RNS Number : 6670H
World Careers Network PLC
07 November 2008
PRELIMINARY ANNOUNCEMENT OF THE AUDITED RESULTS OF
WORLD CAREERS NETWORK PLC
For the year ended 31 July 2008
Chairman's statement
I am pleased to present the audited results of WCN, which show the results of the company for the year to 31 July 2008.
Financial Review
New business and expansion of work with existing clients resulted in sales of £5,156,631 (2007: £4,705,041) an increase of just under
10% on the prior year and a profit before tax of £1,143,627 up 11% compared with £1,030,373 last year. This represents basic earnings per
share of 9.87p. (2007: 8.85p)
During the year we bought in and cancelled 17,000 shares for a total consideration of £20,350 and will continue to effect further
purchases as shares are offered to us at a suitable price.
Our balance sheet remains robust with cash of £3.3m at 31 July 2008 and net assets increasing during the year by 17% to £3.4m (2007:
£2.9m)
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 5-7 Bridgeworks,
The Crescent, London SW19 8DR at 10.00am on Thursday, 11 December 2008 and, if approved, will be payable on Monday, 15 December 2008 to
shareholders on the register as at 14 November 2008.
Operating Review
We experienced continued growth both through expanding business with existing clients and the addition of new clients. Our recruitment
programme to which I have referred in previous statements was largely completed at 31 July 2007 and our average headcount during the year to
31 July 2008 rose only marginally to 74 compared to 71 in the previous year.
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 product and high levels of customer service, by managing resources levels and pursuing opportunities for continuous improvement and
cost reduction.
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
I indicated in my interim statement that we expected to see some downturn in our activity in the forthcoming year. Since then the
economic climate has become significantly more unstable and we are already seeing indications of a reduction in demand for the services we
provide and an increase in the competition for the business that is available.
Lower levels of activities will only be reflected in a marginal reduction in our cost base due to our commitment to the ongoing health
and capabilities of the business, to maintaining high levels of service to our clients and to ongoing development of our products.
The combination of these two factors alongside the recession in the UK and in most of the developed world will inevitably impact on our
profits in the current year. It is impossible to assess the extent of this impact at this time but I expect to be in a better position to
give some indication when we publish our interim figures.
With liquid funds of £3.3m at 31 July 2008 we are well placed to weather the storm currently hitting businesses throughout the world. We
are determined to continue to nourish the core strengths and expertise within the business so that we are able to take advantage of the
opportunities that will undoubtedly emerge as the storm abates and which will not be open to other businesses which are not as well
resourced as ours.
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 2008
Profit and loss account for the year ended 31 July 2008
2008 2007
£ £
Turnover 5,156,631 4,705,041
Administrative expenses 4,154,827 3,806,453
________ ________
Operating profit 1,001,804 898,588
Interest receivable 141,823 131,785
________ ________
Profit on ordinary activities before taxation 1,143,627 1,030,373
Taxation on profit on ordinary activities 343,033 312,064
________ ________
Profit on ordinary activities after taxation 800,594 718,309
________ ________
Earnings per share
Basic 9.87p 8.85p
________ ________
Diluted 9.82p 8.83p
________ ________
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 2008
2008 2008 2007 2007
£ £ £ £
Fixed assets
Intangible assets 45,989 74,981
Tangible assets 178,785 118,226
________ ________
224,774 193,207
Current assets
Debtors 1,041,818 883,851
Cash at bank and in hand 3,332,204 2,831,387
________ ________
4,374,022 3,715,238
Creditors: amounts falling due within one year 1,188,931 989,034
________ ________
Net current assets 3,185,091 2,726,204
________ ________
Total assets less current liabilities 3,409,865 2,919,411
Provisions for liabilities and charges 1,136 13,136
________ ________
3,408,729 2,906,275
________ ________
Capital and reserves
Called up share capital 8,101 8,115
Share premium account 1,530,125 1,528,528
Capital redemption reserve 72 55
Share scheme reserve 12,449 7,797
Profit and loss account 1,857,982 1,361,780
________ ________
Shareholders' funds 3,408,729 2,906,275
________ ________
Cash flow statement for the year ended 31 July 2008
Reconciliation of operating profit to net cash inflow from operating activities
2008 2007
£ £
Operating profit 1,001,804 898,588
Amortisation of goodwill 28,992 28,992
Depreciation of tangible assets 83,936 69,615
Operating costs not represented
by cash flows (7,348) 9,418
Decrease/(increase) in debtors (157,967) 94,722
(Decrease)/increase in creditors 121,829 (651,565)
________ ________
Net cash inflow from operating activities 1,071,246 449,770
________ ________
Net cash inflow from operating activities 1,071,246 449,770
Returns on investments and servicing of finance
Interest received 141,823 131,785
Taxation (264,965) (306,165)
Capital expenditure and financial investment
Purchase of tangible fixed assets (144,495) (121,079)
Equity Dividends paid (284,042) (284,262)
Financing
Issue of ordinary share capital 1,600 250
Purchase of own shares (20,350) (9,542)
________ ________
(Decrease)/increase in cash in the year 500,817 (139,243)
________ ________
Reconciliation of net cash flow to net funds
and analysis of net funds
(Decrease)/increase in cash in the year 500,817 (139,243)
Opening net funds - cash 2,831,387 2,970,630
________ ________
Closing net funds - cash 3,332,204 2,831,387
________ ________
Notes
1. The profit and loss account incorporates the results of World
Careers Network PLC for the year ended 31 July 2008. 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 £800,594 (2007:
£718,309), being the profit attributable to ordinary
shareholders, by the weighted average number of ordinary
shares in issue during the year of 8,113,228 (2007:
8,115,964).
Diluted earnings per share
The weighted average number of shares for this calculation
was increased to 8,149,785 (2006: 8,138,860) 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 2008. 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 5-7 Bridgeworks, The
Crescent, London SW19 8DR.
5. The financial information does not constitute the company's
statutory accounts for the years ended 31 July 2008 or 2007
but is derived from those accounts. Statutory accounts for
2007 have been delivered to the Registrar of Companies and
those for 2008 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, 5-7 Bridgeworks, 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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