HR Go Plc
("HR Go") or the ("Group")
Interim Report for the six months to 30 June 2012
CHAIRMAN'S STATEMENT
The Company is pleased to announce the Interim Results of the Group for
the six month period ended 30 June 2012.
OUTLOOK
Following the old adage "turnover for vanity profit for sanity", we have
reduced our cost base to reflect the pressure for reduced margins in the
industry and have, therefore, been able to generate an increased level of
profit. We will not tender at margins which will not enable us to provide the
appropriate level of service to our clients, taking the long term view that all
revenue has to have a sustainable level of profit to be worthwhile. Whilst this
approach may impact turnover and gross profit in the short term, we believe
that it is the correct approach in the long term.
I am very pleased to report that Paul Broderick joined the Board as Managing
Director in July. Paul has a wealth of experience in recruitment and I strongly
believe that he will make a very real impact in developing HR GO Plc and
furthering its success. Paul is already implementing a number of changes to the
management team and the markets in which we operate. We are entering into new
UK geographic regions, expanding our driving offering and have set up a new
joint venture in the retail sector.
We have continued to invest heavily in IT. We have rolled out our chosen fully
integrated front office system and launched our new interactive website in May.
RESULTS
The results for the first half of 2012 have been satisfactory, given the
current uncertain economic climate. Turnover at £43million was 9% lower than
the equivalent period in 2011(£47million). Gross profit fell to £7.5million
from £9.5million in 2011, with pressure on margins remaining in the difficult
economic environment. We have reacted to this by significantly reducing our
overhead base to £7.4million, down over £2million on the previous half year's
cost base (2011: £9.4million). As a result, we have been able to increase our
operating profit to £355,000 for the period (2011: £215,000).
The economic recovery remains very slow. However, we remain confident that the
changes to the management structure, the manner in which we are developing our
sales initiatives and the continual reviewing of our cost base, all lend
themselves to a bright future for the organisation.
Jack C Parkinson
Chairman
HR GO PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the six months ended 30 June 2012
Six months Six months Year to
to 30 June to 30 June 31
2012 2011 December
2011
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
TURNOVER 42,957 47,403 95,674
Cost of Sales (35,442) (37,915) (77,810)
GROSS PROFIT 7,515 9,488 17,864
Administrative expenses (7,352) (9,362) (18,243)
Other operating income 192 89 201
OPERATING PROFIT/(LOSS) 355 215 (178)
Interest payable and similar (126) (167) (316)
charges
PROFIT/(LOSS) ON ORDINARY 229 48 (494)
ACTIVITIES BEFORE TAXATION
Tax on ordinary activities (40) (84) (4)
PROFIT/(LOSS) ON ORDINARY 189 (36) (498)
ACTIVITIES AFTER TAXATION
Minority interests (94) (171) 10
RETAINED PROFIT/(LOSS) FOR THE 95 (207) (488)
FINANCIAL PERIOD
Basic and diluted earnings/ 0.48p (1.04p) (2.47p)
(loss) per share
HR GO PLC
CONSOLIDATED BALANCE SHEET
As at 30 June 2012
30 June 30 June 31 December
2012 2011 2011
(Unaudited) (Unaudited) (Audited)
£'000
£'000 £'000
FIXED ASSETS
Intangible fixed assets 371 424 392
Tangible fixed assets 995 1,240 1,074
1,366 1,664 1,466
CURRENT ASSETS
Debtors 19,073 20,749 19,485
Deferred taxation - asset 74 - 74
Cash at bank and in hand 57 73 110
19,204 20,822 19,669
CREDITORS: amounts falling due (19,187) (20,473) (19,660)
within one year
NET CURRENT ASSETS 17 349 9
TOTAL ASSETS LESS CURRENT 1,383 2,013 1,475
LIABILITIES
CREDITORS: amounts falling due (349) (569) (530)
after more than one year
TOTAL NET ASSETS 1,034 1,444 945
CAPITAL AND RESERVES
Called up share capital 198 198 198
Share premium account - 907 -
Capital reserve 7 7 7
Profit and loss account 44 (699) (50)
EQUITY SHAREHOLDERS' FUNDS 249 413 155
EQUITY MINORITY INTERESTS 785 1,031 790
1,034 1,444 945
1. The six months' figures to 30 June 2012 and 30 June 2011 are unaudited and
have not been reviewed by the Group's auditor and do not constitute
statutory accounts within the meaning of Section 435 of the Companies Act
2006.
2. The results for the year to 31 December 2011 are not statutory financial
statements. A copy of the statutory financial statements for that year has
been delivered to the Registrar of Companies and carries an audit report
that is unqualified and includes no adverse comment.
The directors of the issuer accept responsibility for the contents of this
announcement.
--ENDS-
For further information contact:
HR GO PLC
Mark Kingston
Tel: +44 1233 722479
PETERHOUSE CORPORATE FINANCE
Fungai Ndoro/ Heena Karani
Tel: +44 20 7469 0934