TIDMWOR
RNS Number : 1581R
World Careers Network PLC
27 April 2009
?
World Careers Network Plc
Interim statement for the six months to 31 January 2009
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 2009.
Financial Review
Our turnover was marginally down at GBP2.43 million compared with GBP2.46
million in the same period last year but with an increase in our overheads of
just under GBP90,000 our operating profit shows a reduction of GBP112,000 which
is exacerbated by a reduction in our investment income due to the fall in
interest rates. As a result our profits before tax are down by nearly GBP130,000
compared with last year.
During the first half of the year we bought in and cancelled 43,718 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
The current economic climate has impacted both the discretionary spend of
existing clients and implementation revenues. While we appear to continue to win
a good share of any available business, this has not been sufficient to increase
overall revenues.
Costs for the first half of the year were broadly in line with those of the
second half last year, as we maintained the ongoing health and capabilities of
the business and continued our commitment to ongoing product development and the
delivery of high levels of service to our clients. At the same time we are
developing new processes and investing in new technology to enable more
efficient delivery of our products.
Outlook
I warned in my statement accompanying our 2008 annual accounts that we would
inevitably see a reduction in our profits in the current financial year. That
has regrettably come true with a fall in our interim profits of just over 25
percent.
We are currently seeing a continuation of these difficult markets as we enter
into the second half of our financial year and as a result of the fall in
interest rates our interest receivable is expected to be substantially down on
both the first half of the current year and the same period last year. However,
our balance sheet remains strong with cash balances totalling GBP3.37 million at
31 January 2009
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 our
employees and they have grown into a skilled workforce implementing systems for
our new clients, developing WCN's strong e-recruitment software, enhancing the
WCN brand and creating new added-value services for our clients.
Ian Moore
Chairman, World Careers Network Plc
World Careers Network Plc
Profit and loss account for the six months to 31 January 2009
+-------------------------------------------------------------+-----------------+-----------------+----------------+
| | Unaudited | Unaudited | Audited |
| | 6 months to | 6 months to | Year to |
| | 31 January | 31 January | 31 July |
| | 2009 | 2008 | 2008 |
| | GBP | GBP | GBP |
+-------------------------------------------------------------+-----------------+-----------------+----------------+
| | | | |
+-------------------------------------------------------------+-----------------+-----------------+----------------+
| Turnover | 2,438,122 | 2,464,056 | 5,156,631 |
+-------------------------------------------------------------+-----------------+-----------------+----------------+
| Administrative expenses | 2,133,154 | 2,047,708 | 4,154,827 |
+-------------------------------------------------------------+-----------------+-----------------+----------------+
| | ________ | ________ | ________ |
+-------------------------------------------------------------+-----------------+-----------------+----------------+
| | | | |
| Operating profit | 304,968 | 416,348 | 1,001,804 |
+-------------------------------------------------------------+-----------------+-----------------+----------------+
| Interest receivable | 59,172 | 77,239 | 141,823 |
+-------------------------------------------------------------+-----------------+-----------------+----------------+
| | ________ | ________ | ________ |
+-------------------------------------------------------------+-----------------+-----------------+----------------+
| | | | |
| Profit on ordinary activities before taxation | 364,140 | 493,587 | 1,143,627 |
+-------------------------------------------------------------+-----------------+-----------------+----------------+
| Taxation on profit on ordinary activities | 109,000 | 148,000 | 343,033 |
+-------------------------------------------------------------+-----------------+-----------------+----------------+
| | ________ | ________ | ________ |
+-------------------------------------------------------------+-----------------+-----------------+----------------+
| | | | |
| Profit on ordinary activities after taxation | 255,140 | 345,587 | 800,594 |
+-------------------------------------------------------------+-----------------+-----------------+----------------+
| | ________ | ________ | ________ |
+-------------------------------------------------------------+-----------------+-----------------+----------------+
| | | | |
| Earnings per share - Basic | 3.15p | 4.26p | 9.87p |
+-------------------------------------------------------------+-----------------+-----------------+----------------+
| | ________ | ________ | ________ |
+-------------------------------------------------------------+-----------------+-----------------+----------------+
| | | | |
| - Diluted | 3.14p | 4.25p | 9.82p |
+-------------------------------------------------------------+-----------------+-----------------+----------------+
| | ________ | ________ | _______ |
+-------------------------------------------------------------+-----------------+-----------------+----------------+
World Careers Network Plc
Balance sheet at 31 January 2009
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| | Unaudited | Unaudited | Audited |
| | 31 January | 31 January | 31 July |
| | 2009 | 2008 | 2008 |
+-------------------------------+-------------------------+---------------------------+-----------------------------+
