TIDMWOR
RNS Number : 7202B
World Careers Network PLC
02 November 2009
?
PRELIMINARY ANNOUNCEMENT OF THE AUDITED RESULTS OF
WORLD CAREERS NETWORK PLC
For the year ended 31 July 2009
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 2009.
Financial Review
Sales for the year fell GBP357,000 to GBP4,799,000, a reduction of 7% on the
previous year. Overheads remained at a similar level to last year and as a
result our operating profit which includes a gain on foreign currency of
GBP52,653 (2008: GBP9,330) fell by GBP339,146 to GBP662,658, a decrease of 34%
compared with last year. Our interest receivable fell from GBP141,823 to
GBP78,793 as a consequence of the reduction in interest rates and, as a result,
our profit for the year is GBP741,451 compared with GBP1,143,627 last year. This
represents basic earnings per share of 6.54p. (2008: 9.87p)
During the year we bought in and cancelled 253,831 shares for a total
consideration of GBP244,116 and will continue to effect further purchases as
shares are offered to us at a suitable price.
Despite the reduction in profits our balance sheet remains robust with cash of
GBP3.5m at 31 July 2009.
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 3.30 pm
on Friday, 11 December 2009 and, if approved, will be payable on Tuesday, 15
December 2009 to shareholders on the register as at 13 November 2009.
Operating Review
As a result of the challenging economic climate, employers have cut back their
discretionary expenditure on both change requests and implementation of our
e-Recruitment software. Furthermore, we have regrettably lost some business as
the result of consolidation in the financial sector. Whilst we have won a good
share of the business for which we have been invited to tender, this has not
been sufficient to offset the above declines.
Costs have remained broadly steady as we maintained our investment in product
development, sales and account management. Our average headcount for the year
reduced slightly to 72 (2008:74) and has since fallen to 69.
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 resources 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
Our market remains challenging, as we feel the impact of reduced levels of
recruitment, less appetite for investment in software implementations and
increased competition for the remaining new business.
We believe it is important to continue to invest in ongoing product development
and to maintain our high levels of service to our clients despite the difficult
economic conditions. As a result of this ongoing investment, coupled with
declining business activity, it appears inevitable that sales and profits will
fall further in the coming 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 GBP3.5m at 31 July 2009 we are well placed to weather the
current storm. 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 and which will not be open to other
businesses which are not as well resourced as ours.
Despite the difficult conditions, the team has continued to work hard and seek
out opportunities for improvement. I would like to thank the whole team for
their vigorous commitment and ongoing efforts as we begin what will undoubtedly
be another challenging year
Ian Moore
Chairman, World Careers Network Plc
Date: 2 November 2009
Profit and loss account for the year ended 31 July 2009
+--------------------------------------+-------------+------------+--------------+
| | | 2009 | 2008 |
+--------------------------------------+-------------+------------+--------------+
| | | | |
+--------------------------------------+-------------+------------+--------------+
| | | GBP | GBP |
+--------------------------------------+-------------+------------+--------------+
| | | | |
+--------------------------------------+-------------+------------+--------------+
| Turnover | | 4,799,018 | 5,156,631 |
+--------------------------------------+-------------+------------+--------------+
| Administrative expenses | | 4,136,360 | 4,154,827 |
+--------------------------------------+-------------+------------+--------------+
| | | | ________ |
| | | ________ | |
+--------------------------------------+-------------+------------+--------------+
| | | | |
+--------------------------------------+-------------+------------+--------------+
| Operating profit | | 662,658 | 1,001,804 |
+--------------------------------------+-------------+------------+--------------+
| Interest receivable | | 78,793 | 141,823 |
+--------------------------------------+-------------+------------+--------------+
| | | ________ | ________ |
+--------------------------------------+-------------+------------+--------------+
| | | | |
+--------------------------------------+-------------+------------+--------------+
| Profit on ordinary activities before | | 741,351 | 1,143,627 |
| taxation | | | |
+--------------------------------------+-------------+------------+--------------+
| Taxation on profit on ordinary | | 216,357 | 343,033 |
| activities | | | |
+--------------------------------------+-------------+------------+--------------+
| | | ________ | ________ |
+--------------------------------------+-------------+------------+--------------+
| | | | |
+--------------------------------------+-------------+------------+--------------+
| Profit on ordinary activities after | | 525,094 | 800,594 |
| taxation | | | |
+--------------------------------------+-------------+------------+--------------+
| | | ________ | ________ |
+--------------------------------------+-------------+------------+--------------+
| | | | |
+--------------------------------------+-------------+------------+--------------+
| Earnings per share | | | |
+--------------------------------------+-------------+------------+--------------+
| | | | |
