FDM Group (Holdings) plc

Interim Results

FDM Group (Holdings) plc ("the Company") and its subsidiaries (together "the Group" or "FDM"), today announces its results for the six months ended 30 June 2023.

 

	30 June 2023	30 June 2022	% change
Revenue	£179.9m	£152.8m	+18%
Adjusted operating profit1	£25.5m	£25.1m	+2%
Profit before tax	£29.8m	£22.2m	+34%
Adjusted profit before tax1	£26.0m	£25.0m	+4%
Basic earnings per share	19.7p	15.6p	+26%
Adjusted basic earnings per share1	16.8p	17.6p	-5%
Cash flows generated from operations	£24.3m	£16.8m	+45%
Cash conversion2	83%	75%	+11%
Adjusted cash conversion2	95%	67%	+42%
Cash position at period end	£38.1m	£40.0m	-5%
Share-based payment (credit) / expense	-£3.8m	£2.8m	n/a
Effective income tax rate	27.5%	23.2%	+19%
Interim dividend per share	17.0p	17.0p	-%

 

·       Revenue increased by 18% to £179.9 million (2022: £152.8 million) and profit before tax increased by 34% to £29.8 million (2022: £22.2 million).   

·       After a good start to the year, market conditions weakened through the second quarter. Global macro-economic and geo-political uncertainty continues to disrupt the buying patterns of some clients.

·       Our flexible and scalable business model has allowed us to adjust recruitment, training and unallocated resource to better align the supply of Consultants with current demand.

·       Consultants assigned to clients at week 26³ were 2% lower than the corresponding period at 4,602 (30 June 2022: 4,703), (31 December 2022: 4,905).

·       UK Consultants assigned to clients at week 26³ were 1,743 (2022: 2,045); North America Consultants assigned to clients at week 26³ were 1,563 (30 June 2022: 1,405); EMEA Consultants assigned to clients at week 26³ were 359 (30 June 2022: 295); and APAC Consultants assigned to clients at week 26³ were 937 (30 June 2022: 958).

·       Consultant utilisation rate⁴ for the six months to 30 June 2023 was 93.4% (2022: 97.6%).

·       Training completions in the first half were 911 (2022: 1,584), reflecting changing market demand and the adjustments made as a result.

·       We secured 26 new clients globally (2022: 30), 18 of which were outside the financial services sector.

·       Profit before tax and earnings per share have increased by more than adjusted profit before tax and adjusted earnings per share, due to the share-based payment credit in the period, which resulted from a change in the adjusted earnings per share vesting performance assumptions with the outstanding awards now anticipated to vest at a lower quantum.

·       The effective income tax rate applied in 2023 was 27.5% (2022: 23.2%) primarily reflecting the impact of an increase in the UK corporation tax rate from 19% to 25% effective 1 April 2023.

·       We maintained a robust balance sheet, with £38.1 million cash at 30 June 2023 (2022: £40.0 million) and no debt.

·       Cash conversion was 83% during the first six months of 2023 (2022: 75%), adjusted cash conversion² was 95% (2022: 67%).

·       On 25 July 2023, the Board declared an interim dividend of 17.0 pence per ordinary share (2022: 17.0 pence), which will be payable on 13 October 2023 to shareholders on the register on 22 September 2023.

 

 

¹ The adjusted operating profit and adjusted profit before tax are calculated before Performance Share Plan credit (including social security costs) of £3.8 million (2022: expense of £2.8 million). The adjusted basic earnings per share is calculated before the impact of Performance Share Plan expense (including social security costs and associated deferred tax).

² Cash conversion is calculated by dividing cash flows generated from operations by operating profit. The adjusted cash conversion is calculated by dividing cash flow generated from operations by adjusted operating profit.

³ Week 26 in 2023 commenced on 26 June 2023 (2022: week 26 commenced on 27 June 2022).

⁴ Utilisation rate is calculated as the ratio of the cost of utilised Consultants to the total Consultant payroll cost. Prior to a first client assignment, in-training employees are classed as 'Trainees'.

 

Rod Flavell, Chief Executive Officer, commented:

"We delivered a resilient performance in the first half against a backdrop of uncertain market conditions, with some clients delaying and deferring decisions around budget commitment and Consultant placements. Our scalable and flexible business model has allowed us to take the appropriate measures to adjust recruitment, training and our unallocated resource to align more closely with the varying demand for our Consultants.

