SThree plc
("SThree" or the "Group")
Preliminary Results for the year ended 28 November 2010
SThree, the international specialist staffing business, is today announcing its final results for the year ended 28 November 2010.
Financial Highlights
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2010 |
2009 |
Change |
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Revenue |
£474.5m |
£519.4m |
-8.6% |
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Gross Profit |
£166.4m |
£171.2m |
-2.8% |
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Operating profit* |
£21.2m |
£18.0m |
+17.8% |
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Profit before taxation* |
£21.6m |
£18.0m |
+20.0% |
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Statutory profit before taxation |
£21.6m |
£8.9m |
+142.7% |
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Basic earnings per share* |
11.9p |
9.5p |
+25.3% |
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Statutory basic earnings per share |
11.9p |
4.0p |
+197.5% |
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Proposed dividend |
8.0p |
8.0p |
- |
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Total dividend |
12.0p |
12.0p |
- |
*Prior year operating profit, profit before taxation and EPS are shown before exceptional charges of £9.1m before tax, £6.5m after tax relating to a Group restructuring.
Operational Highlights
· A strong performance given the changing market sentiment during the year;
· Non-UK share of gross profit increased significantly to 60% (2009: 55%), with trend expected to continue as
the Group becomes ever more international;
· New offices opened in Perth, Delhi, Houston, San Francisco, Munich and Düsseldorf, bringing the total to 52.
Doha, Sao Paulo, Antwerp and Abu Dhabi due to open in H1 2011;
· Permanent placements increased by 8.1% to 6,551 (2009: 6,060), with average fees remaining strong;
· Number of active contractors at year end increased by 4.9% to 4,359 (2009: 4,157), with average gross
profit per day rates remaining strong;
· Contract versus Permanent mix of gross profit 51:49 in favour of Contract (2009: 58:42);
· Continued sector diversification, with non-ICT(1) disciplines now representing 38% of total gross profit
(2009: 28%);
· 76% of gross profit now derived from outside of the UK ICT market (2009: 69%);
· Total Group headcount at year end increased by 16.7% to 1,863 (2009: 1,597), with a significant further
increase planned for 2011;
· Year end net cash and term investments of £55.2m (2009: £48.5m) reflecting continued strong cash
generation;
· Entered 2011 with all markets in growth.
Russell Clements, CEO, commented: "SThree delivered a strong result in 2010 in a market which was still some way from fully recovered. Sentiment improved steadily and we ended the year with all our markets and territories in growth. We were also pleased with the increasing momentum in our longer established businesses building towards the end of the year. Looking ahead, we remain well positioned to make further progress through a combination of expansion in existing markets and further investment in new geographies with their substantial structural growth potential."
(1) Non ICT sectors primarily comprise Engineering & Energy, Banking, Accountancy & Finance and Pharmaceuticals & Biotechnology
SThree will host a live presentation and conference call for analysts at 9am today.
The presentation will be held at Citigate Dewe Rogerson's offices.
Conference Call participant Telephone Numbers:
Dial in: 0208 817 9301
Call reference: SThree Preliminary results presentation
This event will also be simultaneously audio webcast, hosted on SThree website at http://www.thomsonwebcast.net/uk/dispatching/?event_id=89741b0dc05c8f5496451613b28b1db5&portal_id=a98192164841f4a39f400936a24cde9c note that this is a listen only facility.
An archive of the presentation will be available via the same link later today.
SThree will be announcing its Q1 Interim Management Statement on Friday 4 March 2011.
Enquiries:
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SThree plc |
020 7268 6000 |
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Russell Clements, Chief Executive Officer |
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Alex Smith, Chief Financial Officer |
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Sarah Anderson, Deputy Company Secretary/IR queries |
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Citigate Dewe Rogerson |
020 7638 9571 |
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Kevin Smith / Nicola Swift |
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Notes to editors
SThree is a leading international specialist staffing businesses, providing permanent and contract specialist staff to a diverse client base of over 7,500 clients. From its well-established position as a major player in the information and communications technology ("ICT") sector the Group has broadened the base of its operations to include businesses serving the accountancy & finance, banking, engineering, oil & gas, pharmaceuticals, human resources, energy, legal and job board sectors.
Since launching its original business, Computer Futures, in 1986, the Group has adopted a multi-brand strategy, establishing new operations to address growth opportunities. SThree brands include Computer Futures, Huxley Associates, Progressive and The Real Staffing Group. The Group has circa 1,900 employees in twelve countries.
SThree plc is quoted on the Official List of the UK Listing Authority under the ticker symbol STHR and also has a US level one ADR facility, symbol SERTY
Important notice
Certain statements in this announcement are forward looking statements. By their nature, forward looking statements involve a number of risks, uncertainties or assumptions that could cause actual results or events to differ materially from those expressed or implied by those statements. Forward looking statements regarding past trends or activities should not be taken as representation that such trends or activities will continue in the future. Accordingly, undue reliance should not be placed on forward looking statements.
SThree plc
("SThree" or the "Group")
Preliminary results for the year ended 28 November 2010
Overview
2010 saw a substantially improved market when compared to the exceptionally challenging environment of 2009. That said, it would be misleading to suggest that the overall level of demand for our services during 2010 was universally consistent with a fully recovered marketplace. Whilst some parts of our business equalled or surpassed pre-downturn levels of performance and all our markets were in growth by the last quarter, most were yet to return to the very buoyant conditions that we would associate with "normality" in the specialist staffing market.
Given this specific context it is pleasing to report a strong 2010 performance. The Group delivered a substantial improvement in overall profitability and a further increase in our cash balances, whilst at the same time continuing to invest in the future of the business.
In addition to increasing sales headcount substantially, we also opened a further six offices, bringing the overall total to 52, of which 30 are outside the UK. Given this strong trading platform, coupled with steadily improving market conditions, we believe we are in an excellent position to make 2011 another year of progress. On this basis the Group intends to further grow sales headcount and continue the international office roll out throughout 2011.
