REG-Matchtech Group PLC Half Yearly Report - Part 2
Released: 02/04/2009
Part 2 : For preceding part double click [nRn1B9710P]
the instrument and comprise trade and other payables and bank loans. Financial
liabilities are recorded initially at fair value, net of direct issue costs and
are subsequently measured at amortised cost using the effective interest rate
method.
A financial liability is derecognised only when the obligation is extinguished,
that is, when the obligation is discharged or cancelled or expires.
xvi Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, on demand deposits
and bank overdrafts.
xvii Dividends
Dividend distributions payable to equity shareholders are included in "other
short term financial liabilities" when the dividends are approved in general
meeting prior to the balance sheet date.
xviii Equity
Equity comprises the following:
* "Share capital" represents the nominal value of equity shares.
* "Share premium" represents the excess over nominal value of the fair value of
consideration received for equity shares, net of expenses of the share issue.
* "Share based payment reserve" represents equity-settled share-based employee
remuneration until such share options are exercised.
* "Other reserve" represents the equity balance arising on the merger of
Matchtech Engineering and Matchmaker Personnel.
* "Profit and loss reserve" represents retained profits.
xix Foreign currencies
Transactions in foreign currencies are translated at the exchange rate ruling at
the date of the transaction. Monetary assets and liabilities in foreign
currencies are translated at the rates of exchange ruling at the balance sheet
date. Non-monetary items that are measured at historical cost in a foreign
currency are translated at the exchange rate at the date of the transaction.
Non-monetary items that are measured at fair value in a foreign currency are
translated using the exchange rates at the date when the fair value was
determined.
Any exchange differences arising on the settlement of monetary items or on
translating monetary items at rates different from those at which they were
initially recorded are recognised in the profit or loss in the period in which
they arise.
2 SEGMENTAL INFORMATION
The revenue and profit before tax are attributable to the one principal
activity of the company.
(i) Segmental
6 months 6 months 12 months
to 31/01/09 to 31/01/08 to 31/07/08
Unaudited Unaudited Unaudited
£'000 £'000 £'000
A segmental analysis of revenue is given below:
Engineering 78,151 67,276 147,977
Built Environment 35,916 31,463 69,186
Professional Services 23,948 17,823 41,667
Total 138,015 116,562 258,830
A segmental analysis of gross profit is given below:
Engineering 8,588 7,803 16,786
Built Environment 4,170 4,226 9,039
Professional Services 3,822 3,243 7,409
Total 16,580 15,272 33,234
A segmental analysis of operating profit is given below:
Engineering 3,674 3,468 7,562
Built Environment 1,694 1,820 3,977
Professional Services 970 865 2,253
Total 6,338 6,153 13,792
(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. Turnover in the 6 months to 31 January 2008
represented 45% of the annual total.
