25 April 2014 – final results
The recruitment group has reported its annual results for the year to 31 January, revealing a 17% increase in revenues to £697.3m (2013: £594.7m), whilst adjusted pre-tax profit was 4% higher at £9.0m (2013: £8.7m). Earnings per share on the same basis were 5% higher at 8.76p (2013: 8.33p) and the dividend for the year was raised by 10% to 3.21p (2013: 2.92p). Net cash at the year end fell to £3.8m (2013: £5.0m), with the decline due to higher working capital requirements, cash outflow on non-recurring items, the purchase of the balance of the equity in the group’s Norwegian subsidiary and dividend payments. These were strong results and reflected gains in market share and better market conditions mainly in the UK and USA. There was a strong performance in the final quarter of the year and this has continued into 2014 – as a result, the group is well-placed to benefit from improving market conditions. At the moment, pre-tax profits for the current financial year are forecast to rise to £9.9m for earnings per share of 9.3p although if trading conditions improve, these may be increased going forward. We continue to rate the shares as a BUY.