REG-Matchtech Group PLC Interim Results - Part 3
Released: 17/03/2008
RNS Number:1971Q
Matchtech Group PLC
Part 3 : For preceding part double-click [nRN1Q1971Q]
(iI) Seasonality
With the first half of the financial year including holiday seasons in August
and at Christmas when recruitment activity is quieter than normal, the second
half of the year generally produces stronger results. Revenue in the 6 months to
31 January 2007 excluding discontinued operations represented 46% of the annual
total.
4 INCOME TAX EXPENSE
Analysis of charge in the year
6 months 6 months 12 months
to 31/01/08 to 31/01/07 to 31/07/07
Unaudited Unaudited Unaudited
£'000 £'000 £'000
Total income tax expense 1,729 1,169 2,356
The total tax charge is lower than the standard rate of corporation tax. The
differences are detailed below:
Profit before tax 5,671 4,129 9,871
Corporation Tax at current rate of
30% 1,701 1,239 2,961
Deferred tax on timing differences 7 (38) (16)
Expenses not deductible for tax
purposes 88 50 114
Exceptional items not deductible for
tax purposes 0 172 172
Difference between depreciation and
capital allowances for the period 10 8 3
Under provision for previous years 0 0 1
Tax loss on EBT loss/profit 0 3 4
Tax relief on cost of options
exercised in year (77) (251) (902)
Tax effect of IFRS transitional
arrangements 0 (14) 19
-------- -------- --------
Total UK tax charge 1,729 1,169 2,356
5 DISCONTINUED OPERATIONS
On 31st August 2006 Matchtech Group UK Ltd sold the shares of Matchtech Inc for
consideration of £105,000, giving a profit on disposal of £59,000. The profit
from Matchtech Inc has been included under discontinued operations in the
condensed consolidated income statement. The income statement of Matchtech Inc
is set out below.
DISCONTINUED OPERATIONS 6 months 6 months 12 months
to 31/01/08 to 31/01/07 to 31/07/07
Unaudited Unaudited Unaudited
£'000 £'000 £'000
Revenue 0 135 135
Cost of Sales 0 (117) (117)
----------- ---------- ---------
GROSS PROFIT 0 18 18
Administrative expenses 0 (10) (10)
----------- ---------- ---------
OPERATING PROFIT 0 8 8
Finance income 0 0 0
Finance cost 0 0 0
----------- ---------- ---------
PROFIT BEFORE TAX 0 8 8
Income tax expense 0 (3) (3)
Foreign exchange gain 0 3 3
----------- ---------- ---------
PROFIT FROM DISCONTINUED OPERATIONS 0 8 8
=========== ========== =========
6 DIVIDENDS
Dividends on shares classed as equity 6 months 6 months 12 months
to 31/01/08 to 31/01/07 to 31/07/07
Unaudited Unaudited Unaudited
£'000 £'000 £'000
Paid during the period
Equity dividends on ordinary shares 2,148 4,414 4,124
7 EARNINGS PER SHARE
Earnings per share has been calculated by dividing the consolidated profit after
taxation attributable to ordinary shareholders by the weighted average number of
ordinary shares in issue during the period.
Diluted earnings per share has been calculated, on the same basis as above,
except that the weighted average number of ordinary shares that would be issued
on the conversion of all the dilutive potential ordinary shares (arising from
the Group's share option schemes) into ordinary shares has been added to the
denominator. There are no changes to the profit (numerator) as a result of the
dilutive calculation.
The earnings per share information has been calculated as follows:
Earnings Per Share 6 months 6 months 12 months
to 31/01/08 to 31/01/07 to 31/07/07
Unaudited Unaudited Unaudited
£'000 £'000 £'000
Profits
Profit from continuing operations 3,942 2,960 7,515
Profit from discontinued operations 0 67 67
-------- -------- --------
Profit for the period 3,942 3,027 7,582
Number of shares 000's 000's 000's
Weighted average number of ordinary
shares in issue 23,070 22,277 22,470
Effect of dilutive potential
ordinary shares under option 777 939 556
-------- -------- --------
23,847 23,216 23,026
Earnings per share pence pence pence
Earnings per share from continuing
operations
- Basic 17.09 13.29 33.44
- Diluted 16.53 12.75 32.64
Earnings per share from discontinued
operations
- Basic 0.00 0.30 0.30
- Diluted 0.00 0.29 0.29
Earnings per share from total operations
- Basic 17.09 13.59 33.74
- Diluted 16.53 13.04 32.93
Earnings Per Share for the purpose of a performance measure for the LTIPs is
calculated excluding the non-recurring items of the sales and profits of the US
business sold on 31st August 2006 as well as the non-recurring costs of the
flotation as calculated below.
