TIDMRTC
RNS Number : 9546T
RTC Group PLC
24 July 2015
RTC Group Plc
("RTC", "the Company" or "the Group")
Interim Results for the Six Months Ended 30 June 2015
RTC Group Plc is pleased to announce its interim results for the
six months ended 30 June 2015.
Highlights:
-- Group revenue from continuing operations GBP29.5m (2014: GBP25.3m)
-- Group profit from operations (before amortisation of intangibles) GBP507k (2014: GBP467k)
-- Cash outflow from operations GBP0.8m (2014: GBP1.4m inflow)
-- Basic earnings per share 2.36p (2014: 2.32p)
The Directors propose an interim dividend of 1.0p per share
(2014: 0.5p). The Company has a progressive dividend policy.
Subject to approval of the Directors, the interim dividend will be
paid on the 30 November 2015 to shareholders on the register on 6
November 2015.
Commenting on the results Bill Douie, Chairman, said:
"I am pleased to report that the Group has performed in line
with expectations for the half year.
Ganymede's core contract to provide contingent labour for
Network Rail for maintenance is not expected to be impacted by any
rescheduling of Network Rail Infrastructure Projects and early
volumes on the new contract are in line with expectations.
The new staff in ATA have settled in well and market conditions
are buoyant.
GSS has delivered a solid performance from new and existing
contracts and it is anticipated new business levels will increase
in the second half of the year.
We remain confident that for the full year the Group will
perform in line with current market expectations."
The interim report is available on the Company's website
www.rtcgroupplc.co.uk.
ENDS
Enquiries:
RTC Group plc
Bill Douie, Executive Chairman Tel: 01332 861
Andy Pendlebury, CEO 844
Sarah Dye, Group Finance Director
WH Ireland (Nominated Adviser and Broker) Tel: 0113 394
Katy Mitchell / Liam Gribben 6600
About RTC
RTC has three principal trading subsidiaries engaged in the
recruitment of human capital resources and the provision of managed
services.
ATA is one of the UK's leading engineering and technical
recruitment consultancies. Supplying white and blue collar
engineering and technical staff to a broad range of SME clients and
vertical markets.
Ganymede is focussed on the supply and operation of blue collar
contingent labour into safety critical markets.
Global Staffing Solutions (GSS) predominantly provides managed
service solutions for international clients.
Chairman's statement
Six months ended 30 June 2015
I am pleased to present the interim report of the Company for
the six months to 30 June 2015.
Group
Trading in the first six months of 2015 was in line with
expectations and on a like for like basis profits from operations
have increased by 8.6% (excluding amortisation of intangibles
relating to the acquisition of RIG Energy in December 2014). This
is despite the fact that during the period we incurred significant
start-up costs in preparation for the commencement of our recently
awarded five year contract with Network Rail. These costs included
enhancement of our management team and the establishment of
additional locations to support recruitment in new regions won
under the contract.
Recruitment
All our recruitment businesses have performed as expected in the
first half with Ganymede enjoying a full six month contribution
from its new Energy division and initial investment and
mobilisation for the five year Network Rail contract all but
complete.
Ganymede was awarded the contract to supply contingent labour to
Network Rail for track maintenance on 25 February 2015 and on 20
March 2015 we confirmed that the contract had been signed.
During the second half of 2014, we took the opportunity to
enhance the number of consultants in ATA. The rewards from that
investment began to come through in the second half of 2014 and
have continued into 2015, and given the continuing positive
economic environment in the UK, we are continuing with our strategy
to invest in additional headcount in what is a very competitive
market.
For GSS, the drawing to a close of NATO involvement in
Afghanistan has reduced the headcount to a planned level that is
expected to be maintained throughout 2015 and current indications
suggest this will continue throughout 2016. In addition to our core
contract in Afghanistan, we have secured a number of smaller
contracts in the region and we continue to pursue other
opportunities for our 'Ethical Managed Service Solution'
overseas.
Business levels for the Derby Conference centre (DCC) were
consistent with the equivalent period in 2014.
Change of emphasis for the DCC
Over the next twelve months, we expect to engage in extensive
improvement and re-organisation of the premises on the Derby site
to accommodate the Company's current and planned growth and to
facilitate a move away from party and wedding events in favour of
more business related customer activities and an increase in
providing flexible office accommodation for local businesses.
