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Savile Group PLC (SAVG)

  Print          Annual reports

Wednesday 22 February, 2012

Savile Group PLC

Interim results for the six months to 31 Dec 2011

RNS Number : 8558X
Savile Group PLC
22 February 2012
 

Savile Group plc

("Savile", the "Group" or the "Company")

 

INTERIM RESULTS FOR THE SIX MONTHS ENDED

31 December 2011

 

 

 

 

Savile Group plc (SAVG.L), the AIM quoted human resources consulting group announces its unaudited interim results for the six months ended 31 December 2011.

 

Financial Summary

 

Six months ended

31 December 2011

(Unaudited)

£000

Six months ended

31 December 2010

(Unaudited)

£000

Year ended

30 June 2011

(Audited)

£000

Revenue on continuing operations

3,596

3,473

7,151

Profit/(loss) before exceptional items and taxation on continuing operations

74

(275)

(276)

Cash at bank

758

1,175

1,198

Diluted earnings/(loss) per share on continuing operations

0.82p

(1.46)p

(4.33)p

 

 

David Harrel, Non Executive Chairman of Savile, commented:

 

"In this, my first statement as Chairman of the Group, I am pleased to be able to report that the Group has moved back into profit on continuing activities in the first half of the financial year.

 

In July 2011 the Fairplace and Cedar activities were combined to create a more robust and focused business and in September 2011, Penny de Valk joined as CEO to lead this business and its team. As part of Penny's ongoing restructuring she has recently recruited a head of business development and a head of practice to help move the business forward.

 

The trading environment remains challenging but we believe the restructured Group is taking steps to meet these challenges."

 

 

Enquiries to:                        

Savile Group plc                                 

David Harrel, Chairman                                                                                      

Mark Sidlin, CFO                                                  020 7204 6990

FinnCap

Geoff Nash/Ed Frisby

Tom Jenkins (Broking)                                                        020 7600 1658

 

 

Further information on the Company can be found on its website, at www.savile.com


In this, my first statement as Chairman of the Group, I am pleased to be able to report that the Group has moved back into profit on continuing activities in the first half of the financial year.

 

The Group's unaudited revenue on continuing activities in the six months ended 31 December 2011 was £3.60m (2010: £3.47m) and profit before tax on continuing activities was £0.07m (2010: Loss £0.28m). Net assets at 31 December 2011 were £2.00m (2010: £3.95m) including net cash of £0.76m (2010: £1.17m). The Group has no debt.

 

The closure of 7 Days in October 2011 has resulted in a charge for discontinued operations of £1.07m in the six months ended 31 December 2011. Details of this are given in note 3.

 

In July 2011 the Fairplace and Cedar activities were combined to create a more robust and focused business and in September 2011, Penny de Valk joined as CEO to lead this business and its team. As part of Penny's ongoing restructuring she has recently recruited a head of business development and a head of practice to help move the business forward.

 

During the period Linda Jackson resigned from the board to take up other challenges and we wish her well.

 

The trading environment remains challenging but we believe the restructured Group is taking steps to meet these challenges.

 

David Harrel

Chairman

22 February 2012


 


 

Six months ended

31 December 2011

 Six months ended

31 December 2010

Year ended

30 June

2011


Note

 Unaudited

 Unaudited

Audited



£'000

£'000

£'000






 

 

 

 

 

Revenue

 

3,596

3,473

7,151

 

 

 

 

 

Operating expenses

 

(3,527)

(3,771)

(7,457)

 

 

 

 

 

Operating profit/(loss) before non-recurring

exceptional items

 

69

(298)

(306)

 

 

 

 

 

Non-recurring exceptional items

2

-

-

(418)

 

 

 

 

 

Operating profit/(loss)

 

69

(298)

(724)

 

 

 

 

 

Finance income

 

5

          23

30

Profit/(loss) before taxation on continued activities

 

74

(275)

(694)

 

 

 

 

 

Taxation

 

     50

43

4

Profit/(loss) after taxation on continued operations

 

124

(232)

(690)

 

 

 

 

 

 (Loss)/profit on discontinued operations

3

(1,076)

