Prime People Plc
Annual Report and Financial Statements
for the year ended 31 March 2016
2016
Registered number: 1729887
Prime People Plc
Annual Report and Financial Statements
For the year ended 31 March 2016
PRIME PEOPLE PLC
Annual Report and Financial Statements for the Year Ended 31 March 2016
________________________________________________________________________________________
Contents
Page
1
3
Chairman's statement
Strategic report
9
Report of the Directors
11
Statement of Directors’ responsibilities
12
Corporate governance
16
Remuneration report
19
21
22
23
25
26
27
28
56
57
Independent Auditor’s report
Consolidated statement of comprehensive income
Consolidated statement of changes in equity
Consolidated statement of financial position
Company statement of financial position
Company statement of changes in equity
Group and Company cash flow statement
Notes to the financial statements
Directors and Advisers
Board of Directors
PRIME PEOPLE PLC
Chairman's Statement
Performance
Cash Flow
The year ended 31 March 2016 was an
encouraging year for our company, as it was for
many professional recruitment businesses based in
the U.K. Despite the global economy providing
some uncertainty to our year end, our clients
continued to hire and competition for scarce talent
supported demand. As the following report shows,
the Group achieved positive revenue growth and
improved its operating profit margin.
I am pleased to report that we closed the year with
Net Fee Income (NFI) of £12.28m. This is a
20.16% increase on last year (2015: £10.22m).
Despite NFI in the second half of the year of
£6.07m being 2.23% lower than the first half of
2016, it is encouraging to see a second half
increase over the comparable period in 2015 of
16.21%.
There were a number of ‘standout’ performances,
within U.K. property. In particular, contract and
technical recruitment generated improved NFI. It
was also heartening to see our international
businesses,
exceed
expectations in testing local conditions.
notably Hong Kong,
The 50.35% increase in operating profit for the
year from £1.43m in 2015 to £2.15m in 2016
reflects the improvement in NFI and the continued
drive to control costs and increase productivity
across the Group.
During the year NFI productivity per head rose to
£103.49k (2015: £91k). The increase is due, in
part, to new hires contributing to performance
sooner than expected.
The conversion rate, which compares operating
profit to NFI, increased from 13.99% to 17.50%
due primarily to greater operational efficiency.
The ratio of NFI derived from contract as against
permanent placements has slightly increased in the
year from 8:92 in 2015 to 9:91. This increase can
be attributed to clients seeking flexibility in a full
and competitive employment market.
The Group continues to maintain a strong net cash
position. At the start of the year the Group had
cash of £1.01m which had slightly decreased to
£0.95m by the end of the year. The decrease is
primarily due to growth in the contract business,
where NFI has grown by 43.04% to £1.13m (2015:
£0.79m).
Dividend
During the year, an interim dividend of 1.75p per
share (2015: 1.75p), a special dividend of 4.00p
per share (2015: 4.00p) and a second interim
dividend of 3.09p (2015: 0.00p) were paid to
shareholders. As previously advised, the Board
does not anticipate recommending a final dividend
(2015: 3.09p). This will result in a total dividend
payment of 8.84p for the 2016 financial year
(2015: 8.84p).
Share Buy Back
During the year no shares were purchased through
the Group’s buyback programme (2015: 67,210
shares purchased at a cost of £61,512). The Board
will be seeking shareholder approval for renewal
of the authority to repurchase up to 10% (2015:
10%) of the Group’s issued share capital at the
Annual General Meeting.
New Issue of Ordinary Shares
During the year the Company applied for 96,250
(2015: 127,499) 10p newly issued shares to be
admitted to trading on AIM in order to satisfy the
exercise of options granted under the company’s
share option scheme. The Admission of 68,250
took place on 21 September 2015, and the
Admission of 28,000 took place on 16 February
2016.
Board
The Board has continued to operate corporate
governance standards appropriate to an AIM listed
company.
1
PRIME PEOPLE PLC
Chairman's Statement (continued)
On 27th October 2015 Christopher Heayberd
retired from his role as Finance Director after 20
years with the company. The Board is delighted
that Mr Heayberd will continue to serve the
Company as a Non-executive Director.
The success of the Group is dependent on having
competent and committed people and the Board
would like to thank all the members of our staff
for their hard work, commitment and contribution
over the last year.