There remain structural and systemic skills-shortages in all the geographies in which we operate. While mindful of near-term pressures, levels of client engagement remain encouraging and we will ensure we are well placed to assist our clients in overcoming these shortages when market conditions improve.

We are focussed on delivering against our objectives, both short and medium term. We remain optimistic that there will be an improvement in client confidence as the second half progresses, and the Board anticipates that the Group's financial performance for the year as a whole will be broadly in line with its expectations."

 

Enquiries

For further information:

FDM	Rod Flavell - CEO Mike McLaren - CFO	0203 056 8240 0203 056 8240
Nick Oborne (financial public relations)		07850 127526

 

 

Forward-looking statements

 

This Interim Report contains statements which constitute "forward-looking statements". Although the Group believes that the expectations reflected in these forward-looking statements are reasonable at the time they are made, it can give no assurance that these expectations will prove to be correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. Subject to any requirement under the Disclosure Guidance and Transparency Rules or other applicable legislation, regulation or rules, the Group does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Neither shareholders nor prospective shareholders should place undue reliance on forward-looking statements, which speak only as of the date of this Interim Report.

 

We are FDM

FDM Group (Holdings) plc ("the Company" or "FDM") and its subsidiaries (together "the Group" or "FDM") form a global professional services provider with a focus on IT. Our mission is to bring people and technology together, creating and inspiring exciting careers that shape our digital future.

The Group's principal business activities involve recruiting, training and deploying its own permanent IT and business Consultants to clients, either on site or remotely. FDM specialises in a range of technical and business disciplines including Development, Testing, IT Service Management, Project Management Office, Data Engineering, Cloud Computing, Risk, Regulation and Compliance, Business Analysis, Business Intelligence, Cybersecurity, AI, Machine Learning and Robotic Process Automation.

The FDM Careers Programme bridges the gap for graduates, ex-Forces, returners to work and apprentices, providing the training and experience required to make a success of launching or relaunching their careers. We have dedicated training centres or sales operations, or combinations of the two located in London, Leeds, Glasgow, Limerick, New York NY, Charlotte NC, Austin TX, Tampa FL, Toronto, Montreal, Frankfurt, Kraków, Singapore, Hong Kong, Shanghai, Sydney and Melbourne. We also operate in Luxembourg, the Netherlands, Switzerland, Austria, Spain, South Africa, and New Zealand.

FDM is a strong advocate of diversity, equity and inclusion in the workplace and the strength of our brand arises from the talent within.

 

Interim Management Review

Overview

Against a backdrop of challenging market conditions, revenue for the six-month period ending 30 June 2023 was 18% higher (16% higher on a constant currency basis) at £179.9 million (2022: £152.8 million) and we delivered adjusted profit before tax for the first half of £26.0 million, up 4% on the equivalent period in 2022.

As reported at the Annual General Meeting in May, ongoing global macro-economic and geopolitical uncertainty, including the well-reported issues in the banking and finance sector, resulted in softer trading across our operating territories from the end of quarter one onward. While none of the Group's clients was directly affected by the issues that affected a small number of banking institutions, and we continue to anticipate that confidence in this sector will improve as the second half progresses, the Group saw a delay in some client decisions around Consultant placements. The number of Consultants placed with clients at week 26 was 4,602, 2% lower against the first half of 2022 and 6% lower since the 2022-year end.

Benefiting from FDM's scalable and flexible business model the Group took appropriate measures during the period to adjust recruitment, training and our unallocated resource to ensure better alignment of supply with the current demand for our Consultants. We delivered 911 training completions in the first half of the year (2022: 1,584), and are looking, both by territory and skill set, to carry the appropriate level of resource while remaining able to meet increased demand when market conditions improve.

We maintain our focus on cash management and cash collection, ending the six-month period with £38.1 million of cash and no debt (30 June 2022: £40.0 million of cash and no debt).

Strategy

FDM's strategy remains to deliver customer-led, sustainable, profitable growth on a consistent basis through our established business model.

