TIDMPRP
RNS Number : 3296T
Prime People PLC
14 November 2019
14 November 2019
Prime People Plc
Interim Results
Prime People Plc ("Prime People" or the "Group"), the global
specialist recruitment business for professional and technical
staff working in the Real Estate & Built Environment, Energy
& Environmental and Technology, Digital & Data Analytics
sectors, announces its unaudited interim results for the six months
ended 30 September 2019.
CHAIRMAN'S STATEMENT
Overview
I am pleased to report the results for Prime People Plc for the
half-year ended 30 September 2019.
The Group recorded a profit before tax for the period of
GBP1.73m (H1 2019: GBP1.59m) on revenue of GBP13.17m
(H1 2019: GBP12.57m).
Financial Results
Group revenue of GBP13.17m was 4.72% higher than the same period
last year (H1 2019: GBP12.57m).
Group Net Fee Income ("NFI") was GBP8.80m (H1 2019: GBP7.99m).
Our overseas business showed strong performance, with NFI for Asia
increasing to GBP4.83m (H1 2019: GBP3.87m) and contributing 57.90%
of Group permanent NFI (H1 2019: 52.16%). NFI recorded during the
period by our Hong Kong subsidiary, Command Recruitment Group (HK)
Ltd ("CMD"), was GBP2.28m (H1 2019: GBP1.68m), detailed in Note
3(a) within the NFI for the Group's Asia regional performance. NFI
for the UK business was GBP3.71m (H1 2019: GBP3.86m) and Rest of
World was GBP0.26m (H1 2019: GBP0.27m).
Contract NFI represented 5.17% of Group NFI against 7.21% in H1
2019.
Administrative costs for the Group were GBP7.07m (H1 2019:
GBP6.40m) during the period which included planned expenditure for
enhancing technology to drive efficiencies across our business,
greater advertising spend, and higher professional costs associated
with our continued focus on organic growth.
In the UK, profit before tax was GBP0.48m against GBP0.62m in H1
2019. Our Asia business, which covers the Group activities in Hong
Kong and Singapore, generated a profit before tax before adjustment
for minority interest of GBP1.24m for the period (H1 2019:
GBP0.95m), of which GBP0.84m related to CMD (H1 2019:
GBP0.58m).
Our newly established business in Germany, disclosed under Rest
of the World, reported a small profit and is indicating good
opportunities for growth.
The charge for Group taxation of GBP0.31m (H1 2019: GBP0.10m) is
based on the expected annual effective tax rate of 19% in UK (H1
2019: 19%), 16.5% in Hong Kong (H1 2019: 16.50%), and 17% in
Singapore (H1 2019: 17%).
Basic earnings per share for the period were 9.33p (H1 2019:
10.95p).
Cash Flow
The Group continues to maintain a strong net cash position. At
the start of the current financial year, the Group had cash of
GBP2.31m, and at the period end, had cash of GBP3.04m (H1 2019:
GBP1.79m).
Dividend
The Board will be declaring an interim dividend of 1.80p per
share (2019: 1.80p) payable on 6 December 2019 to those
shareholders on the register on 22 November 2019.
Outlook
The present focus for the Group is managing the business for
increased productivity and profitability. Notwithstanding the mixed
and uncertain economic picture of today's markets, we continue to
seek opportunities to create shareholder value though both organic
and non-organic growth.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014. Upon the
publication of this announcement via Regulatory Information
Service, this inside information is now considered to be in the
public domain.
