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World Careers Netwk. (OLEE)

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Tuesday 03 November, 2015

World Careers Netwk.

Final Results

RNS Number : 2990E
World Careers Network PLC
03 November 2015
 

PRELIMINARY ANNOUNCEMENT OF THE AUDITED RESULTS OF

WORLD CAREERS NETWORK PLC

WORLD CAREERS NETWORK PLC

 

Chairman's Statement

 

 

 

I am pleased to present the annual accounts of WCN, which show the results of the company for the year to 31 July 2015.

 

Financial review

 

As set out in the announcement on 20 April 2015 of the Interim Statement for the six months to 31 January trading has improved compared to the first half of the year, however, sales and profits remain below the levels achieved in 2013-14.  Sales were £7.9m, 9% below those of 2013-14 (£8.6m) and profits were £1.20m compared to £2.47m achieved in 2013-14.  The profit represents basic earnings per share of 12.29p (2014 - 25.25p).

 

The Board will be seeking at the Annual General Meeting the extension of the authority granted last year to make market purchases of ordinary shares, within the usual limits for a listed company. In assessing whether in practice to use this authority, the Board will take into account all relevant factors including the effect on earnings per share and assets per share ratios and other benefits to shareholders.

 

 

Dividends

 

The directors are pleased to recommend the payment of a dividend of 3.5p per share, which is the same as that paid in respect of the previous year. This dividend will be subject to the approval of shareholders at the Annual General Meeting to be held at 5-7 Bridgeworks, The Crescent, London SW19 8DR at 10.30 am, on 14 December 2015, and, if approved, will be payable on 16 December 2015 to shareholders on the register as at 20 November 2015

 

 

Operating review

 

 

Sales fell principally as a result of the renewal of a major contract at a significantly lower fee.  New business performed relatively well, but only partly offset this fall in revenues.  Increased sales in the second half of the year (£4.4m) versus the first half year (£3.5m) reflect these new contracts coming online.

 

At the same time we significantly increased our cost base as we made widespread investments in product development, delivery and customer support, sales and marketing and overseas expansion in order to provide a sound basis for the long term future of the business. 

 



 

Principal risks and uncertainties

 

Competitive pressure and economic instability is a continuing risk for the company. The company manages this risk by providing leading edge products and high levels of customer service, by managing resource levels and pursuing opportunities for continuous improvement.

 

The business is dependent upon clients' ability to safely access data held on our servers. In order to ensure that this is not affected by a breakdown in power supplies or by other physical hazards our servers are housed offsite in secure facilities on the premises of a specialist provider of such facilities.  Third party security experts are also regularly engaged to advise on data security. 

 

 

Outlook

 

 

WCN has long term relationships delivering significant value to our clients and a world class product.  which, together with our ongoing investments, provide a good foundation for success in a highly dynamic and competitive market place. 

 

Inevitably it will take some time for our investments to generate a meaningful return and for the coming year, we expect to see a continued and significant reduction in profitability as the full year impact of last year's cost increases and the further investments we are currently making impact upon the business.

 

 During the year the team have continued to provide high levels of client support, to work agilely and continuously to release updated versions of our software and at the same time have successfully launched a number of large scale client projects.  I would like to thank the whole team for their tireless efforts. 

 

 

Charles EH Hipps

 

Chairman, World Careers Network Plc

 

 

Date 2 November 2015

 

 

 

 

 

  

 

 

 

 

consolidated income statement 

 

For the Year Ended 31 July 2015

 
 
 
2015
2014



£

£





Revenue


7,856,506

8,583,571





Total administrative expenses


6,701,553

6,152,087



_________

_________





Operating Profit


1,154,953

2,431,484





Finance income


42,926

43,300



_________

_________





Profit on Ordinary Activities before taxation


1,197,879

2,474,784





Income tax


262,500

548,667



_________

_________

 
 
 
 
Profit for the year
 
935,379
1,926,117



_________

_________





Earnings per share








Basic


12.29p

25.25p



_________

_________





Diluted


12.04p

24.82p



_________

_________

 

 

 

 

Consolidated Statement of Financial Position

 

Company number 3813540

            

As at 31 July 2015



2015


2014


2013



£


£


£








Assets

Non-current assets







     Property, plant and equipment


116,743


108,142


100,276



116,743


108,142


100,276

Current assets

     Trade and other receivables

 

 

 

2,567,678


 

2,074,764


 

1,702,413

     Cash and cash equivalents


8,219,388


8,171,494


6,726,116








Total current assets


10,787,066


10,246,258


8,428,529

 

Total assets


 

10,903,809


 

10,354,400


 

8,528,805

 

 

 

Equity







     Issued capital


7,559


7,603


7,658

     Share premium


1,591,703


1,565,751


1,548,695

     Capital redemption reserve


689


614


540

     Translation reserve


9,966


-


-

     Retained earnings


7,088,194


6,559,250


5,030,634

Total equity


8,698,111

 


8,133,218


6,587,527








 

Liabilities

Non-current liabilities

     Deferred tax


11,843


6,945


5,940

 

Liabilities

Current liabilities

     Trade and other payables


2,042,599


1,895,838


1,719,190

     Income tax


151,256


318,399


216,148

Total current liabilities


2,193,855


2,214,237


1,935,338

Total liabilities


2,205,698


2,221,182


1,941,278

 