+--------------------------------------+-------------+------------+--------------+
| Basic | | 6.54p | 9.87p |
+--------------------------------------+-------------+------------+--------------+
| | | ________ | ________ |
+--------------------------------------+-------------+------------+--------------+
| | | | |
+--------------------------------------+-------------+------------+--------------+
| Diluted | | 6.53p | 9.82p |
+--------------------------------------+-------------+------------+--------------+
| | | ________ | ________ |
+--------------------------------------+-------------+------------+--------------+
| | | | |
+--------------------------------------+-------------+------------+--------------+
| 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 2009
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| | | | | 2009 | 2009 | 2008 | 2008 |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| | | | | | | | |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| | | | | GBP | GBP | GBP | GBP |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| Fixed assets | | | | | | | |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| Intangible assets | | | | | 16,997 | | 45,989 |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| Tangible assets | | | | | 106,036 | | 178,785 |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| | | | | | ________ | | ________ |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| | | | | | | | |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| | | | | | 123,033 | | 224,774 |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| Current assets | | | | | | | |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| Debtors | | | | 810,338 | | 1,041,818 | |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| Cash at bank and in | | | | 3,555,711 | | 3,332,204 | |
| hand | | | | | | | |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| | | | | ________ | | ________ | |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| | | | | | | | |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| | | | | 4,366,049 | | 4,374,022 | |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| | | | | | | | |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| Creditors: amounts falling due within one | 1,072,680 | | 1,188,931 | |
| year | | | | |
+---------------------------------------------+-----------+-----------+-----------+-----------+
| | ________ | | ________ | |
+---------------------------------------------+-----------+-----------+-----------+-----------+
| | | | | | | | |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| Net current assets | | | | | 3,293,369 | | 3,185,091 |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| | | | | | ________ | | ________ |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| | | | | | | | |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| Total assets less current | | | 3,416,402 | | 3,409,865 |
| liabilities | | | | | |
+-------------------------------------+-------+-----------+-----------+-----------+-----------+
| | | | | | |
+-------------------------------------+-------+-----------+-----------+-----------+-----------+
| Provisions for liabilities | | | 1,136 | | 1,136 |
+-------------------------------------+-------+-----------+-----------+-----------+-----------+
| | | | ________ | | ________ |
+-------------------------------------+-------+-----------+-----------+-----------+-----------+
| | | | | | | | |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| | | | | | 3,415,266 | | 3,408,729 |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| | | | | | ________ | | ________ |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| Capital and reserves | | | | | | | |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| Called up share | | | | | 7,850 | | 8,101 |
| capital | | | | | | | |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| Share premium account | | | | | 1,531,472 | | 1,530,125 |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| Capital redemption | | | | | 326 | | 72 |
| reserve | | | | | | | |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| Share scheme reserve | | | | | 19,949 | | 12,449 |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| Profit and loss | | | | | 1,855,669 | | 1,857,982 |
| account | | | | | | | |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| | | | | | ________ | | ________ |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| | | | | | | | |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| Shareholders' funds | | | | | 3,415,266 | | 3,408,729 |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
| | | | | | ________ | | ________ |
+-----------------------+--+----------+-------+-----------+-----------+-----------+-----------+
Cash flow statement for the year ended 31 July 2009
Reconciliation of operating profit to net cash inflow from operating activities
+--------------------------------------+--------------+-----------+-----------+
| | | 2009 | 2008 |
+--------------------------------------+--------------+-----------+-----------+
| | | | |
+--------------------------------------+--------------+-----------+-----------+
| | | GBP | GBP |
+--------------------------------------+--------------+-----------+-----------+
| | | | |
+--------------------------------------+--------------+-----------+-----------+
| Operating profit | | 662,658 | 1,001,804 |
+--------------------------------------+--------------+-----------+-----------+
| Amortisation of goodwill | | 28,992 | 28,992 |
+--------------------------------------+--------------+-----------+-----------+
| Depreciation of tangible assets | | 92,636 | 83,936 |
+--------------------------------------+--------------+-----------+-----------+
| Operating costs not represented | | | |
+--------------------------------------+--------------+-----------+-----------+