Robert Macdonald
Executive Chairman
14 November 2019
For further information please contact:
Prime People 020 7318 1785
Robert Macdonald, Executive Chairman
Donka Zaneva-Todorinski, Finance
Director
Cenkos Securities 020 7397 8900
Katy Birkin
Harry Hargreaves
PRIME PEOPLE PLC
UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENT OF
COMPREHENSIVE INCOME
For the six months ended 30 September 2019
Six months ended Year ended
30 September 30 September 31 March
2019 2018 2019
(audited)
Note GBP'000 GBP'000 GBP'000
Revenue 3 13,166 12,572 24,660
Cost of sales (4,365) (4,584) (8,873)
------------------------------ ----- --- ---------- --- ------------- --- --------------
Net fee income 8,801 7,988 15,787
Administrative expenses (7,072) (6,399) (13,316)
------------------------------ ----- --- ---------- --- ------------- --- --------------
Operating profit 1,729 1,589 2,471
Profit before taxation 1,729 1,589 2,471
Income tax expense 4 (308) (104) (298)
------------------------------ ----- --- ---------- --- ------------- --- --------------
Profit for the period/year 1,421 1,485 2,173
Other comprehensive income
Exchange gain on translating
foreign operations 115 121 106
------------------------------------------ ---------- --- ------------- --- --------------
Other Comprehensive income for
the period/ year, net of tax 115 121 106
------------------------------------------ ---------- --- ------------- --- --------------
Total comprehensive income for
the period/year 1,536 1,606 2,279
Profit attributable to:
Equity shareholders of
the parent 1,139 1,291 1,660
Non-controlling interest 282 194 513
------------------------------ ----- --- ---------- --- ------------- --- --------------
Profit for the period/year 1,421 1,485 2,173
Total Comprehensive Income
attributable to:
Equity shareholders of
the parent 1,254 1,412 1,766
Non-controlling interest 282 194 513
Earnings per share 6
Basic earnings per share 9.33p 10.95p 13.72p
Diluted earnings per
share 9.22p 10.78p 13.38p
------------------------------ ----- --- --------------- ------------------ --------------
The above results relate to continuing operations.
The notes below form an integral part of this unaudited
condensed consolidated interim report.
PRIME PEOPLE PLC
UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL
POSITION
As at 30 September 2019
30 September 30 September 31 March
2019 2018 2019
(audited)
Note GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Goodwill 10,527 10,527 10,527
Property, plant and equipment 708 577 752
Right-of-use assets 12 1,139 - -
Deferred tax asset 18 45 40
---------------------------------- ----- --------- ---- --------- --- ----------
12,392 11,149 11,319
---------------------------------- ----- --------- ---- --------- --- ----------
Current assets
Trade and other receivables 9 5,069 4,242 4,646
Cash and cash equivalents 3,037 1,778 2,309
---------------------------------- ----- --------- ---- --------- --- ----------
8,106 6,020 6,955
---------------------------------- ----- --------- ---- --------- --- ----------
Total assets 20,498 17,169 18,274
---------------------------------- ----- --------- ---- --------- --- ----------
Liabilities
Current Liabilities
Trade and other payables 10 2,681 2,746 3,080
Lease liabilities 12 383 - -
Current tax liabilities 481 61 173
---------------------------------- ----- --------- ---- --------- --- ----------
3,545 2,807 3,253
---------------------------------- ----- --------- ---- --------- --- ----------
Non-current liabilities
Deferred tax liabilities - 22 22
Lease liabilities 12 1,058 - -
Total liabilities 4,603 2,829 3,275
---------------------------------- ----- --------- ---- --------- --- ----------
Net assets 15,895 14,340 14,999
---------------------------------- ----- --------- ---- --------- --- ----------
Capital and reserves attributable to the Company's equity holders
Called up share capital 1,229 1,229 1,229
Capital redemption reserve 9 9 9
Treasury shares (168) (439) (161)
Share premium account 5,371 5,371 5,371
Merger reserve 173 173 173
Share option reserve 392 411 337
Currency translation differences 711 611 596
Retained earnings 7,308 6,706 6,857
---------------------------------- ----- --------- ---- --------- --- ----------
Equity shareholders' funds 15,025 14,071 14,411
Non-controlling interest 870 269 588
---------------------------------- ----- --------- ---- --------- --- ----------
Total Equity 15,895 14,340 14,999
The notes below form an integral part of this unaudited
condensed consolidated interim report.
