TIDMRTC
RNS Number : 8573F
RTC Group PLC
26 February 2018
26 February 2018
RTC Group Plc
("RTC", "the Company" or "the Group")
Final results for the year ended 31 December 2017
RTC Group Plc (AIM: RTC.L), the engineering and technical
recruitment company, is pleased to announce its audited results for
the year ended 31 December 2017.
Highlights
-- Group revenue: GBP71.7m (2016: GBP67.9m). 6% increase.
-- Profit before tax: GBP1.3m (2016: GBP1.1m). 18% increase.
-- Earnings per share (basic): 8.06p (2016: 5.80p). 39% increase.
During the year, the Company paid an interim dividend of
GBP167,618 (2016: GBP152,549) to its equity shareholders. This
represents a payment of 1.2p (2016: 1.1p) per share. A final
dividend of GBP321,267 (2016: GBP277,363) has been proposed but has
not been accrued within these financial statements. This represents
a payment of 2.3p (2016: 2.0p) per share.
A resolution regarding the recommended final dividend is to be
considered at the Company's forthcoming 2018 Annual General
Meeting, which is due to be held on 18 April 2018. If shareholders
approve the recommended final dividend, then this will be paid on 2
July 2018 to all holders of shares who are on the register of
members at the close of business on 8 June 2018, with an
ex-dividend date of 7 June 2018.
Commenting on the results Andy Pendlebury, CEO said:
"I am delighted to announce that 2017 was a very successful year
for RTC. I believe our success demonstrates that our business model
of building and investing in independent and complementary
subsidiary businesses is both robust and capable of delivering long
term value to our shareholders. We enter 2018 with optimism.
In addition to our incremental organic growth plan the Board now
believes the time is right for RTC to pursue a transformational
acquisition plan. During 2018 we will continue the process of
identifying complementary organisations that offer a broad range of
consolidatory and diversification opportunities for our Group to
integrate into and alongside our existing subsidiary
businesses."
Enquiries:
RTC Group Plc Tel: 0133 286 1835
Bill Douie, Chairman
Andy Pendlebury, Chief Executive
SPARK Advisory Partners Limited Tel: 0203 368 3550
(Nominated Adviser)
Matt Davis / Mark Brady
www.Sparkadvisorypartners.com
Whitman Howard Limited (Broker) Tel: 020 7659 1234
Nick Lovering / Francis North
www.Whitman-howard.com
About RTC
RTC has three principal trading subsidiaries engaged in
recruitment services:
-- ATA is one of the UK's leading engineering and technical
recruitment consultancies. Supplying white and blue-collar
engineering and technical staff to a broad range of SME clients and
vertical markets;
-- Ganymede is focused on the supply and operation of blue
collar contingent labour into safety critical markets; and
-- GSS predominantly provides managed service solutions for international clients.
www.rtcgroupplc.co.uk
Chairman's statement
For the year ended 31 December 2017
I am pleased to present the final report for the year.
Growth strategy on track
I am delighted to report that the growth strategy articulated by
the Group CEO is being followed by all subsidiary businesses, which
continue to deliver profitable growth as planned. Pre-tax profits
were up 18% at GBP1.3m (2016: GBP1.1m) leading to a 39% increase in
basic earnings per share at 8.06p (2016: 5.80p) and we are
confident that there is further improvement to come through organic
growth and by acquisition. The Board is committed to achieving
these improvements and to ongoing profitable growth.
Acquisition strategy vindicated
In 2014 the Group acquired a company specialising in providing
domestic gas engineers for the following reasons: the service
provided a fit with Ganymede's 'safety critical' mantra; it would
diversify Ganymede's service offering away from rail and it would
present an opportunity for growth given the Government's Smart
Meter roll-out plans. In 2017, that strategy was vindicated when
Ganymede Energy secured a significant long-term contract to train
and supply a minimum of 250 dual fuel installers to serve the roll
out of SSE Plc's Smart Meter programme.