(i)              Attract, train and develop high-calibre Consultants

The flexibility of our business model allowed us to better align recruitment and training during the second quarter to changing client demand. We therefore delivered a reduced 911 training completions in the first half of the year (2022: 1,584).

In all our markets there remain structural skills shortages which we are well placed to assist our clients in overcoming. The strength of our University Partner relationships and our Ex-Forces and Returners Programmes will enable us to increase recruitment and training when market conditions and client demand improve. We continued to generate a strong number of applications across all our operating locations with applicants seeking the benefits of FDM's market-leading, flexible training. We have an excellent pipeline of assessed candidates in all of our territories, looking to join our Academies as and when we see an uptick in market demand.

(ii)           Invest in leading-edge training capabilities

Our hybrid training model continues to offer high quality and flexible training that is attractive to our candidates. While we adjusted our training schedules during the period in response to client demand, our trainers were utilised providing training and re-skilling to our undeployed Consultants.

We are focussed on optimising both the appeal of our training programmes to candidates and of our Consultants to clients. Through our partnership with TechSkills, we have now achieved Tech Industry Gold standard accreditation for ten programmes with, in the first half, the Ex-Forces Advanced Course and the Returners (Business) Programme each accredited as Tech Industry Gold for delivery. Accreditation provides to candidates and clients external validation of FDM's programme content, delivery, approach and assessment.

(iii)          Grow and diversify our client base

We secured 26 new clients in the period (2022: 30), of which 14 were in the UK, 5 in North America, 4 in EMEA and 3 in APAC. Of these new clients, 18 were secured from outside the financial services sector. We continue to deliver the highest level of service to our clients and work closely with them to meet their requirements.

(iv)          Expand and consolidate our geographic presence

The expansion and consolidation of our geographic presence remains a key growth driver for the Group and, while the global macro-economic conditions have impacted trading across all our regions, Consultant headcount grew in North America and EMEA compared to 2022. We have a strong and experienced management team focussed on delivering sustainable growth across all our regions.

An overview of the financial performance and development in each of our markets is set out below.

Our Markets

UK

Revenue for the six-month period to 30 June 2023 increased by 1% to £69.7 million (2022: £68.8 million). Consultants deployed at week 26 were 1,743, a decrease of 15% from 2,045 at week 26 2022. Adjusted operating profit decreased by 21% to £12.2 million (2022: £15.5 million).

Revenue increased in the period while headcount decreased reflecting the phasing of the timing of the onboarding of our Consultants. The decrease in adjusted operating profit is a result of our maintaining a higher than typical number of undeployed Consultants and we incurred a full six-month impact of the increased Consultant salary packages which were introduced during the first half last year.

Uncertainty in the market impacted demand for new Consultants and we adjusted our training schedules accordingly, training 259 Consultants (2022: 526). New client activity continued and we gained 14 new clients in the period (2022: 21).

North America

Revenue for the six-month period to 30 June 2023 increased by 41% to £70.6 million (2022: £50.2 million), benefitting from the strong headcount growth during 2022. Consultants deployed at week 26 were 1,563, an increase of 11% from 1,405 at week 26 2022, which is lower than the percentage increase in revenue due to the phasing of headcount. Adjusted operating profit increased by 59% to £10.5 million (2022: £6.6 million) which is more than the percentage increase in revenue due to lower paid training costs arising in 2023 compared to 2022.

As in the UK, uncertainty in the market impacted demand for new Consultants and we have adjusted our training schedules accordingly, training 299 Consultants compared to 646 in the first half of 2022. During the period we gained 5 new clients (2022: 3).

EMEA (Europe, Middle East and Africa, excluding UK)

Revenue for the six-month period to f30 June 2023 increased by 31% to £12.2 million (2022: £9.3 million). Consultants deployed at week 26 were 359, an increase of 22% from 295 at week 26 2022. Adjusted operating profit increased by 8% to £1.3 million (2022: £1.2 million).

Headcount growth was driven by a strong performance in Ireland which grew headcount from 14 in June 2022 to 79 in June 2023. To support the increase in headcount in EMEA we trained 143 Consultants (2022: 73). We gained 4 new clients in the period (2022: 2).