Financial Outcome
During the year the Group saw a modest reduction in Gross Profit (GP) with the 2010 figure of £166.4m down 2.8% (2009: £171.2m), largely due to the relative weakness of the contract marketplace during most of the year. However, this converted to a Profit Before Tax (PBT) of £21.6m, up some 20% before prior year exceptional items (2009: £18.0m), reflecting a continued tight control of costs.
Notwithstanding the fact that 2010 was a year of investment, the Group had another strong performance in terms of cash generation. At the end of 2010 net cash (including term investments) had increased to £55.2m (2009: £48.5m).
The strong cash performance, combined with steadily improving market conditions, support the Board's decision to maintain the total 2010 dividend at 12.0p (2009: 12.0p) which is comfortably underpinned by the cash available to the Group.
Geographical Expansion
The Group continued its well established strategy of geographical expansion opening six international offices in the year. In addition to further offices in Munich and Düsseldorf, we rolled out offices in Perth, Delhi, Houston and San Francisco, bringing the overall total to 52 offices in 12 countries.
In aggregate, Group GP generated from outside of the UK was £99.5m (2009: £94.2m), up 5.6%. Given the more mature nature of the UK staffing market and in particular the continued relatively subdued demand for contract staff, UK GP of £66.8m was down 13.1% on the prior year (2009: £76.9m).
As a consequence of this difference in relative performance, the overall non UK/UK business mix underwent a marked change. For 2010 the ratio was 60:40 in favour of non UK GP compared with 55:45 in 2009. It is likely that this shift will represent an ongoing trend as the Group becomes ever more international. However, the fact remains that the UK has consistently demonstrated very robust growth in more typical market conditions and we are confident that the UK will show a significant bounce back as confidence levels build.
There is now ample evidence to indicate a rapidly growing opportunity to take the proven SThree model into an ever wider range of international markets, most of which are substantially less mature than the UK. In the first half of 2011 we expect to open offices in Doha, Sao Paulo, Abu Dhabi and Antwerp and it is likely that the total number of new offices opened during 2011 will be similar to the six that came on stream each year during 2010 and 2009. That being said, during 2011 we expect the large majority of our new hires to be into established SThree locations, thereby de-risking the expansion programme.
Sector Diversification
In parallel with its greater geographical diversity, in recent years the Group has made significant progress in developing markets outside of its historic ICT franchise. The ICT market has attractive characteristics, not least of all in terms of highly paid candidates and a structural skills shortage in most technical areas, albeit in some territories the ICT market is particularly competitive.
Over a period of years the Group has demonstrated its expertise in moving into adjacent specialist staffing sectors, many of which are both substantially less competitive than the ICT market and are also characterised by candidates who can command rates which are at least equal to and in many cases above those achieved in ICT.
The result of this sectoral diversification is that non ICT franchises accounted for 38.3% of total GP. This figure of £63.8m was up 31.5% on the previous year (2009: £48.5m). The major non ICT segments for the Group are Banking, Engineering & Energy, Accountancy & Finance and Pharmaceuticals; the Group also has (a relatively modest) presence in each of HR and Sales & Marketing.
The ICT franchise performed somewhat less robustly than the other sectors with 2010 GP of £102.6m (2009: £122.6m), down 16.3% on the prior year. The Group's ICT performance was impacted by a number of factors: the relatively subdued contract market which is disproportionately ICT based; the decline in public sector hiring - another ICT biased market; and the weakness of the Benelux territories, our largest ICT franchise outside the UK.
It is worth noting that the GP breakdowns given above are measured by the skill set of the candidate rather than the nature of the business of the client company. By the latter metric, rather than a 62% exposure to the ICT market, the Group has in fact only a 19% exposure (2009: 21%) to ICT customers per se and hence benefits from a broad client base in terms of industry sectors.
"High Margin High Value"
The Group has a stated strategy which is focused on the quality of the business transacted. We do not buy market share or swap value for volume as we believe both to be inappropriate given the highly fragmented nature of the specialist staffing market. We are highly selective in terms of the type of clients with which we engage and avoid the lower margin business which is often a condition of dealing with many larger employers in more mature markets.
In addition, we look to go "up the food chain" and place more highly remunerated candidates, either as a result of increasing the level of seniority of the placements we make, or by identifying more highly paid niche markets. The benefits of this approach can be seen in the robustness of our fees and contract rates, even in a market which remained somewhat more price sensitive than normal and which was not characterised by the level of wage inflation typical of a more normal market.
The Group's overall contract margin remained broadly flat at 21.6% (2009: 22.1%) despite a substantial reduction in the number of public sector contractors, which were typically higher than the average margin. Moreover, in absolute terms the average gross profit per day rate (GPDR) improved somewhat, up 1.1 % to £85.65 (2009: £84.69) on a constant currency basis. Pro rated to an annual permanent salary the GPDR is the equivalent of £90k (2009: £88k).
A similar but more pronounced value theme was seen in the Group's permanent business. The average fee recorded in 2010 was £12,340 (2009: £11,930) up 3.4% on a constant currency basis.
Contract/Permanent Business Mix
Unlike the early recovery phase of previous upturns, the contract market did not outperform the permanent market in 2010. On the contrary (and in common with the peer group), our permanent performance was markedly ahead of contract. During the year the Group made a total of 6,551 permanent placements (2009: 6,060) an increase of 8.1%. The number of contract runners at the end of 2010 had improved to 4,359 (2009: 4,157) representing an increase of 4.9%.
The relative weakness of the contract market was exacerbated by the fact that the market in Benelux was weak through most of the year and after the UK this territory is the Group's largest in terms of contract exposure. On a similar note GP derived from the Public Sector declined by around 50% during the year and this is largely a contract market. By contrast, some of the strongest performing markets (e.g. the Far East, Banking, Oil & Gas etc.) are for us, disproportionately permanent franchises.
The net effect of the above was that permanent GP represented 49% of the Group's total in 2010 compared with 42% of GP for 2009. Going forward into 2011 and beyond, we would expect a further increase in terms of the permanent share of GP as the economic cycle enters a more positive phase and the Group becomes increasingly exposed to territories and markets in which the prime opportunity is in permanent recruitment.
