Financial Results

 

Net Profit After Tax for the full year of 2011 was $4.7 million (before non cash impairment write down and de-recognition of tax losses), up 55% from $3.0 million in 2010.

 

The cash flow for the full year was positive at $8.7 million compared to a net outflow of $1.2 million in 2010.

 

The significant improvement in cash flow reflects an intense focus on working capital management, allowing for the repayment of borrowings and providing surplus cash at balance date. The company is well positioned for further growth opportunities and strategic acquisitions.

 

A heightened focus on delivery has resulted in the maximising of the limited opportunities presented in a challenging market. Strong permanent revenues in the first half provided a solid platform for growth, and a flattening of permanent demand in the second half was accompanied by an increase in demand for contractors towards the end of the financial year. 

 

Following an extensive review of the carrying value of acquired assets at balance date, an impairment write down of $14.6 million has been recorded at 30 June 2011. This write down is attributable to a number of the Company's brands and recognises the impact of the volatility of the current market on the trading of acquisitions made during peaks in the economic cycle together with the impact of restructuring of a number of the recruitment brands that has been undertaken over several years. 

 

The Board have resolved to pay a final dividend of $0.02 cents per share, fully franked, payable on 14 October 2011 and that the Dividend Reinvestment Plan operate with a 2.5% discount in relation to this final dividend.

 

Results at a Glance

Year ended 30 June

2011

2010

2009

Revenue

$267m

$266m

 

$293m

 

Group Profit

$4.7m (1)

$3.0m 

 

$3.2m (2)

 

Dividend per share (cents)

4.0c

-

 

-

 

Basic Earnings per Share (cents)

(11.9)c

3.8c

 

(14.0)c

 

 

(1) Before non cash impairment write down and de-recognition of tax losses

(2) Pre one off non-recurring costs and impairment