APAC (Asia Pacific)

Revenue for the six-month period to 30 June 2023 increased by 12% to £27.4 million (2022: £24.5 million). Consultants deployed at week 26 were 937, a decrease of 2% from 958 at week 26 2022. Adjusted operating profit decreased by 17% to £1.5 million (2022: £1.8 million) as a result of our maintaining a higher than typical number of undeployed Consultants.

Revenue increased in the period but headcount decreased, reflecting the phasing of headcount. During the period we trained 210 Consultants (2022: 339) and gained 3 new clients (2022: 4).

Financial Review

Summary income statement

	Six months to 30 June 2023	Six months to 30 June 2022	% change
Revenue	£179.9m	£152.8m	+18%
Operating profit	£29.3m	£22.3m	+31%
Adjusted operating profit 1	£25.5m	£25.1m	+2%
Profit before tax	£29.8m	£22.2m	+34%
Adjusted profit before tax 1	£26.0m	£25.0m	+4%
Basic EPS	19.7p	15.6p	+26%
Adjusted basic EPS1	16.8p	17.6p	-5%

Overview

Despite trading conditions being softer in the first half, notably in the second quarter, revenue was 18% higher at £179.9 million (2022: £152.8 million) (16% higher on a constant currency basis²), and adjusted operating profit¹ increased by 2% to £25.5 million (2022: £25.1 million). Adjusted basic EPS¹ reduced by 5% to 16.8 pence (2022: 17.6 pence), due, in part, to the higher rate of income tax.

Consultants assigned to clients at week 26 2023 totalled 4,602, a decrease of 2% from 4,703 at week 26 2022 and a decrease of 6% from 4,905 at week 52 2022. Revenue increased in the period but headcount decreased reflecting the phasing of headcount. At week 26 our Ex-Forces Programme accounted for 201 Consultants deployed worldwide (week 26 2022: 210; week 52 2022: 211). Our Returners Programme had 239 deployed at week 26 2023 (week 26 2022: 198; week 52 2022: 220). The Consultant utilisation rate decreased to 93.4% (2022: 97.6%).

An analysis of revenue and Consultant headcount by region is set out in the table below:

	Six months to 30 June 2023 Revenue £m	Six months to 30 June 2022 Revenue £m	Year to 31 December 2022 Revenue £m	2023 Consultants assigned to  clients at week 262	2022 Consultants assigned to  clients at week 262	2022 Consultants assigned to  clients at week 522
UK	69.7	68.8	139.6	1,743	2,045	1,958
North America	70.6	50.2	116.9	1,563	1,405	1,618
EMEA	12.2	9.3	19.7	359	295	318
APAC	27.4	24.5	53.8	937	958	1,011
	179.9	152.8	330.0	4,602	4,703	4,905

 

Adjusted Group operating margin¹ has decreased to 14.2% (2022: 16.5%), with overheads increasing to £54.3 million (2022: £51.3 million). While the Group actively managed training and recruitment costs during the period, we held higher than typical numbers of undeployed Consultants and saw the full six-month impact of increased Consultant salary packages introduced during the first half last year.

 

 

¹  The adjusted operating profit, adjusted Group operating margin and adjusted profit before tax are calculated before Performance Share Plan expenses (including social security costs). The adjusted basic earnings per share is calculated before the impact of Performance Share Plan expenses (including social security costs and associated deferred tax).

²  The constant-currency basis is calculated by translating current period and prior period reported amounts into comparable amounts using the 2023 average exchange rate for each currency. The presentation of the constant-currency basis provides a better understanding of the Group's trading performance by removing the impact on revenue of movements in foreign exchange.

³  Week 26 in 2023 commenced on 26 June 2023 (2022: week 26 commenced on 27 June 2022 and week 52 commenced on 19 December 2022).

Adjusting items

The Group presents adjusted results, in addition to the statutory results, as the Directors consider that they provide a useful indication of underlying trading performance and cash generation. The adjusted results are stated before share-based payment credit / expense including associated taxes and social security costs. A credit of £3.8 million was recognised in the six months to 30 June 2023 relating to the share-based payment including social security costs (2022: expense of £2.8 million). This credit has arisen as a result of a change in the adjusted earnings per share performance vesting assumptions with the outstanding awards now anticipated to vest at a lower quantum.