Headcount
The improved market conditions allowed us to continue with the sales headcount growth plan that we initiated in the second half of 2009. As a result the Group ended 2010 with a total of 1,863 staff (2009: 1,597) an increase of 16.7% on the prior year. The sales headcount growth was primarily focused on Rest of World, up 76%, and Europe, up 11%, with the UK up 6%.
Our 2010 closing headcount of 1,863 is still 18% below our previous peak of 2,274 heads in November 2008 and given our expansion plans for the year ahead it is likely that this historic peak will be surpassed during 2011.
Outlook
Ultimately, the global economic backdrop will to some extent influence the scale of our market opportunity in the coming year. However, it is worth remembering that the history of the Group specifically, and the specialist staffing market more generally, demonstrates that we do not need exceptionally strong economic tailwinds as a precondition for strong performance. Indeed, it is candidate confidence as much as any other major factor which drives demand and our experience shows that a healthy level of candidate confidence is not predicated on above-trend economic growth.
In addition, we are more exposed than ever before to markets with strong structural growth characteristics. Recent experience in territories such as Germany suggest that the underlying growth of the specialist staffing market can act as a powerful counter-balance even when economic conditions are dire. Given that the balance of opinion suggests at least a benign global economic scenario for 2011, markets such as these have particularly strong potential. At the same time our longer established franchises had all returned to growth by the end of 2010 and we have no reason to believe that this is a trend which will not continue.
Taking all the available indicators into consideration, we feel there are justifiable reasons to remain optimistic about the forthcoming year. As always, we take confidence that our twenty five year track record, seasoned management team and well established brands to provide us with an excellent platform to make the most of whatever the market has to offer us.
Financial Review
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2010 |
2009 |
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|
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Revenue |
Gross Profit |
Revenue |
Gross Profit |
|
Contract |
£392.8m |
£85.0m |
£447.0m |
£98.8m |
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Permanent |
£81.7m |
£81.4m |
£72.4m |
£72.4m |
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Total |
£474.5m |
£166.4m |
£519.4m |
£171.2m |
Revenue for the year decreased by 8.6% to £474.5m (2009: £519.4m). Gross profit for the year decreased by 2.8% to £166.4m (2009: £171.2m), representing a Group gross profit margin of 35.1% (2009: 33.0%). The Group gross profit margin increased as a result of the remix in business towards permanent, which represented 49% of gross profit in 2010, up from 42% in 2009. Permanent revenues are accounted for at 100% gross margin, whereas contract gross profit is shown after the associated cost of sale.
Administrative expenses before prior year exceptional items decreased by 5.2% to £145.2m (2009: £153.2m), as the Group benefitted from close monitoring of costs and made efficiency savings on advertising spend, professional fees, motor vehicle costs, bank charges and a number of other such costs. As a result, the Group's conversion ratio grew to 12.8% (2009: 10.5%).
Group headcount was 1,863 at 28 November 2010, up 16.7% on the opening headcount at 29 November 2009 of 1,597. Average total headcount for the year was 1,772 down 3.7% year on year (2009: 1,841).
Profit Before Tax increased by 20.0% to £21.6m (2009: £18.0m) before prior year exceptional items are taken into account and by 142.7% to £21.6m (2009: £8.9m) after prior year exceptional items.
Taxation on profit before exceptional items was £7.4m (2009: £5.5m), representing an effective tax rate of 34% (2009: 31%). The increase in the effective tax rate was driven by a remix of the business towards jurisdictions with higher tax rates. Based on the current structure of the Group and existing local taxation rates and legislation, it is expected that the underlying effective tax rate will remain at around this level.
Basic earnings per share before exceptional items were 11.9p (2009: 9.5p), up 25.3%. This was driven by an increase in profit before tax of 20.0%, partially offset by a higher effective tax rate of 34% (2009: 31%), and enhanced by a reduction in the profit attributable to non-controlling interest holders (minority interest participants) to £0.1m (2009: £1.2m), which is explained further below. The weighted average number of shares increased slightly to 119.9m (2009: 118.7m). Fully diluted earnings per share before prior year exceptional restructuring items were 11.5p (2009: 9.2p), up 25.0%. Basic earnings per share after prior year exceptional restructuring items were 11.9p (2009: 4.0p), up 197.5%. Fully diluted earnings per share after prior year exceptional restructuring items were 11.5p (2009: 3.9p), up 194.9%.
During the second half of the year, the Group migrated certain entity-based minority interests to tracker share arrangements, which fall within the scope of IFRS 2 'Share-based Payment'. Looking forwards, the profit attributable to non controlling interests (minority interest participants) will be nil, as all significant minority interest arrangements have moved to tracker arrangements. The subscription price methodology for tracker share arrangements is fair market value as determined by an independent valuation expert, and shares may be equity or cash settled. As the participant subscribes at fair market value for the award, the fair value of the award is reduced to nil and therefore no IFRS 2 accounting charge arises.
The Board previously declared an interim dividend of 4.0p per share (2009: 4.0p). The Board has declared a final dividend of 8.0p per share, bringing the total dividend for the year to 12.0p per share (2009: 12.0p). The final dividend will be paid on 6 June 2011 to those shareholders on the register as at 6 May 2011.
Balance Sheet
The Group had net assets of £81.9m at 28 November 2010 (2009: £84.8m). Net cash including term investments amounted to £55.2m (2009: £48.5m), the improvement in our cash position reflecting the net impact of the profitability of the Group and the improved management of working capital during the year.
Tangible fixed asset capital expenditure amounted to £2.8m (2009: £2.7m), relating to investment in IT hardware and the fit out of new offices. Intangible asset additions, primarily relating to IT software purchases and development costs, increased to £2.9m (2009: £2.1m). Total capital expenditure is planned to be slightly ahead of these levels in 2011, as the business continues its office opening programme and invests further in establishing an infrastructure to support the globalising business.
As a result of the Group gross profit growing in H2 by 18.4% year on year to £92.2m (2009 H2: £77.9m), net trade debtors increased by £4.8m to £63.1m (2009: £58.3m) representing DSO's of 37 days (2009: 37 days) and total trade and other payables increased from £76.1m to £86.2m.