Building on a solid base
The Group is built on three pillars of recruitment - UK
engineering and manufacturing; UK Rail & Infrastructure &
Energy; and, internationally, the supply of wide ranging skills in
hostile environments. The deliberate positioning on this strong and
diverse base enables the Group to capitalise on prevailing market
conditions both in the UK and internationally. In addition, around
50% of our total business derives from long-term contracts in UK
Rail and Energy and in overseas markets, which are not as sensitive
to short term fluctuations in the UK economy, providing a solid
foundation on which to maximise permanent and short-term contract
revenues.
Our Group businesses support each other -growth in one enables
us to invest for future growth in the others. The soundness of this
philosophy was proven again in 2017 with our international
business, Global Staffing Solutions, enjoying a very good year as
operations in Afghanistan continued to rise and other sources of
revenue were secured. While ATA, our business which is affected
most by the health of the UK economy, delivered exceptional growth
in its contract business that offset the continuing difficulty in
permanent recruitment being seen across the industry. Ganymede,
supplying labour into safety critical environments, continued to
prosper with good demand in the Rail industry whist its energy
division prepared to service its new long-term contract.
Rewarding our shareholders
Whilst we continue to grow through investing in our existing
business and, as the opportunity arises, through carefully selected
acquisitions, rewarding our shareholders for their loyalty and
their confidence in our business model and management is very
important to us. Accordingly, our progressive dividend policy
remains a central part of our investment proposition. As a sign of
our confidence in the Group's future performance, an interim
dividend of 1.2p has been paid (2016: 1.1p). The Directors are now
proposing a final dividend for the 2017 year of 2.3p per share
(2016: 2.0p), subject to approval at the annual General Meeting on
18(th) April 2018.
Chairman's statement
For the year ended 31 December 2017
Our ambition
The medium-term strategy for the Group is to grow through the
continuing organic growth of our existing footprint and clients
both in the UK and internationally and by acquisition. In a very
fragmented industry we believe there is much room for progress in
both areas and for consolidation into larger more efficient
enterprises. Through our Ganymede Energy acquisition, we have
clearly demonstrated our ability to identify a strategic
opportunity and harvest the gains and we have great confidence in
our ability to continue to do so.
We enter 2018 with optimism following a strong performance in
2017. ATA and Ganymede are well placed to take advantage of
economic growth and increases in infrastructure spending. Global
Staffing Solutions is benefitting from increased demand from
Afghanistan and across other regions from its longstanding client
KBR and has also secured new clients in the regions in which it
operates. Within Central Services, the Derby Conference Centre has
now completed its improvement programme and is experiencing
increasing demand for its products.
Our people
Our most important asset continues to be our people. We have a
highly engaged and productive workforce led by an experienced and
established management team fully capable of achieving our
ambitions. I should like to thank all our staff at all levels for
their loyalty, hard work and enthusiasm.
W J C Douie 25 February 2018
Chairman
Chief executive's operational and strategic review
For the year ended 31 December 2017
Overview
I am delighted to announce that 2017 was a very successful year
for RTC, with the Group recovering strongly from the disappointing
drop in profits in the second half of 2016, which was caused
through the impact of the UK decision to exit the European Union.
Our results are especially pleasing, as many of our peer group have
failed to regain the lost ground from 2016. I believe our success
demonstrates that our business model, first outlined in our 2014
annual report, of building and investing in independent and
complementary subsidiary businesses is both robust and capable of
delivering long term value to our shareholders.
All our subsidiary businesses make a profitable contribution to
the Group and have built long term strategic partnerships with key
players in their respective sectors. This has enabled the Group to
capture around 50% of its annual turnover as secured order book
business with a visible revenue stream exceeding GBP125m over the
next 3 years.