Details of the share-based payment are set out in note 13 to the Condensed Consolidated Interim Financial Statements.

Net finance income/ (costs)

Interest on cash balances of £0.7 million (2022: £0.1 million) was recognised as finance income in the period. Finance costs include lease liability interest of £0.2 million (2022: £0.2 million). The Group continues to have no debt.

Taxation

The Group's total tax charge for the half year was £8.2 million, equivalent to an effective tax rate of 27.5%, on profit before tax of £29.8 million (2022: effective rate of 23.2% based on a tax charge of £5.2 million and a profit before tax of £22.2 million). The effective rate is higher than the underlying UK tax rate of 25% (19% until 1 April 2023) primarily due to Group profits earned in higher tax jurisdictions and the impact of items considered to be non-deductible for tax purposes.

Earnings per share

Basic earnings per share increased in the period to 19.7 pence (2022: 15.6 pence), while adjusted basic earnings per share was 16.8 pence (2022: 17.6 pence). Diluted earnings per share was 19.7 pence (2022: 15.3 pence).

Dividend

The Group continues with its dividend policy of retaining sufficient capital to fund ongoing operating requirements and maintaining an appropriate level of free cash, dividend cover and sufficient funds to invest in the Group's longer-term growth. On 25 July 2023, the Directors declared an interim dividend of 17.0 pence per ordinary share (2022: 17.0 pence) which will be payable on 13 October 2023 to shareholders on the register on 22 September 2023.

Cash flow and Statement of Financial Position

The Group's cash balance decreased to £38.1 million as at 30 June 2023 (2022: £40.0 million).

Dividends paid in the half year totalled £20.8 million (2022: £19.6 million). Net capital expenditure was £0.6 million (2022: £0.5 million) and tax paid was £7.1 million (2022: £7.7 million).

Cash conversion for the period was 83% (2022: 75%) and adjusted cash conversion was 95% (2022: 67%). Cash conversion was lower in the prior period reflecting increased levels of activity and revenue during the second quarter of 2022 which was included in the receivables balance as at 30 June 2022.   

Days sales outstanding at the period end were in line with Group targets, as they were in the prior period.

Related party transactions

Details of related party transactions are included in note 15 of the Condensed Interim Financial Statements.

 

Principal risks facing the business  

The Group faces a number of risks and uncertainties which could have a material impact upon its long-term performance. The principal risks and uncertainties faced by the Group are set out in the Annual Report and Accounts for the year ended 31 December 2022 on pages 24 to 30.

Economic uncertainty

A combination of factors continues to contribute to an uncertain macro-economic environment, including geopolitical stress, high inflation, elevated interest rates, and particularly the recent well-publicised turbulence in the global banking and finance sector. There remains a risk of recession in some territories over the next twelve months. This uncertainty remains the Group's principal risk.

Although none of the Group's clients has been directly affected by the difficulties which have impacted some banking institutions in the US and elsewhere, the Board recognises that these uncertain conditions may affect the spending decisions of some clients, causing them to delay the commencement of projects. This, in turn, can slow down the rate at which the Group's Consultants are onboarded, making it more challenging for FDM to balance the supply and demand of resource (which is one of the Group's other principal risks).

While certain scenarios are outside the Group's control, we believe that FDM's business model is flexible, and the agile resource represented by our Consultants can be attractive to clients during times of economic, political and social uncertainty. The Board will continue to review the measures which it has in place to identify and react to changes in macro-economic conditions, and takes appropriate measures to adjust recruitment and training to ensure continued alignment of supply with the current demand for Consultants. These mitigations, together with FDM's strong cash and financial position, give the Board confidence that FDM can continue to respond appropriately to ameliorate the effect of any adverse economic conditions which may arise.

Cyber security

The UK government and the UK's National Cyber Security Centre continue to warn that the cyber security threat to the UK's infrastructure and UK companies remains heightened as a result of overseas government-sponsored cyber activity. This risk remains an area of high focus for the Board, and we continue to strengthen our cyber security and information safeguarding capabilities.