Mrs Donka Zaneva-Todorinski was promoted and
appointed as Finance Director and member of the
Board with effect from 27th October 2015 in
succession to Mr Heayberd.
Although not required to do so, the Directors have
resolved that they will retire at least once every
three years and seek reappointment by shareholder
at the next AGM.
The Board has a fine mix of skills, experience,
gender and backgrounds. This mix
is of
considerable benefit to the business.
People
The average number of staff increased from 112
last year to 124 this year and we anticipate that
headcount at the end of 2016 will increase again.
The Group has a diverse cultural and ethnic profile
within the business and at the end of 2016 had
global 52:48 male/female gender ratio.
Current trading and outlook
Following three years of buoyant trading in the
recruitment sector, we anticipate that market
conditions will be softer in the remainder of 2016.
Current activity is resilient across the group and,
while we expect some slowing in our mature
vertical markets, we are confident the business is
well positioned to exploit available opportunities.
Surveying
the business environment, we are
conscious of several macro-economic headwinds,
including the UK referendum on EU membership,
turbulent emerging markets and other volatility
that may affect our clients’ hiring plans. However,
the Group continues to find opportunities for
expansion and has successfully incubated new
business lines over the past twelve months while
increasing productivity per head and diversifying
outside the UK. We will continue to invest in
people and the technology that allows us to
improve shareholder returns by offering our clients
innovative approaches
to recruitment and a
globally connected service.
Robert Macdonald
Executive Chairman
2
PRIME PEOPLE PLC
Strategic Report
Overview
The Group provides permanent and contract
recruitment services to selected, niche industry
sectors. The built environment continues to be the
Group’s largest market, served through its main
subsidiary, Macdonald & Company. As distinct
brands, Prime Insight and Prime Energy serve the
data analysis & customer insight and renewable
energy & sustainability sectors respectively.
Our employees are vital to the continued success
of the business and we invest heavily in them. As
such, we take time to find and train the best talent
that shares our ambition - to be the best, not
simply the biggest. In pursuit of this objective, the
Group made several strategic hires in 2016 and
conducted successful graduate hiring programme.
The business is organised into teams of specialist
consultants, each managed by a team leader who is
responsible for performance within the operating
framework approved by the Board. The Group
operates a policy of open communication in the
belief that its employees are best placed to suggest
operational improvements and emergent strategies
that will increase earnings.
The Group is committed to managing its talent on
merit alone and provides equal opportunities for
all current and future employees. It gives full and
fair consideration to applications for employment
from disabled persons, where a disabled person
may adequately carry out the requirements of any
position within the physical constraints of the
Company’s offices.
The Group has two locations in the U.K., the
London head office and Manchester. It has fully
staffed offices in Hong Kong (established in
2007), in Dubai (established in 2008), Singapore
(established in 2012), and a franchise in South
Africa (established in 2008).
Both Group Revenue and NFI were up in 2016
which in turn delivered an increased operating
profit of £2.15m (2015: £1.44m).
3
seekers’ expectations
The U.K. had a good year overall, although in the
third quarter our clients’ confidence stalled while
remained bullish.
job
Performance in the U.K. was driven by increased
NFI from our Technical and Contract teams as
well as a notable performance from our newly
established Residential business.
the U.K., Hong Kong proved
the
Outside
‘standout’ performer and made
largest
contribution to group NFI of all our business units.
the
Our Middle East business, based in Dubai, also
generated strong fee income, especially in light of
negative sentiment linked to the falling price of
oil. Nevertheless, the Board continues to watch the
region carefully and sets conservative expectations
in an uncertain environment.
Singapore performed slightly below expectations
due to staff changes. However, the office finished
the year strongly and we have confidence in the
staff structure of the office going forward. Our
Prime Insight team in Singapore has grown, with
the business area showing signs of maturity and
we are expecting improved results from it in 2017.
in
the
pursuit
Cultivating
of
strong
The Board remains steadfast in its pursuit of
sustainable NFI growth and cash generation. It
will continue to maintain careful control on
increased
expenditure
profitability.
client
relationships, investing in the best technology and
employing the best people are pillars of the
Group’s success. To this end, the Board has
delegated accountability for each business area to
a newly created Operational Management Board,
which reports to the Group Executive Directors.