The Group's overall financial position is now much stronger than
it has been at any point and it is worth noting that since our
return to profitability in 2012 we have increased our revenues by
over 65%, our operating profit by over 136% and our basic earnings
per share by over 87%. This financial strengthening has been
achieved at the same time as making significant capital and
operating investments in each of our subsidiary businesses to make
them fitter and stronger to compete in highly populated markets. At
the same time, we have doubled the total equity underpinning the
Group and returned over GBP1.4m of dividends to our shareholders,
giving exceptional year on year dividend yield and growth. Our
long-term strategy of investing in all our stakeholder groups is
working and I now believe we have a value proposition to attract
and retain the best employees, candidates, clients and
investors.
Whilst there remains some uncertainty and mixed opinion about
short and medium-term prospects for the UK economy we believe that
the sectors and clients we have built relationships with have
fundamental long-term growth trends which will continue to provide
a significant and recurring upside for our Group to secure greater
shareholder value. Furthermore, I am also delighted that our
international business which recruits personnel from over 30
countries and places them in hostile environments is now entering a
welcomed growth phase having secured new long-term contracts with
existing and new clients and we now have good visibility of solid
revenue for the foreseeable future.
In 2016, I outlined in detail a full SWOT analysis for the Group
to provide a roadmap of challenges for each of our businesses to
improve operational effectiveness and increase long term
profitability. I am pleased to say that our relentless focus on
establishing best practise across the Group has seen a range of
performance enhancements which have driven up efficiencies that
have fed through into a higher net contribution on a constant gross
margin. These operational improvements, coupled with the strategic
growth plans identified for each of our businesses, will have a
growing influence on our profitability as our key markets fully
rebound from the current uncertainties affecting the recruitment
sector.
One disappointing note at the end of the year was the collapse
of Carillion PLC which had an impact on our Ganymede business. It
was a harsh reminder of the risks the recruitment sector faces,
regardless of the size of client organisations and thankfully our
financial diligence process ensured our exposure was kept both
manageable and within our internal debt cap approved by our
financial directorate.
Chief executive's operational and strategic review
For the year ended 31 December 2017
Subsidiary company review
ATA
2017 was an important year for ATA, as it reshaped operations
following the decline in permanent revenue in its projects business
during 2016. The slowdown in permanent recruitment activity in the
infrastructure sector which began following the UK decision to
leave the European Union continued to impact industry wide
throughout 2017. However, whilst permanent revenue was down in ATA
projects, the division had significant success in capturing new
contract opportunities as clients' hiring strategies reflected a
more cautious approach to headcount growth and project deployment.
Our consolidated branch network which supports UK manufacturing and
engineering clients with a mix of permanent and temporary staffing
solutions had a strong year as UK exports continued to be boosted
by favourable exchange rate conditions. Whilst both the projects
and branch network have individual business models appropriate to
target sectors, collective operational improvements have been
gained through new systems, procedures and work methodologies.
These improvements have seen revenues and contribution grow while
headcount has remained constant giving rise to greater efficiencies
across the business.
Ganymede
Ganymede had another highly successful year with its long-term
contract with Network Rail operating at its expected run rate. We
have been delighted with the performance of the business and its
successful positioning as Network Rail's largest manpower provider
on its contingency labour framework for renewals and maintenance.
Ganymede is now an industry leader in the provision of contingency
labour to the rail industry and this is recognised through its
apprentice investment programme which has trained and integrated
over 100 new young employees into the sector over the past 3 years.
This commitment to the training, development and deployment of new
personnel to the sector is a vital differentiator and will ensure a
strong competitive advantage in the tender process for CP6. In
addition to the direct contract with Network Rail Ganymede is
successfully securing a wide range of contracts with other tier one
suppliers of Network Rail and given the recent collapse of
Carillion PLC we are confident that Ganymede will secure further
additional business from the sector.
2017 also saw Ganymede's energy acquisition secure a significant
contract with Scottish and Southern Electric Plc (SSE). The
contract with SSE to provide a minimum 250 engineers on their Smart
Meter roll out programme is the first of its kind in the industry
with Ganymede identifying, training and deploying operatives over a
3-5-year period. The acquisition of RIG Energy was completed in
2014 and having already paid back the cost of purchase the business
is set to generate around GBP28m revenue from this contract win.