Cash Flow
At the start of the year the Group had net cash of £48.5m (including assets held to maturity of £3.2m). During the year, the Group generated cash from operating activities of £31.8m (2009: £63.7m). In 2009, the Group benefitted from a reduction in the working capital funding of the reduced contractor book. This is now partially reversing, as our contractor book grows. Income taxes paid reduced to £6.0m (2009: £18.3m).
During the year, the Group paid ordinary dividends of £14.4m (2009: £14.4m) and dividends to Minority Interest participants of £1.0m (2009: £0.1m). The Group also invested £3.5m in an A rated Unbreakable Enhanced Fixed Rate Deposit with a maturity of less than 6 months at year end.
At 28 November 2010 the Group had net cash of £55.2m (including assets held to maturity of £3.5m).
The Group has a committed invoice discounting facility of £20m with Royal Bank of Scotland Invoice Finance ("RBS") which expires in April 2012. The Group is not currently drawing down against this facility.
Treasury Management and Currency Risk
The main functional currencies of the Group are Sterling and the Euro. The Group has significant operations outside the United Kingdom and as such is exposed to movements in exchange rates.
The Board has undertaken a review of its currency hedging strategy to ensure that it is appropriate and currently the Group does not actively manage its exposure to foreign exchange risk by the use of financial instruments. The impact of foreign exchange will become a more significant issue for the Group as we expect the business mix to move further towards International, with the International business accounting for 60% of gross profit in 2010 (2009: 55%). The Group will continue to monitor its policies in this area.
Other Principal Risks and Uncertainties affecting the Business
Other principal risks and uncertainties affecting the business activities of the Group are detailed within the Directors' Report section of the Annual Report for the year ended 28 November 2010, a copy of which will be made available on the Company's website at www.sthree.com. In terms of macro economic environment risks, as previously stated, our strategy is to continue to grow the size of our international business in both financial terms and geographic coverage in order to reduce the Group's exposure or dependence on any one specific economy, although a downturn in a particular market could adversely impact the Group's business. In the view of the Board, there is no material change expected to the Group's key risk factors in the foreseeable future.
Our strong balance sheet and net cash give us the confidence to maximise the opportunities that lie ahead.
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SThree plc |
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Consolidated statement of comprehensive income |
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Year ended 28 November 2010 |
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28 November |
29 November |
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2010 |
2009 |
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Note |
£'000 |
£'000 |
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Revenue |
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2 |
474,451 |
519,372 |
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Cost of sales |
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(308,083) |
(348,217) |
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Gross profit |
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2 |
166,368 |
171,155 |
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Administrative expenses |
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3 |
(145,152) |
(162,209) |
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Operating profit |
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21,216 |
8,946 |
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Finance income |
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451 |
359 |
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Finance cost |
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(18) |
(378) |
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Profit before taxation |
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21,649 |
8,927 |
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Analysed as: |
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Underlying profit before exceptional items |
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21,649 |
17,977 |
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One-off exceptional items |
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- |
(9,050) |
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21,649 |
8,927 |
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Taxation |
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4 |
(7,366) |
(2,965) |
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Profit for the year |
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14,283 |
5,962 |
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Other comprehensive income |
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Exchange differences on retranslation of foreign operations |
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(3,603) |
243 |
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Deferred tax on employee share options |
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258 |
620 |
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Current tax on employee share options |
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155 |
1,042 |
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Employee share awards |
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1,347 |
1,630 |
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Other comprehensive income for the period (net of tax) |
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(1,843) |
3,535 |
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Total comprehensive income for the period |
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12,440 |
9,497 |
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Profit for the year attributable to: |
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Equity holders of the Company |
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14,216 |
4,798 |
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Non-controlling interest |
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67 |
1,164 |
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14,283 |
5,962 |
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Total comprehensive income attributable to: |
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Owners of the parent |
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12,299 |
9,339 |
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Non-controlling interest |
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141 |
158 |
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12,440 |
9,497 |
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Earnings per share |
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6 |
pence |
pence |
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Basic before exceptional items |
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11.9 |
9.5 |
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Diluted before exceptional items |
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11.5 |
9.2 |
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Basic after exceptional items |
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11.9 |
4.0 |
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Diluted after exceptional items |
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11.5 |
3.9 |
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All amounts relate to continuing operations. |
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SThree plc |
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Consolidated statement of financial position |
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As at 28 November 2010 |
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28 November |
29 November |
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2010 |
2009 |
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Note |
£'000 |
£'000 |
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Assets |