With slow-moving global growth and a world
economy increasingly exposed to risk it is more
important than ever that we stay flexible, able to
serve our clients wherever demand may be, and
individual NFI
that we
performance against costs. Tight management
control of remuneration and expenditure, together
with a focus on improved productivity per head
and conversion ratios, position the Group to
prosper.
closely monitor
PRIME PEOPLE PLC
Strategic Report
Regional Performance
UK
Revenue
Net fee income (NFI)
Operating profit
Operating profit as % of NFI
Average number of employees
2016
£m
16.25
7.77
1.53
2015
£m
12.96
6.53
0.99
19.69% 15.16%
84
79
The UK results reported in 2016 compare well to
the performance of 2015.
Revenue increased by 25.39% to £16.25m (2015:
12.96m) with an increase in NFI of 18.99% to
£7.77m (2015: £6.53m)
Our Technical, Architecture and Real Estate
Finance teams delivered strong NFI growth during
the year. This together with additional investment
in a new residential team contributed to the
increase in operating profit as a percentage of NFI
from 15.16% to 19.69%.
reflected
Market conditions fluctuated throughout the year
which was
improved NFI
performance in the first half of the year compared
to 2015, and accounted for the majority of the NFI
growth during the year.
in an
NFI from our contract team was 18.60% higher in
the second six months which was directly driven
by increased sales volume and better margins in
the current candidate-driven market.
4
PRIME PEOPLE PLC
Strategic Report
Asia
Revenue
Net fee income (NFI)
Operating profit
Operating profit as % of NFI
Average number of employees
NFI grew by 21.40%
(2015:
£2.99m).The region is covered by our offices in
Hong Kong and Singapore and represents 29.56%
of Group NFI (2015: 29.26%).
to £3.63m
Rest of the World
Revenue
Net fee income (NFI)
Operating profit
Operating profit as % of NFI
Average number of employees
2016
£m
3.63
3.63
0.46
12.67%
33
2015
£m
2.99
2.99
0.37
12.37%
32
from
region has benefited
The
increased
through staff rationalisation and
productivity
maturing business lines. Although the construction
business in the region reached a ‘plateau’, the team
now benefits from a better ability to serve markets
in mainland China and the region.
2016
£m
0.88
0.88
0.16
18.18%
7
2015
£m
0.70
0.70
0.07
10.00%
7
The region is covered by our offices in Dubai and
South Africa.
In Dubai our consultant
team was stable
throughout the year and, despite a backdrop of
economic conditions affected by the fall in oil
price and regional political instability, we had a
relatively strong year. With the bulk of the
business focussed on the Middle East, the region
delivered 26.17% growth in NFI and a conversion
rate of 18. 18%.
The Board are positive as to the future of the
the
business but remain conservative as
prospects in the region for the next twelve months.
to
Peter Moore
Managing Director
5
PRIME PEOPLE PLC
Strategic Report
Financial Review
Revenue
The Group achieved a 24.68% increase in revenue
to £20.76m (2015: £16.65m).
Net Fee Income (NFI)
NFI comprises
total placement fees of
permanent candidates and the margin earned in the
placement of contract staff.
the
Overall the Group delivered a 20.16% increase in
total NFI to £12.28m (2015: £10.22m). NFI from
to
permanent business
£11.15m (2015: £9.44m). Fees from our contract
business, which represents 9.20% of total NFI
(2015: 7.73%), increased to £1.13 million from
£0.79m last year.
increased by 18.11%
international placements, which
NFI from
is
included in our permanent business, increased by
22.22% to £4.51m (2015: £3.69m).
Administration Costs
Administration costs for the year increased by
15.25% to £10.13m (2015: £8.79m). The increase
primarily related to higher staff costs, in line with
fee income growth.
Profit before Taxation
Profit before taxation increased by 50.35% to
£2.15m (2015: £1.43m).
Taxation
The taxation charge is £0.46m on profit before
taxation of £2.15m (from ordinary activities)
which gives an effective tax rate of 21.40% (2015:
21.53%). The reasons for the difference from the
standard UK corporation tax rate of 20% are
detailed in note 7 of the accounts.
Earnings per Share
Basic earnings per share increased by 49.14% to
13.84p (2015: 9.28p). The diluted earnings per
share, taking into account existing share options,
increased by 50.06% to 13.52p (2015: 9.01p).