PRIME PEOPLE PLC
UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN
EQUITY
For the six months ended 30 September 2019
- Called Capital Treasury Share Merger Share Translation Retained Total Non-controlling Total
up Redemption shares premium reserve option reserve Earnings attributable interest equity
share reserve account reserve to equity
capital holders
of the
parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 April
2018 1,229 9 (421) 5,371 173 314 490 7,764 14,929 75 15,004
Profit
for the
period - - - - - - - 1,291 1,291 194 1,485
Adjustment
in respect
of IFRS
15 - - - - - - - (1,977) (1,977) - (1,977)
Other
comprehensive
income - - - - - - 121 - 121 - 121
Equity-settled
share-based
payments - - - - - 97 - - 97 - 97
Shares
purchased
for treasury - - (16) - - - - - (16) - (16)
Shares
issued
from treasury - - 2 - - - - - 2 - 2
Adjustment
on share
disposal - - (4) - - - - 10 6 - 6
Dividend - - - - - - - (382) (382) - (382)
---------------- -------- ----------- --------- -------- -------- -------- ------------ ---------- ------------- ---------------- ----------
At 30 Sept
2018 1,229 9 (439) 5,371 173 411 611 6,706 14,071 269 14,340
---------------- -------- ----------- --------- -------- -------- -------- ------------ ---------- ------------- ---------------- ----------
PRIME PEOPLE PLC
UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN
EQUITY
For the six months ended 30 September 2019
Called Capital Treasury Share Merger Share Translation Retained Total Non-controlling Total
up Redemption shares premium reserve option reserve Earnings attributable interest equity
share reserve account reserve to equity
capital holders
of the
parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 30 Sept
2018 1,229 9 (439) 5,371 173 411 611 6,706 14,071 269 14,340
Profit
for the
period - - - - - - - 368 368 319 687
Other
comprehensive
income - - - - - - (15) - (15) - (15)
Equity
settled
share-based
payments - - - - - (74) - - (74) - (74)
Shares
purchased
for treasury - - (10) - - - - - (10) - (10)
Shares
issued
from treasury - - 284 - - - - - 284 - 284
Adjustment
on share
disposal - - 4 - - - - (5) (1) - (1)
Dividend - - - - - - - (212) (212) - (212)
---------------- -------- ----------- --------- -------- -------- -------- ------------ --------- ------------- ---------------- ---------
At 31 March
2019 1,229 9 (161) 5,371 173 337 596 6,857 14,411 588 14,999
---------------- -------- ----------- --------- -------- -------- -------- ------------ --------- ------------- ---------------- ---------
Profit
for the
period - - - - - - - 1,254 1,254 282 1,536
Impact
of IFRS
16 - - - - - - - (396) (396) - (396)
Other
comprehensive
income - - - - - - 115 - 115 - 115
Equity-settled
share-based
payments - - - - - 55 - - 55 - 55
Shares
purchased
for treasury - - (16) - - - - - (16) - (16)
Shares
issued
from treasury - - 13 - - - - - 13 - 13
Adjustment
on share
disposal - - (4) - - - - 4 - - -
Dividend - - - - - - - (411) (411) - (411)
---------------- -------- ----------- --------- -------- -------- -------- ------------ --------- ------------- ---------------- ---------
At 30 Sept
2019 1,229 9 (168) 5,371 173 392 711 7,308 15,025 870 15,895
---------------- -------- ----------- --------- -------- -------- -------- ------------ --------- ------------- ---------------- ---------
PRIME PEOPLE PLC
UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH
FLOW
For the six months ended 30 September 2019
Six months ended Year ended
30 September 2019 30 September 31 March
2018 2019
Note GBP'000 GBP'000 GBP'000
Cash generated from underlying operations 7 1,498 1,260 2,146
Income tax paid (1) (4) (111)
Income tax received 19 2 -
----------------------------------------------- ----- ----- ------------- ---- --------- --- --------
Net cash from operating activities 1,516 1,258 2,035
Cash flows from investing activities
Net purchase of property, plant and equipment (94) (438) (727)
Net cash used in investing activities (94) (438) (727)
----------------------------------------------- ----- ----- ------------- ---- --------- --- --------
Cash flows from financing activities
Shares issued from treasury 13 2 260
Shares purchased for treasury (16) (16) -
Dividend paid to shareholders (411) (383) (595)
Lease payments (338) - -
Lease interest (57) - -
Net cash used in financing activities (809) (397) (335)
------------------------------------------------------ ----- ------------- ---- --------- --- --------
Net increase in cash and cash equivalents 613 423 973
Cash and cash equivalents at beginning of period/year 2,309 1,234 1,234
Effect of foreign exchange rate changes 115 121 102
------------------------------------------------------------- ------------- ---- --------- --- --------
Cash and cash equivalents at end of period/year 3,037 1,778 2,309
The notes below form an integral part of this unaudited
condensed consolidated interim report.
PRIME PEOPLE PLC
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM REPORT
For the six months ended 30 September 2019
1. General information
Prime People Plc ('the Company') and its subsidiaries (together
'the Group') is an international recruitment services organisation
with offices in the United Kingdom, the Middle East and the Asia
Pacific region from which it serves an international client base.
The Group offers both permanent and contract specialist recruitment
consultancy for large and medium sized organisations.
