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RTC Group PLC  -  RTC   

Interim Results - Six Months Ended 30 June 2017

Released 07:00 09-Aug-2017

RNS Number : 4597N
RTC Group PLC
09 August 2017
 

9 August 2017

 

 

RTC Group Plc

("RTC", "the Company" or "the Group")

 

Interim Results for the Six Months Ended 30 June 2017

 

 

RTC Group Plc (AIM: RTC.L), the engineering and technical recruitment company, is pleased to announce its unaudited results for the six months ended 30 June 2017.

 

Highlights:

 

·        Group revenue from continuing operations: £35.1m (2016: £34.1m)

·        Group profit from operations (before amortisation of intangibles): £0.7m (2016: £0.6m)

·        Profit before tax increased by 32% to £0.6m: (2016: £0.4m)

·        Cash inflow from operations £0.5m: (2016: £1.0m)

·        Basic earnings per share 3.58p: (2016: 2.83p)

 

 

In line with the Company's progressive dividend policy, the Directors propose an interim dividend of 1.2p per share (2016: 1.1p). Subject to approval of the Directors, the interim dividend will be paid on 30 November 2017 to shareholders on the register on 10 November 2017.

 

Commenting on the results, Bill Douie, Chairman, said:

 

"I am pleased to report that the positive start to 2017, to which I alluded in my statement of 26th February, has continued throughout the remainder of the first half. 

 

Ganymede continues to perform well and profits have grown in line with expectations.  As announced on 25 July 2017, Ganymede Energy, has secured a significant contract with SSE Plc, commencing in November 2017, to source, train and provide dual fuel installers for its Smart-Meter roll-out programme.

 

ATA, like many companies in its sector, is experiencing tighter market conditions in permanent placements.  However, it is growing its contract business ahead of expectations.

 

Global Staffing Solutions (GSS) continues to maintain its steady presence in Afghanistan and is enjoying promising new client opportunities both there and in other Middle East regions.

 

The refurbishment at the Derby Conference Centre (part of Central Services) has been completed and the Centre has returned to profitability.

 

The Directors are confident that trading in the second half of 2017 will be in line with expectations.  The Board continues to implement ambitious growth initiatives across all group businesses and looks forward to the remainder of the year with optimism.

 

The interim report is available on the Company's website www.rtcgroupplc.co.uk.

 

ENDS

 

Enquiries:

 

RTC Group Plc

Tel: 0133 286 1835

Bill Douie, Chairman

 

Andy Pendlebury, Chief Executive

 

 

 

SPARK Advisory Partners Limited (Nominated Adviser)

Matt Davis / Mark Brady

www.Sparkadvisorypartners.com

 

Tel: 0203 368 3550

Whitman Howard Limited (Broker)

Nick Lovering / Francis North

www.Whitman-howard.com

Tel: 020 7659 1234

 

 

About RTC

RTC has three principal trading subsidiaries engaged in recruitment services:

·      ATA is one of the UK's leading engineering and technical recruitment consultancies. Supplying white and blue-collar engineering and technical staff to a broad range of SME clients and vertical markets;

·      Ganymede is focused on the supply and operation of blue collar contingent labour into safety critical markets; and

·      GSS predominantly provides managed service solutions for international clients.

 

www.rtcgroupplc.co.uk

 

 

Chairman's statement

Six months ended 30 June 2017

 

 

I am pleased to present the interim report of the Company for the six months to 30 June 2017 and to report on another successful half year for the Group.

 

I am pleased to report that the positive start to 2017, to which I alluded in my statement of 26th February, has continued throughout the remainder of the first half. 

 

Ganymede continues to perform well and profits have grown in line with expectations.  As announced on 25 July 2017, Ganymede Energy, has secured a significant contract with SSE Plc, commencing in November 2017, to source, train and provide dual fuel installers for its Smart-Meter roll-out programme.

 

ATA, like many companies in its sector, is experiencing tighter market conditions in permanent placements.  However, it is growing its contract business ahead of expectations.

 

Global Staffing Solutions (GSS) continues to maintain its steady presence in Afghanistan and is enjoying promising new client opportunities both there and in other Middle East regions.

 

The refurbishment at the Derby Conference Centre (part of Central Services) has been completed and the Centre has returned to profitability.

 

Dividends

In line with the Company's progressive dividend policy, the Directors propose an interim dividend of 1.2p per share (2016: 1.1p). Subject to approval of the Directors, the interim dividend will be paid on the 30 November 2017 to shareholders on the register on 10 November 2017.