6 months 6 months 12 months
Adjusted Earnings Per Share to 31/01/08 to 31/01/07 to 31/07/07
Unaudited Unaudited Unaudited
£'000 £'000 £'000
Profits
Profit for the period 3,942 3,027 7,582
-------- -------- --------
Costs of Admission to AIM 0 572 572
Profit after tax from discontinued
operations 0 (5) (5)
Profit on sale of discontinued
operations 0 (59) (59)
-------- -------- --------
Profit on ordinary activities after
taxation but before non-recurring
items 3,942 3,535 8,090
Number of shares 000's 000's 000's
Weighted average number of ordinary
shares in issue 23,070 22,277 22,470
Effect of dilutive potential
ordinary shares under option 777 939 556
-------- -------- --------
23,847 23,216 23,026
Earnings per share pence pence Pence
Earnings per share from total operations
- Basic 17.09 15.86 36.00
- Diluted 16.53 15.23 35.13
8 SHARE CAPITAL
31/01/08 31/01/07 31/07/07
£'000 £'000 £'000
Authorised share capital
40,000,000 Ordinary shares of £0.01 each 400 400 400
Allotted, called up and fully paid
Ordinary shares of £0.01 each 231 225 230
The company issued the following shares Ordinary Share Consideration
in the periods:
shares of premium Received
£0.01 issued received £
£'000 pence per
share
6 months to 31/01/07
27/10/2006 348,254 69.0 243,778
27/11/2006 31,955 365.5 117,115
27/11/2006 31,955 nil 320
22/12/2006 767 nil 8
30/01/2006 736 nil 7
6 months to 31/07/07
26/02/2006 658 nil 7
30/03/2007 668 nil 7
27/04/2007 573 nil 6
25/05/2007 485 nil 5
01/06/2007 539,140 85.6 466,705
11/06/2007 947 87.6 839
25/06/2007 1,447 nil 14
6 months to 31/01/08
30/08/2007 436 nil 4
28/09/2007 447 nil 4
26/10/2007 454 nil 5
05/11/2007 70,872 89.0 63,781
30/11/2007 17,131 nil 171
INDEPENDENT REVIEW REPORT TO MATCHTECH GROUP PLC
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 31
January 2008 which comprise the condensed consolidated income statement, the
condensed consolidated balance sheet, the condensed consolidated cash flow
statement, the condensed consolidated statement of changes in equity and notes 1
to 8. We have read the other information contained in the interim report which
comprises only the Chairman's Statement and considered whether it contains any
apparent misstatements or material inconsistencies with the financial
information.
This report is made solely to the company in accordance with guidance contained
in ISRE (UK and Ireland) 2410, "Review of Interim Financial Information
performed by the Independent Auditor of the Entity". Our review work has been
undertaken so that we might state to the company those matters we are required
to state to them in a review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone
other than the company, for our review work, for this report, or for the
conclusion we have formed.
Directors' Responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the half-yearly
financial report.
As disclosed in note 2, the next annual financial statements of the group will
be prepared in accordance with International Financial Reporting Standards as
adopted by the European Union. This interim report has been prepared in
accordance with International Accounting Standard 34 "Interim Financial
Reporting" and the requirements of IFRS 1 "First-time Adoption of International
Financial Reporting Standards" relevant to interim reports.
The accounting policies are consistent with those that the directors intend to
use in the next annual financial statements.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half yearly financial report based on our
review.
Scope of Review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, Review of Interim Financial Information
Performed by the Independent Auditor of the Entity issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Review Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 31 January 2008 is not prepared, in all material
respects, in accordance with International Accounting Standard 34 as adopted by
the European Union.
GRANT THORNTON UK LLP
Chartered Accountants & Registered Auditors
No. 1 Dorset Street
Southampton
SO15 2DP March 2008
This information is provided by RNS
The company news service from the London Stock Exchange
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