Dividend
An interim dividend of 1.75p (2015: 1.75p) was
paid on 27 November 2015 to shareholders on the
register at close of business on 20 November 2015.
A special dividend of 4p (2015: 4.00p) was also
6
paid on 27 November 2015 to all shareholders on
the register on 20 November 2015. Both the
interim and special second interim dividends were
approved by the Board on 27 October 2015.
A second interim dividend of 3.09p (2015: 0.00p)
was paid on 25 March 2016 to all shareholders on
the register on 18 March 2016. The second interim
dividend was approved by the Board on 3 March
2016. No final dividend is proposed for the current
year.
Balance Sheet
Net assets at 31 March 2016 have slightly reduced
to £13.42m (2015: £13.47m).
Trade receivables at the year end, were up on last
year at £2.71m (2015: £2.13m) which reflects the
increased revenue for the year. The credit period
taken by clients increased to 55 days (2015: 38
days).
Treasury Management and Currency Risk
Approximately 78.27% of the Group’s revenue in
2016 (2015: 77.82%) was denominated in Sterling.
Consequently the Group has a degree of currency
exposure in accounting for overseas operations.
Currently the Group policy is not to hedge against
this exposure but it does seek to minimise the
effect by converting into Sterling all cash balances
in foreign currency that are not required for local
short term working capital needs.
The Group operates a centralised
treasury
function, with no borrowing facilities, and is
confident the net cash within the Group is
sufficient
foreseeable
to meet current and
liabilities as they fall due.
Cash Flow and Cash Position
At the start of the year the Group had cash of
£1.01m. After net taxation payments of £0.41m
(2015: £0.28m) cash generated from operations
was £1.96m (2015: £1.27m).
During the year the Group spent £0.97m (2015:
£0.17m) on its CRM systems and paid dividends
to shareholders of £1.95m (2015: £0.59m).
PRIME PEOPLE PLC
Strategic Report
Financial Review
A final dividend for 2015 of £0.38m was paid in
June 2015 and an interim dividend for 2016 of
£0.70m as well as a second interim dividend of
£0.38m was paid in November 2015 and March
2016 respectively.
At 31 March 2016 the Group had cash of £0.95m.
Measurements of performance in 2016
Whilst the Group considers Net Fee Income (NFI)
to be the key indicator of the performance of the
business there are other measures which were
reported to senior management as follows:
- Conversion ratio (operating profit divided by
NFI) increased to 17.50% (2015: 13.99%)
- Productivity (NFI divided by total average
(2015:
to £99.03k
increased
headcount)
£91.25k)
- Ratio of billing headcount
to
headcount remained at 3.4 (2015: 3.4)
support
- Percentage of NFI paid to staff 63.69% (2015:
62.47%)
These key performance indicators form the basis
for reviewing the progress of the business.
Principal Risks and Uncertainties
Risk management is an important part of the
management process throughout the group. The
composition of the Board is structured to give
balance and expertise when considering the principal
risks and uncertainties of the Group.
The Group’s strategy is designed to allow the
business to grow without increasing risk beyond an
acceptable limit. The profile of risks fluctuates from
time to time and, whilst the Group cannot eliminate
risk altogether, the actions being taken to manage
and control risks are intended to mitigate the effects
on the business. According to latest industry surveys
persistent
the
recruitment profession and a number of difficult to
predict challenges remain of concern for the sector.
The Board
risks and
uncertainties facing the Group on a regular basis.
The Board’s approach is to ascertain the key risks
and develop plans to reduce the potential effects of
slow growth continues across
the principal
reviews
these risks on the business. The principal risks
identified are as follows:
Dependence on Key People
The sustainable success of the Group is dependent on
the continued service of senior management and key
people. The loss of the services of the senior
management and other key people could have a
material effect on the business. To address this, the
Group has put
talent
acquisition function and invested in management
information systems,
training and development
programmes, competitive pay structures and long
term remuneration plans, the aim of which is to
retain the key employees. The Group is fortunate to
have the loyalty of the senior management team
which allows the business to progress, even in
uncertain markets.
to place an
internal
in
For succession planning, and to facilitate corporate
management an Operational Management Board has
been established which has the responsibilities for
setting and delivering the performance of the Group
and proposing where the business should be focused
operationally.
