1 2013 INTERIM RESULTS Presented by: Spencer Manual (CEO) Jon Plassard (CFO)
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Transcript of 1 2013 INTERIM RESULTS Presented by: Spencer Manual (CEO) Jon Plassard (CFO)
1
2013 INTERIM RESULTSPresented by:Spencer Manual (CEO)
Jon Plassard (CFO)
CORPORATE BACKGROUND
2
Established in 2000 as an International Telecoms Recruiter
AIM listing in 2006
Acquired MSB in 2006
Acquired The Comms Group in 2009
Employs c. 370 people, with 45% of total staff located in overseas offices (over 50% of fee earners)
International Exposure: Over 70% Net Fee Income generated outside of the UK
CURRENT SITUATION
3
Three main business streams:
- Mobile Telecoms - Specialist IT - Energy
Growing network of international offices
Loyal and diverse ‘Blue Chip’ customer base
Impressive profit history
Progressive dividend policy
Strong balance sheet, good cash flow and margins
Specialist International staffing company:
MARKET BACKGROUND
4
Emerging market investments (Telco,IT,Energy)
Increasing demand for data (IT, Telco)
Technology developing faster than skills trained (Telco, IT, Energy)
Infrastructure improvements to cope with increased demand (Telco, IT, Energy)
O&M and product development (Telco, IT, Energy)
Networkers has capitalised upon international skills shortage within its core sectors
5
INTERNATIONAL NETWORK 2013
Global Headcount
Jun 2013
Jun 2012
Sales 269 274
Non Sales 101 102
370 376
6
GLOBAL HEADCOUNT BY LOCATION
7
6m June2013
£’000
6m Jun2012
£’000
12m Dec2012
£’000
Turnover 79,417 90,622 170,673
Gross profit 14,667 15,887 30,788
Gross margin % 18.5% 17.5% 18.0%
GP Growth -7.7% 16.7% 1.6%
Administrative expenses 11,226 12,295 23,498
Earnings before interest, tax and amortisation 3,441 3,592 7,290
Conversion ratio % 23.7% 22.6% 23.7%
Amortisation (111) (159) (340)
Net finance expenses (106) (143) (269)
Litigation costs / provision (114) - (1,000)
Profit before taxation 3,110 3,290 5,681
Adjusted EPS 2.43p 2.34p 4.70p
EPS growth 3.85% 16.42% 11.4%
INCOME & EXPENDITURE ACCOUNT
8
ASSETS30 Jun 13
£’00030 Jun 12
£’00031 Dec 12
£’000Non current assetsIntangible assets 5,783 5,952 5,761
Other non current assets 1,726 1,097 1,6537,509 7,049 7,414
Current assetsTrade receivables and other assets 37,466 37,726 34,470
Cash & cash equivalents 2,725 2,559 2,197
40,091 40,285 36,667
Total Assets 47,700 47,334 44,081LIABILITIESCurrent liabilitiesTrade payables and other liabilities (16,509) (17,143) (13,401) Loans and borrowings (8,605) (8,471) (9,092)
(25,114) (25,614) (22,493)
Non current liabilities (1,854) (280) (1,867)
Total Liabilities (26,968) (25,894) (24,360) NET ASSETS 20,732 21,440 19,721
BALANCE SHEET
9
6m to30 June 13
£’000
6m to30 June 12
£’000
Year to31 Dec 12
£’000
Cash generated from operations 3,806 5,846 9,295
Income taxes paid (1,100) (1,793) (3,311)
Net interest (106) (143) (269)
Capital expenditure (188) (69) (303)
Payments to acquire MI / Subsidiary (442) - -
Effects of exchange rate changes (120) (229) (293)
Cash flow before financing and distribution to shareholders 1,850 3,612 5,119
Financing / (repayment) incl. ID (487) (2,704) (2,083)
Dividends paid (539) (543) (1,074)
Purchase of treasury shares (net of share issues) (296) 70 (1,889)
Increase / (decrease) in cash 528 435 73
CASH FLOW
5 YEAR SEQUENTIAL SUMMARY
10
H1 2009
H2 2009
H1 2010
H2 2010
H1 2011
H2 2011
H1 2012
H2 2012
H1 2013
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
*Underlying pre-tax profit (£000's)
£000
's
H1 2009
H2 2009
H1 2010
H2 2010
H1 2011
H2 2011
H1 2012
H2 2012
H1 2013
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Net Fee Income (£000's)
H1 2009
H2 2009
H1 2010
H2 2010
H1 2011
H2 2011
H1 2012
H2 2012
H1 2013
0.000
0.150
0.300
0.450
0.600
0.750
DPS (pence)
11
5 YEAR SEQUENTIAL SUMMARY
3.9x
4.5x
3.4x
H1 2009
H2 2009
H1 2010
H2 2010
H1 2011
H2 2011
H1 2012
H2 2012
H1 2013
0.00
0.50
1.00
1.50
2.00
2.50
EPS (pence)
NET FEE INCOME BY SECTOR
12
H1 2009 H2 2009 H1 2010 H2 2010 H1 2011 H2 2011 H1 2012 H2 2012 H1 2013
IT 48% 43% 42% 45% 36% 37% 34% 42% 36%
Telecoms 46% 50% 52% 48% 56% 58% 58% 51% 52%
E&E 2% 3% 3% 7% 5% 5% 6% 7% 11%
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000£0
00's
Other
E&E
Telecoms
IT
GROSS PROFIT MARGIN TREND
13
H1 2010 H2 2010 H1 2011 H2 2011 H1 2012 H2 2012 H1 20130.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Gross Margin %
GEOGRAPHICAL ANALYSIS
14
H1 2013
UK30%
EANA18%
Sub Saharan Africa,
14%
Asia, 11%,
Americas, 22%
Middle East, 6%
H1 2012
UK28%
EANA19%
Sub Saharan Africa, 14%
Asia, 18%
Americas, 15%
Middle East, 6%
CURRENT TRADING
15
Permanent international recruitment continues to perform well across all divisions (Telco, IT and Energy & Engineering)
International Telecoms remain stable
Specialist IT markets improved, particularly in UK
Energy & Engineering division continues to perform well
On track for an improved H2, in line with management expectations
STRATEGIC DIRECTION
16
Build a major, international staffing business focussed on high margins and barriers to entry:
- Mobile Telecoms- Specialist IT- Energy
Exploit dominant position in Telecoms when 4G rolls out globally
Continue growth of Specialist IT and Energy overseas
Enlarge teams in existing offices / open new offices
Bolt on acquisition in specific markets, in particular specialist IT and Energy
APPENDICES
BOARD OF DIRECTORS
18
Spencer Manuel CEO
Jonathan Plassard CFO & COO
Roger Goodman Non Executive Chairman
Nigel Wray Non Executive Director
Lord William Astor Non Executive Director
19
SHAREHOLDERS: SEPTEMBER 2013
Total shares in issue: 82,810,269
\
Directors53%
Staff and Major Shareholders
16%
Others31%
Shareholders: Sep 2013
20
Disclaimer
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