| | GBP | GBP | GBP | GBP | GBP | GBP |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| Fixed assets | | | | | | |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| Intangible assets | | 31,493 | | 60,485 | | 45,989 |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| Tangible assets | | 141,453 | | 150,510 | | 178,785 |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| | | ________ | | ________ | | ________ |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| | | | | | | |
| | | 172,946 | | 210,995 | | 224,774 |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| | | | | | | |
| Current assets | | | | | | |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| Debtors | 949,305 | | 824,301 | | 1,041,818 | |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| Cash at bank | 3,372,671 | | 2,948,773 | | 3,332,204 | |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| | ________ | | ________ | | ________ | |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| | | | | | | |
| | 4,321,976 | | 3,773,074 | | 4,374,022 | |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| Creditors: amounts falling | | | | | | |
| due within one year | 1,152,623 | | 1,004,753 | | 1,188,931 | |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| | ________ | | ________ | | ________ | |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| | | | | | | |
| Net current assets | | 3,169,353 | | 2,768,321 | | 3,185,091 |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| | | ________ | | ________ | | ________ |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| Total assets less current | | | | | | |
| liabilities | | 3,342,299 | | 2,979,316 | | 3,409,865 |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| | | | | | | |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| Provisions for liabilities | | | | | | |
| and charges | | 1,136 | | 13,136 | | 1,136 |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| | | ________ | | ________ | | ________ |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| | | | | 2,966,180 | | |
| | | 3,341,163 | | | | 3,408,729 |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| | | ________ | | ________ | | ________ |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| | | | | | | |
| Capital and reserves | | | | | | |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| Called up share capital | | 8,060 | | 8,113 | | 8,101 |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| Share premium account | | 1,531,473 | | 1,530,125 | | 1,530,125 |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| Capital redemption reserve | | 116 | | 60 | | 72 |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| Share scheme reserve | | 16,199 | | 11,547 | | 12,449 |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| Profit and loss account | | 1,785,315 | | 1,416,335 | | 1,857,982 |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| | | ________ | | ________ | | ________ |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| | | | | | | |
| Equity shareholders' funds | | 3,341,163 | | 2,966,180 | | 3,408,729 |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| | | ________ | | ________ | | ________ |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
| | | | | | | |
+-------------------------------+------------+------------+------------+--------------+--------------+--------------+
World Careers Network Plc
Cash flow statement for the six months to 31 January 2009
+-----------------------------------------------------+----------------------+------------------+------------------+
| | Unaudited | Unaudited | Audited |
| | 6 months to | 6 months to | Year to |
| | 31 January | 31 January | 31 July |
| | 2009 | 2008 | 2008 |
| | GBP | GBP | GBP |
+-----------------------------------------------------+----------------------+------------------+------------------+
| Reconciliation of operating profit to net cash | | | |
| inflow from operating activities | | | |
+-----------------------------------------------------+----------------------+------------------+------------------+
| Operating profit | 304,968 | 416,348 | 1,001,804 |
+-----------------------------------------------------+----------------------+------------------+------------------+
| Amortisation of goodwill | 14,496 | 14,496 | 28,992 |
+-----------------------------------------------------+----------------------+------------------+------------------+
| Depreciation of tangible assets | 48,846 | 40,500 | 83,936 |
+-----------------------------------------------------+----------------------+------------------+------------------+
| Operating costs not represented by cash flows | 3,750 | 3,750 | (7,348) |
+-----------------------------------------------------+----------------------+------------------+------------------+
| Decrease/(increase) in debtors | 92,513 | 59,550 | (157,967) |
+-----------------------------------------------------+----------------------+------------------+------------------+
| Increase/(decrease) in creditors | (145,308) | (132,281) | 121,829 |
+-----------------------------------------------------+----------------------+------------------+------------------+
| | ________ | ________ | ________ |
+-----------------------------------------------------+----------------------+------------------+------------------+
| | | | |
+-----------------------------------------------------+----------------------+------------------+------------------+
| Net cash inflow from operating activities | 319,265 | 402,363 | 1,071,246 |
+-----------------------------------------------------+----------------------+------------------+------------------+
| | | | |
+-----------------------------------------------------+----------------------+------------------+------------------+
| Returns on investments and servicing of finance | | | |
+-----------------------------------------------------+----------------------+------------------+------------------+
| Interest received | 59,172 | 77,239 | 141,823 |