Climate change and other Environmental, Social and Governance ("ESG") risks

The Board considers that the risk of the direct physical effects of climate change impairing the Group's ability to continue its business activities is relatively low. The Group's operating model is agile and adaptable, and the measures put in place over the past years in response to the COVID-19 pandemic and the challenges of remote working and training give the Board confidence that the Group is able to recruit, train and deploy Consultants efficiently from any of our locations. Following a recent detailed assessment of risks arising from climate change, the Board considers that, as a service business, FDM's overall net risk (after considering the mitigations and controls in place) from the direct impact of climate change is low.

We are committed to reducing our carbon footprint in all areas and building carbon efficiencies into our ways of working. We have set targets (validated in 2022 by SBTi) to:

·      reduce our absolute Scope 1 and 2 greenhouse emissions by 50% by 2030 from a 2020 base year; and

·      reduce Scope 3 greenhouse emissions by 62% per full time employee within the same timeframe.

We are aware that our clients in some sectors could be adversely affected by future climate change and there is a risk that this affects our own business indirectly as clients' spending decisions are constrained by such challenges. We look to mitigate this risk by diversifying the sectors and geographies in which we operate. We believe that there is opportunity for the Group as we train and deploy Consultants with the skills to help our clients find and apply the optimal technical and business solutions to the challenges which climate change brings. For example, some of our clients in the energy sector are deploying Consultants on projects to help them move towards sourcing energy from renewable sources. We aim to be transparent in our climate reporting and other non-financial disclosures, which will position FDM well to attract clients who are increasingly selective in their sustainability requirements.

The ESG credentials of global businesses like FDM are increasingly under scrutiny from investors, customers and employees, and businesses that do not stand up to that scrutiny are at risk of losing their share of the market. FDM is a leader in the field of corporate social responsibility and good governance; our competitive edge lies in the fact that diversity, inclusion and social mobility are the DNA of our business model. Further information about our work in this area is on pages 33 to 55 of our Annual Report and Accounts for the year ended 31 December 2022.

The Board

There have been no changes to the composition of the Board or its Committees during the period.

As announced on 28 June 2023, Rowena Murray will be joining the Board as a Non-Executive Director of the Company with effect from 1 August 2023. On appointment, Rowena will become a member of the Audit Committee and the Remuneration Committee.

Rowena began her career in Sydney as a corporate lawyer at a leading Australian law firm. She moved to the UK in 2004 and joined Investec Bank plc ("Investec"). As a director in Investec's Investment Banking division, Rowena provided strategic advice to public and private companies and led corporate transactions across a variety of sectors, including business services and technology, before moving to Tenzing Private Equity, an investor in high-growth UK and European SMEs, in 2017. Rowena is highly regarded as a result of her experience in investment banking and corporate broking and the Board looks forward to benefitting from the insight and experience which Rowena will bring.

Summary and outlook

We delivered a resilient performance in the first half against a backdrop of uncertain market conditions with some clients delaying and deferring decisions around budget commitment and Consultant placements. Our scalable and flexible business model has allowed us to take the appropriate measures to adjust recruitment, training and our unallocated resource to align more closely with the varying demand for our Consultants.

There remain structural and systemic skills-shortages in all the geographies in which we operate. While mindful of near-term pressures, levels of client engagement remain encouraging and we will ensure we are well placed to assist our clients in overcoming these shortages when market conditions improve.

We are focussed on delivering against our objectives, both short- and medium-term. We remain optimistic that there will be an improvement in client confidence as the second half progresses, and the Board anticipates that the Group's financial performance for the year as a whole will be broadly in line with its expectations.

 

 

                                                                                By order of the Board

 

Rod Flavell Chief Executive Officer Mike McLaren Chief Financial Officer   25 July 2023

 

Condensed Consolidated Income Statement

for the six months ended 30 June 2023

 

		Six months to 30 June 2023	Six months to 30 June 2022	Year ended 31 December 2022
		(Unaudited)	(Unaudited)	(Audited)
	Note	£000	£000	£000
Revenue		179,888	152,805	329,972
Cost of sales		(96,278)	(79,148)	(174,353)
Gross profit		83,610	73,657	155,619
Administrative expenses		(54,307)	(51,320)	(109,772)
Operating profit		29,303	22,337	45,847
Finance income		709	148	418
Finance costs		(243)	(287)	(604)
Net finance income/ (costs)		466	(139)	(186)
Profit before income tax		29,769	22,198	45,661
Taxation	7	(8,187)	(5,150)	(10,753)
Profit for the period		21,582	17,048	34,908
Earnings per ordinary share
		pence	pence	pence
Basic	9	19.7	15.6	32.0
Diluted	9	19.7	15.3	31.8