Ganymede Energy is now firmly placed as the country's leading
provider of Smart Meter engineers and having developed its talent
acquisition and development programme is set to capitalise on the
huge growth prospect the industry is set to experience as the
Government's Smart Meter roll out programme gathers momentum.
Chief executive's operational and strategic review
For the year ended 31 December 2017
GSS
Having weathered a number of difficult years of declining
revenue, our international business GSS has had an outstanding year
increasing its net contribution to Group by over 40%. New contracts
have been secured with KBR its long standing international partner
to provide staff to a range of territories including Afghanistan,
Iraq, Somalia, Oman, UAE and Bahrain and new contracts have been
won with another major US outsourcing organisation providing staff
to support international operations on a wide range of large value
projects. GSS is now firmly positioned as one of this country's
leading providers of personnel to large value international
contracts supporting NATO and its partner companies.
Central Services
The conference centre at our headquarters in Derby (the Centre)
fully reopened for business in 2017 having undergone an extensive
refurbishment programme. As well as providing first class
accommodation for our Group headquarters, our Ganymede and ATA
subsidiaries have substantial operating units located at the site
and this attracts many of our collective clients to the facility.
This has resulted in complementary revenue being generated for the
Centre and many of our clients have developed long term
relationships directly with the business. The refurbishment
programme modernised all available office accommodation at the
facility and I am delighted to say that we have now secured
long-term tenants for all space not being utilised by our Group and
its subsidiary businesses. In addition, the Centre through its
grade 2 listed main building is also a thriving hub of activity in
the East Midlands with regular large-scale events, the largest in
2017 catering for 1,000 people, daily conferencing attracting
companies from throughout the region and a Business Centre
providing vital networking and flexible office space for a variety
of start-ups and new business ventures. Initial indications are
that the new facility is fast becoming the go to place in the
region. Further investments to enhance the quality of the site are
planned for this year and we believe once completed will position
the Centre as the leading conference centre in the East
Midlands.
People
Our success is fundamentally based around our people and
therefore attracting and retaining the best talent across all our
businesses is key to achieving the strategic challenges we set
ourselves. We have dedicated employees across all our subsidiary
businesses and within our Group headquarters and their collective
effort, quality and commitment is the driving force that enables us
to grow our businesses ahead of our competition. I would therefore
like to extend a huge thank you on behalf of the Board of Directors
to everybody in our Group.
Chief Executive's operational and strategic review
For the year ended 31 December 2017
Outlook and future growth strategy
Our business model of growing independent subsidiary businesses
has provided a sound and stable platform for the Group to capture
significant value for its shareholders. Since returning to
profitability in 2012, the Group has continued to grow despite
macro-economic issues which have destabilised the UK economy and
created volatility in an already fragile recruitment sector.
Despite this our businesses have secured some of the largest
contracts being tendered in their respective sectors and we believe
we can build on this success as the bid pipeline across our chosen
sectors remains extremely healthy. We are confident that our
organic growth plan will continue to increase shareholder value by
capitalising on our strong market positions in the industries and
sectors that we support. We enter 2018 with optimism.
In addition to our incremental organic growth plan the Board now
believes the time is right for RTC to pursue a transformational
acquisition plan. During, 2018 we will continue the process of
identifying complementary organisations that offer a broad range of
consolidatory and diversification opportunities for our Group to
integrate into and alongside our existing subsidiary businesses. We
believe we have a proven senior executive team to attract both the
debt finance and new capital support that our ambition plans will
necessitate. We see consolidation as a key industry imperative over
the next 5 years and believe it is in the long-term interests of
all our stakeholders that we begin to position ourself to
capitalise on the opportunities that the shift in industry dynamics
will present.
