Information  X 
Enter a valid email address

World Careers Netwk. (OLEE)

  Print      Mail a friend

Tuesday 08 November, 2016

World Careers Netwk.

Preliminary Results

RNS Number : 5468O
World Careers Network PLC
08 November 2016
 

8 November 2016

 

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 World Careers Network plc ("WCN" or the "Company"), which show the results of the Company for the year to 31 July 2016.

 

Financial review

 

Our profit for the year of £1,382,896 is significantly higher than last year (£1,197,879) due to a gain of over £400,000 as a result of the fall in the value of the £ against the US$ in the run up to and following the EU Referendum which resulted in a substantial increase in the value of our US$ bank and debtor balances at the beginning of the year and our sales invoiced during the year. But for the decline in the value of the £sterling our profits would have been nearly 20% down on last year.

 

The changes in Key Performance Indicators between the financial years 2015/2016 and 2014/2015 were as follows:

 

 


2015/16

£

2014/15

£




Sales per employee

86,298

80,168

Operating profit per employee

13,670

11,785

 

The average headcount in 2015/16 remained unchanged from the previous year at 98 hence the improvements in the KPIs as a result of the increased year on year sales and profits which benefitted from the fall in the value of the £sterling referred to above.

 

The Board will be seeking at the Annual General Meeting the renewal 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 15  December 2016, and, if approved, will be payable on 16 December 2016 to shareholders on the register as at 25 November 2016

 

 

Operating review

 

Sales increased by £600,696 compared with last year of which £187,000 was due to the fall in the value of the £sterling to which I referred above. The residual increase of around 5% reflected projects which started in the previous year coming fully online and the addition of some new clients.in the current year. Support Fees underpinned the increase in sales while fees from change requests and implementations fell slightly as large scale implementations completed.

 

At the same time, costs rose compared to the previous year, predominantly in the second  half of the year as many of the investment decisions - particularly additional marketing spend, bolstering our resources in the areas of security and hosting infrastructure maintenance, delivery, account management and UK and US sales - took effect.

 

 

Principal risks and uncertainties

 

Commercial and operational risk

Competitive pressure and economic instability is a continuing if not growing risk for the Company.  The Company manages this risk by developing leading edge products capable of driving significant transformation and value within our clients, through 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.

 

Financial risk

The main risks arising from the company's activities are currency risk and credit risk. These are monitored by the Board of directors and were not considered to be significant at the balance sheet date.

 

 

Outlook

 

The heavy investments in the second half of last year in the areas I mentioned above have continued into the current year and our cost base is now running considerably higher than last year. 

 

These investments will undoubtedly have a material impact on our profitability both in the current year and for the foreseeable future since the increased costs come first and are more certain than the resulting revenue streams.  This is exacerbated both by the increased scale of some of our projects making growth more erratic and by the general economic uncertainty following the Brexit vote.

 

Simultaneously looking after our clients and ensuring they are happy, implementing new clients, developing and managing the adoption of new innovations, developing the team & on-boarding new team members, and continuously looking for ways to improve is very challenging.  I would like to thank the team at WCN for your tremendous efforts. Our success is down to your hard work and skill. 

 

 

Charles EH Hipps

 

Chairman, World Careers Network Plc

 

 

Date 7 November 2016

 

 

 

 

 

 

 

 

consolidated income statement 

 

For the Year Ended 31 July 2016

 



2016

2015



£

£





Revenue


8,457,202

7,856,506





Total administrative expenses


7,117,511

6,701,553



_________

_________





Operating profit


1,339,691

1,154,953





Finance income


43,205

42,926



_________

_________





Profit on ordinary activities before taxation


1,382,896

1,197,879





Income tax


277,201

262,500



_________

_________





Profit for the year


1,105,695

935,379



_________

_________





Earnings per share








Basic


14.62p

12.29p



_________

_________





Diluted


14.46p

12.04p



_________

_________

 

 

  

 

Consolidated Balance sheet at 31 July 2016



2016

2015



£

£





Fixed Assets




Property, plant and equipment


140,174

116,743



_________

_________







140,174

116,743

Current assets




Trade and other receivables


2,299,183

2,567,678

Cash and cash equivalents


10,171,966

8,219,388



_________

_________





Total current assets


12,471,149

10,787,066



_________

_________





Total assets


12,611,323

10,903,809



_________

_________





Equity




Issued capital


7,562

7,559

Share premium


1,595,040

1,591,703

Capital redemption reserve


689

689

Translation reserve


5,595

9,966

Retained earnings


7,945,446

7,088,194



_________

_________





Total equity


9,554,332

8,698,111



_________

_________

Liabilities




Non-current liabilities




Deferred tax


16,643

11,843



_________

_________

Liabilities




Current liabilities




Trade and other payables


2,867,245

2,042,599

Corporation tax


173,103

151,256



_________

_________





Total current liabilities


3,040,348

2,193,855



_________

_________





Total liabilities


3,056,991

2,205,698



_________

_________





Total equity and liabilities


12,611,323

10,903,809



_________

_________

 

 

  

 

 

Consolidated statement of cash flows

 

For the Year Ended 31 July 2016

 



2016

2015



£

£

Cash flows from operating activities




Profit for the year


1,105,695

935,379

Depreciation


84,067

81,267

Exchange differences on translation of foreign operations


(4,371)

9,966

Share based payments


16,202

17,710

Decrease/(increase) in receivables


268,495

(492,914)

Increase in payables


824,648

146,761

Finance income


(43,205)

(42,926)

Corporation tax expense


277,201

262,500



_________

_________







2,528,732

917,743

Taxation


(250,556)

(424,745)



_________

_________





Net cash inflow from operating activities


2,278,176

492,998



_________

_________





Cash flows from investing activities




Interest received


43,205

42,926

Purchase of property, plant and equipment


(107,498)

(89,868)



_________

_________





Net cash outflow from investing activities


(64,293)

(46,942)

 
 

_________

_________

 
 
 
 

Cash flows from financing activities




Proceeds from issue of shares


3,340

25,983

Purchase of own shares


-

(157,500)

Equity dividends paid


(264,645)

(266,645)



_________

_________





Net cash outflow from financing activities


(261,305)

(398,162)



_________

_________





Increase in cash in the year


1,952,578

47,894





Cash and cash equivalents at beginning of year


8,219,388

8,171,494



_________

_________





Cash and cash equivalents at end of year


10,171,966

8,219,388



_________

_________

 

 

 

 

 

 

 

 

 

 

Notes

 

1.      The profit and loss account incorporates the consolidated results of World Careers Network PLC and its subsidiary for the year ended 31 July 2016. The accounting policies used in the preparation of these audited results are unchanged from those adopted by the company in previously published annual financial statements.

 

2.       Earnings per share

 

Basic earnings per share

 

This is calculated by dividing the profit of £1,105,695 (2015: £935,379), being the profit attributable to ordinary shareholders, by the weighted average number of ordinary shares in issue during the year of 7,561,263 (2015: 7,611,378).

 

Diluted earnings per share

 

         The weighted average number of shares for this calculation was increased to 7,645,920 (2015: 7,770,425) 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 31 October 2016. The Company's annual accounts will be sent to shareholders on 21 November 2016 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 2016 or 2015 but is derived from those accounts. Statutory accounts for 2015 have been delivered to the Registrar of Companies and those for 2016 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

Andrew Potts

Telephone: +44 (0)20 7886 2956

 


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

a d v e r t i s e m e n t