 

Outlook

 

The Directors are confident that trading in the second half of 2017 will be in line with market expectations.  The Board continues to implement ambitious growth initiatives across all group businesses  

and looks forward to the remainder of the year with optimism.

 

 

 

 

W J C Douie                                                                                                                                        9 August 2017

Chairman           

 

 

 

 

Finance Director's statement

Six months ended 30 June 2017

 

Revenue and gross margin

In the period ended 30 June 2017, Group revenue increased by to £35.1m (2016: £34.1m). Profit before tax increased by 32% to £0.6m (2016: £0.4m).

 

Ganymede

Profit from operations (before amortisation of intangibles on acquisition) was consistent with the prior year £1.1m (2016: £1.1m).

 

Revenue increased by 2.4%, as Ganymede's Rail division continued to provide Network Rail with contingent labour for maintenance at the top end of their five-year contract value. Ganymede Energy doubled the number of permanent placements made, compared to the same period in 2016 and steadily increased contractor numbers.  Due to the change in mix in its Energy business, overall gross margin improved 0.4% from the same period in 2016. Considerable investment has been made in the growth strategies for Ganymede's Rail and Energy divisions.

 

ATA

Profit from operations was slightly behind the prior year £0.5m (2016: £0.6m).

Revenue has increased by 6.5% as ATA's strategy to build a much more substantial contract base really starts to deliver results. However, the slow-down in permanent recruitment in UK based engineering that has been seen in other recruitment businesses recent announcements and that was referred to in our 2016 annual report is still hampering absolute growth in permanent performance in ATA.  The resulting change in mix between contract and permanent recruitment has led to a slight dip in gross profit for the period.  Administrative expenses have been held at 2016 levels.  

 

GSS

Profit from operations was slightly behind the same period prior year £0.2m (2016: £0.3m).

Revenue decreased by 6.1% as anticipated, with the tightened pricing effective from October 2016 when GSS' key contract in Afghanistan was successfully rebid.   Contractors numbers have largely been maintained at 2016 levels and overheads carefully managed. Investment in pursuing new opportunities has been rewarded with a new contract secured to supply candidates for roles in Afghanistan similar to those currently provided.

 

Central Services

Following the refurbishment of the Derby site in 2016, revenue from the site has increased by 28.2% on the same period last year and administrative costs have been reduced.

 

Taxation

The total tax charge for the period is estimated at £93,000 (2016: £60,000). This is lower than would be expected if the standard tax rate was applied to the profits for the period, as explained in note 3.

 

Finance Director's statement

Six months ended 30 June 2017

 

 

Earnings per share

The basic earnings per share figure is 3.58p (2016: 2.83p).  The diluted earnings per share 3.39p (2016: 2.71p).

 

Statement of financial position

The Group statement of financial position has further strengthened compared to the same point last year, with net working capital increasing to £1.8m (2016: £1.4m). The ratio of current assets to current liabilities was maintained at 1.2x (2016: 1.2x) and the gearing ratio reduced to 1.0 times (2016: 1.2 times). The gearing ratio in 2016 largely reflected the timing of £2.2m of customer receipts relating to three key clients that were overdue at the end of June but received in July.  Interest cover is 16.9 times (2016: 8.6 times)

 

Cash flow

Profit from operations of £0.6m was nearly all converted to a cash inflow from operations of £0.5m, which represented good cash generation. The higher cash inflow in the first half of 2016 of £1.0m was largely a result of the marked improvement in debtors during that period.

 

Financing

The Group's current bank facilities include an overdraft of £50,000 and a confidential invoice discounting facility of up to £9.0m with HSBC. The Group is currently operating well within its facility cap.

 

The Board closely monitors the level of facility utilisation and availability to ensure that there is sufficient headroom to manage current operations and support the growth of the business.

 

The Group continues to be focussed on cash generation and building a robust statement of financial position to support the growth of the business.

