TIDMWOR
RNS Number : 5468O
World Careers Network PLC
08 November 2016
8 November 2016
PRELIMINARY ANNOUNCEMENT OF THE AUDITED RESULTS OF
WORLD CAREERS NETWORK PLC
WORLD CAREERS NETWORK PLC
Chairman's Statement
I am pleased to present the annual accounts of World Careers
Network plc ("WCN" or the "Company"), which show the results of the
Company for the year to 31 July 2016.
Financial review
Our profit for the year of GBP1,382,896 is significantly higher
than last year (GBP1,197,879) due to a gain of over GBP400,000 as a
result of the fall in the value of the GBP against the US$ in the
run up to and following the EU Referendum which resulted in a
substantial increase in the value of our US$ bank and debtor
balances at the beginning of the year and our sales invoiced during
the year. But for the decline in the value of the GBPsterling our
profits would have been nearly 20% down on last year.
The changes in Key Performance Indicators between the financial
years 2015/2016 and 2014/2015 were as follows:
2015/16 2014/15
GBP GBP
Sales per employee 86,298 80,168
Operating profit per employee 13,670 11,785
The average headcount in 2015/16 remained unchanged from the
previous year at 98 hence the improvements in the KPIs as a result
of the increased year on year sales and profits which benefitted
from the fall in the value of the GBPsterling referred to
above.
The Board will be seeking at the Annual General Meeting the
renewal of the authority granted last year to make market purchases
of ordinary shares, within the usual limits for a listed company.
In assessing whether in practice to use this authority, the Board
will take into account all relevant factors including the effect on
earnings per share and assets per share ratios and other benefits
to shareholders.
Dividends
The directors are pleased to recommend the payment of a dividend
of 3.5p per share, which is the same as that paid in respect of the
previous year. This dividend will be subject to the approval of
shareholders at the Annual General Meeting to be held at 5-7
Bridgeworks, The Crescent, London SW19 8DR at 10.30 am, on 15
December 2016, and, if approved, will be payable on 16 December
2016 to shareholders on the register as at 25 November 2016
Operating review
Sales increased by GBP600,696 compared with last year of which
GBP187,000 was due to the fall in the value of the GBPsterling to
which I referred above. The residual increase of around 5%
reflected projects which started in the previous year coming fully
online and the addition of some new clients.in the current year.
Support Fees underpinned the increase in sales while fees from
change requests and implementations fell slightly as large scale
implementations completed.
At the same time, costs rose compared to the previous year,
predominantly in the second half of the year as many of the
investment decisions - particularly additional marketing spend,
bolstering our resources in the areas of security and hosting
infrastructure maintenance, delivery, account management and UK and
US sales - took effect.
Principal risks and uncertainties
Commercial and operational risk
Competitive pressure and economic instability is a continuing if
not growing risk for the Company. The Company manages this risk by
developing leading edge products capable of driving significant
transformation and value within our clients, through high levels of
customer service, by managing resource levels and pursuing
opportunities for continuous improvement.
The business is dependent upon clients' ability to safely access
data held on our servers. In order to ensure that this is not
affected by a breakdown in power supplies or by other physical
hazards our servers are housed offsite in secure facilities on the
premises of a specialist provider of such facilities. Third party
security experts are also regularly engaged to advise on data
security.
Financial risk
The main risks arising from the company's activities are
currency risk and credit risk. These are monitored by the Board of
directors and were not considered to be significant at the balance
sheet date.
Outlook
The heavy investments in the second half of last year in the
areas I mentioned above have continued into the current year and
our cost base is now running considerably higher than last
year.
These investments will undoubtedly have a material impact on our
profitability both in the current year and for the foreseeable
future since the increased costs come first and are more certain
than the resulting revenue streams. This is exacerbated both by the
increased scale of some of our projects making growth more erratic
and by the general economic uncertainty following the Brexit
vote.
Simultaneously looking after our clients and ensuring they are
happy, implementing new clients, developing and managing the
adoption of new innovations, developing the team & on-boarding
new team members, and continuously looking for ways to improve is
very challenging. I would like to thank the team at WCN for your
tremendous efforts. Our success is down to your hard work and
skill.
