FAIRPLACE PLC
('Fairplace' or 'the Company')
PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2007
Highlights
Turnover from continuing operations increased 4% to �5.07m from �4.87m driven
by increasing talent management and coaching revenue.
Operating profit, before amortisation and impairment of goodwill on continuing
activities was �0.24m (2006: Loss �0.36m) driven by improved margins and
effective cost control.
Loss after tax was �0.52m (2006: �0.88m)
Improved operating cash inflow of �0.08m (2006: outflow �0.07m)
Loss per share 5.30p (2006: 13.08p).
No dividends proposed
Enquiries to:
Fairplace plc
Jonathan Cohen
Chairman
Tel: 020 7816 0707
Nominated Adviser to Fairplace
City Financial Associates Limited
Tony Rawlinson
Tel: 020 7492 4777
Chairman's Statement
I should like to begin my first Chairman's Statement by paying tribute to Mark
Allsup, who, as the founder of the business, was your Chairman for 15 years.
Mark served the company with great integrity and diligence, and we wish him
well for the future.
This has been a transitional period for the group in which the Board has
continued to review the composition of the business and to establish the
foundations for profitable growth. This has included the sale of our investment
in Fairplace Consulting Italy Srl, in May this year at a significant loss, and
the write off of the remaining goodwill in Quantum Development and Outplacement
Services Limited. As a consequence, the consolidated group loss for the year
was �517,788 (2006: loss - �878,614).
The UK operations showed a welcome return to profit at �240,513 before goodwill
impairment and amortisation (2006 - Loss �360,744), with revenues at �5,068,722
(2006 - �4,872,838).
The group's strategy is to create centres of excellence across a range of
markets within the field of career and talent management, eliminating
loss-making operations and reducing costs. Shortly after the year-end, we
launched Cedar TM led by Helen Pitcher and staffed by the team formerly trading
as CEDAR International. This addition will add significantly to the range of
outplacement, coaching and talent management services offered by the Group.
As Fairplace and Cedar TM are associated with specific segments of the market,
we believe the Group needs to adopt a new over-arching identity. The Board
proposes to rename the company Savile Holdings plc, subject to shareholders'
approval.
Peter Evans will become Group CEO. Fairplace and Cedar TM will become operating
divisions with Michael Moran and Helen Pitcher as the respective CEOs. The
Board has been further strengthened by the appointment of Peter Conroy as a non
executive director, replacing Graham Hall, who has stepped down. We thank
Graham for his contribution over many years.
Though much remains to be done, your Board feels that the Group can face the
future with confidence. We are well positioned to tackle the challenges and
take advantage of the opportunities that lie ahead.
Finally, in the short time I have been associated with the Group, I have been
hugely impressed by the professionalism and dedication of our people. In
thanking them all for their continuing efforts I would also like to stress our
unwavering commitment to our clients, to provide excellent service at a
competitive price, and to our shareholders, to build a growing, sustainable and
profitable business.
Jonathan Cohen
Chairman
1 November 2007
Chief Executive's Statement
We have seen real progress in this financial year with the return to profitable
trading. In establishing the Fairplace brand for providing career and talent
management services, we have also achieved our target of generating 30% of
sales from talent management. At the same time, we have built a significant
business in coaching, providing services to the investment banking, not for
profit and manufacturing sectors.
We have successfully used our 360 feedback tool (Talent Tracker 360) to grow
sales in coaching and talent identification; talent identification and career
management generate predictable and repeatable revenues, and it is notable that
we have not only retained but grown revenues with our clients who buy talent
management services. Our strategy of focusing on existing clients, with a view
to persuading them to buy additional services is now paying dividends. Over 20%
of our clients buy 2 or more services, and within our top 20 clients, over 60%
buy two or more services. This strategy is designed not only to protect the
business from downturns in the outplacement market, which is notoriously prone
to sudden upswings of activity followed by equally sudden but prolonged
downturns, but also to build a new income stream, which should expand in line
with economic growth. We have won talent management business in the past year
with a number of new clients.
As predicted, the outplacement market in the year under review remained tough
in an economy of full employment. Competition between the three largest
suppliers meant that the market remained price sensitive. Fairplace remains
pre-eminent in the financial services sector. We have however deliberately
targeted those businesses in which the knowledge worker is key to company
profitability and shareholder value. We continue to work with market leaders in
the financial services sectors.
We remain vigilant of the need to manage expenses. We successfully reduced
expenditure in the UK by �409,000 (8%). As promised we have significantly
reduced our expenditure on accommodation moving to a serviced office model
which gives the benefits of both flexibility and reduced overhead. Employee
costs in the UK decreased by �168,000 (9%). We reviewed our marketing spend,
and consequently made savings whilst at the same time increasing our brand
awareness.
We took the decision to dispose of Fairplace Italy. The increasing strength of
the Careers Partners International brand together with the continued lack of
profitability of Fairplace Italy meant it made good business sense to exit this
business. Overall we have seen UK sales rise by 4% whilst UK expenses have
fallen by 8%; outplacement sales have remained broadly in line with 2005/2006
levels, whereas talent management sales have increased by 35%.
The challenge ahead is to ensure we retain our share of the outplacement
market, increase talent management sales, and to manage our expenses. We have
enjoyed an excellent start to the new year and we are currently ahead of budget
in a quarter which has previously been unprofitable due to downturn of activity
associated with the summer months. We are confident that we can continue to
grow the business and improve profitability.