 

Condensed Consolidated Statement of Comprehensive Income

for the six months ended 30 June 2023

 

		Six months to 30 June  2023	Six months     to 30 June 2022	Year ended   31 December 2022
		(Unaudited)	(Unaudited)	(Audited)
		£000	£000	£000
Profit for the period		21,582	17,048	34,908
Other comprehensive (expense)/ income Items that may be subsequently reclassified to profit or loss
Exchange differences on retranslation of foreign operations (net of tax)		(1,203)	1,478	2,148
Total other comprehensive (expense)/ income		(1,203)	1,478	2,148
Total comprehensive income for the period		20,379	18,526	37,056

 

 

Condensed Consolidated Statement of Financial Position

as at 30 June 2023

					30 June 2023	30 June 2022	31 December 2022
					(Unaudited)	(Unaudited)	(Audited)
			Note		£000	£000	£000
Non-current assets
Right-of-use assets					7,897	10,107	10,073
Property, plant and equipment					3,399	3,944	3,666
Intangible assets					19,552	19,629	19,729
Deferred income tax assets					951	2,437	2,316
					31,799	36,117	35,784
Current assets
Trade and other receivables			10		53,339	50,306	48,923
Cash and cash equivalents			11		38,074	39,978	45,523
					91,413	90,284	94,446
Total assets					123,212	126,401	130,230
Current liabilities
Trade and other payables			12		31,535	32,048	32,962
Lease liabilities					3,504	5,114	4,643
Current income tax liabilities					2,467	1,422	1,172
					37,506	38,584	38,777
Non-current liabilities
Lease liabilities					6,412	8,306	8,250
Total liabilities					43,918	46,890	47,027
Net assets					79,294	79,511	83,203
Equity attributable to owners of the parent
Share capital					1,095	1,092	1,092
Share premium					9,705	9,705	9,705
Capital redemption reserve					52	52	52
Own shares reserve					(1,366)	(1,859)	(1,494)
Translation reserve					1,188	1,721	2,391
Other reserves					5,564	9,170	12,576
Retained earnings					63,056	59,630	58,881
Total equity					79,294	79,511	83,203

 

 

Condensed Consolidated Statement of Cash Flows

for the six months ended 30 June 2023

			Six months to 30 June 2023	Six months  to 30 June 2022	Year ended  31 December 2022
			(Unaudited)	(Unaudited)	(Audited)
		Note	£000	£000	£000
Cash flows from operating activities
Profit before income tax for the period			29,769	22,198	45,661
Adjustments for:
Depreciation and amortisation			2,952	3,372	6,423
Loss on disposal of non-current assets			19	6	130
Finance income			(709)	(148)	(418)
Finance costs			243	287	604
Share-based payment (credit)/ expense (including associated social security costs)			(3,701)	2,805	6,727
Increase in trade and other receivables			(4,792)	(12,837)	(11,334)
Increase in trade and other payables			567	1,142	1,872
Cash flows generated from operations			24,348	16,825	49,665
Interest received			709	148	418
Income tax paid			(7,127)	(7,723)	(13,665)
Net cash flow from operating activities			17,930	9,250	36,418
Cash flows from investing activities
Acquisition of property, plant and equipment			(581)	(542)	(1,204)
Net cash used in investing activities			(581)	(542)	(1,204)
Cash flows from financing activities
Proceeds from issue of ordinary shares			3	-	-
Proceeds from sale of own shares			16	20	24
Proceeds from sale of shares from EBT			254	264	484
Payment for shares bought back			(500)	-	-
Principal elements of lease payments			(2,844)	(2,739)	(5,470)
Interest elements of lease payments			(222)	(232)	(472)
Finance costs paid			(20)	(55)	(132)
Dividends paid		8	(20,794)	(19,620)	(38,153)
Net cash used in financing activities			(24,107)	(22,362)	(43,719)
Exchange (losses)/ gains on cash and cash equivalents			(691)	512	908
Net decrease in cash and cash equivalents			(7,449)	(13,142)	(7,597)
Cash and cash equivalents at beginning of period			45,523	53,120	53,120
Cash and cash equivalents at end of period		11	38,074	39,978	45,523