Management and Board
During the period, Non-Executive Director, Tim Jackson, left the
Company to pursue other projects in the charitable sector. In his
time with us Tim played an important role in the strategic
development of the Group. I and the Board thank Tim for his
contribution and wish him well for the future. We have initiated
the search for a replacement.
Long-term strategic reward programme
During the period the Company bought back 675,581 Ordinary
Shares to enable it to implement its long term strategic reward
programme to incentivise key employees as the Group enters the next
phase of its exciting growth plan. The shares are being held in an
Employee Benefit Trust (EBT).
Dividends
The Directors propose an interim dividend of 1.0p per share
(2014: 0.5p). The Company has a progressive dividend policy.
Subject to approval of the Directors, the interim dividend will be
paid on the 30 November 2015 to shareholders on the register on 6
November 2015.
Outlook
Ganymede's core contract to provide contingent labour for
Network Rail for maintenance is not expected to be impacted by any
rescheduling of Network Rail Infrastructure Projects and early
volumes on the new contract are in line with expectations.
The new staff in ATA have settled in well and market conditions
are buoyant.
GSS has delivered a solid performance from new and existing
contracts and it is anticipated new business levels will increase
in the second half of the year.
We remain confident that for the full year the Group will
perform in line with market expectations.
W J C Douie 24 July 2015
Chairman
Finance Director's statement
Six months ended 30 June 2015
Revenue and gross margin
In the period ended 30 June 2015, Group revenue increased to
GBP29.5m (2014:GBP25.3m) with all Group companies performing to
expectations. Overall gross margin increased slightly to 20.5%
(2014: 20.0%).
Profit from operations
Overall group profit from operations was GBP441k (2014:
GBP467k). Like for like profit from operations was GBP507k, an
increase of 8.6% on 2014 (excluding the amortisation of intangibles
relating to the acquisition of RIG Energy Limited in 2014).
ATA
The headcount investments made in ATA during the latter part of
2014 coupled with the positive UK economy have delivered
encouraging results. Profit from operations is up 46% at GBP734k
(2014: GBP502k). Gross margin is also showing improvement at 23.9%
(2014: 22%).
Ganymede
A significant up-front investment programme was required for the
five year contract to supply Network Rail with contingent labour
for maintenance. This investment programme, together with the
contract mobilisation has largely been completed. As a result the
impact of the contract on the first half results is not significant
and the increase in profit from operations to GBP639k (2014:
GBP510k) predominantly reflects the inclusion of Ganymede Energy,
coupled with consistent levels of activity from other clients.
Despite the investment required for the Network Rail contract,
gross margin has been maintained near 2014 levels at 16% (2014:
16.5%).
GSS
Profit from operations of GBP275k (2014: GBP463k) reflects the
planned reduction of contractor numbers in Afghanistan following
the drawdown of NATO involvement. Continuing efficiencies in
managing that core contract are reflected in an improved gross
margin of 16.4% (2013: 15.7%).
Taxation
The total tax charge for the period is estimated at GBP75k
(2014: GBP92k).
Earnings per share
The basic earnings per share figure is 2.36p (2014: 2.32p). The
diluted earnings per share 2.34p (2014: 2.14p). Profit before tax
is GBP398k (2014: GBP405k).
Dividends
During the period the company paid an interim dividend of
GBP67,558 (2014: GBPNil) to its equity shareholders. This
represents a payment of 1.0p (2014: nil) per share.
The Directors propose an interim dividend of 1.0p per share
(2014: 0.5p). The Company has a progressive dividend policy.
Subject to approval of the Directors, the interim dividend will be
paid on the 30 November 2015 to shareholders on the register on 6
November 2015.
Purchase of own shares and formation of EBT
During the period the Company purchased 675,581 Ordinary Shares
to implement a long term strategic reward programme to incentivise
key employees as the Group enters the next phase of its exciting
growth plan. The Company established an EBT to hold the shares. The
EBT is considered an extension of the Company's activities and
therefore assets (except investments in the Company's shares) and
liabilities which are the subject of the trust are included in the
consolidated accounts on a line-by-line basis. The cost of shares
held by the EBT is presented as a separate debit reserve within
equity named 'Own Shares Held'.
Statement of financial position
The Group statement of financial position has further
strengthened compared to the same point last year with net working
capital increasing to GBP6.6m (2014: GBP1.6m) due to the increased
activity on the Network Rail contract and increased revenue in
ATA.