Charles EH Hipps
Chairman, World Careers Network Plc
Date 7 November 2016
consolidated income statement
For the Year Ended 31 July 2016
2016 2015
GBP GBP
Revenue 8,457,202 7,856,506
Total administrative expenses 7,117,511 6,701,553
_________ _________
Operating profit 1,339,691 1,154,953
Finance income 43,205 42,926
_________ _________
Profit on ordinary activities
before taxation 1,382,896 1,197,879
Income tax 277,201 262,500
_________ _________
Profit for the year 1,105,695 935,379
_________ _________
Earnings per share
Basic 14.62p 12.29p
_________ _________
Diluted 14.46p 12.04p
_________ _________
Consolidated Balance sheet at 31 July 2016
2016 2015
GBP GBP
Fixed Assets
Property, plant and equipment 140,174 116,743
_________ _________
140,174 116,743
Current assets
Trade and other receivables 2,299,183 2,567,678
Cash and cash equivalents 10,171,966 8,219,388
_________ _________
Total current assets 12,471,149 10,787,066
_________ _________
Total assets 12,611,323 10,903,809
_________ _________
Equity
Issued capital 7,562 7,559
Share premium 1,595,040 1,591,703
Capital redemption reserve 689 689
Translation reserve 5,595 9,966
Retained earnings 7,945,446 7,088,194
_________ _________
Total equity 9,554,332 8,698,111
_________ _________
Liabilities
Non-current liabilities
Deferred tax 16,643 11,843
_________ _________
Liabilities
Current liabilities
Trade and other payables 2,867,245 2,042,599
Corporation tax 173,103 151,256
_________ _________
Total current liabilities 3,040,348 2,193,855
_________ _________
Total liabilities 3,056,991 2,205,698
_________ _________
Total equity and liabilities 12,611,323 10,903,809
_________ _________
Consolidated statement of cash flows
For the Year Ended 31 July 2016
2016 2015
GBP GBP
Cash flows from operating activities
Profit for the year 1,105,695 935,379
Depreciation 84,067 81,267
Exchange differences on translation
of foreign operations (4,371) 9,966
Share based payments 16,202 17,710
Decrease/(increase) in receivables 268,495 (492,914)
Increase in payables 824,648 146,761
Finance income (43,205) (42,926)
Corporation tax expense 277,201 262,500
_________ _________
2,528,732 917,743
Taxation (250,556) (424,745)
_________ _________
Net cash inflow from operating
activities 2,278,176 492,998
_________ _________
Cash flows from investing activities
Interest received 43,205 42,926
Purchase of property, plant and
equipment (107,498) (89,868)
_________ _________
Net cash outflow from investing
activities (64,293) (46,942)
_________ _________
Cash flows from financing activities
Proceeds from issue of shares 3,340 25,983
Purchase of own shares - (157,500)
Equity dividends paid (264,645) (266,645)
_________ _________
Net cash outflow from financing
activities (261,305) (398,162)
_________ _________
Increase in cash in the year 1,952,578 47,894
Cash and cash equivalents at beginning
of year 8,219,388 8,171,494
_________ _________
Cash and cash equivalents at end
of year 10,171,966 8,219,388
_________ _________
Notes
1. The profit and loss account incorporates the consolidated
results of World Careers Network PLC and its subsidiary for the
year ended 31 July 2016. The accounting policies used in the
preparation of these audited results are unchanged from those
adopted by the company in previously published annual financial
statements.
2. Earnings per share
Basic earnings per share
This is calculated by dividing the profit of GBP1,105,695 (2015:
GBP935,379), being the profit attributable to ordinary
shareholders, by the weighted average number of ordinary shares in
issue during the year of 7,561,263 (2015: 7,611,378).
Diluted earnings per share
The weighted average number of shares for this calculation was
increased to 7,645,920 (2015: 7,770,425) to recognise the effects
of the potential issue of further ordinary shares.
3. The directors are recommending the payment of a dividend of 3.5p per share.
4. The preliminary announcement was approved by the board on 31
October 2016. The Company's annual accounts will be sent to
shareholders on 21 November 2016 and copies will be available from
the company's office at 5-7 Bridgeworks, The Crescent, London SW19
8DR and on the Company's website at www.wcn.co.uk.
5. The financial information does not constitute the company's
statutory accounts, within the meaning of Section 435 of the
Companies Act 2006, for the years ended 31 July 2016 or 2015 but is
derived from those accounts. Statutory accounts for 2015 have been
delivered to the Registrar of Companies and those for 2016 will be
delivered following the company's forthcoming annual general
meeting. The auditors have reported on those accounts; their
reports were unqualified, did not include references to any matters
to which the auditors drew attention by way of emphasis without
qualifying their reports and did not contain statements under the
Companies Act 2006, s498(2) or (3).
Enquiries
World Careers Network Plc
Charles Hipps, Managing Director,
Telephone: +44 (0)20 8946 9876
Email:chipps@wcn.co.uk.
Panmure Gordon (UK) Limited
Nominated Adviser
Andrew Potts
Telephone: +44 (0)20 7886 2956
This information is provided by RNS
The company news service from the London Stock Exchange
END
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