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Non-current assets |
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Property, plant and equipment |
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5,447 |
5,398 |
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Intangible assets |
|
10,161 |
10,899 |
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Deferred tax assets |
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8,670 |
5,515 |
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|
24,278 |
21,812 |
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Current assets |
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Trade and other receivables |
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97,935 |
93,229 |
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Current tax assets |
|
- |
3,309 |
|
|
Cash and cash equivalents |
7 |
51,718 |
45,272 |
|
|
Assets classified as held-to-maturity |
|
3,500 |
3,203 |
|
|
|
|
153,153 |
145,013 |
|
|
|
|
|
|
|
|
Total assets |
|
177,431 |
166,825 |
|
|
|
|
|
|
|
|
Equity and Liabilities |
|
|
|
|
|
Equity attributable to the owners of the parent |
|
|
|
|
|
|
|
|
|
|
|
Share capital |
|
1,218 |
1,218 |
|
|
Share premium |
|
2,925 |
2,925 |
|
|
Capital redemption reserve |
|
168 |
168 |
|
|
Capital reserve |
|
878 |
878 |
|
|
Currency translation reserve |
|
(1,328) |
2,416 |
|
|
Retained earnings |
|
78,057 |
72,562 |
|
|
|
|
81,918 |
80,167 |
|
|
Non-controlling interest |
|
- |
4,650 |
|
|
|
|
|
|
|
|
Total equity |
|
81,918 |
84,817 |
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Provisions for liabilities and charges |
|
1,354 |
2,889 |
|
|
|
|
1,354 |
2,889 |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Provisions for liabilities and charges |
|
4,237 |
3,063 |
|
|
Trade and other payables |
|
86,150 |
76,056 |
|
|
Current tax liabilities |
|
3,772 |
- |
|
|
|
|
94,159 |
79,119 |
|
|
Total liabilities |
|
95,513 |
82,008 |
|
|
|
|
|
|
|
|
Total equity and liabilities |
|
177,431 |
166,825 |
|
|
SThree plc |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated statement of changes in equity |
|
|
|
|
|
|
|
|
|
|
|
Year ended 28 November 2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share |
Share |
Capital |
Capital |
Currency |
Retained |
Attributable to owners of the parent |
Non-controlling interest |
Total |
|
|
|
|||||||||
|
|
|
|||||||||
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 30 November 2008 |
1,218 |
2,925 |
168 |
878 |
2,331 |
78,906 |
86,426 |
4,147 |
90,573 |
|
|
Exchange differences on retranslation of foreign operations |
- |
- |
- |
- |
85 |
- |
85 |
158 |
243 |
|
|
Deferred tax on employee share options |
- |
- |
- |
- |
- |
620 |
620 |
- |
620 |
|
|
Current tax on employee share options |
- |
- |
- |
- |
- |
1,042 |
1,042 |
- |
1,042 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income recognised directly in equity |
- |
- |
- |
- |
85 |
1,662 |
1,747 |
158 |
1,905 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year to 29 November 2009 |
- |
- |
- |
- |
- |
4,798 |
4,798 |
1,164 |
5,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total recognised income and expense for the period |
- |
- |
- |
- |
85 |
6,460 |
6,545 |
1,322 |
7,867 |
|
|
Issue of share capital to non-controlling interest |
- |
- |
- |
- |
- |
- |
- |
160 |
160 |
|
|
Repurchase of non-controlling interest |
- |
- |
- |
- |
- |
- |
- |
(898) |
(898) |
|
|
Dividends paid to equity holders |
- |
- |
- |
- |
- |
(14,434) |
(14,434) |
- |
(14,434) |
|
|
Dividends paid to non-controlling interest |
- |
- |
- |
- |
- |
- |
- |
(81) |
(81) |
|
|
Employee share award |
- |
- |
- |
- |
- |
1,630 |
1,630 |
- |
1,630 |
|
|
Total movements in equity |
- |
- |
- |
- |
85 |
(6,344) |
(6,259) |
503 |
(5,756) |
|
|
Balance at 29 November 2009 |
1,218 |
2,925 |
168 |
878 |
2,416 |
72,562 |
80,167 |
4,650 |
84,817 |
|
|
Exchange differences on retranslation of foreign operations |
- |
- |
- |
- |
(3,744) |
- |
(3,744) |
141 |
(3,603) |
|
|
Deferred tax on employee share options |
- |
- |
- |
- |
- |
258 |
258 |
- |
258 |
|
|
Current tax on employee share options |
- |
- |
- |
- |
- |
155 |
155 |
- |
155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income recognised directly in equity |
- |
- |
- |
- |
(3,744) |
413 |
(3,331) |
141 |
(3,190) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year 28 November 2010 |
- |
- |
- |
- |
- |
14,216 |
14,216 |
67 |
14,283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total recognised income and expense for the period |
- |
- |
- |
- |
(3,744) |
14,629 |
10,885 |
208 |
11,093 |
|
|
Dividends paid to equity holders |
- |
- |
- |
- |
- |
(14,369) |
(14,369) |
- |
(14,369) |
|
|
Dividends paid to non-controlling interest |
- |
- |
- |
- |
- |
- |
- |
(970) |
(970) |
|
|
Employee share award |
- |
- |
- |
- |
- |
1,347 |
1,347 |
- |
1,347 |
|
|
Loss on disposal of non-controlling interest net assets |
- |
- |
- |
- |
- |
(52) |
(52) |
52 |
- |
|
|
Transfer to reserves non-controlling interest net assets |
- |
- |
- |
- |
- |
3,940 |
3,940 |
(3,940) |
- |
|
|
Total movements in equity |
- |
- |
- |
- |
(3,744) |
5,495 |
1,751 |
(4,650) |
(2,899) |
|
|
Balance at 28 November 2010 |
1,218 |
2,925 |
168 |
878 |
(1,328) |
78,057 |
81,918 |
- |
81,918 |
|
|
SThree plc |
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statement of cash flows |
|
|
|
|
|
Year ended 28 November 2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28 November |
29 November |
|
|
|
|
2010 |
2009 |
|
|
|
Note |
£'000 |
£'000 |
|
|
|
|
|
|
|
|
Profit before taxation |
|
21,649 |
8,927 |
|
|
Depreciation and amortisation charge |
|
6,313 |
6,128 |
|
|
Goodwill recognised in the statement of comprehensive income |
- |
(237) |
|
|
|
Loss on disposal of investments |
|
- |
478 |
|
|
Finance income |
|
(451) |
(359) |
|
|
Finance cost |
|
18 |
378 |
|
|
Loss on disposal of property, plant and equipment |
|
110 |
1,107 |
|
|
Loss on disposal of intangible assets |
|
1 |
355 |
|
|
Non-cash charge for employee share options |
|
|
|
|
|
|
1,656 |
1,448 |
|
|
|
|
|
|
|
|
|
Operating cashflow before changes in |
|
|
|
|
|
|
29,296 |
18,225 |
|
|
|
(Increase)/decrease in receivables |
|
(3,652) |
50,952 |
|
|
Increase/(decrease) in payables |
|
9,746 |
(7,704) |
|
|
(Decrease)/increase in provisions |
|
(3,625) |
2,011 |
|
|
Cash flows from operating activities |
|
|
|
|
|
Cash generated from operating activities |
|
31,765 |
63,484 |
|
|
Income tax (paid)/received |
|
(5,958) |
(18,267) |
|
|
|
|
|
|
|
|
Net cash generated from operating activities |
25,807 |
45,217 |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
Purchase of property, plant and equipment |
|
(2,836) |
(2,726) |
|
|
Purchase of intangible assets |
|
(2,922) |
(2,128) |
|
|
Sale of held-to-maturity investment |
|
3,203 |
- |
|
|
Purchase of held-to-maturity investment |
|
(3,500) |
(3,203) |
|
|
Proceeds from disposal of investments |
|
- |
40 |
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
(6,055) |
(8,017) |
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
Finance income |
|
451 |
359 |
|
|
Finance cost |
|
(18) |
(378) |
|
|
Employee subscription for share awards |
|
435 |
182 |
|
|
Issue of share capital of subsidiary companies to non-controlling interest |
|
34 |
10 |
|
|
Repurchase of non controlling interest |
|
- |
(1,371) |
|
|
Dividends paid to equity holders |
|
(14,369) |
(14,434) |
|
|
Dividends paid to non controlling interest |
|
(970) |
(81) |
|
|
|
|
|
|
|
|
Net cash used in financing activities |
|
(14,437) |
(15,713) |
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents |
|
5,315 |
21,487 |
|
|
Cash and cash equivalents at the beginning of the year |
|
45,272 |
24,584 |
|
|
Effect of exchange rate changes |
|
1,131 |
(799) |
|
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the year |
7 |
51,718 |
45,272 |
Notes to the Financial Information
Year ended 28 November 2010
These financial statements have been prepared in accordance with International Financial Reporting Standards ('IFRSs') as issued by the International Accounting Standards Board ('IASB'), International Financial Reporting Interpretations Committee ('IFRIC') interpretations and Standing Interpretations Committee ('SIC') interpretations as adopted and endorsed by the European Union ('EU') and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. Therefore the Group financial statements comply with Article 4 of the EU International Accounting Standards Regulation.
