Regulatory Story
Go to market news section View chart   Print
RNS
Oleeo PLC   -  OLEE   

Final Results

Released 13:50 07-Nov-2019

RNS Number : 6875S
Oleeo PLC
07 November 2019
 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014

 

7 November 2019

 

PRELIMINARY ANNOUNCEMENT OF THE AUDITED RESULTS OF

 

OLEEO PLC

 

Chairman's Statement

 

 

 

I am pleased to present the preliminary statement of Oleeo Plc ("Oleeo" or the "Company"), which show the results of the Company for the year to 31 July 2019.

 

Financial and Operating review

The Directors present their strategic report with the audited consolidated and parent company financial statements for the year ended 31 July 2019.

 

Principal activity

The principal activity of the Oleeo PLC group of companies (the "Group") is the provision of internet based recruitment software for the tracking and selection of applicants.

 

Financial and operating review

Revenues for the year were £10,683,086 up 7% on the £9,981,563 reported in the previous year while like-for-like Operating Profit of £546,453 compared with the £472,728 achieved last year. However, the adoption of IFRS15 has increased our reported Operating Profit to £592,142. As IFRS 15 has been adopted on a modified retrospective basis, the prior year comparatives have not been restated.

 

IFRS 15 is a new accounting standard on revenue recognition which replaced IAS18 and for which this was the first year of recognition for the Group.

 

The increase in finance income to £75,114, compared with £17,776 in the previous year, results from a decision to move our cash deposits from "on call" to fixed-term durations.

 

These two factors are reflected in the increase in the profits before tax of £667,256 compared with £490,504 last year.

 

Shortly before our 2018 year end we submitted claims for Research and Development expenditure incurred in the two years to 31 July 2016 and 2017 which have been accepted by HM Revenue & Customs and resulted in a refund of £308,838. The credit in our 2019 Consolidated Income Statement of £199,390 is, therefore, the net impact of the prior year refund less the tax payable on the profit for the year to 31 July 2019 of £109,448.

 

Whilst we intend to make further Research and Development claims in respect of the two years to 31 July 2018 and 2019 we anticipate that they will be for lower figures than the claims reflected in this year's accounts. We have not recognised any associated tax asset as, at the year end, we do not have reasonable assurance that any such claim will meet the relevant conditions and that such claim will be received.

 

The changes in Key Performance Indicators between the financial years 2018/2019 and 2017/2018 were as follows:

 

2018/19

£

2017/18

£

 

 

 

Sales per employee

£95,385

£86,796

Operating profit per employee

£5,287

£4,111

 

The increase in revenues reflects growth in new and ongoing contracts offset by known terminations, supplemented by higher change requests and online test revenues.

Meanwhile costs increased as we pursued our strategy of product innovation and putting customers at the heart of our business. This included an increase in product development costs and the first trials of our machine learning based solution. At the same time, we continued to focus on looking after and delighting our customers. Ongoing efforts to continually improve service, were augmented by the re-deployment of resources into customer focused teams and the growth of our customer success resources. As a result, during the year we saw an increase in customer satisfaction measured by our net promoter score.

 

Our focus remains on innovation, growth and the success of our customers and we expect to continue to invest particularly in product development resources and marketing. As a result, costs are expected to grow putting continued downward pressure on profitability. The new business team are buoyed by some new business success at the turn of the new financial year and positive prospects for the first half, however known reductions and an extremely competitive environment mean that the outlook for both sales and profits remain uncertain.

 

Principal risks and uncertainties

Commercial and operational risk

Competitive pressure and economic instability are continuing and growing risks for the Company. The Company manages this risk by developing leading edge products capable of driving significant transformation and value within our clients, through high levels of customer service, by managing resource levels and pursuing opportunities for continuous improvement.

 

The business is dependent upon clients' ability to safely access data held on our servers and satisfy data protection legislation. In order to ensure that service availability is not affected by a breakdown in power supplies or by other physical hazards our servers are housed offsite in secure facilities on the premises of a specialist provider of such facilities. Third party security experts are also regularly engaged to advise on data security and to ensure the Company has appropriate defences against "hacking". In addition, we maintain a rigorous, ISO27001 accredited, security management system.

 

Financial risk

The main risk arising from the Company's activities is currency risk. This is monitored by the Board of directors and was not considered to be significant at the balance sheet date of 31 July 2019.