Competitors
The Group’s focus is on specialist, niche sectors
where clients need expert knowledge and high levels
of service. We concentrate on markets where there is
a shortage of supply of suitable candidates and
opportunities to build strong and fruitful long-term
relationships with clients. The Directors believe that
the Group is well positioned in its chosen markets.
Whilst the Group seeks to continue to improve its
competitive positions, the actions of current, or
indeed potential, competitors may adversely affect
the Group’s business.
Strength of Property Markets
The market for built environment recruitment
services, from which the Group obtains the major
part of its revenue, is expected to be unpredictable.
Our contract business remains focused in the public
sector and has strengthened its position in the private
sector. However speculations in the property market
could have material adverse effect on profitability
and cash flows of the business. The Group is using
business models that evolve to operate in more
innovative ways.
7
PRIME PEOPLE PLC
Strategic report
Financial Review
The Group seeks to maximise this potential by
understanding its position in the market, which will
ultimately help turn further challenges into potential
opportunities.
Macro economic factors
Persistent slow growth in the global economy has
effects that trigger reduced output, and with it,
investment. A return of financial
demand and
turmoil, impairing confidence globally in the next
twelve months could hamper job creation in our
business areas. The Board sees opportunities for
development and will continue to invest in areas
where growth can be delivered at acceptable levels of
profitability, increasing cash generation and growing
Group
is geographically
diversified, spanning over different countries which
reduces the reliance on the success of any particular
market.
revenue. The Group
Regulatory position
The increase in regulatory scrutiny and demands on
compliance are having an effect on hiring. The
is aware of continuing challenges as
Group
remains
evolves,
procurement
committed to being fully compliant in each of the
regions in which it operates. In order to reduce the
legal and compliance risks, fee earners and support
staff receive regular training and updates on changes
in legal and compliance requirements.
practice
but
Information Technology
The Group is highly dependent on certain technology
systems and the infrastructure on which they operate
in order to maintain its client and candidate database.
These systems rely on specific suppliers who provide
the technology infrastructure and disaster recovery
solutions. The performance of these suppliers is
continually monitored to ensure that the services are
available and maintained. The Group is aware of the
increasing potential challenges to data integrity and
security from both internal and external sources.
infrastructure are
Therefore,
regularly
ensure
to
appropriate provision of functionality and resilience
to support the business as it develops. The Group has
appointed a senior operational manager to take
specific responsibility for the evaluation of its
Information Technology systems to ensure that
appropriate and
taken,
reasonable
particularly in respect of cyber-related threats.
the systems and
reviewed
and upgraded
steps are
8
of
(2015:
revenue
22.16%)
Foreign Exchange Risk
The Group’s international operations account for
21.71%
and
approximately 19.85% of the Group’s assets (2015:
15.06%). Consequently the Group has a degree of
translation exposure in accounting for overseas
operations and expects this to increase in line with
the growth of
the United
Kingdom. Currently, the Group’s policy is not to
hedge against this exposure. However, the Group
seeks to minimise this exposure by converting into
sterling all cash balances received
in foreign
currency that are not required for local short term
working capital needs. The Group will continue to
monitor its policies in this area.
the Group outside
Treasury Policies, Liquidity and Financial Risk
Surplus funds are held to support short term working
capital requirements. These funds are
invested
through the use of short term and period deposits,
with a policy of maximising fixed interest returns,
whilst providing the flexibility required to fund on-
going operations and to invest cash safely and
profitably. It is not a Group policy to invest in
financial derivatives.
Although the financial risks to which the Group is
exposed are currently considered to be minor, future
interest rate, liquidity and foreign currency risks
could arise. An additional bout of exchange rate
depreciations in emerging market economies and a
sharp decline in capital inflows could force a rapid
compression of domestic demand. The Board will
continually review its existing policies and make
changes as required to limit the financial risks of the
business.
Credit Risk Management
Credit risk refers to the risk that a counterparty will
default on its contractual obligations resulting in
financial loss to the Group. The principal credit risk
arises from the Group’s trade receivables. Client
credit terms and cash collections are managed
carefully and cash balances and cash flow forecast
are reviewed weekly. Monthly credit evaluation is
performed on the financial condition of accounts
receivable based on payment history and third party
credit references with appropriate provisions being
made.