2. Segmental analysis
IFRS 8 requires management to apply the 'management approach' to segmental reporting. This requires management to determine those segments whose operating results are reviewed regularly by the entity's chief operating decision maker to make strategic decisions and assess sector performance.
Revenue and Gross Profit by reportable segment
Management has determined the chief operating decision maker to be the Executive Committee. Operating segments have been identified based on reports reviewed by the Executive Committee, which considers the business primarily from the geographic perspective.
The Group's management reporting and controlling systems use accounting polices that are the same as those described in note 1 in the summary of significant accounting policies under IFRS.
The Group measures the performance of its operating segments through a measure of segment profit or loss which is referred to as "Gross Profit" in the management and reporting system. Gross Profit is the measure of segment profit/(loss) used in segment reporting and comprises revenue and cost of sales.
Intersegment revenue is recorded at values which approximate third party selling prices and is not significant.
|
|
United Kingdom |
|
|
|
|
|
|
|
|
|
|
|
|
|
28 November |
29 November |
|
|
|
|
|
|
|
2010 |
2009 |
|
|
|
|
|
|
|
£'000 |
£'000 |
|
|
|
|
|
|
|
|
|
|
|
Revenue from external customers |
|
|
|
224,337 |
271,248 |
|
|
|
Gross Profit |
|
|
|
66,820 |
76,939 |
|
|
|
Total Assets |
|
|
|
118,099 |
130,518 |
|
|
|
Total Liabilities |
|
|
|
62,496 |
59,405 |
|
|
|
Capital Expenditure |
|
|
|
4,751 |
3,411 |
|
|
|
|
|
|
|
|
|
|
|
|
Continental Europe |
|
|
|
|
|
|
|
|
|
|
|
|
|
28 November |
29 November |
|
|
|
|
|
|
|
2010 |
2009 |
|
|
|
|
|
|
|
£'000 |
£'000 |
|
|
|
|
|
|
|
|
|
|
|
Revenue from external customers |
|
|
|
226,694 |
239,406 |
|
|
|
Gross Profit |
|
|
|
82,213 |
86,762 |
|
|
|
Total Assets |
|
|
|
46,115 |
27,767 |
|
|
|
Total Liabilities |
|
|
|
31,397 |
20,957 |
|
|
|
Capital Expenditure |
|
|
|
611 |
918 |
|
|
|
|
|
|
|
|
|
|
|
|
Rest of the World |
|
|
|
|
|
|
|
|
|
|
|
|
|
28 November |
29 November |
|
|
|
|
|
|
|
2010 |
2009 |
|
|
|
|
|
|
|
£'000 |
£'000 |
|
|
|
|
|
|
|
|
|
|
|
Revenue from external customers |
|
|
|
23,420 |
8,718 |
|
|
|
Gross Profit |
|
|
|
17,335 |
7,454 |
|
|
|
Total Assets |
|
|
|
13,217 |
8,540 |
|
|
|
Total Liabilities |
|
|
|
1,620 |
1,646 |
|
|
|
Capital Expenditure |
|
|
|
396 |
525 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
28 November |
29 November |
|
|
|
|
|
|
|
2010 |
2009 |
|
|
|
|
|
|
|
£'000 |
£'000 |
|
|
|
|
|
|
|
|
|
|
|
Revenue from external customers |
|
|
|
474,451 |
519,372 |
|
|
|
Gross Profit |
|
|
|
166,368 |
171,155 |
|
|
|
Total Assets |
|
|
|
177,431 |
166,825 |
|
|
|
Total Liabilities |
|
|
|
95,513 |
82,008 |
|
|
|
Capital Expenditure |
|
|
|
5,758 |
4,854 |
|
|
|
|
|
|
|
|
|
|
|
|
The following segmental analyses by brand, recruitment classification and discipline (being the profession of candidates placed) have been included as additional disclosure to the requirements of IFRS 8 'Operating Segments'. |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
Gross profit |
||
|
|
|
|
|
28 November |
29 November |
28 November |
29 November |
|
|
|
|
|
2010 |
2009 |
2010 |
2009 |
|
|
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
|
|
|
|
|
Brand |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Progressive |
|
133,780 |
132,461 |
45,416 |
41,918 |
|
|
|
Huxley Associates |
|
125,843 |
132,670 |
44,892 |
44,839 |
|
|
|
Computer Futures Solutions |
|
111,875 |
149,247 |
37,745 |
51,526 |
|
|
|
Real Staffing Group |
|
98,938 |
101,679 |
34,300 |
29,557 |
|
|
|
Others |
|
4,015 |
3,315 |
4,015 |
3,315 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
474,451 |
519,372 |
166,368 |
171,155 |
|
|
|
|
|
|
|
|
|
|
|
Recruitment classification |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract |
|
392,803 |
447,077 |
84,954 |
98,816 |
|
|
|
Permanent |
|
81,648 |
72,295 |
81,414 |
72,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
474,451 |
519,372 |
166,368 |
171,155 |
|
|
|
|
|
|
|
|
|
|
|
Discipline |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Information & communication technology |
341,484 |
411,761 |
102,610 |
122,612 |
||
|
|
Others(1) |
|
132,967 |
107,611 |
63,758 |
48,543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
474,451 |
519,372 |
166,368 |
171,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Including engineering and energy, banking, accountancy and finance, pharmaceuticals and jobboard sectors. |
||||||
|
|
|||||||
3. Administrative expenses
Exceptional items are those items which, because of their size, incidence or nature, are separately disclosed to give a proper understanding of the underlying results for the period. Items classified as exceptional are as follows:
|
|
|
|
|
|
|
28 November |
29 November |
|
|
|
|
|
|
|
2010 |
2009 |
|
|
|
|
|
|
|
£'000 |
£'000 |
|
|
Exceptional items - charged to operating profit |
|
|
|
|||
|
|
Corporate and divisional restructuring |
|
|
- |
(9,050) |
||
|
|
|
|
|
|
|
|
|
|
|
Exceptional items - before taxation |
|
|
- |
(9,050) |
||
|
|
|
|
|
|
|
|
|
|
|
Corporate and divisional restructuring |
|
|
|
|
||
|
|