Total equity and liabilities


 

10,903,809

 

 

 

10,354,400

 

 

 

8,528,805




 

 

 

 

Consolidated Statement of Changes in Equity

 

For the Year Ended 31 July 2015

 



Share
capital

 

Share Premium

 

 

Capital
redemption

reserve

 

Translation reserve


Retained Earnings


Total

 

 

£

£

 

£

£

£

£

Balance at 1 August 2013

7,658

1,548.695

540

-

5,030,634

6,587,527

Comprehensive income







Profit for the year

-

-

-

-

1,926,117

1,926,117

Total comprehensive income for the year

 

-

 

-

 

-

 

-

 

1,926,117

 

1,926,117

Transactions with owners







Issue of shares

19

17,056

-

-

-

17,075

Purchase of own shares

(74)

-

74

-

(143,325)

(143,325)

Dividends paid

-

-

-

-

(268,667)

(268,667)

Share based payments

-

-

-

-

14,491

14,491

Balance at 31 July 2014

7,603

1,565,751

614

-

6,559,250

8,133,218








Balance at 1 August 2014

7,603

1,565,751

614

-

6,559,250

8,133,218

Comprehensive income







Profit for the year

-

-

-

-

935,379

935,379

Other comprehensive income

-

-

-

9,966

-

9,966

Total comprehensive income for the year

 

-

 

-

 

-

 

9,966

 

935,379

 

935,379

Transactions with owners







Issue of shares

31

25,952

-

-

-

25,983

Purchase of own shares

(75)

-

75

-

(157,500)

(157,500)

Dividends paid

-

-

-

-

(266,645)

(266,645)

Share based payments

-

-

-

-

17,710

17,710

Balance at 31 July 2015

7,559

1,591,703

689

9,966

7,088,194

8,698,111

 

 

 

Consolidated statement of cash flows

                                                

For the Year Ended 31 July 2015

 



2015

2014



£

£

Cash flows from operating activities




Profit for the year


935,379

1,926,117

Depreciation


81,267

88,201

Share based payments


17,710

14,491

Increase in receivables


(492,914)

(372,291)

Increase in payables


146,761

176,589

Finance income


(42,926)

(43,300)

Income tax expense


262,500

548,667



_________

_________







917,743

2,338,474

Taxation


(424,745)

(445,411)



_________

_________

Net cash inflow from operating activities


492,998

1,893,063



_________

_________





Cash flows from investing activities




Interest received


42,926

43,300

Purchase of property, plant and equipment


(89,868)

(96,067)



_________

_________

Net cash outflow from investing activities


(46,942)

(52,767)

 
 

_________

_________

 
 
 
 

Cash flows from financing activities




Proceeds from issue of shares


25,983

17,074

Purchase of own shares


(157,500)

(143,325)

Equity dividends paid


(266,645)

(268,667)



_________

_________

Net cash outflow from financing activities


(398,162)

(394,918)



_________

_________





Increase in cash in the year


47,894

1,445,378









Cash and cash equivalents at beginning of year


8,171,494

6,726,116



_________

_________





Cash and cash equivalents at end of year


8,219,388

8,171,494



_________

_________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes

 

1.       The profit and loss account incorporates the results of World Careers Network PLC for the year ended 31 July 2015. These are the Company's first consolidated financial statements prepared in accordance with IFRS.  The significant accounting policies have been applied in preparing the financial statements for the year ended 31 July 2015, the year ended 31 July 2014 and in the opening IFRS balance sheet at 1 August 2013 (the companies date of transition).  The transition from UK GAAP to IFRS did not affect the Company's financial position and financial performance.

 

2.       Earnings per share

 

Basic earnings per share

 

This is calculated by dividing the profit of £935,379 (2014: £1,926,117), being the profit attributable to ordinary shareholders, by the weighted average number of ordinary shares in issue during the year of 7,611,378 (2014: 7,629,669).

 

Diluted earnings per share

 

          The weighted average number of shares for this calculation was increased to 7,770,425 (2014: 7,760,066) to recognise the effects of the potential issue of further ordinary shares.

 

3.       The directors are recommending the payment of a dividend of 3.5p per share.

 

4.       The preliminary announcement was approved by the board on 2 November 2015. The company's annual accounts will be sent to shareholders on 18 November 2015 and copies will be available from the company's office at 5-7 Bridgeworks, The Crescent, London SW19 8DR and on the Company's website at www.wcn.co.uk.

 

5.       The financial information does not constitute the company's statutory accounts, within the meaning of Section 435 of the Companies Act 2006, for the years ended 31 July 2015 or 2014 but is derived from those accounts. Statutory accounts for 2014 have been delivered to the Registrar of Companies and those for 2015 will be delivered following the company's forthcoming annual general meeting. The auditors have reported on those accounts; their reports were unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their reports and did not contain statements under the Companies Act 2006, s498(2) or (3).

 

 

Enquiries

 

World Careers Network Plc

Charles Hipps, Managing Director,

Telephone: +44 (0)20 8946 9876

Email:[email protected]

 

Panmure Gordon (UK) Limited

Nominated Adviser

Dugald J Carlean

Telephone: +44 (0)20 7886 2500

 


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