The ratio of current assets to current liabilities dipped
slightly to 1.1 (2014: 1.2) and the gearing ratio rose to 2.1 times
(2014: 1.2 times) largely reflecting the timing of GBP2.2m of
customer receipts relating to three key clients that were overdue
at the end of June but received in July. Customer receipts in the
first two weeks of July were GBP1.6m higher than the two weeks
prior to that date.
Interest cover has increased to 10.3 times (2014: 7.5
times).
Cash flow
There was a cash outflow from operations of GBP0.8m (2014:
GBP1.4m inflow). The outflow is predominantly a result of the
timing of customer receipts noted above, the up-front investment
required to mobilise the new network rail contract and the purchase
of own shares.
Financing
The Group's current bank facilities include an overdraft of
GBP50,000 and a confidential invoice discounting facility of up to
GBP7.0m with HSBC. The Group is currently operating well within its
facility cap and has negotiated a 0.25% reduction on its discount
margin.
The Board closely monitors the level of facility utilisation and
availability to ensure that there is sufficient headroom to manage
current operations and support the growth of the business.
The Group continues to be focussed on cash generation and
building a robust statement of financial position to support the
growth of the business.
Sarah Dye 24 July 2015
Group Finance Director
Consolidated statement of comprehensive income
Six months ended 30 June 2015
Six month Six month Year ended
period ended period ended 31 December
30 June 30 June 2014 2014
2015
Unaudited Unaudited Audited
Notes GBP'000 GBP'000 GBP'000
-------------------------- ------- ---------------------- ---------------------- --------------
Revenue 2 29,475 25,268 50,932
Cost of sales 2 (23,442) (20,225) (40,756)
-------------------------- ------- ---------------------- ---------------------- --------------
Gross profit 2 6,033 5,043 10,176
Administrative expenses (5,592) (4,576) (9,067)
-------------------------- ------- ---------------------- ---------------------- --------------
Profit from operations 441 467 1,109
Financing expense (43) (62) (91)
-------------------------- ------- ---------------------- ---------------------- --------------
Profit before tax 398 405 1,018
Tax expense 3 (75) (92) (218)
-------------------------- ------- ---------------------- ---------------------- --------------
Net profit and total
comprehensive income
for the year 323 313 800
-------------------------- ------- ---------------------- ---------------------- --------------
Earnings per ordinary
share 7
Basic 2.36p 2.32p 5.92p
-------------------------- ------- ---------------------- ---------------------- --------------
Diluted 2.34p 2.14p 5.42p
-------------------------- ------- ---------------------- ---------------------- --------------
Consolidated statement of changes in equity
Six months ended 30 June 2015
Six months ended 30 June 2015
Share Share Own Capital Share Profit Total
capital premium shares redemption based and equity
held reserve payment loss
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January
2015 (audited) 135 - - 50 26 2,230 2,441
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Profit and
total comprehensive
income for
the period - - - - - 323 323
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Dividends - - - - - (136) (136)
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Own shares
purchased in
EBT - - (472) - - - (472)
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Share options
exercised 8 66 - - - - 74
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Share based
payment reserve - - - - - - -
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
At 30 June
2015 (unaudited) 143 66 (472) 50 26 2,417 2,230
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Six months ended 30 June 2014
Share Share Capital Share Accumulated Total
capital premium redemption based losses equity
reserve payment
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2014
(audited) 135 2,468 50 18 (970) 1,701
---------------------- ---------- ---------- ------------- ---------- ------------- ---------
Profit and total
comprehensive
income for the
period - - - - 313 313
---------------------- ---------- ---------- ------------- ---------- ------------- ---------
Share based payment
reserve - - - 8 - 8
---------------------- ---------- ---------- ------------- ---------- ------------- ---------
At 30 June 2014
(unaudited) 135 2,468 50 26 (657) 2,022
---------------------- ---------- ---------- ------------- ---------- ------------- ---------
Consolidated statement of changes in equity
Six months ended 30 June 2015
Year ended 31 December 2014
Share Share Capital Share Profit and Total
capital premium redemption based loss equity
reserve payment
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2014
(audited) 135 2,468 50 18 (970) 1,701
---------------------- ---------- ---------- ------------- ---------- ------------ ---------
Profit and total
comprehensive
income for the
year - - - - 800 800
---------------------- ---------- ---------- ------------- ---------- ------------ ---------
Dividends - - - - (68) (68)
---------------------- ---------- ---------- ------------- ---------- ------------ ---------
Share premium
cancellation - (2,468) - - 2,468 -
---------------------- ---------- ---------- ------------- ---------- ------------ ---------
Share based payment
reserve - - - 8 - 18
---------------------- ---------- ---------- ------------- ---------- ------------ ---------
At 31 December
2014 (audited) 135 - 50 26 2,230 2,441
---------------------- ---------- ---------- ------------- ---------- ------------ ---------
The share based payment reserve comprises the cumulative share
option charge under IFRS 2 less the value of any share options that
have been exercised or have lapsed.
