RNS Number:1509H
World Careers Network PLC
07 November 2007
PRELIMINARY ANNOUNCEMENT OF THE AUDITED RESULTS OF
WORLD CAREERS NETWORK PLC
For the year ended 31 July 2007
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 2007.
Financial Review
I am pleased to report that, as anticipated in our interim statement, our second
half has shown an improvement in profitability with the result that we have made
good the shortfall in profitability at the half year compared to the same period
in the previous year and have produced a profit before tax of #1,030,373
compared with #1,022,372 last year. This represents earnings per share of
8.85p. ( 2006: 8.79p)
The increase in our sales in the second half was broadly in line with that
achieved in the first half year (27%) and the improvement in our profitability
resulted principally from a slight reduction in overheads and a change in the
sales mix in the six months to 31 July 2007.
During the year we bought in and cancelled 6,816 shares and will continue to
effect further purchases as shares are offered to us at a suitable price.
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 affect 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 Level 1 West, Woodman Works, The Crescent, London SW19 8DR
at 10.00am on Friday, 14 December 2007 and, if approved, will be payable on
Monday, 17 December 2007 to shareholders on the register as at 23 November 2007.
Operating Review
We experienced continued growth both through expanding business with existing
clients and the addition of new clients. Sales of E-recruitment software for
experienced hire recruitment grew particularly strongly as did E-recruitment
test revenues. E-recruitment tests and response & project management which are
sold alongside the software are, in the main, delivered by other organisations.
Indeed test revenues were down in the second half of the year compared to the
first half while experienced hire E-recruitment solution revenues continued to
expand. Higher sales and this better mix of business both contributed to the
improved profitability in the second half year.
As explained in previous Chairman's statements, we have made considerable
investments in the business during our last two financial years. These
investments have primarily been in people to carry out a higher level of product
/software development, and to strengthen our delivery capacity and processes.
These in turn have allowed us to continue to deliver highly innovative software,
and high quality implementations and ongoing support.
Principal Risks and Uncertainties
Competitive pressure is a continuing risk for the company. The company manages
this risk by providing leading edge product and high levels of customer service.
The business is dependent upon clients' ability to safely access data held on
our servers and 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 operates in a dynamic market and we anticipate continued growth as more
employers adopt E-recruitment software, although economic uncertainty could
temper this growth in the short term.
We remain in a good position to take advantage of the increased demand for
E-recruitment software. Indeed, the new financial year has started well and we
have had a strong succession of new client wins in the past 6 months.
We continue to make ongoing investments in the business particularly in the
areas of product development, implementation & project management processes, and
our account management and sales teams.
These investments will provide the foundations for ongoing success; however with
investment running ahead of the increase in sales, we are unlikely to see any
growth in profitability in the short term.
The past year has been especially demanding, the team have excelled themselves,
and I want to thank everyone for their tremendous efforts as we begin what
undoubtedly will be another challenging year.
Ian Moore
Chairman, World Careers Network Plc
Date: 6 November 2007
Profit and loss account for the year ended 31 July 2007
2007 2006
# #
Turnover 4,705,041 3,716,666
Administrative expenses 3,806,453 2,778,202
________ ________
Operating profit 898,588 938,464
Interest receivable 131,785 83,908
________ ________
Profit on ordinary activities before taxation 1,030,373 1,022,372
Taxation on profit on ordinary activities 312,064 306,183
________ ________
Profit on ordinary activities after taxation 718,309 716,189
________ ________
Earnings per share
Basic 8.85p 8.79p
________ ________
Diluted 8.83p 8.77p
________ ________
All amounts relate to continuing activities.
All recognised gains and losses are set out in the profit and
loss account
Balance sheet at 31 July 2007
2007 2007 2006 2006
# # # #
Fixed assets
Intangible assets 74,981 103,973
Tangible assets 118,226 66,762
________ ________
193,207 170,735
Current assets
Debtors 883,851 978,573
Cash at bank and in hand 2,831,387 2,970,630
________ ________
3,715,238 3,949,203
Creditors: amounts falling due within 989,034 1,634,700
one year
________ ________
Net current assets 2,726,204 2,314,503
________ ________
Total assets less current liabilities 2,919,411 2,485,238
Provisions for liabilities and charges 13,136 7,100
________ ________
2,906,275 2,478,138
________ ________
Capital and reserves
Called up share capital 8,115 8,121
Share premium account 1,528,528 1,528,278
Capital redemption reserve 55 49
Share scheme reserve 7,797 4,415
Profit and loss account 1,361,780 937,275
________ ________
Shareholders' funds 2,906,275 2,478,138
________ ________
Cash flow statement for the year ended 31 July 2007
Reconciliation of operating profit to net cash inflow from operating activities
2007 2006
# #
Operating profit 898,588 938,464
Amortisation of goodwill 28,992 28,992
Depreciation of tangible assets 69,615 37,522
Operating costs not represented
by cash flows 9,418 7,600
Decrease/(increase) in debtors 94,722 (230,312)
(Decrease)/increase in creditors (651,565) 878,249
________ ________
Net cash inflow from operating activities 449,770 1,660,515
________ ________
Net cash inflow from operating activities 449,770 1,660,515
Returns on investments and servicing of finance
Interest received 131,785 83,908
Taxation (306,165) (164,761)
Capital expenditure and financial investment
Purchase of tangible fixed assets (121,079) (50,173)
Equity Dividends paid (284,262) (204,257)
Financing
Issue of ordinary share capital 250
Purchase of own shares (9,542) (51,180)
________ ________
(Decrease)/increase in cash in the year (139,243) 1,274,052
________ ________
Reconciliation of net cash flow to net funds
and analysis of net funds
(Decrease)/increase in cash in the year (139,243) 1,274,052
Opening net funds - cash 2,970,630 1,696,578
________ ________
Closing net funds - cash 2,831,387 2,970,630
________ ________
NOTES
1. The profit and loss account incorporates the results of World Careers
Network PLC for the year ended 31 July 2007. 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 #718,309 (2006: #716,189), being
the profit attributable to ordinary shareholders, by the weighted average number
of ordinary shares in issue during the year of 8,115,964 (2006: 8,149,321).
Diluted earnings per share
The weighted average number of shares for this calculation was increased to
8,138,860 (2006: 8,167,488) 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 6 November
2007. The company's annual accounts will be sent to shareholders shortly and
copies will be available until mid December from the company's office at Woodman
Works, The Crescent, London SW19 8DR.
5. The financial information does not constitute the company's statutory
accounts for the years ended 31 July 2007 or 2006 but is derived from those
accounts. Statutory accounts for 2006 have been delivered to the Registrar of
Companies and those for 2007 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
1985, s237(2) or (3).
Any inquiries, please contact: Charles Hipps, Managing Director, World Careers
Network, Woodman Works, The Crescent, London SW19 8DR, Tel: 020 8946 9876.
This information is provided by RNS
The company news service from the London Stock Exchange
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