61

(466)

 

 

 

 

 

Loss and total comprehensive income for the period attributable to equity owners of the parent

 

           (952)

        (171)

(1,156)

 

 

 

 

 

Loss per ordinary share (total)

4

Pence

Pence

Pence

Basic

 

(6.37)

(1.08)

(7.26)

Diluted

 

(6.33)

(1.08)

(7.26)

 

 

 

 

 

Earnings/(loss) per ordinary share (continued operations)

4

Pence

Pence

Pence

Basic

 

0.83

(1.46)

(4.33)

Diluted

 

0.82

(1.46)

(4.33)

 

 


 

 


As at

31 December 2011

As at

31 December 2010

As at

30 June

 2011


Unaudited

Unaudited

Audited


£'000

£'000

£'000

Assets








Non current assets

               



Property, plant and equipment

237

420

369

Intangible assets

123

1,194

929

 

360

1,614

1,298

Current assets:

 

 


Inventories

25

25

14

Trade and other receivables

2,409

3,499

2,701

Cash and cash equivalents

758

1,175

1,198

 

3,192

4,699

3,913

 

 

 


Total assets

3,552

6,313

5,211

 

 

 


Liabilities:

 

 


 

 

 


Current liabilities

 

 


Trade and other payables

1,552

2,365

2,148

 

 

 


Non-current liabilities

 

 


Deferred tax

-

-

50

Total liabilities

1,552

2,365

2,198

 

 

 


Net assets

2,000

3,948

3,013

 

 

 


Capital and reserves attributable to equity holders of the company

 

 


Share capital

448

448

448

Share premium account

1,851

1,851

1,851

Merger reserve

194

329

329

Capital redemption reserve

800

800

800

Retained earnings

(1,293)

520

(415)

Total equity

2,000

3,948

3,013

 

 

 

 

 

 

 

 

               


 


Share capital

Share premium

account

 

Merger reserve

Capital redemption reserve

 

Retained earnings

Total equity


£'000

£'000

£'000

£'000

£'000

£'000



 





At 1 July 2011

448

1,851

329

800

(415)

3,013

Transfer on liquidation of 7 Days Limited

-

-

(135)

-

135

-

Debit to equity for share based payments on 7 Days liquidation

-

-

-

-

(61)

(61)

Loss and total comprehensive income for the period

-

-

-

-

(952)

(952)

At 31 December 2011

448

1,851

194

800

(1,293)

2,000








At 1 July 2010

480

1,851

194

753

882

4,160

Loss and total comprehensive income for the period

-

-

-

-

(171)

(171)

Credit to equity for share based payments

-

-

-

-

11

11

Issue of shares

15

-

135

-

-

150

Treasury shares

(47)

-

-

47

(58)

(58)

Equity dividend paid

-

-

-

-

(144)

(144)

At 31 December 2010

448

1,851

329

800

520

3,948








At 1 July 2010

480

1,851

194

753

882

4,160

Loss and total comprehensive income for the year

-

-

-

-

(1,156)

(1,156)

Credit to equity for share based payments

-

-

-

-

61

61

Issue of shares

15

-

135

-

-

150

Treasury shares

(47)

-

-

47

(58)

(58)

Equity dividend paid

-

-

-

-

(144)

(144)

At 30 June 2011

448

1,851

329

800

(415)

3,013

 

 

 


 

Cash flow from operating activities

Six months ended

31 December

 2011

Unaudited

£'000

 Six months ended

31 December 2010

Unaudited

£'000

Year ended

30 June 2011

Audited

£'000




 

Profit/(loss) before tax - continued operations

74

(275)

(694)

(Loss)/profit before tax - discontinued operations

(1,076)

61

(488)


(1,002)

(214)

(1,182)

 



 

  Amortisation and impairment of intangibles

806

7

272

  Net liabilities of 7 Days on liquidation excluding cash

(112)

-

-

  Depreciation

48

     52

118

  Share-based payment charge

-

       11

61

  Interest received

(5)

   (23)

(30)


737

47

421




 

Changes in working capital:



 

  Inventories

(11)

       (16)

