RNS Number:5796R
World Careers Network PLC
03 November 2003
PRELIMINARY ANNOUNCEMENT OF THE AUDITED RESULTS OF WORLD CAREERS NETWORK PLC
For the year ended 31 July 2003
CHAIRMAN'S STATEMENT
________________________________________________________________________________________
I am pleased to present the annual accounts of WCN, which show the results of
the company for the year to 31 July 2003.
Financial Review
WCN's business has continued to grow with revenues for the year to 31st July
2003 of #1,709,000, 12.5% up on the previous year. While the move into profit
was foreshadowed at the half year, I am very pleased to report that the profit
before tax of #143,000 exceeded those expectations and compares to a loss of
#185,000 last year.
Operating Review
This year we have completed our transformation into a software business.
Software now accounts for over 80% of our revenues with design, and project and
response management accounting for the remainder. Our first software client,
Corus, has now been using our applicant tracking software for four years. Over
that period we have built a client base of leading employers from banks such as
Lloyds TSB, retailers Marks & Spencer and John Lewis, The Ministry of Defence,
and high-tech employers like EDS. The monthly fees paid by our clients underpin
our steady growth.
During the period under review, we have continued to add to our client list and
further developed our applicant tracking software and Version 6, which
incorporated substantial additional functionality over Version 5, has recently
been released.
We have continued to reduce the costs in France to reflect the low level of
current activity and this is reflected in the reduction in the loss at this
operation to #90,000 from #237,000 last year. We expect this trend to continue
in the current year.
Outlook
Despite difficult conditions in the UK we achieved steady growth in the last
financial year. The economic outlook in the UK remains uncertain and we are,
therefore, cautious about the future.
To facilitate our growth, our key internal focuses for the coming year are: to
build our sales and marketing capability to ensure the acquisition of new
clients; and to continue to strengthen our implementation and support teams to
ensure the expansion of our business with existing clients. In order to meet
these challenges we expect a small increase in headcount with an associated
impact on costs.
Our maiden profit means our financial position remains solid and puts us in a
strong position to take advantage of any improvements in the market.
I would like to thank the dedicated team who have worked so hard during the year
and to congratulate them on achieving this first profit. Like most other
service companies WCN's most valuable asset is the workforce. We are fortunate
to have a dedicated, experienced and hardworking team developing our software
and providing a service to our clients.
Ian Moore Any enquiries, please contact:
Chairman, World Careers Network Charles Hipps, Managing Director
World Careers Network
Email: chipps@wcn.co.uk .
Tel: 020 8946 9876
PRELIMINARY ANNOUNCEMENT OF THE AUDITED RESULTS OF WORLD CAREERS NETWORK PLC
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 JULY 2003
________________________________________________________________________________________
2003 2002
# #
Turnover 1,709,651 1,519,323
________ ________
Operating profit/(loss) 115,492 (207,864)
Interest receivable 28,137 22,841
________ ________
Profit/(loss) on ordinary activities before 143,629 (185,023)
taxation
Taxation on profit on ordinary activities 4,308 -
________ ________
Profit/(loss) on ordinary activities after
taxation
attributable to shareholders 139,321 (185,023)
________ ________
Profit/(loss) per share (note 2)
Basic 1.73p (2.29)p
________ ________
Diluted 1.70p (2.29)p
________ ________
PRELIMINARY ANNOUNCEMENT OF THE AUDITED RESULTS OF WORLD CAREERS
NETWORK PLC
BALANCE SHEET AT 31 JULY 2003
________________________________________________________________________________________
2003 2003 2002 2002
# # # #
Fixed assets
Intangible assets 190,937 219,917
Tangible assets 46,037 74,566
________ ________
236,974 294,483
Current assets
Debtors 438,914 327,779
Cash at bank and in hand 980,480 802,752
________ ________
1,419,394 1,130,531