Consolidated statement of financial position
As at 30 June 2015
Six month Six month Year ended
period period 31 December
ended 30 ended 30 2014 Audited
June 2015 June 2014
Unaudited Unaudited
Note GBP'000 GBP'000 GBP'000
--------------------------------- ------ ------------ ------------ ---------------
Assets
Non-current
Goodwill 132 - 132
Other intangible assets 596 - 662
Property, plant and equipment 459 389 466
Deferred tax asset 4 40 70 62
--------------------------------- ------ ------------ ------------ ---------------
1,227 459 1,322
Current
Cash and cash equivalents 158 69 41
Inventories 14 12 19
Trade and other receivables 11,212 8,193 9,267
--------------------------------- ------ ------------ ------------ ---------------
Total current assets 11,384 8,274 9,327
Total assets 12,611 8,733 10,649
--------------------------------- ------ ------------ ------------ ---------------
Liabilities
Current
Trade and other payables (5,263) (4,141) (4,713)
Corporation tax (251) (147) (186)
Current borrowings (4,742) (2,406) (3,166)
--------------------------------- ------ ------------ ------------ ---------------
Total current liabilities (10,256) (6,694) (8,065)
Non-current liabilities
Creditors falling due after one year
- finance leases (5) - (132)
Deferred tax liabilities 5 (120) (17) (11)
--------------------------------- ------ ------------ ------------ ---------------
Net assets 2,230 2,022 2,441
--------------------------------- ------ ------------ ------------ ---------------
Equity
Share capital 143 135 135
Share premium 66 2,468 -
Own shares held (472) - -
Capital redemption reserve 50 50 50
Share based payment reserve 26 26 26
Profit and loss account 2,417 (970) 2,230
Total equity 2,230 1,709 2,441
--------------------------------- ------ ------------ ------------ ---------------
Consolidated statement of cash flows
Six months ended 30 June 2015
Six month Six month Year ended
period ended period ended 31 December
30 June 30 June 2014 Audited
2015 Unaudited 2014 Unaudited
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Profit from operations 441 467 1,109
Adjustments for:
Depreciation, loss on disposal
and amortisation 150 107 217
Employee equity settled share
options - 8 8
Change in inventories 4 3 (4)
Change in trade and other receivables (1,944) 934 734
Change in trade and other payables 550 (89) 207
----------------------------------------- ----------------- ----------------- ---------------
Cash (outflow)/inflow from operations (799) 1,430 2,271
Income tax paid - - (80)
Net cash (outflow)/inflow from
operating activities (799) 1,430 2,191
----------------------------------------- ----------------- ----------------- ---------------
Cash flows from investing activities
Purchases of property, plant and
equipment (77) (65) (245)
Acquisition of business - cash
paid - - (875)
Debt acquired on acquisition - - (391)
----------------------------------------- ----------------- ----------------- ---------------
Net cash used in investing activities (77) (65) (1,511)
Cash flows from financing activities
Interest payments (43) (62) (91)
Lease purchase payments (6) (5) (11)
Dividends paid (136) - (68)
Proceeds from exercise of share
options 74 - -
Purchase of own shares (472) - -
----------------------------------------- ----------------- ----------------- ---------------
Net cash outflow from financing
activities (583) (67) (170)
----------------------------------------- ----------------- ----------------- ---------------
Net (decrease)/increase in cash
and cash equivalents from operations (1,459) 1,298 510
----------------------------------------- ----------------- ----------------- ---------------
Total net (decrease) / increase
in cash and cash equivalents (1,459) 1,298 (360)
----------------------------------------- ----------------- ----------------- ---------------
Cash and cash equivalents at beginning
of period (3,125) (3,635) (3,635)
----------------------------------------- ----------------- ----------------- ---------------
Cash and cash equivalents at end
of period (4,584) (2,337) (3,125)
----------------------------------------- ----------------- ----------------- ---------------
Notes to the interim statement
Six months ended 30 June 2015
1. Accounting policies
a) General information
RTC Group PLC is incorporated and domiciled in England and its
shares are publicly traded on AIM. The registered office address is
The Derby Conference Centre, London Road, Derby, DE24 8UX. The
company's registered number is 02558971. The principal activities
of the Group are described in note 2.