(5)

  Trade and other receivables

169

(725)

105

  Trade and other payables

(335)

(158)

(172)


(177)

(899)

(72)


 

 

 

Tax paid

-

-

(202)

Net cash used by operations

(442)

(1,066)

(1,035)




 

Investing activities



 

Purchase of property, plant and equipment

(3)

(29)

(44)

Interest received

5

        23

30

Acquisition of 7 days Limited

-

(1,268)

(1,268)

Net cash from/(used) in investing activities

2

(1,274)

(1,282)


(440)

(2,340)

(2,317)

Financing activities



 

Purchase of own shares

-

(58)

(58)

Equity dividend paid

-

(144)

(144)

Issue of ordinary shares

-

150

150

Net cash used in financing activities

-

(52)

(52)




 

Net decrease in cash and cash equivalents

(440)

(2,392)

(2,369)




 

Cash and cash equivalents at beginning of period

1,198

3,567

3,567




 

Cash and cash equivalents at end of period

758

1,175

1,198

 

 


1.   Accounting policies

 

The financial information in these interim results has been prepared using the recognition and measurement principles of International Accounting Standards, International Financial Reporting Standards and Interpretations adopted for use in the European Union (collectively Adopted IFRSs). The principal accounting policies used in preparing the interim results are those the Group expects to apply in its financial statements for the year ending 30 June 2012 and, are unchanged from those disclosed in the Group's Report and Financial Statements for the year ended 30 June 2011.

 

The financial information for the year ended 30 June 2011 does not constitute the full statutory accounts for that period.  The Annual Report and Financial Statements for 2011 have been filed with the Registrar of Companies.  The Independent Auditors' Report on the Annual Report and Financial Statement on those accounts for 2011 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

 

2.     Exceptional items

 

Exceptional items comprise two main elements; Costs incurred by the Group in reorganising the Fairplace and Cedar businesses and a provision made against the carrying value of an investment in public sector business, which whilst the Directors hope is fully recoverable, they believe it is appropriate to make a provision.

 

These items are highlighted in the consolidated statement of comprehensive income because separate disclosure is considered appropriate in understanding the underlying performance of the business.

 


31 December 2011

31 December 2010

30 June

2011

 

£'000

£'000

£'000

Reorganisation costs

 

 

 

Personnel

-

-

293

Consultancy

-

-

38

Legal

-

-

7

 

 


 

Provision against investment in Public Sector included in other debtors

-

-

80

 

-

-

418

 

               



 

3.     Discontinued operations

 

The appointment of a liquidator for 7 Days Limited in October 2011 has resulted in the following charges for discontinued operations:

 


31 December

 2011

£'000

31 December 2010

£'000

30 June

 2011

£'000

 

 

 

 

Revenue

98

555

1,705

Operating expenses

(454)

(452)

(1,720)

Taxation

-

-

22

Impairment of goodwill

(661)

-

(220)

Intangibles write off

(144)

-

-

Net liabilities on liquidation

82

-

-

Settlement of leases

(53)

-

-

Remuneration costs relating to shares issued

61

-

(211)

Legal and professional

(5)

(42)

(42)

 

(1,076)

61

(466)

 

 

4.     Earnings per share




31 December 2011

31 December 2010

30 June

2011

 

£'000

£'000

£'000

Numerator

 

 

 

Profit/(loss) for the period on continued operations

124

61

(690)

Loss for the period on discontinued operations

(1,076)

(232)

(466)

 

(952)

(171)

(1,156)

 



 

Denominator

Number

Number

Number

Weighted average of shares used in basic EPS

14,941,822

15,915,927

15,915,927

Effects of:

 

 

 

Employee share options

104,494  

801,853

-

Weighted average of shares used in diluted EPS

15,046,316

16,717,780

15,915,927

 

 

 

 

 

 

5.     Availability of Interim statement

 

The interim statement was approved by the Board of Directors on 21 February 2012.

 

This Interim Statement is being sent by post to all registered shareholders.  Additional copies are available from the Company's registered office, 36-38 Cornhill, London, EC3V 3PQ and on its website: www.savile.com.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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