During the prior period, the Company announced a number of changes relating to corporate and divisional restructuring. The total cost of this restructuring including redundancy, relocation and consolidation of business, was considered exceptional by virtue of its size. The Group charged the restructuring cost incurred in the prior period to the statement of comprehensive income. |
||||||
|
|
|||||||
|
|
|
|
|
|
|
|
|
4. Taxation
(a) Analysis of tax charge for the year
|
|
|
|
|
|
|
|
28 November |
29 November |
|
|
|
|
|
|
|
|
2010 |
2009 |
|
|
|
|
|
|
|
|
£'000 |
£'000 |
|
|
Current taxation |
|
|
|
|
|
|
|
|
|
UK |
|
|
|
|
|
|
|
|
|
Corporation tax charged/(credited) at 28% (2009: 28%) on profits for the year |
|
|
|
|
|
|
|
|
|
|
|
|
|
9,195 |
4,732 |
||
|
|
Adjustments in respect of prior periods |
|
|
|
|
583 |
(1,447) |
|
|
|
Overseas |
|
|
|
|
|
|
|
|
|
Corporation tax charged/(credited) on profits for the year |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,274 |
1,725 |
||
|
|
Adjustments in respect of prior periods |
|
|
|
|
|
(768) |
(329) |
|
|
|
|
|
|
|
|
|
|
|
|
Total current tax charge |
|
|
|
|
10,284 |
4,681 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred taxation |
|
|
|
|
|
|
|
|
|
Origination and reversal of temporary differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,862) |
(3,401) |
||
|
|
Adjustments in respect of prior periods |
|
|
|
|
992 |
2,079 |
|
|
|
Schedule 23 deferred tax credit in respect of unexercised employee share awards and options |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
(48) |
(394) |
||
|
|
|
|
|
|
|
|
|
|
|
|
Total deferred tax (credit)/charge |
|
|
|
|
(2,918) |
(1,716) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income tax charge in the statement of comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
7,366 |
2,965 |
||
|
|
|
|
|
|
|
|
|
|
|
|
(b) Reconciliation of the effective tax rate |
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
The Group's tax charge for the year ended 28 November 2010 exceeds the UK statutory rate and can be reconciled as follows: |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
28 November |
29 November |
|
||||||||
|
|
|
|
|
|
2010 |
2009 |
|
||||||||
|
|
|
|
|
|
£'000 |
% |
£'000 |
% |
|
||||||
|
|
Profit before taxation |
|
|
21,649 |
|
8,927 |
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Profit before tax multiplied by standard rate of corporation tax in the UK |
|
|
6,062 |
28% |
2,500 |
28% |
|
|||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Effects of: |
|
|
|
|
|
|
|
|||||||
|
|
Disallowable items and other timing differences |
|
|
80 |
- |
59 |
1% |
|
|||||||
|
|
Differing tax rates on overseas earnings |
|
|
376 |
2% |
103 |
1% |
|
|||||||
|
|
Adjustments to tax in respect of previous periods |
|
807 |
4% |
303 |
3% |
|
||||||||
|
|
Adjustment due to UK tax rate change |
|
|
41 |
- |
- |
- |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Tax expense and effective tax rate |
|
|
7,366 |
34% |
2,965 |
33% |
|
|||||||
|
|
(c) Current and deferred tax movement recognised directly in equity |
|
|
|
||||||
|
|
|
|
|
|
|
28 November |
29 November |
|||
|
|
|
|
|
|
|
|
2010 |
2009 |
||
|
|
|
|
|
|
|
|
£'000 |
£'000 |
||
|
|
|
|
|
|
|
|
|
|
||
|
|
Current tax |
|
|
|
|
|
|
|||
|
|
Equity settled employee share options |
|
|
|
|
155 |
1,042 |
|||
|
|
|
|
|
|
|
|
|
|
||
|
|
Deferred tax |
|
|
|
|
|
|
|||
|
|
Equity settled employee share options |
|
|
|
|
258 |
620 |
|||
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
413 |
1,662 |
||
|
|
|
|
|
|
|
|
|
|
||
|
|
The Group expects to receive additional tax deductions in respect of the share awards and share options currently unexercised. Under IFRS the Group is required to provide for deferred tax on all unexercised share awards and options. At 28 November 2010 a deferred tax asset of £2.1m (2009: £1.8m) has been recognised in respect of these options. |
|||||||||
|
|
||||||||||
5. Dividends
|
|
|
|
|
|
|
|
28 November |
29 November |
|
|
|
|
|
|
|
|
2010 |
2009 |
|
|
|
|
|
|
|
|
£'000 |
£'000 |
|
|
Amounts recognised and distributed to shareholders in the year |
|
|
|
||||
|
|
Equity |
|
|
|
|
|
|
|
|
|
Interim dividend of 4.0p (2009: 4.0p) per ordinary share |
|
|
4,782 |
4,738 |
|||
|
|
Second interim dividend of 8.0p (2009: nil) per ordinary share |
|
9,587 |
- |
||||
|
|
Final dividend of nil (2009: 8.0p) per ordinary share |
|
|
|
- |
9,696 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,369 |
14,434 |
|
|
|
|
|
|
|
|
|
|
|
|
Amounts proposed |
|
|
|
|
|
|
|
|
|
Interim dividend of 4.0p (2009: 4.0p) per ordinary share for the period ended 30 May 2010 |
4,797 |
4,782 |
|||||
|
|
Second interim dividend of nil (2009: 8.0p) per ordinary share for the year ended 28 November 2010 |
- |
9,544 |
|||||
|
|
Final dividend of 8.0p (2009: nil) per ordinary share for the year ended 28 November 2010 |
9,594 |
- |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
An interim dividend of 4.0 pence (2009: 4.0 pence) per ordinary share for the six months ended 31 May 2009 was paid on 4 December 2009 to shareholders on record at 6 November 2009. |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended 29 November 2009, instead of a final dividend, a second interim dividend of 8.0 pence per ordinary share was paid on 31 March 2010, to shareholders on record at 26 February 2010. |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