 

 

 

S L Dye                                                                                                                                                  9 August 2017

Group Finance Director                                                                                               

 

 

Consolidated statement of comprehensive income

Six months ended 30 June 2017

 

 

 

 

 

Six month period ended 30 June 2017

Six month period ended 30 June 2016

Year ended 31 December 2016

 

 

Unaudited

Unaudited

Audited

 

Notes

£'000

£'000

£'000

Revenue

2

35,127

34,062

67,900

Cost of sales

2

(29,126)

(28,082)

(55,794)

Gross profit

2

6,001

5,980

12,106

Administrative expenses

 

(5,374)

(5,474)

(10,929)

Profit from operations

 

627

506

1,177

Financing expense

 

(37)

(59)

(104)

Profit before tax

 

590

447

1,073

Tax expense

3

(93)

(60)

(273)

Net profit and total comprehensive income for the period

 

497

387

800

 

 

 

 

 

 

 

 

 

 

Earnings per ordinary share

5

 

 

 

Basic

 

3.58p

2.83p

5.80p

Diluted

 

3.39p

2.71p

5.44p

 

 

Consolidated statement of changes in equity

Six months ended 30 June 2017

 

 

Six months ended 30 June 2017:

 

 

Share capital

Share premium

Own shares held

 

Capital redemption reserve

Share based payment reserve

Profit and loss

Total equity

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

At 1 January 2017 (audited)

145

 

96

 

(473)

50

95

3,455

3,368

Profit and total comprehensive income for the period

-

 

-

-

-

497

497

Share options exercised

-

 

-

-

-

-

-

Share based payment reserve

-

 

-

-

58

-

58

At 30 June 2017 (unaudited)

145

96

(473)

50

153

3,952

3,923

 

The following describes the nature and purpose of each reserve within equity:

 

Reserve description and purpose

 

Share capital

Nominal value of share capital subscribed for.

Share premium account 

Amount subscribed for share capital in excess of nominal value.

Capital Redemption Reserve

An ​amount of ​money that a ​company in the UK must ​keep when it ​buys back ​shares, and which it cannot ​pay to ​shareholders asdividends.

Own shares held

Cost of company's own shares purchased through the EBT Trust shown as a deduction from equity.

Share based payment reserve

The share based payment reserve comprises the cumulative share option charge under IFRS 2 less the value of any share options that have been exercised or have lapsed.

Retained earnings

All other net gains and losses and transactions with owners (e.g. dividends) not recognised elsewhere.

 

Consolidated statement of changes in equity

Six months ended 30 June 2017

 

 

Six months ended 30 June 2016:

 

 

Share capital

Share premium

Own shares held

 

Capital redemption reserve

Share based payment reserve

Profit and loss

Total equity

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 

At 1 January 2016 (audited)

143

 

66

 

 

(473)

50

54

3,080

2,920

Profit and total comprehensive income for the period

-

 

-

 

 

 

-

-

-

387

 

 

 

 

387

Share options exercised

2

31

-

-

(4)

4

33

Share based payment reserve

-

-

-

-

15

-

15

At 30 June 2016 (unaudited)

145

97

(473)

50

65

3,471

3,355

 

 

 

Consolidated statement of changes in equity

Six months ended 30 June 2017

 

 

Year ended 31 December 2016:

 

 

Share capital

Share premium

Own shares held

 

Capital redemption reserve

Share based payment reserve

Retained earnings

Total equity

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

At 1 January 2016

143

66

(473)

50

54

3,080

2,920

Total comprehensive income for the year

-

-

-

-

-

800

800

Dividends

-

-

-

-

-

(430)

(430)

Share options exercised

2

30

-

-

(5)

5

32

Share based payment charge

-

-

-

-

46

-

46

At 31 December 2016

145

96

(473)

50

95

3,455

3,368

 

 

 

 

Consolidated statement of financial position 

As at 30 June 2017

 

 

 

 

Six month period ended 30 June 2017 Unaudited

Six month period ended 30 June 2016 Unaudited

Year ended 31 December 2016 Audited

 

 

£'000

£'000

£'000

Assets

 

 

 

 

Non-current

 

 

 

 

Goodwill

 

132

132

132

Other intangible assets

 

576

670

642

Property, plant and equipment

 

1,418

1,274

1,260

Deferred tax asset

 

59

16

33

 

 

2,185

2,092

2,067

Current

 

 

 

 

Cash and cash equivalents

 

-

-

60

Inventories

 

12

11

12

Trade and other receivables

 

10,606

10,217

11,183

Total current assets

 

10,618

10,228

11,255

Total assets

 

12,803

12,320

13,322

 

 

 

 

 

Liabilities

 

 

 

 

Current

 

 

 

 

Trade and other payables

 

(4,631)

(4,758)

(5,429)

Corporation tax

 

(141)

(180)