The Board consider the principal risks and uncertainties
relating to the Group for the next six months to be the same as
detailed in our last Annual Report and Accounts to 31 December
2014. The Group's financial risk management objectives and policies
are consistent with those disclosed in the consolidated financial
statements as at and for the year ended 31 December 2014.
b) Basis of preparation
The unaudited interim group financial information of RTC Group
PLC is for the six months ended 30 June 2015 and does not comprise
statutory accounts within the meaning of S.435 of the Companies Act
2006. The unaudited interim group financial statements have been
prepared in accordance with the AIM rules and have not been
reviewed by the Group's auditors. This report should be read in
conjunction with the Group's Annual Report and Accounts for the
year ended 31 December 2014, which have been prepared in accordance
with IFRS's as adopted by the European Union.
These unaudited interim group financial statements were approved
for issue on 24 July 2015. No significant events, other than those
disclosed in this document, have occurred between 30 June 2015 and
this date.
c) Comparatives
The comparative figures for the year ended 31 December 2014 do
not constitute statutory accounts within the meaning of S.435 of
the Companies Act 2006, but they have been derived from the audited
financial statements for that year, which have been filed with the
Registrar of Companies. The report of the auditor was unqualified
and did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006 nor a reference to any matters which the auditor
drew attention by way of emphasis of matter without qualifying
their report.
d) Accounting policies
Other than the set up of the Employee Benefit Trust (EBT)
explained below, there have been no significant changes in the
basis upon which estimates have been determined, compared to those
applied at 31 December 2014 and no change in estimate has had a
material effect on the current period.
This interim announcement has been prepared in accordance with
the recognition and measurement requirements of International
Financial Reporting Standards issued by the International
Accounting Standards Board, as adopted by the European Union as
effective for periods beginning on or after 1 January 2015.
EBT
During the year the company set up an EBT. The EBT is considered
an extension of the company's activities and therefore assets
(except investments in the company's shares) and liabilities which
are the subject of the trust are included in the consolidated
accounts on a line-by-line basis. The cost of shares held by the
EBT is presented as a separate debit reserve within equity entitled
'own shares held'.
2. Segment analysis
The Group is a provider of recruitment services and conferencing
services that is based at the Derby Conference Centre (DCC). The
recruitment business comprises three distinct business units - ATA
predominantly servicing the UK SME engineering market and a number
of vertical markets; GSS servicing the international market and
Ganymede supplying labour into safety critical environments, mainly
rail.
Segment information is provided below in respect of ATA, GSS,
Ganymede and the DCC which, as well as being the head office for
the Group, provides hotel and conferencing facilities.
The Group manages the trading performance of each segment by
monitoring operating contribution and centrally manages working
capital, borrowings and equity.
Revenues are generated from permanent and temporary recruitment
in the Recruitment division. Revenue is analysed by origin of
customer/point of invoicing and as such all recruitment division
revenues are supplied in the United Kingdom. Hotel and conferencing
services are wholly provided in the UK at the DCC.
All revenues have been invoiced to external customers. During
2015, one customer in GSS contributed 10% or more of that segment's
revenues being GBP5.0m (2014: GBP6.9m) and one customer in Ganymede
also contributed 10% or more of that segment's revenues being
GBP5.4m (2014: GBP3.4m).