A M Pendlebury 25 February 2018
CEO
Finance Director's statement
For the year ended 31 December 2017
Financial highlights
The Group delivered a 20% increase in profit from operations of
GBP1.4m (2016: GBP1.2m) from planned efficiencies in administrative
expenses. Correspondingly gross profit conversion to operating
profit increased to 12% (2016: 10%).
ATA maintained its gross profit levels and increased its
contribution to Group despite the difficult trading conditions
experienced in UK technical and engineering recruitment
markets.
Ganymede continued to deliver on its core contract with Network
Rail and its Energy division secured a new long-term high value
contract with SSE plc to supply dual fuel meter installers for its
smart-meter rollout programme that commenced in November 2017.
GSS won a new overseas contract and grew its existing core
contract significantly increasing its contribution to Group.
Within Central Services, the conference centre bounced back from
the disruption experienced during refurbishment in 2016 and showed
it is well on the way to achieving the increased levels of activity
expected from Group's investment in its facilities.
Taxation
The tax charge for the year was GBP0.2m (2016: GBP0.3m). The
variance between this and the expected charge if a 19.25%
corporation tax rate was applied to the profit for the year is
explained in note 3.
Dividends
During the year, the Company paid an interim dividend of
GBP167,618 (2016: GBP152,549) to its equity shareholders. This
represents a payment of 1.2p (2016: 1.1p) per share.
Statement of financial position, cash generation and
financing
Net working capital has increased to GBP2.2m (2016: GBP1.4m).
This increase reflecting increased turnover with new and existing
clients in ATA and GSS who typically have 60 days credit terms.
This also impacted the ageing profile for the Group - overall
debtor days were 42 (2016: 36). Included in trade debtors is
GBP92,000 relating to Carillion Construction Limited which has been
fully provided in the statement of comprehensive income.
The ratio of current assets to current liabilities has improved
slightly at 1.2 (2016: 1.1). The Group's gearing ratio, which is
calculated as total borrowings over net assets was 1.1 (2016: 1.3).
The Group has no term debt and is financed solely using its
confidential invoice discounting facility with HSBC. Interest cover
was 17.5 (2016: 11.3).
The Group's current bank facilities include an overdraft of
GBP50,000 and a confidential invoice discounting facility of up to
GBP9.0m with HSBC. Both are renewable annually. The Group is
currently operating well within its facility. The Board closely
monitors the level of facility utilisation and availability, to
ensure that there is sufficient headroom to manage current
operations and support the growth of the business. The Group
continues to be focused on cash generation and building a robust
balance sheet.
S L Dye 25 February 2018
Group Finance Director
Consolidated statement of comprehensive income
For the year ended 31 December 2017
2017 2016
Notes GBP'000 GBP'000
------------------------------ ------- ---------- ----------
Revenue 2 71,687 67,900
Cost of sales (59,710) (55,794)
------------------------------ ------- ---------- ----------
Gross profit 11,977 12,106
Administrative expenses (10,559) (10,929)
------------------------------ ------- ---------- ----------
Profit from operations 1,418 1,177
Finance expense (81) (104)
------------------------------ ------- ---------- ----------
Profit before tax 1,337 1,073
Tax expense 3 (216) (273)
------------------------------ ------- ---------- ----------
Total comprehensive income
for the year 1,121 800
------------------------------ ------- ---------- ----------
Earnings per ordinary share
Basic 4 8.06p 5.80p
------------------------------ ------- ---------- ----------
Fully diluted 4 7.53p 5.44p
------------------------------ ------- ---------- ----------
Consolidated statement of changes in equity
For the year ended 31 December 2017
Share Share Own Capital Share Retained Total
capital premium shares redemption based earnings equity
held reserve payment
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------- ---------- --------- ------------- ---------- ----------- ---------
At 1 January
2017 145 96 (473) 50 95 3,455 3,368
---------------------- ---------- ---------- --------- ------------- ---------- ----------- ---------
Total comprehensive
income for
the year - - - - - 1,121 1,121
---------------------- ---------- ---------- --------- ------------- ---------- ----------- ---------
Dividends - - - - - (445) (445)
---------------------- ---------- ---------- --------- ------------- ---------- ----------- ---------