(132)

Current borrowings

 

(4,051)

(3,931)

(4,289)

Total current liabilities

 

(8,823)

(8,869)

(9,850)

 

 

 

 

 

Non-current liabilities

 

 

 

 

Deferred tax liabilities

 

(57)

(96)

(104)

Net assets

 

3,923

3,355

3,368

 

 

 

 

 

Equity

 

 

 

 

Share capital

 

145

145

145

Share premium 

 

96

97

96

Capital redemption reserve

 

50

50

50

Own shares held

 

(473)

(473)

(473)

Share based payment reserve

 

153

65

95

Profit and loss account

 

3,952

3,471

3,455

Total equity

 

3,923

3,355

3,368

 

 

Consolidated statement of cash flows

Six months ended 30 June 2017

 

 

 

 

 

Six month period ended 30 June 2017 Unaudited

Six month period ended 30 June 2016 Unaudited

Year ended 31 December 2016     Audited

 

Notes

£'000

£'000

£'000

Cash flows from operating activities

 

 

 

 

Profit from operations

2

627

506

1,177

Adjustments for:

 

 

 

 

Depreciation and amortisation

 

199

150

382

Loss on disposal

 

-

-

5

Employee equity settled share options charge

 

58

15

46

Change in inventories

 

-

2

1

Change in trade and other receivables

 

577

1,510

560

Change in trade and other payables

 

(955)

(1,151)

(483)

Cash inflow from operations

 

506

1,032

1,688

Income tax paid

 

-

-

(270)

Net cash inflow from operating activities

 

506

1,032

1,418

Cash flows from investing activities

 

 

 

 

Purchases of property, plant and equipment

 

(291)

(1,013)

(1,129)

Purchase of intangible assets

 

-

-

(79)

Net cash used in investing activities

 

(291)

(1,013)

(1,208)

Cash flows from financing activities

 

 

 

 

Interest payments

 

(37)

(59)

(104)

Lease purchase payments

 

-

-

(11)

Dividends paid

 

-

-

(430)

Proceeds from exercise of share options

 

-

33

30

Net cash outflow from financing activities

 

(37)

(26)

(515)

Net increase / (decrease) in cash and cash equivalents from operations

 

178

(7)

(305)

 

 

 

 

 

Total net increase / (decrease) in cash and cash equivalents

 

178

(7)

(305)

Cash and cash equivalents at beginning of period

 

(4,229)

(3,924)

(3,924)

Cash and cash equivalents at end of period

6

(4,051)

(3,931)

(4,229)

 

 

Notes to the interim statement

Six months ended 30 June 2017

 

1.    Accounting policies

 

a)     General information

                 RTC Group PLC is incorporated and domiciled in England and its shares are publicly traded on AIM. The registered office address is The Derby Conference Centre, London Road, Derby, DE24 8UX.  The company's registered number is 02558971. The principal activities of the Group are described in note 2.

 

                 The Board consider the principal risks and uncertainties relating to the Group for the next six months to be the same as detailed in our last Annual Report and Accounts to 31 December 2016.  The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the year ended 31 December 2016.

 

                 b)     Basis of preparation

                 The unaudited interim group financial information of RTC Group PLC is for the six months ended 30 June 2017 and does not comprise statutory accounts within the meaning of S.435 of the Companies Act 2006. The unaudited interim group financial statements have been prepared in accordance with the AIM rules and have not been reviewed by the Group's auditors. This report should be read in conjunction with the Group's Annual Report and Accounts for the year ended 31 December 2016, which have been prepared in accordance with IFRS's as adopted by the European Union.

 

                 These unaudited interim group financial statements were approved for issue on 18 August 2017.  No significant events, other than those disclosed in this document, have occurred between 30 June 2017 and this date.

 

                 c)      Comparatives

                 The comparative figures for the year ended 31 December 2016 do not constitute statutory accounts within the meaning of S.435 of the Companies Act 2006, but they have been derived from the audited financial statements for that year, which have been filed with the Registrar of Companies. The report of the auditor was unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006 nor a reference to any matters which the auditor drew attention by way of emphasis of matter without qualifying their report.

 

                 d)     Accounting policies

There have been no significant changes in the basis upon which policies and estimates have been applied, compared to those applied at 31 December 2016. A full description of our accounting policies is contained with our 2016 Annual Report available on our website.

 

This interim announcement has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards issued by the International Accounting Standards Board, as adopted by the European Union as effective for periods beginning on or after 1 January 2017.