 

Dividends and Share Buybacks

The Directors are pleased to recommend the payment of a dividend of 3.5p per share, which is the same as that paid in respect of the previous year. This dividend will be subject to the approval of shareholders at the Annual General Meeting to be held at 5-7 Bridgeworks, The Crescent, London SW19 8DR at 10.30 am on 3 December 2019 and, if approved, will be payable on 6 December 2019 to shareholders on the register as at 15 November 2019.

 

The Board will be seeking at the Annual General Meeting the extension of the authority granted last year to make purchases of ordinary shares. In assessing whether in practice to use this authority, the Board will take into account all relevant factors including the effect on earnings per share and assets per share ratios and other benefits to shareholders. In the year ended 31 July 2019, 16,500 ordinary shares were purchased.

 

Our Team

I am very fortunate to have an extremely dedicated team who apply a huge depth of domain expertise and a fantastic commitment to our customers. I would like to thank everyone for their tenacity, skill and support.

 

This strategic report was approved on 7 November 2019 by the Board.

 

 

 

 

Charles EH Hipps

Chairman, Oleeo Plc

 

 

 

 

consolidated income statement

 

For the Year Ended 31 July 2019

 

 

 

 

 

 

 

 

 

 

 
 
2019
2018

 

 

 

£

£

 

 

 

 

 

 

Revenue

 

10,683,086

9,981,563

 

 

 

 

 

 

Total administrative expenses

 

(10,090,944)

(9,508,835)

 

 

 

_________

_________

 

 

 

 

 

 

Operating profit

 

592,142

472,728

 

 

 

 

 

 

Finance income

 

75,114

17,776

 

 

 

_________

_________

 

 

 

 

 

 

Profit on ordinary activities before taxation

 

667,256

490,504

 

 

 

 

 

 

Income tax credit / (charge)

 

199,390

(98,233)

 

 

 

_________

_________

 

 
 
 
 

 

Profit for the year
 
866,646
392,271

 

 

 

_________

_________

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

 

Basic

 

11.37p

5.16p

 

 

 

_________

_________

 

 

 

 

 

 

Diluted

 

11.30p

5.10p

 

 

 

_________

_________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statement of Financial Position

 

As at 31 July 2019

 

 

 

Note

2019

2018

 

 

£

£

Assets

 

 

 

Non-current assets

 

 

 

Property, plant and equipment

11

235,325

200,619

Trade and other receivables

 

12

46,515

_________

-

_________

Total non-current assets

 

 

 

 

281,840

_________

 

200,619

_________

 

 

 

 

Current assets

 

 

 

Trade and other receivables

Short term investments

12

19

2,620,588

7,650,000

1,712,532

7,750,000

Cash and cash equivalents

13

4,022,470

3,503,758

 

 

_________

_________

 

 

 

 

Total current assets

 

14,293,058

12,966,290

 

 

_________

_________

 

 

 

 

Total assets

 

14,574,898

13,166,909

 

 

_________

_________

 

 

 

 

Equity

 

 

 

Issued capital

15

7,628

7,620

Share premium

16

1,713,256

1,690,158

Capital redemption reserve

16

725

708

Translation reserve

16

16,660

6,409

Retained earnings

16

8,639,924

8,414,702

 

 

_________

_________

 

 

 

 

Total equity

 

10,378,193

10,119,597

 

 

_________

_________

Liabilities

 

 

 

Non-current liabilities

 

 

 

Deferred tax

8

38,007

30,148

 

 

_________

_________

Liabilities

 

 

 

Current liabilities

 

 

 

Trade and other payables

14

4,136,486

2,977,024

Corporation tax

 

22,212

40,140

 

 

_________

_________

 

 

 

 

Total current liabilities

 

4,158,698

3,017,164

 

 

_________

_________

 

 

 

 

Total liabilities

 

4,196,705

3,047,312

 

 

_________

_________

 

 

 

 

Total equity and liabilities

 

14,574,898

13,166,909

 

 

_________

_________

 

 

 

 

Consolidated statement of cash flows

 

For the Year Ended 31 July 2019

 

 

 

2019

2018

 

 

£

£

Cash flows from operating activities

 

 

 

Profit for the year

 

866,646

392,271

Adjusted for:

 

 

 

Depreciation

 

128,064

112,570

Foreign exchange on revaluation of fixed assets

 

946

-

Share based payments

 

16,510

13,951

(Increase) in receivables

 

(682,491)

(258,425)

Increase / (decrease) in payables

 

522,550

(206,543)

Finance income

 

(75,114)

(17,776)

Corporation tax (income) / expense

 

(199,390)

98,233

Loss on disposal of fixed assets

 

 

 

-

 

10,637

 

 

_________

_________

 

 

 

 

 

 

577,721

144,918

Taxation received / (paid)

 

189,321

(170,501)

 

 

_________

_________

 

 

 

 

Net cash inflow / (outflow) from operating activities

 

767,042

(25,583)

 

 

_________

_________

 

 

 

 

Cash flows from investing activities

 

 

 

Interest received

 

75,114

17,776

Purchase of property, plant and equipment

 

(163,716)

(152,978)

Short term investments

 

100,000

(7,750,000)

 

 

_________

_________

 

 

 

 

Net cash inflow / (outflow) from investing activities

 

11,398

(7,885,202)

 
 

_________

_________

 
 
 
 

Cash flows from financing activities

 

 

 

Proceeds from issue of shares

 

23,123

41,168

Purchase of own shares

 

(26,400)

-

Equity dividends paid

 

(266,702)

(265,510)

 

 

_________

_________

 

 

 

 

Net cash outflow from financing activities

 

(269,979)

(224,342)

 

 

_________

_________

 

 

 

 

Exchange differences on translation of foreign operations

 

 

 

10,251

_________

7,598

_________

Increase / (decrease) in cash in the year

 

 

Cash and cash equivalents at beginning of year

 

518,712

 

 

3,503,758

(8,127,529)

 

 

11,631,287

 

 

_________

_________

 

 

 

 

Cash and cash equivalents at end of year

 

4,022,470

3,503,758

 

 

_________

_________

 

 

 

Notes

 

1.    The income statement incorporates the consolidated results of Oleeo Plc and its subsidiary for the year ended 31 July 2019. The Company has adopted IFRS 15 and IFRS 9 with effect from 1 August 2018. Other than these two new Accounting standards, 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.    Earnings per share

 

       Basic earnings per share

 

       This is calculated by dividing the profit of £866,646 (2018 - £392,271) by the weighted average number of ordinary shares in issue throughout the year of 7,624,054 (2018 - 7,603,029).

 

       Diluted earnings per share

 

       The weighted average number of shares for 2019 for this calculation was 7,667,957 (2018 - 7,688,598). This is calculated based on the weighted average number of ordinary shares adjusted by 43,903 (2018 - 85,569) to recognise the effect of the potential issue of further ordinary shares as a result of the exercise of share options.

 

3.    The directors are recommending the payment of a dividend of 3.5p per share which will be subject to the approval of shareholders at the Annual General Meeting to be held at 5-7 Bridgeworks, The Crescent, London SW19 8DR at 10.30 am on 3 December 2019 and, if approved, will be payable on 6 December 2019 to shareholders on the register as at 15 November 2019.

 

4.    The preliminary announcement was approved by the board on 7 November 2019. The Company's annual accounts are expected to be sent to shareholders on or around 8 November 2019 and copies will be available from the Company's office at 5-7 Bridgeworks, The Crescent, London SW19 8DR and on the Company's website at www.oleeo.co.uk.

 

5.    The financial information does not constitute the Company's statutory accounts, within the meaning of Section 435 of the Companies Act 2006, for the years ended 31 July 2019 or 2018 but is derived from those accounts. Statutory accounts for 2018 have been delivered to the Registrar of Companies and those for 2019 will be delivered following the Company's forthcoming annual general meeting. The auditors have reported on those accounts; their reports were unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their reports and did not contain statements under the Companies Act 2006, s498(2) or (3).

 

 

Enquiries

 

Oleeo Plc

Charles Hipps, Chairman & CEO

Telephone: +44 (0)20 8946 9876

Email: chipps@oleeo.com

 

Panmure Gordon (UK) Limited

Nominated Adviser

Alina Vaskina

Telephone: +44 (0)20 7886 2956

 


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
 
 
FR CKODQNBDDADK
Close


London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.

 


Final Results - RNS