Share options
exercised 1 24 - - - - 25
---------------------- ---------- ---------- --------- ------------- ---------- ----------- ---------
Share based
payment charge - - - - 120 - 120
---------------------- ---------- ---------- --------- ------------- ---------- ----------- ---------
At 31 December
2017 146 120 (473) 50 215 4,131 4,189
---------------------- ---------- ---------- --------- ------------- ---------- ----------- ---------
The information for the prior reporting period is as
follows:
Share Share Own Capital Share Retained Total
capital premium shares redemption based earnings equity
held reserve payment
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------- ---------- --------- ------------- ---------- ----------- ---------
At 1 January
2016 143 66 (473) 50 54 3,080 2,920
---------------------- ---------- ---------- --------- ------------- ---------- ----------- ---------
Total comprehensive
income for
the year - - - - - 800 800
---------------------- ---------- ---------- --------- ------------- ---------- ----------- ---------
Dividends - - - - - (430) (430)
---------------------- ---------- ---------- --------- ------------- ---------- ----------- ---------
Share options
exercised 2 30 - - (5) 5 32
---------------------- ---------- ---------- --------- ------------- ---------- ----------- ---------
Share based
payment charge - - - - 46 - 46
---------------------- ---------- ---------- --------- ------------- ---------- ----------- ---------
At 31 December
2016 145 96 (473) 50 95 3,455 3,368
---------------------- ---------- ---------- --------- ------------- ---------- ----------- ---------
Consolidated statement of financial position
As at 31 December 2017
2017 2016
GBP'000 GBP'000
-------------------------------- ---------- ---------
Assets
Non-current
Goodwill 132 132
Other intangible assets 472 642
Property, plant and equipment 1,410 1,260
Deferred tax asset 84 33
--------------------------------- ---------- ---------
2,098 2,067
Current
Cash and cash equivalents 161 60
Inventories 6 12
Trade and other receivables 13,223 11,183
--------------------------------- ---------- ---------
13,390 11,255
Total assets 15,488 13,322
--------------------------------- ---------- ---------
Liabilities
Current
Trade and other payables (6,310) (5,429)
Corporation tax (209) (132)
Current borrowings (4,712) (4,289)
(11,231) (9,850)
Non-current liabilities
Deferred tax liabilities (68) (104)
--------------------------------- ---------- ---------
Net assets 4,189 3,368
--------------------------------- ---------- ---------
Equity
Share capital 146 145
Share premium 120 96
Capital redemption reserve 50 50
Own shares held (473) (473)
Share based payment reserve 215 95
Retained earnings 4,131 3,455
Total equity 4,189 3,368
--------------------------------- ---------- ---------
Consolidated statement of cash flows
For the year ended 31 December 2017
2017 2016
GBP'000 GBP'000
Cash flows from operating activities
Profit from operations 1,418 1,177
Adjustments for:
Depreciation and amortisation 399 382
Loss on disposal - 5
Employee equity settled share
options charge 120 46
Change in inventories 6 1
Change in trade and other receivables (2,040) 560
Change in trade and other payables 881 (483)
----------------------------------------- --------- ---------
Cash inflow from operations 784 1,688
Income tax paid (226) (270)
Net cash inflow from operating
activities 558 1,418
----------------------------------------- --------- ---------
Cash flows from investing activities
Purchase of property, plant
and equipment (379) (1,129)
Purchase of intangible assets - (79)
Net cash used in investing
activities (379) (1,208)
Cash flows from financing activities
Interest payments (81) (104)
Lease purchase payments - (11)
Dividends paid (445) (430)
Proceeds from exercise of share
options 25 30
Net cash outflow from financing
activities (501) (515)
----------------------------------------- --------- ---------
Net decrease in cash and cash
equivalents from operations (322) (305)
----------------------------------------- --------- ---------
Total net decrease in cash
and cash equivalents (322) (305)
----------------------------------------- --------- ---------
Cash and cash equivalents at
beginning of period (4,229) (3,924)
----------------------------------------- --------- ---------
Cash and cash equivalents at
end of period (4,551) (4,229)
----------------------------------------- --------- ---------
1. Corporate information and basis of preparation
RTC Group Plc is a public limited company incorporated and
domiciled in England whose shares are publicly traded.