 

 

Notes to the interim statement

Six months ended 30 June 2017

 

2.  Segment analysis

The Group is a provider of recruitment services that has its headquarters at the Derby Conference Centre which is contained within the Central Services segment.  The recruitment business comprises three distinct business units - ATA predominantly servicing the UK engineering market; GSS servicing the international market and Ganymede supplying labour into safety critical environments.

Segment information is provided below in respect of ATA, Ganymede, GSS and Central Services which, as well as being the head office and providing all central services for the Group, generates income from excess space at the Derby site including rental and conferencing facilities.

The Group manages the trading performance of each segment by monitoring operating contribution and centrally manages working capital, borrowings and equity.

Revenues are generated from permanent and temporary recruitment in the recruitment division.  Revenue is analysed by origin of customer/point of invoicing and as such all recruitment division revenues are supplied in the United Kingdom. 

All revenues have been invoiced to external customers.  During the first half of 2016, one customer in GSS contributed 10% or more of that segment's revenues being £4.8m (2016: £5.1m) and one customer in Ganymede also contributed 10% or more of that segment's revenues being £11.7m (2016: £10.3m).

 

 

Notes to the interim statement

Six months ended 30 June 2017

 

The segment information for the reporting period is as follows:

 

Six months ended 30 June 2017: 

 

 

Recruitment

Central

Total

Unaudited

ATA

GSS 

Ganymede

Services

Group

 

£'000

£'000

£'000

£'000

External sales revenue

13,674

4,832

15,862

759

35,127

Cost of sales

(11,126)

(4,319)

(13,327)

(354)

(29,126)

Gross profit

2,548

513

2,535

405

6,001

Administrative expenses*

(1,973)

(305)

(1,427)

(1,470)

(5,175)

Amortisation of intangibles*

(24)

-

(66)

-

(90)

Depreciation*

(16)

-

(15)

(78)

(109)

Profit / (loss) from operations

535

208

1,027

(1,143)

627

Finance expense

 

 

 

 

(37)

Profit before tax

 

 

 

 

590

Tax expense

 

 

 

 

93

                     

*combine to represent administrative expenses of £5,374,000 in the consolidated statement of comprehensive income.

All assets and liabilities are held in the United Kingdom.

 

Six months ended 30 June 2016: 

 

 

 

Recruitment

Central

Total

 

Unaudited

ATA

GSS 

Ganymede

(Restated**)

Services

(Restated**)

Group

 

 

£'000

£'000

£'000

£'000

£'000

 

External sales revenue

12,837

5,147

15,486

592

34,062

 

Cost of sales

(10,206)

(4,458)

(13,063)

(355)

(28,082)

 

Gross profit

2,631

689

2,423

237

5,980

 

Administrative expenses*

(1,979)

(439)

(1,350)

(1,556)

(5,324)

 

Amortisation of intangibles*

-

-

(66)

-

(66)

 

Depreciation*

(36)

-

(2)

(46)

(84)

 

Profit / (loss) from operations

616

250

1,005

(1,365)

506

 

Finance expense

 

 

 

 

(59)

 

Profit before tax

 

 

 

 

447

 

Tax expense

 

60

                   

*combine to represent administrative expenses of £5,474,000 in the consolidated statement of    comprehensive income.

** Restatement to reflect presentation as at 31 December 2016. Ganymede to include amortisation of intangibles and Derby Conference Centre included as part of Central Services.

All assets and liabilities are held in the United Kingdom.

 

Notes to the interim statement

Six months ended 30 June 2017

 

 

Year ended 31 December 2016:

 

 

 

Recruitment

Central

Total

Audited

ATA

GSS 

Ganymede

Services

Group

 

£'000

£'000

£'000

£'000

£'000

External sales revenue

25,692

9,575

31,345

1,288

67,900

Cost of sales

(20,469)

(8,409)

(26,190)

(726)

(55,794)

Gross profit

5,223

1,166

5,155

562

12,106

Administrative expenses*

(3,854)

(787)

(2,795)

(3,105)

(10,541)

Amortisation of intangibles*

(41)

-

(132)

-

(173)

Depreciation*

(87)

(1)

(28)

(99)

(215)

Profit / (loss) from operations

1,241

378

2,200

(2,642)

1,177

Finance expense

 

 

 

 

(104)

Profit before tax

 

 

 

 

1,073

Tax expense

 

 

 

 

(273)

 

*combine to represent administrative expenses of £10,929,000 in the consolidated statement of comprehensive income.