3 INCOME TAX EXPENSE
Analysis of charge in the period 6 months 6 months 12 months
to 31/01/09 to 31/01/08 to 31/07/08
Unaudited Unaudited Unaudited
£'000 £'000 £'000
Total income tax expense 1,645 1,745 3,705
The total tax charge is lower than the standard rate of corporation tax. The
differences are detailed below:
Profit before tax 6,065 5,671 12,797
Corporation Tax at current rate 28% (31/01/08:30%, 31/07/08:29.33%) 1,698 1,701 3,753
Expenses not deductable for tax purposes 1 33 18
Change in deferred tax rate 0 11 11
Adjustments to tax charge in respect of previous periods (54) 0 (77)
Total UK tax charge 1,645 1,745 3,705
4 DIVIDENDS
Dividends on shares classed as equity: 6 months 6 months 12 months
to 31/01/09 to 31/01/08 to 31/07/08
Unaudited Unaudited Unaudited
£'000 £'000 £'000
Paid during the period
Equity dividends on ordinary shares 2,462 2,148 3,309
5 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:
6 months 6 months 12 months
to 31/01/09 to 31/01/08 to 31/07/08
Unaudited Unaudited Unaudited
Profits £'000 £'000 £'000
Profit for the period 4,420 3,926 9,092
Number of Shares 000's 000's 000's
Weighted average number of ordinary shares in issue 23,231 23,070 23,111
Effect of dilutive potential ordinary shares under option 1,184 777 660
24,415 23,847 23,771
Earnings per Share pence pence pence
Earnings per ordinary share from continuing operations - Basic 19.03 17.02 39.34
- Diluted 18.10 16.46 38.25
6 SHARE CAPITAL
Authorised share capital 31/01/2009 31/01/2008 31/07/2008
£'000 £'000 £'000
40,000,000 Ordinary shares of £0.01 each 400 400 400
Allotted, called up and fully paid 31/01/2009 31/01/2008 31/07/2008
£'000 £'000 £'000
Ordinary shares of £0.01 each 232 231 232
The company issued the following shares in the periods:
Ordinary shares of £0.01 issued Share premium received Consideration Received
pence per share £
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 63,781
30/11/2007 17,131 nil 171
6 months to 31/07/08
08/04/2008 9,174 133 12,293
15/04/2008 4,587 145 6,697
12/05/2008 5,692 145 8,310
05/06/2008 75,336 145 109,991
28/07/2008 16,619 145 24,264
6 months to 31/01/09
30/11/2008 3,571 nil 4
05/01/2009 2,218 nil 2
30/01/2009 2,433 nil 2
7 TRADE AND OTHER RECEIVABLES
31/01/2009 31/01/2008 31/07/2008
£'000 £'000 £'000
Trade debtors 33,887 28,823 38,298
Other debtors 23 16 49
Prepayments 176 200 218
34,086 29,039 38,565
Included in the Group's trade receivable balance are debtors with a carrying
amount of £3,952,000 (2008: £7,075,000) which are past due at the reporting date
for which the Group has not provided as the Directors do not believe there has
been a significant change in credit quality and consider the amounts to be
recoverable in full. The Group does not hold any collateral over these balances.
The Directors consider all trade receivables not past due to be fully
recoverable.
Ageing of past due but not impaired trade receivables
31/01/2009 31/01/2008 31/07/2008
£'000 £'000 £'000
0-30 days 3,025 4,725 5,558
30-60 days 669 1,370 619
60-90 days 258 520 29
90+ days 0 460 87
3,952 7,075 6,293
Cautionary Statement
This half year financial information has been prepared for the shareholders of
the Company, as a whole, and its sole purpose and use is to assist shareholders
to exercise their governance rights. In particular, this announcement has not
been audited or otherwise independently verified. The Company and its directors
and employees are not responsible for any other purpose or use or to any other
person in relation to this announcement.
The report contains indications of likely future developments and other
forward-looking statements that are subject to risk factors associated with,
among other things, the economic and business circumstances occurring from time
to time in the sectors in which the Group operates. These and other factors
could adversely affect the Group's results, strategy and prospects.
Forward-looking statements involve risks, uncertainties and assumptions. They
relate to events and/or depend on circumstances in the future which could cause
actual results and outcomes to differ. No obligation is assumed to update any
forward-looking statements, whether as a result of new information, future
events or otherwise.
Statement of Directors' Responsibilities
The directors confirm that this condensed consolidated half year financial
information has been prepared in accordance with IAS 34, as adopted by the
European Union, and that the half year management report includes a fair review
of the information required by DTR 4.2.7 and DTR 4.2.8.
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 2009 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 7. 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 1, the annual financial statements of the group are
prepared in accordance with IFRS as adopted by the European Union. The condensed
set of financial statements included in this half-yearly financial report has
been prepared in accordance with International Accounting Standard 34, 'Interim
Financial Reporting,' as adopted by the European Union'.
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 2009 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
2 April 2009
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FGGGDNMFGLZM