Interim Results

Robert Walters PLC 11 September 2000 ROBERT WALTERS plc INTERIM RESULTS FOR THE SIX MONTHS ENDED 30th June 2000 Robert Walters plc, the recruitment and HR outsourcing business, today announced its interim results for the six months ended 30th June 2000. FINANCIAL HIGHLIGHTS * Gross profit (net fee income) up 30.3% to £28.8 million (1999 - £22.1 million) * Operating profit before exceptional items* up 11.2% to £5.9 million (1999 - £5.3 million) * Profit before tax before exceptional items* increased 14.1% to £5.8 million (1999 - £5.1 million) * Earnings per share up 17.7% to 4.1 pence (1999 - 3.5 pence) * These are operating exceptional items of £0.5 million relating to the IT project consultancy fee as outlined in the prospectus OPERATIONAL HIGHLIGHTS * Successful execution of accelerated hiring policy in the second quarter, focused on IT and Asia * Staff numbers increased to 779 (June 30th 2000) * Strong growth in Resource Solutions outsourcing contracts from 45 (December 31st 1999) to 55 (June 30th 2000) * Internet and technology programme on track Commenting on the results, Chief Executive Robert Walters said: 'After our recent return to the London market, I am pleased to report a very strong set of interim results. Our performance has enabled us to support a rapid expansion of our staffing infrastructure to meet the current and expected growth across our businesses. This recruitment programme has been particularly successful in IT and Asia. The strength of our business and our raised profile as a result of the IPO has enabled us to attract high quality people. 'Resource Solutions, the human resources outsourcing and consultancy services division of the Group, has continued to grow in the half year and now has 71 outsourcing contracts in Europe, Asia Pacific and the US. 'The strategic review of our internet and technology offering is complete. We are now at the design phase of creating our global database and the build phase of the web-enabling of our HR outsourcing business. 'The Board is actively reviewing a number of acquisition opportunities aimed at broadening the range of our professional markets and our geographical reach. 'The Group's trading in July and August has been in line with expectations and we are experiencing strong trading conditions across all our businesses. We are already seeing the benefits of the hiring initiative and this will be reflected in our performance in the second half.' For further information please contact: Robert Walters plc +44 20 7379 3333 Robert Walters, Chief Executive/Philippa Brook, Director of Marketing Brunswick +44 20 7404 5959 Patrick Handley/Deborah Done Or visit our website at www.robertwalters.com Chairman's Statement The trading result for the first half of 2000 showed an increase in gross profit of 30.3% to £28.8m (first half 1999: £22.1m) and an increase in operating profit before operating exceptional costs of 11.2% to £5.9m (first half 1999: £5.3m). Profit before tax and operating exceptional items increased 14.1% to £5.8m (first half 1999: £5.1m). Earnings per share increased 17.7% to 4.08p (first half: 1999 3.47p based on 80.0m shares notionally issued). The Board looks forward to a successful future as a listed company and to growing both organically and via acquisition over the coming years. Chief Executive's Statement July 2000 saw our successful return to the London stock market. On 20 June 2000 we published in the prospectus our forecast of profit before tax of £5.3m for the half year to 30 June. We achieved £5.4m. The geographical breakdown of this £5.4m is as follows: 6 mths 6 mths 30 June 30 June 2000 1999 £'000 £'000 United Kingdom 3,261 2,763 Australasia 670 617 Other International 1,454 908 The percentage of profit from non-UK business has risen from 36% to 39%. We are experiencing strong growth in both the recruitment and HR outsourcing components of the Group and as a consequence initiated an aggressive hiring policy resulting in staff numbers increasing to 779 as at 30 June 2000. The Group's trading in July and August has been in line with expectations and we are experiencing strong trading conditions across all our businesses. We are already seeing the benefits of the hiring initiative and this will be reflected in our performance in the second half. Resource Solutions, the human resources outsourcing and consultancy services division of the Group, has continued to grow in the half year and now has 71 outsourcing contracts in Europe, Asia Pacific and the US. We have now completed a strategic review of our technology and internet offering and the first design and build projects have begun. The flotation raised £3.7m to fund the implementation of these projects to web-enable our HR outsourcing software and to build a global database. The exceptional operating cost of £0.5m in the half year to June reflects the cost of the strategic review. Since June the Group has disposed of its shareholding in Stepstone ASA realising cash of £5.2m and a profit after tax of approximately £3.0m. The Board is actively reviewing a number of acquisition opportunities aimed at broadening the range of our professional market and our geographical reach. Consolidated Profit and Loss Accounts £'000 2000 1999 1999 6 mths to 6 mths to 12 mths to 30 June 30 June 31 December Unaudited Unaudited Audited Turnover 91,536 85,877 178,490 Direct costs (62,768) (63,795) (130,728) ____________ ___________ ____________ Gross profit 28,768 22,082 47,762 Administrative expenses (23,357) (17,641) (36,310) ____________ ___________ ____________ Operating profit Before exceptional items 5,862 5,270 12,552 Operating exceptional items (451) (829) (1,100) 5,411 4,441 11,452 Finance charges (net) (26) (153) (233) ____________ ___________ ____________ Profit on ordinary activities before taxation 5,385 4,288 11,219 Taxation (2,120) (1,515) (4,026) ____________ ___________ ____________ Retained profit for the period 3,265 2,773 7,193 ============ =========== ============ Earnings