Donka Zaneva-Todorinski
Finance Director
PRIME PEOPLE PLC
Report of the Directors for the Year Ended 31 March 2016
The Directors submit their report and the audited Group financial statements of Prime People Plc for the year
ended 31 March 2016. Prime People Plc is a public listed company, incorporated and domiciled in England
and its shares are quoted on the AIM Market.
Substantial Shareholders
At 22 June 2016, other than the Director’s interests shown in the Directors’ remuneration report on page 16
the Company had been notified of the following interests disclosed under the Disclosure and Transparency
Rules:
Number of 10p
ordinary shares
Percent of issued
share capital
%
Peter Hearn
719,500
5.90
The mid market quotation of the Company’s shares at close of business on 31 March 2016 was 96.5p. The
highest and lowest mid market quotations in the period from 1 April 2015 to 31 March 2016 were 134p and
92.5p.
Going concern
The Group has two revenue streams permanent and temporary recruiting. The Group has experienced 24.68%
revenue growth in 2016 which has been driven by growth in both the permanent and contract businesses. The
permanent business, which is largely cash generative, has provided the working capital to support the growth
in the contract side.
The Directors have prepared cash flow forecasts for a period of at least 12 months from the date of approval
of the financial statements. After reviewing these forecasts and having made appropriate enquiries, the
Directors have a reasonable expectation that the Group has adequate resources to continue operating for the
foreseeable future. The Group continues to adopt the going concern basis when preparing the financial
statements.
Environmental Policy
The Group recognises its responsibilities for the environment and gives due consideration to the possible
effects of its activities on the environment. As such, our environmental impact comes from the running of our
business generating carbon emissions through the consumption of gas and electricity, transport activities and
commuting, as well as office based waste such as paper and toners. We do not consider that the Group’s
activities have a major effect on the environment. However, it is the Group’s aim to reduce the environmental
impact of its activities and to operate in an environmentally responsible manner. We are, therefore,
committed to the following principles to ensure the business operates in an environmentally sensitive manner:
•
•
•
Encouraging the re-use and re-cycling of products and waste from our offices
Ensuring efficient use of materials and energy
Purchasing environmentally friendly materials where appropriate
Political Donations
The Group made no political donations during the year (2015: Nil).
9
PRIME PEOPLE PLC
Report of the Directors for the Year Ended 31 March 2016
Workplace Pensions
In line with the law on workplace pensions the Group continues to operate a defined contribution plan and
automatically enrols certain UK employees into NEST pension scheme.
In 2016 the Group provided contribution to defined pension schemes on behalf of two of its executive
directors, details of which are set out in the Remuneration Report on page 17.
Capital Structure
Details of the allotted and issued share capital are shown in note 17. The Company has one class of ordinary
shares which carry no right to fixed income and which represents 100% of the total issued nominal value of
all share capital. Each share carries the right to one vote at general meetings of the company.
Details of employee share schemes are set out in note 17.
Annual General Meeting (“AGM”)
The AGM will be held on Wednesday 20 July 2016 at 11.00am at 2 Harewood Place, London, W1S 1BX. All
shareholders are encouraged to attend. The resolutions to be put forward to the AGM are detailed in the
Notice of AGM, which is being circulated separately to all shareholders.
Authority to purchase own shares
The Directors were given authority at last year’s AGM to purchase through the market, up to 10% of the
Company’s issued share capital, subject to certain restrictions on price. A request for renewal of the authority
is included in the resolutions for this year’s AGM.
During the year the company purchased nil shares (2015: 67,210 shares).
Statement as to disclosure of information to auditors
The Directors, who were in office on the date of approval of these financial statements have confirmed that, as
far as they are aware, there is no relevant audit information of which the auditors are unaware. The Directors
have confirmed that they have taken appropriate steps to make themselves aware of any relevant audit
information and to establish that it has been communicated to the auditors.
Auditor
Crowe Clark Whitehill LLP has expressed its willingness to continue in office and a resolution to re-appoint
the firm as Auditor and authorising the Directors to set their remuneration will be proposed at the forthcoming
Annual General Meeting.