Michael Moran
Chief Executive
1 November 2007
Group Profit and Loss Account
Continuing Discontinued Continuing Discontinued
operations operations 2007 operations operations 2006
� � � � � �
Turnover 5,068,722 225,272 5,293,994 4,872,838 415,942 5,288,780
Administrative
expenses
Goodwill amortisation (80,000) (45,833) (125,833) (48,041) (50,000) (98,041)
Goodwill impairment (320,000) - (320,000) (288,068) - (288,068)
Other administrative (4,828,209) (292,910) (5,121,119) (5,233,582) (450,762) (5,684,344)
expenses
Total Administrative (5,228,209) (338,743) (5,566,952) (5,569,691) (500,762) (6,070,453)
expenses
Operating profit/ 240,513 (67,638) 172,875 (360,744) (34,820) (395,564)
(loss) before
goodwill amortisation
and impairment
Goodwill amortisation (80,000) (45,833) (125,833) (48,041) (50,000) (98,041)
Goodwill impairment (320,000) - (320,000) (288,068) - (288,068)
Total Operating loss (159,487) (113,471) (272,958) (696,853) (84,820) (781,673)
Loss on disposal of - (217,732) (217,732) - (79,348) (79,348)
investments
Disposal of Fixed (25,624) - (25,624) - - -
Assets
Interest receivable 1,024 123 1,147 528 - 528
Interest payable (2,405) (216) (2,621) (7,547) - (7,547)
Loss on ordinary (186,492) (331,296) (517,788) (703,872) (164,168) (868,040)
activities before
taxation
Taxation - - - - (10,574) (10,574)
Loss for the (186,492) (331,296) (517,788) (703,872) (174,742) (878,614)
financial year
Pence Pence Pence Pence
Loss per share (1.90) (5.30) (10.49) (13.08)
Loss per share before (1.09) (4.00) (9.77) (11.62)
goodwill
Fully diluted loss (1.90) (5.30) (10.49) (13.08)
per share
Group Balance Sheet as at 30 June 2007
2007 2006
� �
Fixed assets
Intangible assets - 600,000
Tangible assets 187,647 312,449
187,647 912,449
Current assets
Stock and work in progress 15,383 19,523
Debtors 1,463,201 1,675,368
Cash at bank and in hand 271,098 240,402
1,749,682 1,935,293
Creditors: amounts falling due within (1,062,533) (1,460,311)
one year
Net current assets 687,149 474,982
Net assets 874,796 1,387,431
Capital and reserves
Called up share capital 294,005 1,020,026
Share premium 2,381,033 2,381,033
Capital Redemption 726,021 -
Profit and loss account (2,526,263) (2,013,628)
Equity shareholders' funds 874,796 1,387,431
Group Statement of Cash Flow for the year to 30 June 2007
2007 2006
� �
Cash flow from operating activities 77,644 (67,947)
Returns on investments and servicing of
finance
Interest received 1,147 528
Other interest paid (2,621) (7,547)
(1,474) (7,019)
Corporation tax refunded - 24,260
Capital expenditure and financial
investment
Purchase of tangible fixed assets (17,307) (45,044)
Sale of tangible fixed assets 11,153 1,923
(6,154) (43,121)
Acquisitions and disposals
Costs of disposal (39,320) -
Proceeds from sale of investments - 82,500
(39,320) 82,500
Cash flow from Financing Activities
Issue of Ordinary shares - 546,250
Issue costs - (50,059)
- 496,191
Increase in cash in the year 30,696 484,864
Reconciliation of net cash flow to movement in net funds
2007 2006
� �
Increase in cash in the period 30,696 484,864
Net funds brought forward 240,402 (244,462)
Net funds carried forward 271,098 240,402
Earnings per share
The calculation of earnings per share is based on the loss after taxation of �
517,788 (2006: �878,614) and on the weighted average number of shares in issue
during the year of 9,800,174 (2006: 6,712,670).
The calculation of earnings per share before goodwill is based on the loss
after taxation but ignoring goodwill, giving �391,955 (2006: �780,578) and on
the weighted average number of shares in issue during the year of 9,800,170
(2006: 6,712,670).
The fully diluted earnings per share is based on the loss after taxation of �
517,788 (2006: �878,614) and on the weighted average number of shares, assuming
that all share options, with an exercise price of less than the market price of
the shares, were exercised at the beginning of the year, in issue during the
year of 9,800,170 (2006: 6,712,670).
AIM Compliance Committee
The AIM Compliance Committee is chaired by Ken Brotherston, a non-executive
director of the Company. Having reviewed relevant Board papers, and met with
the Company's Executive Board and the Nomad to ensure that such is the case,
the AIM Committee is satisfied that the Company's obligations under AIM Rule 31
have been satisfied during the period under review.
Financial Information
The financial information set out above does not constitute the Company's
statutory accounts for the year ended 30 June 2007 or 30 June 2006 (but is
derived from those accounts).
Statutory accounts for 2006 have been delivered to the Registrar of Companies
and those for 2007 will be delivered following the Company's Annual General
Meeting. The auditors have reported on those accounts; their reports were
unqualified and did not contain statements under section 237 (2) or (3) of the
Companies Act 1985.
Annual General Meeting
The Annual General Meeting will be held at 11.00am Thursday 6 December 2007 at
the Company's offices 36 - 38 Cornhill LONDON EC3V 3PQ.
Report and Accounts
Copies of the Report and Accounts for the year ended 30 June 2007 will be sent
to shareholders in due course. Further copies will be available from the
Company's website at www.fairplaceplc.co.uk or at the Company's registered
office at 36 - 38 Cornhill LONDON EC3V 3PQ
END
Fairplace Consulting (LSE:FCO)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Fairplace Consulting (LSE:FCO)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024