The segment information for the reporting period is as
follows:
Six months ended 30 June 2015:
Recruitment Conferencing Total
ATA GSS Ganymede DCC Group
Unaudited Unaudited Unaudited Unaudited Unaudited
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------- ----------- ------------- ----------- -------------- -----------
External sales
revenue 12,625 5,079 10,982 789 29,475
Cost of sales (9,606) (4,244) (9,223) (369) (23,442)
------------------- ----------- ------------- ----------- -------------- -----------
Gross profit 3,019 835 1,759 420 6,033
Administrative
expenses (2,258) (560) (1,116) (412) (4,346)
Depreciation (27) - (4) (24) (55)
-------------------
Segment profit
from operations 734 275 639 (16) 1,632
Amortisation
of intangibles (66)
Group costs (1,125)
-----------
Profit from operations per statement of
comprehensive income 441
-----------
Notes to the interim statement
Six months ended 30 June 2015
Six months ended 30 June 2014:
<--------- Recruitment --------> Conferencing Total
ATA GSS Ganymede DCC Group
Unaudited Unaudited Unaudited Unaudited Unaudited
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------- ------------ ------------- ----------- -------------- -----------
External sales
revenue 11,139 7,040 6,291 798 25,268
Cost of sales (8,683) (5,937) (5,252) (353) (20,225)
------------------- ------------ ------------- ----------- -------------- -----------
Gross profit 2,456 1,103 1,039 445 5,043
Administrative
expenses (1,928) (639) (524) (416) (3,507)
Depreciation (26) (1) (5) (39) (71)
------------------- ------------ ------------- ----------- -------------- -----------
Segment profit
from operations 502 463 510 (10) 1,465
Group costs (998)
-----------
Profit from operations per statement of
comprehensive income 467
-----------
Year ended 31 December 2014:
<-------- Recruitment --------> Conferencing
ATA GSS Ganymede DCC Total Group
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------- ----------- ----------- ----------- -------------- -------------
External sales
revenue 23,867 12,772 12,534 1,759 50,932
Cost of sales (18,703) (10,815) (10,446) (792) (40,756)
------------------- ----------- ----------- ----------- -------------- -------------
Segment gross
profit 5,164 1,957 2,088 967 10,176
Administrative
expenses (3,858) (1,064) (1,130) (802) (6,854)
Depreciation (128) - (9) (69) (206)
Segment profit
from operations 1,178 893 949 96 3,116
Group costs (2,007)
-------------
Profit from operations per statement of
comprehensive income 1,109
-------------
All assets and liabilities are held in the United Kingdom.
3. Income tax
Six month Six month Year ended
period period 31 December
ended 30 ended 30 2014 Audited
June 2015 June 2014
Continuing operations Unaudited Unaudited
GBP'000 GBP'000 GBP'000
------------------------------------------- ------------ ------------ ---------------
Analysis of tax:-
Current tax
UK corporation tax 81 52 185
Adjustment in respect of previous period (16) - (15)
------------------------------------------- ------------ ------------ ---------------
65 52 170
Deferred tax
Origination and reversal of temporary
differences 22 40 48
Intangible asset permanent difference (12)
Tax 75 92 218
------------------------------------------- ------------ ------------ ---------------
Factors affecting the tax expense
The tax assessed for the six month period ended 30 June 2015 is
less than would be expected by multiplying profit on ordinary
activities by the standard rate of corporation tax in the UK of
20.5% (2014: 21.5%). The differences are explained below:
Six month Six month Year ended
period period 31 December
ended 30 ended 30 2014 Audited
June 2015 June 2014
Unaudited Unaudited
Factors affecting tax expense GBP'000 GBP'000 GBP'000
------------------------------------------- ------------ ------------ ---------------
Result for the year before tax 398 405 1,018
------------------------------------------- ------------ ------------ ---------------
Profit multiplied by standard rate of
tax of 20.5% (2014: 21.5%) 82 87 214
Non-deductible expenses 21 5 23
Intangible asset permanent difference (12)
Utilisation of losses - - (29)
Adjustment in respect of previous period (16) - 10
------------------------------------------- ------------ ------------ ---------------
Tax charge for the year 75 92 218
------------------------------------------- ------------ ------------ ---------------
4. Deferred tax asset
Six month Six month Year ended
period period 31 December
ended 30 ended 30 2014 Audited
June 2015 June 2014
Unaudited Unaudited
GBP'000 GBP'000 GBP'000
At 1 January 62 110 110
Charge to the profit or loss for the
year (22) (40) (48)
----------------------------------------------- ------------ ------------ ---------------
At 30 June 40 70 62
----------------------------------------------- ------------ ------------ ---------------
The deferred tax asset is analysed as:
Depreciation in excess of capital allowances 40 64 62
Tax losses carried forward - 6 -
----------------------------------------------- ------------ ------------ ---------------
40 70 62
----------------------------------------------- ------------ ------------ ---------------
Unrecognised
Tax losses carried forward 83 83 83
----------------------------------------------- ------------ ------------ ---------------
5. Deferred tax liability
Six month Six month Year ended
period period 31 December
ended 30 ended 30 2014 Audited
June 2015 June 2014
Unaudited Unaudited
GBP'000 GBP'000 GBP'000
At 1 January 132 - -
Charge to the profit or loss for the (12) - -
year
Addition in year - - 132
----------------------------------------- ------------ ------------ ---------------
At 30 June 120 - 132
----------------------------------------- ------------ ------------ ---------------
The deferred tax liability is analysed
as:
Liability arising on intangible assets 120 - 132
120 - 132
----------------------------------------- ------------ ------------ ---------------
6. Dividends
During the period the company paid an interim dividend of
GBP67,558 (2014: GBPnil) to its equity shareholders. This
represents a payment of 1.0p (2014: nil) per share.