The announcement of results of the Group for the year ended 31
December 2017 was authorised for issue in accordance with a
resolution of the directors on 25 February 2018.
The financial information included in this announcement has been
compiled in accordance with the recognition and measurement
criteria of International Financial Reporting Standards ("IFRS"),
including International Accounting Standards ("IAS") and
interpretations issued by the International Accounting Standards
Board ("IASB") and its committees, and as adopted by the EU. This
announcement does not itself however contain sufficient information
to comply with IFRS.
The accounting policies adopted are consistent with those
described in the annual financial statements for the year ended 31
December 2017. There have been no significant changes in the basis
upon which estimates have been determined, compared to those
applied at 31 December 2016 and no change in estimate has had a
material effect on the current period.
2. Segment analysis
The Group is a provider of recruitment services that has its
headquarters at the Derby Conference Centre which is contained
within the Central Services segment. The recruitment business
comprises three distinct business units - ATA predominantly
servicing the UK engineering market; GSS servicing the
international market and Ganymede supplying labour into safety
critical environments.
Segment information is provided below in respect of ATA,
Ganymede, GSS and the Central Services which, as well as being the
headquarters and providing all central services for the Group,
generates income from excess space at the Derby site including
rental and conferencing facilities.
The Group manages the trading performance of each segment by
monitoring operating contribution and centrally manages working
capital, borrowings and equity.
Revenues are generated from permanent and temporary recruitment
and long-term contracts for labour supply in the recruitment
division. Revenue is analysed by origin of customer/point of
invoicing.
During 2017, one customer in GSS contributed 10% or more of
total revenue being GBP9.8m (2016: GBP9.6m) and one customer in
Ganymede also contributed 10% or more of total revenue being
GBP20.4m (2016: GBP21.2m).
The segment information for the current reporting period is as
follows:
Recruitment Central Total
ATA GSS Ganymede Services Group
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------- ---------- --------- ---------- ---------- ----------
External sales
revenue 29,166 10,259 30,683 1,579 71,687
Cost of sales (24,056) (9,047) (25,862) (745) (59,710)
-------------------- ---------- --------- ---------- ---------- ----------
Gross profit 5,110 1,212 4,821 834 11,977
Administrative
expenses* (3,710) (673) (2,716) (3,062) (10,161)
Amortisation
of intangibles* (48) - (131) - (179)
Depreciation* (52) (2) (33) (132) (219)
-------------------- ---------- --------- ---------- ---------- ----------
Profit from
operations 1,300 537 1,941 (2,360) 1,418
-------------------- ---------- --------- ---------- ---------- ----------
Tax expense (216)
-------------------- ---------- --------- ---------- ---------- ----------
*combine to represent administrative expenses of GBP10,559,000
in the consolidated statement of comprehensive income.
The segment information for the prior reporting period is as
follows:
Recruitment Central Total
ATA GSS Ganymede Services Group
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------- ---------- --------- ---------- ---------- ----------
External sales
revenue 25,692 9,575 31,345 1,288 67,900
Cost of sales (20,469) (8,409) (26,190) (726) (55,794)
-------------------- ---------- --------- ---------- ---------- ----------
Gross profit 5,223 1,166 5,155 562 12,106
Administrative
expenses* (3,854) (787) (2,795) (3,105) (10,541)
Amortisation
of intangibles* (41) - (132) - (173)
Depreciation* (87) (1) (28) (99) (215)
-------------------- ---------- --------- ---------- ---------- ----------
Profit from
operations 1,241 378 2,200 (2,642) 1,177
-------------------- ---------- --------- ---------- ---------- ----------
Tax expense (273)
-------------------- ---------- --------- ---------- ---------- ----------
*combine to represent administrative expenses of GBP10,929,000
in the consolidated statement of comprehensive income.