By order of the Board
Donka Zaneva- Todorinski
Finance Director
10
PRIME PEOPLE PLC
Statement of Directors’ Responsibilities
The Directors are responsible for preparing the Strategic Report, the Directors' Report, the Directors'
Remuneration Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the
Directors have elected to prepare the financial statements in accordance with International Financial
Reporting Standards (IFRSs) as adopted by the European Union (EU) and applicable law.
Under company law the Directors must not approve the financial statements unless they are satisfied that they
give a true and fair view of the state of affairs and profit or loss of the Company and Group for that period. In
preparing these financial statements, the Directors are required to:
•
select suitable accounting policies and then apply them consistently;
• make judgments and accounting estimates that are reasonable and prudent;
•
state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements; and
• prepare the financial statements on a going concern basis unless it is inappropriate to presume that the
Group and Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain
the Company's transactions and disclose, with reasonable accuracy at any time, the financial position of the
Company and its Group and enable them to ensure that the financial statements comply with the Companies
Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for
taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information
included on the Company’s website; the work carried out by the auditors does not involve the consideration of
these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred
in the accounts since they were initially presented on the website. Legislation in the United Kingdom
governing the preparation and dissemination of financial statements may differ from legislation in other
jurisdictions.
11
PRIME PEOPLE PLC
Corporate Governance
Statement by the Directors on Corporate Governance
The Board of the Company is committed to achieving high standards of corporate governance, professional
integrity and ethics. The Board gives due regard to the ‘UK Corporate Governance Code’ published by the
Financial Reporting Council and the Quoted Alliance (QCA) Corporate Governance Code for small and Mid-
Size Quoted Companies. As a company with its securities admitted to trading on AIM, the company is not
required to follow the UK Corporate Governance Code, however, it does so as far as is practicable and
appropriate for the nature and size of the Group, as further set out below.
A statement of the Directors’ responsibilities in respect of the financial statements is set out on page 11.
The Board has established two committees being the Audit Committee and the Remuneration Committee each
of which operates with defined terms of reference.
Membership of these committees as at the date of this report, the number of meetings held in 2016 and the
attendance record are summarised in the table below:
Directors
Board
Audit
Committee
Remuneration
Committee
Robert Macdonald – Executive Chairman
6/6 (Chair)
Peter Moore – Managing Director
Donka Zaneva-Todorinski – Finance Director
6/6
4/6
N
N
N
N
N
N
Chris Heayberd – Non-Executive Director
6/6
N
N
John Lewis – Non-Executive Director
Simon Murphy – Non-Executive Director
6/6
5/6
1/1
1/1 (Chair)
1/1(Chair)
1/1
Below is a brief description of the role of the Board and its Committees, followed by a statement regarding
the Group’s system of internal controls.
The Board and its Operation
The Board of Prime People Plc is the body responsible for corporate governance, establishing policies and
objectives, and reviewing the management of the Group’s resources.
The Board consists of an executive Chairman, Robert Macdonald, two other Executive Directors and three
Non-Executive Directors.
Chris Heayberd retired from his role as Finance Director on 27 October 2015 and continued to serve the
Company as a Non-Executive Director. Mrs Donka Zaneva-Todorinski was appointed as Finance Director
and member of the Board with effect of 27 October 2015 in succession to Mr Heayberd.
The Non-Executive Directors are John Lewis, Simon Murphy and Chris Heayberd. They receive a fixed fee
for their services and their interests in the shares of the Company are set out in the Remuneration Report on
page 17.
Biographical details for all the Directors are shown on page 57 and 58
12
PRIME PEOPLE PLC
Corporate Governance
The Board and its Operation (continued)
The Board meets at least five times each year, or more frequently where business needs require, and the
Directors receive monthly management accounts detailing the performance of the Group. The Board has a
general responsibility for overseeing all day to day matters of the Company with specific responsibility for;
reviewing trading performance; resources (including key appointments); finding, setting and monitoring
strategy; examining acquisition opportunities; and reporting to shareholders. The non-executive Directors
have a responsibility to ensure the strategies proposed by the executive Directors are fully considered and to
bring their judgment to bear in this role.
To enable the Board to function effectively and Directors to discharge their responsibilities, full and timely
access is given to all relevant information. In the case of Board meetings, this consists of a comprehensive set
of papers, including monthly business progress reports and discussion documents regarding specific matters.
