RNS Number:6943S
World Careers Network PLC
21 April 2008
World Careers Network Plc
Interim statement for the six months to 31 January 2008
Chairman's statement
Dear Shareholder
I am pleased to present the interim accounts of WCN which show the results of
the company for the half year to 31 January 2008.
Financial Review
I am pleased to report a profit before tax of £493,000, an increase of nearly 30
percent on the profit of £382,000 reported for the same period last year.
Sales of E-recruitment tests which are in the main delivered by other
organisations fell by around £80,000 compared with the same period last year
whereas sales of our own E-recruitment software rose by over £250,000, an
increase of 12.5 percent.
The improvement in our profitability has, therefore, come through an increase in
turnover combined with a change in our sales mix and a slowdown in the rate of
overhead growth.
During the first half of the year we bought in and cancelled 5000 ordinary
shares and will continue to effect further purchases as shares are offered to us
at what the board consider a suitable price.
Operating Review
While costs have not increased in line with sales, we have continued to make
investments in our programming resource in order to drive forward the ongoing
development of our award winning software and in the expansion of our sales and
account management teams in order to exploit sales opportunities.
Outlook
Whilst we have not so far seen reduction in the demand for our products, the
instability in the financial markets during the last three months, in which a
number of our clients operate, and the fear that we may be entering a period of
worldwide recession make it extremely difficult to forecast the future. However,
I think we must expect to see some downturn in our level of activity, if not in
the second half of the current year, then in the ensuing financial year.
However, with the robust nature of our balance sheet and given our strong cash
position, the Directors believe that the company is well placed and resilient in
an uncertain macroeconomic environment.
Investments in infrastructure to ensure the ongoing scalability and resilience
of our online software service and increased levels of marketing activities are
expected to raise costs. However with the bulk of our investment goals now
achieved the growth in our overhead has levelled out and I anticipate that our
headcount will remain relatively stable through to the end of our current
financial year.
I would like to thank the dedicated team who have worked hard during the past
six months. Like most service companies, WCN's most valuable asset is the work
force. We are fortunate to have a dedicated, experienced and hardworking team
developing our software and providing a service to our clients.
Ian Moore
Chairman, World Careers Network Plc
World Careers Network Plc
Profit and loss account for the six months to 31 January 2008
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 January 31 January 31 July
2008 2007 2007
£ £ £
Turnover 2,464,056 2,288,149 4,705,041
Administrative expenses 2,047,708 1,973,771 3,806,453
_________ _________ _________
Operating profit 416,348 314,378 898,588
Interest receivable 77,239 67,180 131,785
_________ _________ _________
Profit on ordinary activities before taxation 493,587 381,558 1,030,373
Taxation on profit on ordinary activities 148,000 105,000 312,064
_________ _________ _________
Profit on ordinary activities after taxation 345,587 276,558 718,309
_________ _________ _________
Earnings per share - Basic 4.26p 3.39p 8.85p
_________ _________ _________
- Diluted 4.25p 3.37p 8.83p
________ ________ _______
World Careers Network Plc
Balance sheet at 31 January 2008
Unaudited Unaudited Audited
31 January 31 January 31 July
2008 2007 2007
£ £ £ £ £ £
Fixed assets
Intangible assets 60,485 89,477 74,981
Tangible assets 150,510 118,902 118,226
__________ __________ __________
210,995 208,379 193,207
Current assets
Debtors 824,301 1,083,422 883,851
Cash at bank 2,948,773 2,695,433 2,831,387
_________ _________ _________
3,773,074 3,778,855 3,715,238
Creditors: amounts falling
due within one year 1,004,753 1,505,955 989,034
_________ _________ _________
Net current assets 2,768,321 2,272,900 2,726,204
__________ __________ __________
Total assets less current
liabilities 2,979,316 2,481,279 2,919,411
Provisions for liabilities and
charges 13,136 7,100 13,136
__________ __________ __________
2,966,180 2,906,275
__________ __________ __________
Capital and reserves
Called up share capital 8,113 8,121 8,115
Share premium account 1,530,125 1,528,278 1,528,528
Capital redemption reserve 60 49 55
Share scheme reserve 11,547 8,165 7,797
Profit and loss account 1,416,335 929,566 1,361,780
__________ __________ __________
Equity shareholders' funds 2,966,180 2,474,179 2,906,275
__________ __________ __________
World Careers Network Plc
Cash flow statement for the six months to 31 January 2008
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 January 31 January 31 July
2008 2007 2007
£ £ £
Reconciliation of operating profit to net cash
inflow from operating activities
Operating profit 416,348 314,378 898,588
Amortisation of goodwill 14,496 14,496 28,992
Depreciation of tangible assets 40,500 35,000 69,615
Operating costs not represented by cash flows 3,750 3,750 9,418
Decrease/(increase) in debtors 59,550 (104,849) 94,722
Increase/(decrease) in creditors (132,281) (233,745) (651,565)
__________ __________ __________
Net cash inflow from operating activities 402,363 29,030 449,770
Returns on investments and servicing of finance
Interest received 77,239 67,180 131,785
Taxation - - (306,165)
Equity Dividends paid (284,131) (284,267) (284,262)
Capital expenditure and financial investment
Purchase of tangible fixed assets (72,782) (87,140) (121,079)
Financing
Issue of ordinary share capital 1,597 - 250
Purchase of own shares (6,900) - (9,542)
__________ __________ __________
Increase/(decrease) in cash 117,386 (275,197) (139,243)
__________ __________ __________
Reconciliation of net cash flow to net funds and
analysis of net funds
Increase/(decrease) in cash in the period 117,386 (275,197) (139,243)
Opening net funds 2,831,387 2,970,630 2,970,630
__________ __________ __________
Closing net funds 2,948,773 2,695,433 2,831,387
__________ __________ __________
World Careers Network Plc
Notes to the interim financial statements
1 a) The basic earnings per share has been calculated by dividing the
profit by the weighted average number of shares in issue during the
relevant periods.
b) The diluted earnings per share takes into account the potential issue
of further shares as a result of the exercise of share options.
2 This interim report was approved by the board of directors on 18 April
2008.
The financial information contained in this interim report does not
comprise statutory accounts as defined by section 240 of the Companies
Act 1985.
The interim financial information has been prepared using accounting
polices consistent with those adopted by World Careers Network Plc in
its financial statements for the year ended 31 July 2007.
The financial information for the year ended 31 July 2007 is an
extract from the latest company accounts. These accounts received an
unqualified auditor's report and have been filed with the Registrar of
Companies.
The financial information for the periods ended 31 January 2007 and
2008 is unaudited and has not been reviewed by the company's auditors.
3 Interim Report
A copy of the Interim Report will be distributed to shareholders
shortly and will be available from World Careers Network at 5-7
Bridgeworks, 206 Durnsford Road, London SW19 8DR in the week
commencing 28 April 2008.
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
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