per share (note 4) 4.08p 3.47p 8.99p Consolidated Statement of Total Recognised Gains and Losses £'000 2000 1999 1999 6 mths to 6 mths to 12 mths to 30 June 30 June 31 December Unaudited Unaudited Audited Profit for the financial period 3,265 2,773 7,193 Gain (Loss) on foreign currency translation 172 253 (129) ____________ ___________ ____________ Total recognised gains for the year 3,437 3,026 7,064 ============ =========== ============ Consolidated Balance Sheets £'000 2000 1999 1999 30 June 30 June 31 December Unaudited Unaudited Audited Fixed assets Tangible assets 3,228 2,553 2,311 Investments 853 213 731 ___________ ___________ ____________ 4,081 2,766 3,042 Current assets Debtors 38,716 34,751 32,455 Cash at bank and in hand 2,939 7,535 3,987 ___________ ___________ ____________ 41,655 42,286 36,442 Creditors: amounts falling due within one year (20,776) (35,781) (27,121) ___________ ___________ ____________ Net current assets 20,879 6,505 9,321 ___________ ___________ ____________ Total assets less current liabilities 24,960 9,271 12,363 Creditors: Amounts falling due after one year (7) (14) (7) Provisions for liabilities and charges (262) (252) (252) ___________ ___________ ____________ Net assets 24,691 9,005 12,104 ========== =========== ============ Capital and reserves Called up share capital 16,000 16,000 16,000 Share premium 76,510 67,391 67,391 Merger difference (83,379) (83,379) (83,379) Capital contribution 44 13 13 Capital reserve 9,301 9,301 9,301 Other reserves (408) (198) (580) Profit and loss account 6,623 (123) 3,358 ___________ ___________ ____________ Equity shareholders' funds 24,691 9,005 12,104 ========== =========== ============ Consolidated Cashflow Statements £'000 2000 1999 1999 6 mths to 6 mths to 12 mths to 30 June 30 June 31 December Unaudited Unaudited Audited Net cash inflow from operating activities (see note 7) 2,808 3,437 10,253 Returns on investments and servicing of finance (26) (153) (233) Taxation (1,668) (136) (5,229) Capital expenditure and financial investment (1,468) (351) (777) Acquisitions (122) - (1,650) Equity Dividends paid - (8,009) (8,009) __________ ___________ ____________ Cash inflow/(outflow) before financing and management of liquid resources (476) (5,212) (5,645) Financing (582) 7,041 3,916 __________ ___________ ____________ (Decrease)/Increase in cash in the period (1,058) 1,829 (1,729) ========== =========== ============ 1. Basis of Compilation The reorganisation steps listed in the prospectus dated 20 June 2000 qualify as a group reconstruction under Financial Reporting Standard 6, 'Acquisitions and Mergers'. Accordingly for the purposes of this financial information the principles of merger accounting have been applied and Robert Walters plc and SAI Holdings BV have been accounted for as if they had been in this group relationship throughout the period covered by this financial information. The capital structure does not take into effect the additional 2.3 million shares issued on listing on 7 July 2000. 2. Accounting Policies There have been no changes to the accounting policies as set out in the 1999 accounts of Robert Walters Operations Limited or as in the prospectus dated 20 June 2000. 3. Accounts The financial information set out in this document does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. Statutory accounts for the year ended 31 December 1999 for Robert Walters Operations Limited on which the auditors gave an unqualified report, have been delivered to the registrar of companies. The financial information in respect of the period ended 30 June 2000 is unaudited but has been reviewed by our auditors. Their report is attached on page 8. The financial information in respect of the period 30 June 1999 is unaudited. 4. Earnings Per Share Earnings per share has been calculated on the profit on ordinary activities after taxation and on 80,000,000 ordinary shares in issue and ranking for dividend. 5. Dividends No interim dividend is proposed. 6. Segmental Information Turnover for the Group is derived from the continuing principal activity of the placing of permanent and contract professional staff and is exclusive of VAT. Analysis by origins is as follows: £'000 6 mths to 6 mths to 12 mths to 30 June 2000 30 June 1999 31 December 1999 Profit Profit Profit Before Before Before Turnover Tax Turnover Tax Turnover Tax United Kingdom 66,338 3,261 66,371 2,763 137,961 7,141 Australasia 17,772 670 15,535 617 31,478 1,878 Other International 7,426 1,454 3,971 908 9,051 2,200 _________ ______ _________ _______ ________ _________ 91,536 5,385 85,877 4,288 178,490 11,219 ========= ====== ========= ======= ======== ========= 7. Cashflow Reconciliation of operating profit to net cashflow from operating activities: £'000 2000 1999 1999 6 mths to 6 mths to 12 mths to 30 June 30 June 31 December Unaudited Unaudited Audited Operating profit 5,411 4,441 11,452 Depreciation charges 536 416 968 Profit on sale of fixed assets 0 60 168 Increase in debtors (6,823) (1,326) (1,006) Increase/(decrease) in creditors 3,684 (154) (1,329) ______________ __________ _____________ Net cashflow from operating activities 2,808 3,437 10,253 ============== ========== ============= £'000 2000 1999 1999 6 mths to 6 mths to 12 mths to 30 June 30 June 31 December Unaudited Unaudited Audited Analysis of changes in net funds Increase/(decrease) in cash in the year (1,058) 1,829 (1,729) Cash Flow from (increase)/decrease in debt 5,768 (7,321) (5,524) ______________ __________ _____________ Change in net debt/cash resulting from cash flows 4,710 (5,492) (7,253) Translation differences 10 (22) (31) ______________ __________ _____________ Movement in net debt in year/period 4,720 (5,514) (7,284) Opening net debt (1,791) 5,493 5,493 ______________ __________ _____________ Closing net debt 2,929 (21) (1,791) ============== ========== ============= 8. Registered Office 25 Bedford Street London WC2E 9ES

Companies

Robert Walters (RWA)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today