Prime People Plc is the Group's ultimate parent company. The
Company is a limited liability company incorporated and domiciled
in the United Kingdom. The address of Prime People Group's
registered office and its principal place of business is 2 Harewood
Place, London, W1S 1BX, England. Prime People Group's shares are
quoted on the AIM Market of the London Stock Exchange ("AIM"). The
registered number of the Company is 1729887.
This unaudited condensed consolidated interim report for the six
months ended 30 September 2019 (including comparatives) is
presented in GBP '000 and was approved and authorised for issue by
the Board of Directors on 14 November 2019.
Copies of the interim results are available at the Company's
registered office and on the Company's website -
www.prime-people.co.uk.
This unaudited condensed consolidated interim report does not
constitute statutory accounts of the Group within the meaning of
section 434 of the Companies Act 2006. The financial information
for the year ended 31 March 2019 has been extracted from the
statutory accounts for that year, which have been filed with the
Registrar of Companies. The auditor's report on those accounts was
unqualified and did not contain a statement under section 498 of
the Companies Act 2006.
2. Basis of preparation
The unaudited condensed consolidated interim report for the six
months ended 30 September 2019 has been prepared using accounting
policies consistent with International Financial Reporting
Standards ("IFRSs") and in accordance with 'IAS 34, Interim
financial reporting', as adopted by the European Union. The
condensed consolidated interim report should be read in conjunction
with the annual financial statements for the year ended 31 March
2019 which were, with exception of the adoption of IFRS 16
Accounting for Leases, prepared in accordance with IFRSs as adopted
by the European Union.
The Group was profitable for the period and has considerable
financial resources comprising GBP3.04m of net cash at 30 September
2019. After making enquiries, the Directors have formed a
judgement, at the time of approving the six months results, that
there is a reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable
future, a period of not less than 12 months. For this reason, the
Directors continue to adopt the going concern basis in preparing
the condensed set of financial statements.
These financial statements have been prepared under the
historical cost convention.
IFRS 16 - Leases
IFRS 16 became effective for accounting periods beginning on or
after 1 January 2019 and has superseded IAS 17 Leases.
IFRS 16 distinguishes leases and service contracts based on
whether an identified asset is controlled by a customer.
Distinctions of operating leases (off balance sheet) and finance
leases (on balance sheet) are removed for lessee accounting and has
been replaced by a model where a right-of-use asset and a
corresponding liability have to be recognised for all leases by
lessees (i.e. all on balance sheet) except for short term leases
and leases of low value assets.
The right-of-use asset is initially measured at cost and
subsequently measured at cost (subject to certain exceptions) less
accumulated depreciation and impairment losses, adjusted for any
remeasurement of the lease liability. The lease liability is
initially measured at the present value of the lease payments that
are not paid at that date. Subsequently, the lease liability is
adjusted for interest and lease payments, as well as the impact of
lease modifications, amongst others.
Directors have completed their detailed review of IFRS 16 and
further guidance on this change in accounting policy is given in
note 12 below.
3. Segment reporting
(a) Revenue and net fee income by geographical region
Revenue Net fee income
Six months ended Year ended Six months ended Year ended
30 September 30 September 31 March 2019 30 September 30 September 31 March 2019
2019 2018 2019 2018
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
UK 8,072 8,439 16,472 3,707 3,855 7,599
Asia 4,832 3,866 7,770 4,832 3,866 7,770
Rest of World 262 267 418 262 267 418
--------------- --------- ------------- -------------- ------------- ------------- --------------
13,166 12,572 24,660 8,801 7,988 15,787
--------------- --------- ------------- -------------- ------------- ------------- --------------
All revenues disclosed by the Group are derived from external
customers and are for the provision of recruitment services. The
accounting policies of the reportable segments are the same as the
Group's accounting policies. Segment profit before taxation
represents the profit earned by each segment after allocations of
central administration costs.
(b) Revenue and net fee income by classification
Revenue Net fee income
Six months ended Year ended Six months ended Year ended
30 September 30 September 31 March 2019 30 September 30 September 31 March 2019
2019 2018 2019 2018
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Permanent
- UK 3,252 3,279 6,501 3,252 3,279 6,493
- Asia 4,832 3,866 7,770 4,832 3,866 7,770
- Rest of World 262 267 418 262 267 418
Contract (UK) 4,820 5,160 9,971 455 576 1,106
13,166 12,572 24,660 8,801 7,988 15,787
------------------- ---- -------- ----- --------- ---- --------- ----- ---------- ----- --------- ---- ---------
(c) Profit before taxation by geographical region
Six months ended Year ended
30 September 30 September 2018 31 March 2019
2019
GBP'000 GBP'000 GBP'000
UK 478 621 928
Asia 1,243 947 1,523
Rest of World 8 21 20
--------------------------------- ------------- ------------------ --------------
Profit before taxation 1,729 1,589 2,471
--------------------------------- ------------- ------------------ --------------
Operating profit is the measure of profitability regularly
viewed by the Board, which collectively acts as the Chief Decision
Maker. Consequently, no segmental analysis of interest or tax
expenses is provided.