 

All assets and liabilities are held in the United Kingdom.

 

Notes to the interim statement

Six months ended 30 June 2017

 

 

3.  Income tax

 

 

Continuing operations

Six month period ended 30 June 2017 Unaudited

Six month period ended 30 June 2016 Unaudited

Year ended 31 December 2016 Audited

 

£'000

£'000

£'000

Analysis of tax:

 

 

 

Current tax

 

 

 

UK corporation tax

141

73

235

Adjustment in respect of previous period

-

-

35

 

141

73

270

Deferred tax

(29)

(13)

3

Adjustment in respect of previous period

(19)

 

 

Tax

93

60

273

 

 

Factors affecting the tax expense

The tax assessed for the six-month period ended 30 June 2017 is lower than would be expected by multiplying profit on ordinary activities by the standard rate of corporation tax in the UK of 19.25% (2016:20%). The differences are explained below:

 

 

 

Six month period ended 30 June 2017 Unaudited

Six month period ended 30 June 2016 Unaudited

Year ended 31 December 2016 Audited

Factors affecting tax expense

£'000

£'000

£'000

Result for the period before tax

590

447

1,073

Profit multiplied by standard rate of tax of 19.25% (2016: 20%)

114

89

215

Non-deductible expenses

(1)

4

45

Tax credit on exercise of options

-

(23)

(22)

Corporation tax rate change

(1)

(10)

-

Adjustment in respect of previous period

(19)

-

35

Tax charge for the period

93

60

273

 

 

 

 

 

 

Notes to the interim statement

Six months ended 30 June 2017

 

 

4.   Dividends

During the period, the company made no dividend payments (2016: Nil) to its equity shareholders. This represents a payment of 0.0p (2016: 0.0p) per share.

 

The Directors propose an interim dividend of 1.2p per share (2016: 1.1p). Subject to approval of the Directors, the interim dividend will be paid on 30 November 2017 to shareholders on the register on 10 November 2017.

 

 

 

5.   Earnings per share

 

The calculation of basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year.

The calculation of diluted earnings per share is based on the basic earnings per share adjusted to allow for all dilutive potential ordinary shares.

 

 

Basic

Diluted

 

Six month period ended 30 June 2017

Six-month period ended 30 June 2016

Six-month

period ended

30 June 2017

Six month period ended

30 June 2016

 

 

Unaudited

Unaudited

Unaudited

Unaudited

 

Earnings £'000

497

387

497

387

 

Basic weighted average number of shares

13,868,126

13,679,975

13,868,126

13,679,975

 

Dilutive effect of share options

-

-

792,794

582,545

 

Fully diluted weighted average number of shares

-

-

14,660,920

14,262,920

 

Earnings per share (pence)

3.58p

2.83p

3.39p

2.71p

 

 

The basic earnings per share at 31 December 2016 was 5.80p and diluted earnings per share was 5.44p.

 

Notes to the interim statement

Six months ended 30 June 2017

 

 

 

 

 

At

1 January

2017

Audited

Cash and cash equivalents

At

30 June 2017

Unaudited

 

£'000

£'000

£'000

Overdraft and invoice discounting arrangements

 

(4,289)

238

(4,051)

Cash

60

(60)

-

Cash and cash equivalents

(4,229)

178

(4,051)

 

 

 

 

 

 

               

The Group has a working capital facility with HSBC PLC that allows it to borrow up to 90% of the invoiced trade debtors of ATA, GSS and Ganymede up to £9.0m and an overdraft facility of £50,000.

 

 

Included in current borrowings are bank overdrafts and an invoice discounting facility.  During the year the Group has used its bank overdraft and invoice discounting facility, which is secured by a cross guarantee and debenture over all Group companies.  There have been no defaults or breaches of interest payable during the current or prior period.

 

 

RTC Group Plc is the parent company of the Group that includes the following trading entities that have been consolidated:

 

ATA Recruitment Limited                                                                     

The Derby Conference Centre Limited

Ganymede Solutions Limited

ATA Global Staffing Solutions Limited

 

The Group, as permitted by the scope paragraph of IAS 24, Related Party Disclosures, has not disclosed transactions with other group companies that are eliminated on consolidation in the Group financial statements.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Interim Results - Six Months Ended 30 June 2017 - RNS