All operations are continuing. All assets and liabilities are
held in the United Kingdom.
3. Tax expense
2017 2016
Continuing operations GBP'000 GBP'000
---------------------------------------- --------- ---------
Analysis of tax
Current tax
UK corporation tax 285 235
Adjustment in respect of previous
period 5 35
---------------------------------------- --------- ---------
290 270
Deferred tax
Origination and reversal of temporary
differences (74) 3
Tax 216 273
---------------------------------------- --------- ---------
Factors affecting the tax expense
The tax assessed for the year is less than (2016: greater than)
would be expected by multiplying profit on ordinary activities by
the standard rate of corporation tax in the UK of 19.25% (2016:
20%). The differences are explained below:
Factors affecting tax expense
2017 2016
GBP'000 GBP'000
---------------------------------------- --------- ---------
Result for the year before tax 1,337 1,073
---------------------------------------- --------- ---------
Profit multiplied by standard rate
of tax of 19.25% (2016: 20%) 257 215
Non-deductible expenses 24 45
Tax credit on exercise of options (8) (22)
Origination and reversal of temporary (62) -
differences
Adjustment in respect of previous
period 5 35
---------------------------------------- --------- ---------
216 273
---------------------------------------- --------- ---------
4. Basic and diluted 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 all fully diluted earnings per share is based
on the basic earnings per share adjusted to allow for dilutive
potential ordinary shares.
Basic Fully diluted
2017 2016 2017 2016
Earnings GBP'000 1,121 800 1,121 800
-------------------- ------------ ------------ ------------ ------------
Basic weighted
average number
of shares 13,907,304 13,783,879 13,907,304 13,783,879
-------------------- ------------ ------------ ------------ ------------
Dilutive effect
of share options 971,937 933,326
-------------------- ------------ ------------ ------------ ------------
Fully diluted
weighted average
number of shares 13,907,304 14,879,241 14,717,206
-------------------- ------------ ------------ ------------ ------------
Earnings per
share (pence) 8.06p 5.80p 7.53p 5.44p
-------------------- ------------ ------------ ------------ ------------
5. Dividends
During the year, the Company paid an interim dividend of
GBP167,618 (2016: GBP152,549) to its equity shareholders. This
represents a payment of 1.2p (2016: 1.1p) per share. A final
dividend of GBP321,267 (2016: GBP277,363) has been proposed but has
not been accrued within these financial statements. This represents
a payment of 2.3p (2016: 2.0p) per share.
6. Report and accounts
The above financial information does not constitute the
Company's statutory accounts for the years ended 31 December 2017
or 2016 but is derived from those accounts. The auditor has
reported on these accounts; their report was unqualified, did not
draw any matters by way of emphasis without qualifying their report
and did not contain statements under s498 (2) or (3) Companies Act
2006 or equivalent preceding legislation. The statutory accounts
for 2016 have been filed with the Registrar of Companies.
Full audited accounts of RTC Group Plc for the year ended 31
December 2017 will be made available on the Company's website at
www.rtcgroupplc.co.uk later today and will be dispatched to
shareholders on 15 March 2018 and then be available from the
Company's registered office - The Derby Conference Centre, London
Road, Derby, DE24 8UX.
The Company's Annual General meeting will be held at 12 noon on
18 April 2018 at the offices of Gowling WLG (UK) LLP, 4 More London
Riverside, London, SE1 2AU.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR FKPDDNBKBQBB
(END) Dow Jones Newswires
February 26, 2018 02:01 ET (07:01 GMT)
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