(d) Segment Assets and Liabilities by Geographical Region
Total assets Total liabilities
30 September 2019 30 September 2018 30 September 2019 30 September 2018
GBP'000 GBP'000 GBP'000 GBP'000
UK 12,211 11,725 2,474 1,553
Asia 7,916 5,033 2,080 1,215
Rest of World 371 411 49 61
---------------- ------------------ ------------------ ------------------ ------------------
Total 20,498 17,169 4,603 2,829
---------------- ------------------ ------------------ ------------------ ------------------
The analysis above is of the carrying amount of reportable
segment assets and liabilities. Segment assets and liabilities
include items directly attributable to a segment and include income
tax assets and liabilities.
4. Income tax expense
The charge for taxation on profits for the interim period
amounted to GBP308k (2018: GBP104k) an effective rate of 17.81%
(2018: 6.55%).
5. Dividends
Six months ended Year ended
30 September 30 September 31 March
2019 2018 2019
GBP'000 GBP'000 GBP'000
Final dividend for 2019: 3.25p per share
(2018: 3.25p per share) 411 383 383
Interim dividend for 2019: 1.80p per share
(2018: 1.75p per share) - - 212
411 383 595
The interim dividend for 2020 of 1.80 pence (2019: 1.80 pence
paid on 7 December 2018), was approved by the board on 14 November
2019 and will be paid on 6 December 2019 to those shareholders
whose names are on the register on 22 November 2019.
6. Earnings per share
Earnings per share (EPS) are calculated by dividing the profit
attributable to ordinary shareholders by the weighted average
number of ordinary shares in issue during the period.
Fully diluted earnings per share is calculated by adjusting the
weighted average number of ordinary shares by existing share
options assuming dilution through conversion of all existing
options.
Earnings and weighted average number of shares from continuing
operations used in the calculations are shown below:
Six months ended Year ended
30 September 30 September 31 March
2019 2018 2019
GBP'000 GBP'000 GBP'000
Retained profit for basic and diluted earnings per share 1,139 1,291 1,660
----------------------------------------------------------------- ------------- ------------- -------------
Number Number Number
Weighted average number of shares used for basic earnings per
share 12,204,023 11,784,523 12,094,523
Dilutive effect of share options 136,491 163,413 307,031
----------------------------------------------------------------- ------------- ------------- -------------
Diluted weighted average number of shares used for
diluted earnings per share 12,340,514 11,974,936 12,401,554
----------------------------------------------------------------- ------------- ------------- -------------
Six months ended Year ended
30 September 30 September 31 March
2019 2018 2019
GBP'000 GBP'000 GBP'000
Pence Pence Pence
Basic earnings per share 9.33p 10.95p 13.72p
Diluted earnings per share 9.22p 10.78p 13.38p
----------------------------- ---- --------- ------------- ---------------
7. Reconciliation of profit before tax to cash flow from operating activities
Six months ended Year ended
30 September 30 September 31 March
2019 2018 2019
GBP'000 GBP'000 GBP'000
Profit before taxation 1,729 1,589 2,471
Adjustments for:
Depreciation 323 104 220
Share based payment expense 90 97 38
Finance costs - IFRS 16 49 - -
------------------------------------------------------- ----------------- ------------- -----------
(Profit)/Loss on sale of tangible asset - - 1
-------------------------------------------------------- ----------------- ------------- -----------
Operating cash flow before changes in working capital 2,191 1,790 2,730
IFRS 15 adjustment on reserves b/f - - (1,976)
(Increase)/ decrease in receivables (423) (596) 976
(Decrease)/ increase in payables (270) 66 416
-------------------------------------------------------- ----------------- ------------- -----------
Cash generated from underlying operations 1,498 1,260 2,146
-------------------------------------------------------- ----------------- ------------- -----------
8. Reconciliation of net cash flow to movement in net funds
Six months ended Year ended
30 September 30 September 31 March
2019 2018 2019
GBP'000 GBP'000 GBP'000
Increase in cash and cash equivalents in period/year 613 423 969
Net funds at the start of the period/year 2,309 1,234 1,234
Other non-cash changes 115 121 106
------------------------------------------------------- ----------------- ------------- ----------------
Net funds at the end of the period/year 3,037 1,778 2,309
------------------------------------------------------- ----------------- ------------- ----------------
9. Trade and other receivables
30 September 30 September 2018 31 March
2019 2019