The Directors propose an interim dividend of 1.0p per share
(2014: 0.5p). Subject to approval of the Directors, the interim
dividend will be paid on 30 November 2015 to shareholders on the
register on 6 November.
7. Earnings per share
The calculation of basic earnings per share is based on the
earnings attributable to ordinary shareholders divided by the
weighted average number of shares in issue during the year.
The calculation of diluted earnings per share is based on the
basic earnings per share adjusted to allow for all dilutive
potential ordinary shares.
Basic Diluted
Six month Six month Total group Six month Six month Total group
period period year ended period period year ended
ended ended 31 December ended ended 31 December
30 June 30 June 2014 30 June 30 June 2014
2015 2014 2015 2014
Unaudited Unaudited Audited Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Earnings GBP'000 323 313 800 323 313 800
-------------------- ------------ ------------ -------------- ------------ ------------ --------------
Weighted average
number of shares 13,663,126 13,511,626 13,511,626 13,820,904 14,633,961 14,747,458
-------------------- ------------ ------------ -------------- ------------ ------------ --------------
Earnings per
share (pence) 2.36p 2.32p 5.92p 2.34p 2.14p 5.42p
-------------------- ------------ ------------ -------------- ------------ ------------ --------------
A total of 675,581 own shares held in the EBT have been excluded
from the weighted average number of shares above.
8. Analysis of changes in net debt
At Cash Other non- At
Flows cash movements
1 January 30 June
2015
2015
(Audited) (Unaudited)
GBP'000 GBP'000 GBP'000 GBP'000
---------------------------- ------------ --------- ----------------- --------------
Overdraft and invoice
discounting arrangements (3,166) (1,576) - (4,742)
Cash 41 117 - 158
---------------------------- ------------ --------- ----------------- --------------
Net debt (3,125) (1,459) - (4,584)
---------------------------- ------------ --------- ----------------- --------------
The Group has a working capital facility with HSBC PLC that
allows it to borrow up to 90% of the invoiced trade debtors of ATA,
GSS and Ganymede up to GBP7.0m and an overdraft facility of
GBP50,000.
9. Contingent liabilities
Included in current borrowings are bank overdrafts and an
invoice discounting facility. During the year the Group has used
its bank overdraft and invoice discounting facility, which is
secured by a cross guarantee and debenture over the Group
companies. There have been no defaults or breaches of interest
payable during the current or prior period.
10. Related party transactions
RTC Group Plc is the parent company of the Group that includes
the following trading entities that have been consolidated:
ATA Recruitment Limited
The Derby Conference Centre Limited
Ganymede Solutions Limited
ATA Global Staffing Solutions Limited
The Group, as permitted by the scope paragraph of IAS 24,
Related Party Disclosures, has not disclosed transactions with
other group companies that are eliminated on consolidation in the
Group financial statements.
Transactions with related parties not consolidated
The accounts of Accurate Recruitment and Training Services PBT
Limited (ATA India), a 90% owned subsidiary of the Group, have not
been consolidated as the Directors consider the amounts involved
are not material.
During the period ended 30 June 2015 ATA India invoiced ATA
Global Staffing Solutions Limited GBP26,544 (2014: GBP30,637) in
respect of recruitment support services provided.
At the 30 June 2015 ATA Global Staffing Solutions Limited owed
ATA India GBP2,461 (2014: GBP4,131) in respect of recruitment
support services provided.
At 30 June 2015 ATA Recruitment Limited was owed GBP13,205
(2014: GBP13,205) by ATA India.
At 30 June 2015 RTC Group PLC was owed GBP8,819 (2014: GBP8,819)
by ATA India.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PGUGUMUPAGQW
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