| by cash flows | | 7,500 | (7,348) |
+--------------------------------------+--------------+-----------+-----------+
| Decrease/(increase) in debtors | | 231,480 | (157,967) |
+--------------------------------------+--------------+-----------+-----------+
| (Decrease)/increase in creditors | | (42,066) | 121,829 |
+--------------------------------------+--------------+-----------+-----------+
| | | ________ | ________ |
+--------------------------------------+--------------+-----------+-----------+
| | | | |
+--------------------------------------+--------------+-----------+-----------+
| Net cash inflow from operating | | 981,200 | 1,071,246 |
| activities | | | |
+--------------------------------------+--------------+-----------+-----------+
| | | ________ | ________ |
+--------------------------------------+--------------+-----------+-----------+
| | | | |
+--------------------------------------+--------------+-----------+-----------+
| Net cash inflow from operating | | 981,200 | 1,071,246 |
| activities | | | |
+--------------------------------------+--------------+-----------+-----------+
| | | | |
+--------------------------------------+--------------+-----------+-----------+
| Returns on investments and servicing of finance | | |
+-----------------------------------------------------+-----------+-----------+
| Interest received | | 78,793 | 141,823 |
+--------------------------------------+--------------+-----------+-----------+
| | | | |
+--------------------------------------+--------------+-----------+-----------+
| Taxation | | (290,542) | (264,965) |
+--------------------------------------+--------------+-----------+-----------+
| | | | |
+--------------------------------------+--------------+-----------+-----------+
| Capital expenditure and financial | | | |
| investment | | | |
+--------------------------------------+--------------+-----------+-----------+
| Purchase of tangible fixed assets | | (19,887) | (144,495) |
+--------------------------------------+--------------+-----------+-----------+
| | | | |
+--------------------------------------+--------------+-----------+-----------+
| Equity Dividends paid | | (283,291) | (284,042) |
+--------------------------------------+--------------+-----------+-----------+
| | | | |
+--------------------------------------+--------------+-----------+-----------+
| Financing | | | |
+--------------------------------------+--------------+-----------+-----------+
| Issue of ordinary share capital | | 1,350 | 1,600 |
+--------------------------------------+--------------+-----------+-----------+
| Purchase of own shares | | (244,116) | (20,350) |
+--------------------------------------+--------------+-----------+-----------+
| | | ________ | ________ |
+--------------------------------------+--------------+-----------+-----------+
| | | | |
+--------------------------------------+--------------+-----------+-----------+
| Increase in cash in the year | | 223,507 | 500,817 |
+--------------------------------------+--------------+-----------+-----------+
| | | ________ | ________ |
+--------------------------------------+--------------+-----------+-----------+
| | | | |
+--------------------------------------+--------------+-----------+-----------+
| Reconciliation of net cash flow to | | | |
| net funds | | | |
+--------------------------------------+--------------+-----------+-----------+
| and analysis of net funds | | | |
+--------------------------------------+--------------+-----------+-----------+
| | | | |
+--------------------------------------+--------------+-----------+-----------+
| Increase in cash in the year | | 223,507 | 500,817 |
+--------------------------------------+--------------+-----------+-----------+
| Opening net funds - cash | | 3,332,204 | 2,831,387 |
+--------------------------------------+--------------+-----------+-----------+
| | | ________ | ________ |
+--------------------------------------+--------------+-----------+-----------+
| | | | |
+--------------------------------------+--------------+-----------+-----------+
| Closing net funds - cash | | 3,555,711 | 3,332,204 |
+--------------------------------------+--------------+-----------+-----------+
| | | ________ | ________ |
+--------------------------------------+--------------+-----------+-----------+
| | | | |
+--------------------------------------+--------------+-----------+-----------+
NOTES
+------+-------------------------------------------------------------------------------+
| 1. | The profit and loss account incorporates the results of World Careers Network |
| | PLC for the year ended 31 July 2009. 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 GBP525,094 (2008: GBP800,594), |
| | being the profit attributable to ordinary shareholders, by the weighted |
| | average number of ordinary shares in issue during the year of 8,022,712 |
| | (2008: 8,113,228). |
| | Diluted earnings per share |
| | The weighted average number of shares for this calculation was increased to |
| | 8,037,167 (2008: 8,149,785) 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 2009. |
| | The company's annual accounts will be sent to shareholders on 17 November |
| | 2009 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 2009 or 2008 but is derived from those accounts. |
| | Statutory accounts for 2008 have been delivered to the Registrar of Companies |
| | and those for 2009 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:chipps@wcn.co.uk. |
| Charles Stanley Securities |
| Nominated Adviser |
| Philip Davies/Freddy Crossley |
| Telephone: +44 (0)20 7149 6000 |
| |
+------+-------------------------------------------------------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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