TIDMWOR
RNS Number : 4040V
World Careers Network PLC
02 November 2017
2 November 2017
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 2017.
Financial review
As anticipated in my full year statement for 2016, profits for
2017 are significantly down at GBP811,543 compared to last year's
profit of GBP1,382,896 while revenues increased 16.4% from
GBP8,457,202 to GBP9,848,048.
The changes in Key Performance Indicators between the financial
years 2016/2017 and 2015/2016 were as follows:
2016/17 2015/16
GBP GBP
Sales per employee 86,513 86,298
Operating profit per employee 6,783 13,670
The average headcount in 2016/17 was up 16% at 114.
The group is investing for future growth and this has resulted
in increased headcount and employee costs. Revenues have risen
broadly in line with our headcount whilst the operating profit per
employee has fallen as a result of the concentration of resources
into specialist areas and an increase in our marketing spend.
The Board will be seeking at the Annual General Meeting the
extension 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 13
December 2017, and, if approved, will be payable on 15 December
2017 to shareholders on the register as at 24 November 2017.
Operating review
There is a considerable focus inside the business on ensuring
existing clients are highly satisfied, retained and growing their
business with us; that we are developing innovative
transformational product which by supporting the recruitment of
high quality and diverse hires delivers a significant benefit to
our clients; that we broaden the market for our products and
attract new clients; and ensuring we have a great team in WCN to
deliver against our objectives.
Investment in these areas - primarily marketing, sales, product
development and customer success & support - resulted in a rise
in our costs of GBP1,958,410.
The benefit of this expenditure is reflected in an improvement
in our client satisfaction and the increase in our sales of
GBP1,390,846.
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 risk arising from the Company's activities is currency
risk. This is monitored by the Board of directors and was not
considered to be significant at the balance sheet date.
Outlook
Strong technology and an exciting product pipeline; positive and
growing client satisfaction; and an experienced team provide a
great foundation for ongoing success. However, lower than expected
sales in the last financial year and ongoing sales challenges, high
investments, known reductions in revenues from the existing client
base, general economic uncertainty and a competitive market will
make this a very challenging year in which, inevitably, we expect
to see a further significant fall in profits.
The high quality of the team and dedication to our clients is
the key factor underlying our success. I'd like to thank the team
at WCN for their outstanding efforts.
Charles EH Hipps
Chairman, World Careers Network Plc
Date 2 November 2017
consolidated income statement
For the Year Ended 31 July 2017
2017 2016
GBP GBP
Revenue 9,848,048 8,457,202
Total administrative expenses 9,075,921 7,117,511
_________ _________
Operating profit 772,127 1,339,691
Finance income 39,416 43,205
_________ _________
Profit on ordinary activities
before taxation 811,543 1,382,896
Income tax 194,856 277,201
_________ _________
Profit for the year 616,687 1,105,695
_________ _________
Earnings per share
Basic 8.15p 14.62p
_________ _________
Diluted 8.05p 14.46p
_________ _________
Consolidated Statement of Financial Position
As at 31 July 2017
2017 2016
GBP GBP
Assets
Non-current assets
Property, plant and equipment 170,848 140,174
_________ _________
170,848 140,174
Current assets
Trade and other receivables 1,454,107 2,299,183
Cash and cash equivalents 11,631,288 10,171,966
_________ _________
Total current assets 13,085,395 12,471,149
_________ _________
Total assets 13,256,243 12,611,323
_________ _________
Equity
Issued capital 7,586 7,562
Share premium 1,649,024 1,595,040
Capital redemption reserve 708 689
Translation reserve (1,188) 5,595
Retained earnings 8,273,990 7,945,446
_________ _________
Total equity 9,930,120 9,554,332
_________ _________
Liabilities
Non-current liabilities
Deferred tax 21,822 16,643
_________ _________
Liabilities
Current liabilities
Trade and other payables 3,183,567 2,867,245
Corporation tax 120,734 173,103
_________ _________
Total current liabilities 3,304,301 3,040,348
_________ _________
Total liabilities 3,326,123 3,056,991
_________ _________
Total equity and liabilities 13,256,243 12,611,323
_________ _________
Consolidated statement of cash flows
For the Year Ended 31 July 2017
2017 2016
GBP GBP
Cash flows from operating activities
Profit for the year 616,687 1,105,695
Depreciation 94,104 84,067
Exchange differences on translation
of foreign operations (6,783) (4,371)
Share based payments 13,652 16,202
Decrease in receivables 845,076 268,495
Increase in payables 316,322 824,648
Finance income (39,416) (43,205)
Corporation tax expense 194,856 277,201
_________ _________
2,034,498 2,528,732
Taxation (242,047) (250,556)
_________ _________
Net cash inflow from operating
activities 1,792,451 2,278,176
_________ _________
Cash flows from investing activities
Interest received 39,416 43,205
Purchase of property, plant and
equipment (124,778) (107,498)
_________ _________
Net cash outflow from investing
activities (85,362) (64,293)
_________ _________
Cash flows from financing activities
Proceeds from issue of shares 54,027 3,340
Purchase of own shares (37,050) -
Equity dividends paid (264,745) (264,645)
_________ _________
Net cash outflow from financing
activities (247,768) (261,305)
_________ _________
Increase in cash in the year 1,459,321 1,952,578
Cash and cash equivalents at beginning
of year 10,171,966 8,219,388
_________ _________
Cash and cash equivalents at end
of year 11,631,287 10,171,966
_________ _________
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 2017. 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 GBP616,687 (2016 -
GBP1,105,695), being the profit attributable to ordinary
shareholders by the weighted average number of ordinary shares in
issue throughout the year of 7,568,480 (2016 - 7,561,263)
Diluted earnings per share
The weighted average number of shares for 2017 for this
calculation was 7,662,261 (2016 - 7,645,920). This is calculated
based on the weighted average number of ordinary shares adjusted by
93,781 (2016 - 84,657) to recognise the effect of the potential
issue of further ordinary shares as a result of the exercise of
share options
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 2
November 2017. The Company's annual accounts will be sent to
shareholders on 17 November 2017 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 2017 or 2016 but is
derived from those accounts. Statutory accounts for 2016 have been
delivered to the Registrar of Companies and those for 2017 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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