 

 

Condensed Consolidated Statement of Changes in Equity

for the six months ended 30 June 2023

	Share capital	Share premium	Capital redemption reserve	Own shares reserve	Translation reserve		Other reserves		Retained earnings		Total equity
	£000	£000	£000	£000	£000		£000		£000		£000
Balance at 1 January 2023 (Audited)	1,092	9,705	52	(1,494)	2,391		12,576		58,881		83,203
Profit for the period	-	-	-	-	-		-		21,582		21,582
Other comprehensive expense for the period	-	-	-	-	(1,203)		-		-		(1,203)
Total comprehensive income for the period	-	-	-	-	(1,203)		-		21,582		20,379
Share-based payments (note 13)	-	-	-	-	-		(3,091)		-		(3,091)
Share-based payments awards	-	-	-	-	-		(3,921)		3,921		-
Own shares sold (note 14)	-	-	-	128	-		-		(360)		(232)
Recharge of net settled share options	-	-	-	-	-		-		(174)		(174)
Dividends (note 8)	-	-	-	-	-		-		(20,794)		(20,794)
New shares issued	3	-	-	-	-		-		-		3
Total transactions with owners, recognised directly in equity	3	-	-	128	-		(7,012)		(17,407)		(24,288)
Balance at 30 June 2023 (Unaudited)	1,095	9,705	52	(1,366)	1,188		5,564		63,056		79,294

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidated Statement of Changes in Equity (continued)

for the six months ended 30 June 2022

 

	Share capital	Share premium	Capital redemption reserve	Own shares reserve	Translation reserve		Other reserves		Retained earnings		Total equity
	£000	£000	£000	£000	£000		£000		£000		£000
Balance at 1 January 2022 (Audited)	1,092	9,705	52	(2,355)	243		7,186		62,207		78,130
Profit for the period	-	-	-	-	-		-		17,048		17,048
Other comprehensive income for the period	-	-	-	-	1,478		-		-		1,478
Total comprehensive income for the period	-	-	-	-	1,478		-		17,048		18,526
Share-based payments (note 13)	-	-	-	-	-		2,354		-		2,354
Share-based payments awards	-	-	-	-	-		(370)		370		-
Own shares sold (note 14)	-	-	-	496	-		-		(213)		283
Recharge of net settled share options	-	-	-	-	-		-		(162)		(162)
Dividends (note 8)	-	-	-	-	-		-		(19,620)		(19,620)
Total transactions with owners, recognised directly in equity	-	-	-	496	-		1,984		(19,625)		(17,145)
Balance at 30 June 2022 (Unaudited)	1,092	9,705	52	(1,859)	1,721		9,170		59,630		79,511

 

 

 

Condensed Consolidated Statement of Changes in Equity (continued)

for the year ended 31 December 2022

 

	Share capital	Share premium	Capital redemption reserve	Own shares reserve	Translation reserve	Other reserves	Retained earnings	Total equity
	£000	£000	£000	£000	£000	£000	£000	£000
Balance at 1 January 2022 (Audited)	1,092	9,705	52	(2,355)	243	7,186	62,207	78,130
Profit for the year	-	-	-	-	-	-	34,908	34,908
Other comprehensive income for the year	-	-	-	-	2,148	-	-	2,148
Total comprehensive income for the year	-	-	-	-	2,148	-	34,908	37,056
Share-based payments (note 13)	-	-	-	-	-	5,844	-	5,844
Share-based payments awards	-	-	-	-	-	(454)	454	-
Own shares sold (note 14)	-	-	-	861	-	-	(353)	508
Recharge of net settled share options	-	-	-	-	-	-	(182)	(182)
Dividends (note 8)	-	-	-	-	-	-	(38,153)	(38,153)
Total transactions with owners, recognised directly in equity	-	-	-	861	-	5,390	(38,234)	(31,983)
Balance at 31 December 2022 (Audited)	1,092	9,705	52	(1,494)	2,391	12,576	58,881	83,203