+-----------------------------------------------------+----------------------+------------------+------------------+
| | | | |
+-----------------------------------------------------+----------------------+------------------+------------------+
| Taxation | - | - | (264,965) |
+-----------------------------------------------------+----------------------+------------------+------------------+
| | | | |
+-----------------------------------------------------+----------------------+------------------+------------------+
| Equity Dividends paid | (283,291) | (284,131) | (284,042) |
+-----------------------------------------------------+----------------------+------------------+------------------+
| | | | |
+-----------------------------------------------------+----------------------+------------------+------------------+
| Capital expenditure and financial investment | | | |
+-----------------------------------------------------+----------------------+------------------+------------------+
| Purchase of tangible fixed assets | (11,511) | (72,782) | (144,495) |
+-----------------------------------------------------+----------------------+------------------+------------------+
| | | | |
+-----------------------------------------------------+----------------------+------------------+------------------+
| Financing | | | |
+-----------------------------------------------------+----------------------+------------------+------------------+
| Issue of ordinary share capital | 1,350 | 1,597 | 1,600 |
+-----------------------------------------------------+----------------------+------------------+------------------+
| Purchase of own shares | (44,518) | (6,900) | (20,350) |
+-----------------------------------------------------+----------------------+------------------+------------------+
| | ________ | ________ | ________ |
+-----------------------------------------------------+----------------------+------------------+------------------+
| | | | |
+-----------------------------------------------------+----------------------+------------------+------------------+
| Increase/(decrease) in cash | 40,467 | 117,386 | 500,817 |
+-----------------------------------------------------+----------------------+------------------+------------------+
| | ________ | ________ | ________ |
+-----------------------------------------------------+----------------------+------------------+------------------+
| | | | |
+-----------------------------------------------------+----------------------+------------------+------------------+
| Reconciliation of net cash flow to net funds and | | | |
| analysis of net funds | | | |
+-----------------------------------------------------+----------------------+------------------+------------------+
| Increase/(decrease) in cash in the period | 40,467 | 117,386 | 500,817 |
+-----------------------------------------------------+----------------------+------------------+------------------+
| Opening net funds | 3,332,204 | 2,831,387 | 2,831,387 |
+-----------------------------------------------------+----------------------+------------------+------------------+
| | ________ | ________ | ________ |
+-----------------------------------------------------+----------------------+------------------+------------------+
| | | | |
+-----------------------------------------------------+----------------------+------------------+------------------+
| Closing net funds | 3,372,671 | 2,948,773 | 3,332,204 |
+-----------------------------------------------------+----------------------+------------------+------------------+
| | ________ | ________ | ________ |
+-----------------------------------------------------+----------------------+------------------+------------------+
| | | | |
+-----------------------------------------------------+----------------------+------------------+------------------+
| | | | |
+-----------------------------------------------------+----------------------+------------------+------------------+
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
+-----------------------------------------------------+----------------------+------------------+------------------+
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 24 April 2009. |
+---------+--------------------------------------------------------------------------------------------------------+
| | |
+---------+--------------------------------------------------------------------------------------------------------+
| | 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 2008. |
+---------+--------------------------------------------------------------------------------------------------------+
| | |
+---------+--------------------------------------------------------------------------------------------------------+
| | The financial information for the year ended 31 July 2008 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 2008 and 2009 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 27 April 2009 and will be made available on the Company's website at www.wcn.co.uk. |
+---------+--------------------------------------------------------------------------------------------------------+
| |
+------------------------------------------------------------------------------------------------------------------+
| Enquiries |
+------------------------------------------------------------------------------------------------------------------+
| |
+------------------------------------------------------------------------------------------------------------------+
| World Careers Network Plc |
| Charles Hipps, Managing Director, |
| Telephone: +44 (0)20 8946 9876 Email: chipps@wcn.co.uk. |
+------------------------------------------------------------------------------------------------------------------+
| |
+------------------------------------------------------------------------------------------------------------------+
| Charles Stanley Securities |
| Nominated advisor |
| 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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