Creditors: amounts falling due
within one year 250,337 168,001
________ ________
Net current assets 1,169,057 962,530
________ ________
Total assets less current liabilities 1,406,031 1,257,013
Provisions for liabilities and charges 6,262 10,954
________ ________
1,399,769 1,246,059
________ ________
Capital and reserves
Called up share capital 8,070 8,070
Share premium account 1,527,375 1,527,375
Share scheme reserve 144,303 129,914
Profit and loss account (279,979) (419,300)
________ ________
Equity shareholders' funds 1,399,769 1,246,059
________ ________
PRELIMINARY ANNOUNCEMENT OF THE AUDITED RESULTS OF WORLD CAREERS NETWORK PLC
For the year ended 31 July 2003
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 JULY 2003
________________________________________________________________________________________
Reconciliation of operating profit/(loss) to net cash inflow/(outflow) from
operating activities
2003 2002
#
#
Operating profit/(loss) 115,492 (207,864)
Amortisation of goodwill 28,980 29,000
Depreciation of tangible assets 43,748 39,768
Operating costs not represented
by cash flows 9,697 43,815
(Increase)/decrease in debtors (111,135) 13,486
Increase/(decrease) in creditors 78,028 (33,254)
________ ________
Net cash inflow/(outflow) from operating activities 164,810 (115,049)
________ ________
Net cash inflow/(outflow) from operating activities 164,810 (115,049)
Returns on investments
and servicing of finance
Interest received 28,137 22,841
Capital expenditure and
financial investment
Purchase of tangible fixed assets (15,219) (36,467)
________ ________
Increase/(decrease) in cash in the period 177,728 (128,675)
________ _______
Reconciliation of net cash flow to net funds,
comprising wholly cash deposits
Increase/(decrease) in cash in the year 177,728 (128,675)
Opening net funds 802,752 931,427
________ ________
Closing net funds 980,480 802,752
________ ________
PRELIMINARY ANNOUNCEMENT OF THE AUDITED RESULTS OF WORLD CAREERS NETWORK PLC
For the year ended 31 July 2003
NOTES
________________________________________________________________________________________
1. The profit and loss account incorporates the results of World
Careers Network for the year ended 31 July 2003. The accounting policies used
in the preparation of these audited results are unchanged from those adopted by
the company in previously published annual financial statements.
2. Profit/(loss) per share
Basic profit/(loss) per share
This is calculated by dividing the profit of #139,321 (2002: loss of #185,023),
being the profit/loss attributable to ordinary shareholders, by the number of
ordinary shares in issue throughout the year of 8,070,000 (2002: 8,070,000).
Diluted profit/(loss) per share
The weighted average number of shares for 2003 for this calculation was
increased to 8,175,015 to recognise the effects of the potential issue of
further ordinary shares.
In 2002 the basic and diluted loss per share were the same as the effect of
potential ordinary shares was antidilutive.
These calculations are in accordance with Financial Reporting Standard 14.
3. Turnover represents the invoiced amount of services provided to
external customers, less valued added tax or local taxes, adjusted for amounts
invoiced to customers relating to services provided after the year end.
4. No dividends were paid or declared during the year.
5. The preliminary announcement was approved by the board on 31
October 2003
6. The financial information contained in this preliminary
announcement does not constitute statutory accounts within the meaning of
Section 240 of the Companies Act 1985.
7. The financial information has been extracted from the audited
financial statements for the year ended 31 July 2003. The auditors' report on
these financial statements was unqualified and did not contain any statement
under Section 237(2) or (3) of the Companies Act 1985. These financial
statements will be filed with the Registrar of Companies after the forthcoming
Annual General Meeting.
Any enquiries, please contact: Charles Hipps, Managing Director, World Careers
Network, Woodman Works, The Crescent, London SW19 8DR.
Email: chipps@wcn.co.uk. Tel: 020 8946 9876
This information is provided by RNS
The company news service from the London Stock Exchange
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