GBP'000 GBP'000 GBP'000
Trade receivables 4,765 4,229 4,156
Allowance for doubtful debts (650) (882) (621)
Prepayments and accrued income 722 808 868
Other receivables 232 87 243
-------------------------------- ------------- ------------------ ---------
5,069 4,242 4,646
10. Trade and other payables
30 September 30 September 2018 31 March
2019 2019
GBP'000 GBP'000 GBP'000
Trade payables 187 182 316
Taxation and social security 674 797 730
Other payables 212 456 807
Accruals and deferred income 1,608 1,311 1,227
------------------------------ ---------------------------- ---------------------------- --------------------------
2,681 2,746 3,080
11. Treasury Shares
At 30 September 2019, the total number of ordinary shares held
in Treasury and their values were as follows:
30 September 2019 30 September 2018
Number GBP'000 Number GBP'000
As at 1 April 195,676 161 505,676 421
Shares purchased for
treasury 19,000 16 20,000 16
Shares issued from treasury (128,500) (13) (20,000) (2)
Equity reclassification
on disposal of treasury
shares - 4 - 4
----------------------------------------------------------------------------------------------------------------------------------------------------- ---------- -------- ---------- --------
As at 30
September 86,176 168 505,676 439
----------------------------------------------------------------------------------------------------------------------------------------------------- ---------- -------- ---------- --------
Nominal value - 9 - 51
Market value - 75 - 425
----------------------------------------------------------------------------------------------------------------------------------------------------- ---------- -------- ---------- --------
12. Changes in accounting policies
Adjustments recognised on adoption of IFRS 16
This note explains the impact of the adoption of IFRS 16 Leases
on the Group's financial statements. The Group has adopted the IFRS
16 modified retrospective approach from 1 April 2019 but has not
restated comparatives for the 31 March 2019 reporting period, as
permitted under the specific transitional provisions in the
standard. The reclassifications and the adjustments arising from
the new leasing rules are therefore recognised in the opening
balance sheet on 1 April 2019.
The weighted average incremental borrowing rate used is
8.47%.
The Group has elected not to recognise the right-of-use assets
and lease liabilities for short-term leases that have a term of 12
months or less or leases that are of low value (GBP5,000). Lease
payments associated with these leases are expensed on a
straight-line basis over the lease term.
The table below summarises the IFRS 16 impact on transition for
lease liabilities and the corresponding right-of-use assets along
with the movement from 1 April 2019 to 30 September 2019:
Lease liability GBP'000
Operating lease commitment disclosed as at 31 March
2019 1,817
Less short-term and low value lease (27)
Exchange difference 104
----------------------------------------------------- -------------------------------
Operating lease commitment at 31 March 2019 falls
under IFRS 16 1,894
Discounted using borrowing incremental rate at
initial application (220)
----------------------------------------------------- -------------------------------
Lease liabilities recognised at 1 April 2019 1,674
----------------------------------------------------- -------------------------------
Lease liabilities movement from 1 April 2019 to
30 September 2019
At 1 April 2019 1,674
Lease payments (338)
Interest charge 57
Exchange difference 49
----------------------------------------------------- -------------------------------
Total lease liabilities at 30 September 2019 1,441
----------------------------------------------------- -------------------------------
Current lease liabilities 383
Non-current lease liabilities 1,058
----------------------------------------------------- -------------------------------
Right-of-use assets
30 September 2019 1 April 2019
GBP'000 GBP'000
Properties 1,139 1,282
Total right-of-use-assets 1,139 1,282
---------------------------- ------------------ -------------
13. Related Party Transactions
Prime People Plc provides various management services to its
subsidiary undertakings. These services take the form of
centralised finance and operations support. The total amount
charged by the Company to its subsidiaries during the period is
GBP462k (2018: GBP384k). The balance owed to the subsidiary
undertakings at the period-end is GBP1m (2018: GBP409k).
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR CKNDDABDDODD
(END) Dow Jones Newswires
November 14, 2019 02:00 ET (07:00 GMT)
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