834 20,452
Cost of sales (8,835) (5,895) (2,821) (331) (17,882)
-------------------------- -------------- -------------- ------------ -------------- ------------
Segment gross profit 1,073 676 318 503 2,570
Administrative expenses (900) (532) (315) (489) (2,236)
Depreciation (20) (10) (9) (33) (72)
Segment operating profit 153 134 (6) (19) 262
-------------------------- -------------- -------------- ------------ -------------- ------------
<-------------Recruitment-------------> Conferencing
ATA UK ATA GSS GSL year DCC year Total group
year ended year ended ended ended 31 year ended
31 December 31 December 31 December December 31 December
2012 2012 2012 2012 2012
Audited Audited Audited Audited Audited
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Segment continuing
operations
Sales revenue from
external customers 20,601 13,736 6,885 1,741 42,963
Cost of sales (18,292) (12,472) (6,228) (743) (37,735)
-------------------------- -------------- ------------- ------------- ------------- -------------
Segment gross profit 2,309 1,264 657 998 5,228
Administrative expenses (1,982) (1,141) (442) (922) (4,487)
Depreciation (75) - (14) (60) (149)
Segment operating profit 252 123 201 16 592
-------------------------- -------------- ------------- ------------- ------------- -------------
All assets and liabilities are held in the United Kingdom.
3. Income tax
No provision has been made for tax in the period as a result of
losses brought forward from previous periods.
Deferred tax movements are not considered to be material as to
the extent that the deferred tax asset has been released to the
statement of comprehensive income, there has been a compensating
credit arising as a result of the recognition of a deferred tax
asset arising from previously unrecognised tax losses brought
forward.
4. Dividends
The Board do not recommend the payment of an interim
dividend.
5. Earnings per share
The calculation of basic earnings per share is based on the
earnings attributable to ordinary shareholders divided by the
weighted average number of shares in issue during the year.
The calculation of diluted earnings per share is based on the
basic earnings per share adjusted to allow for all dilutive
potential ordinary shares.
Basic Diluted
Six month Six month Total group Six month Six month Total group
period period year ended period period year ended
ended ended 31 December ended ended 30 31 December
30 June 30 June 2012 30 June June 2012 2012
2013 2012 2013
Unaudited Unaudited Audited Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------- -----------
Earnings GBP'000 5 201 575 5 201 575
------------------ ----------- ----------- ------------- ----------- ----------- -------------
Weighted average
number of
shares 13,511,626 13,511,626 13,511,626 13,906,286 13,906,286 13,906,286
------------------ ----------- ----------- ------------- ----------- ----------- -------------
Earnings per
share (pence) 0.037p 1.49p 4.26p 0.036p - -
------------------ ----------- ----------- ------------- ----------- ----------- -------------
There was no dilutive effect of share options at 30 June 2012 or
31 December 2012.
6. Analysis of changes in net debt
At Cash Other non- At
Flows cash movements
1 January 30 June
2013
2013
(Audited) (Unaudited)
GBP'000 GBP'000 GBP'000 GBP'000
Cash in hand net
of bank overdraft
and invoice discounting
arrangements (3,509) (1,376) - (4,885)
-------------------------- -------------- ---------- ---------------- -------------
Net debt (3,509) (1.376) - (4,885)
-------------------------- -------------- ---------- ---------------- -------------
The Group has a working capital facility with HSBC PLC that
allows it to borrow up to 90% of the invoiced trade debtors of ATA
Recruitment Limited, Ganymede Solutions Limited and ATA Global
Staffing Solutions Limited up to GBP7.0m and an overdraft facility
of GBP50,000.
7. 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.
8. Copies of the interim report
Copies of the interim report will be available on the Company's
website later today at www.rtcgroupplc.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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