An interim dividend of 4.0 pence (2009: 4.0 pence) per ordinary share for the six months ended 30 May 2010 was paid on 3 December 2010 to shareholders on record at 5 November 2010. |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
The Board propose a final dividend of 8.0 pence per ordinary share for the year ended 28 November 2010 (2009: nil), to be paid on 6 June 2011 to shareholders on record at 6 May 2011. |
|||||||
6. Earnings per share
The calculation of the basic and diluted earnings per share ('EPS') is based on the following data.
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the year, excluding those held in the EBT which are treated as cancelled.
For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of dilutive potential ordinary shares.
|
|
|
|
|
|
|
28 November |
29 November |
|
|
|
|
|
|
|
2010 |
2009 |
|
|
|
|
|
|
|
£'000 |
£'000 |
|
|
|
|
|
|
|
|
|
|
|
Earnings |
|
|
|
|
|
|
|
|
Profit after taxation excluding exceptional items |
|
|
14,283 |
12,438 |
||
|
|
Non controlling interest |
|
|
|
(67) |
(1,164) |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted profit for the year attributable to the equity holders of the Company excluding exceptional items |
14,216 |
11,274 |
||||
|
|
Effect of exceptional items (net of tax) |
|
|
- |
(6,476) |
||
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation attributable to equity holders of the Company |
14,216 |
4,798 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
millions |
millions |
|
|
Number of shares |
|
|
|
|
|
|
|
|
Weighted average number of shares used for basic EPS |
|
119.9 |
118.7 |
|||
|
|
Dilutive effect of share plans |
|
|
|
3.9 |
3.8 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average number of shares used for diluted EPS |
|
123.8 |
122.5 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
pence |
pence |
|
|
Basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
|
|
11.9 |
4.0 |
|
|
|
Adjusted basic earnings per share excluding exceptional items |
|
11.9 |
9.5 |
|||
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
|
|
|
11.5 |
3.9 |
|
|
|
Adjusted diluted earnings per share excluding exceptional items |
|
11.5 |
9.2 |
|||
7. Cash and cash equivalents
|
|
|
|
|
|
28 November |
29 November |
|
|
|
|
|
|
|
2010 |
2009 |
|
|
|
|
|
|
|
£'000 |
£'000 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash in hand and at bank |
|
|
51,718 |
45,272 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
51,718 |
45,272 |
|
|
|
|
|
|
|
|
|
|
|
|
Due to the Group pooling arrangement, an overdraft amount of £0.4m (2009: £nil) in SThree plc is netted out against cash balance in Group companies. |
||||||
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
Included within cash and cash equivalents is £0.8m (2009: £0.4m) against which the Group has issued cash collaterised bank guarantees. This amount is not immediately available for use in the business. |
||||||
|
|
|||||||
|
|
|
|
|
|
|
|
|
8. Group reorganisation
During the current year, the Group further rationalised its structure by undertaking mergers and other legal restructuring steps, some of which will not formally take effect until into 2011. This followed on from the reorganisation started in the prior year, where two new holding companies were incorporated, namely, SThree UK Holdings Limited and SThree Overseas Holdings Limited. These holding companies either incorporated or purchased the share capital of a number of UK and overseas subsidiaries in a share for share exchange and this had no effect on the net assets of the Group. Non-controlling interests remain in respect of three companies at the year end. The aggregate profit and net assets attributable to these non-controlling interest holders has not been separately recognised in the financial statements on the basis of materiality.
9. Financial in formation
The financial information in this preliminary announcement which comprises the Consolidated statement of comprehensive income, Consolidated statement of changes in equity, Consolidated statement of financial position, Consolidated statement of cash flows and related Notes is derived from the full Group financial statements for the year ended 28 November 2010 and does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006.
The auditors have reported on the Group's statutory accounts for the year ended 28 November 2010 under s495 of the Companies Act 2006, which do not contain statements under s498(2) or s498(3) of the Companies Act 2006 and are unqualified. The Group's statutory accounts for the year ended 29 November 2009 have been delivered to the Registrar of Companies and the Group's statutory accounts for the year ended 28 November 2010 will be filed with the Registrar of Companies in due course.
10. Annual Report and Accounts and Annual General Meeting
The 2010 Annual Report and Accounts and Notice of 2011 Annual General Meeting will be posted to shareholders shortly. Copies will be available on the Company's website www.sthree.com or from the Company Secretary, 215 Great Portland Street, London, W1W 5PN. The Annual General Meeting of SThree plc is to be held on 21 April 2011.