Directors are free to, and regularly make further enquiries where they feel it is necessary and they are able to
take independent professional advice as required at the Company's expense. This is in addition to the access
which every Director has to the Company secretary.
The Board considers itself to be a "small board", and therefore has not set up a separate Nomination
Committee. Appointments to the Board of both executive and non-executive Directors are based on approval
by the full Board.
Any Director appointed during the year is required, under the provisions of the Company's Articles of
Association, to retire and seek reappointment by shareholders at the next Annual General Meeting. The
Articles also require that one-third of the Directors retire by rotation each year and seek reappointment at the
Annual General Meeting.
The Directors have resolved that they will retire at least once every three years even though not required by
the Company's Articles.
The executive Directors abstain from any discussion or voting at full board meetings on Remuneration
Committee recommendations where the recommendations have a direct bearing on their own remuneration
package.
Remuneration of non-executive Directors is determined by the Board. Non-executive Directors abstain from
discussions concerning their own remuneration.
The Company publishes a full annual report and financial statements which are available on the Prime People
website, to shareholders on request and to other parties who have an interest in the Group's performance.
All shareholders have the opportunity to put questions at the Company's Annual General Meeting.
Audit Committee
The Audit Committee comprises the two non-executive Directors of the Company and is chaired by Simon
Murphy. During the year the committee met once which was considered sufficient by both committee
members to deal with matters referred to it in the year. By invitation, the meetings are also attended by the
Finance Director.
The Audit Committee’s principal tasks are to ensure the integrity of the Company’s Financial Reporting
process, review the effectiveness of the Group’s internal controls including risk management, review the
scope of the work of the external Auditor and their independence, consider issues raised by the external
Auditor, review audit effectiveness and review the half-yearly and annual accounts focusing in particular on
accounting policies and compliance and on areas of management judgement and estimates.
13
PRIME PEOPLE PLC
Corporate Governance
Remuneration Committee
The Remuneration Committee comprise the two non-executive Directors of the Company and is chaired by
John Lewis.
The committee reviews the Group policy on the Executive Directors’ remuneration and terms of employment;
makes recommendations on this; and also approves the provision of policies for the incentivisation of senior
employees, including share schemes.
The principal terms of reference of the committee are set out in the Remuneration Report on pages 16 to 18.
The report also contains full details of Directors' remuneration and a statement of the Company's
remuneration policy. The committee meets when required to consider all aspects of the executive Directors'
remuneration, drawing on outside advice as necessary.
Internal Controls
The Directors are responsible for the Group’s system of internal control and for reviewing its effectiveness
which, by its nature, can only provide reasonable and not absolute assurance against material misstatement or
loss.
When undertaking their review the Directors have considered all material controls including operational,
compliance and risk management, as well as financial.
The Board has assessed the effectiveness of the Group’s internal control systems for the period 1 April 2015
to the date of approval of the financial statements and believes it has the procedures in place to safeguard the
Group’s assets and to ensure the reliability of information used within the business and for publication.
Key elements of the system of internal control are as follows:
Group Organisation
The Board of Directors meets up to six times a year and more frequently when required focusing mainly on
strategic issues, operational and financial performance. The Directors have in place an organisational structure
with clearly defined levels of responsibility and delegation of authority.
The Operational Management Board meets quarterly. It acts as a conduit between the Board of Directors and
the Group subsidiaries by providing information, advice and guidance to all staff. It has responsibilities for
setting up, monitoring and control of the business operations globally.
Annual Business Plan
The Group has a comprehensive budgeting system with an annual budget approved by the Board.
Monthly Forecasting
The Group prepares monthly fee income forecasts by individual businesses which are compared to budget.
Financial Reporting
Detailed monthly reports are produced showing a comparison of results against budget, forecast and the prior
year with performance monitoring and explanations provided for significant variances. Any significant
adverse variances are examined and remedial action taken where necessary.
Capital Expenditure
Capital expenditure requests are reviewed by the Board. Appropriate due diligence work will be carried out if
a business is to be acquired.
14
PRIME PEOPLE PLC
Corporate Governance
Internal Controls (continued)
Levels of authority
There are clear levels of authority, delegation and management structure.
Risk Management
The Directors and operating Company management have a clear responsibility for identifying risks facing
each of the businesses and for putting in place procedures to mitigate and monitor risks. Risks are assessed
during the annual budget process, which is monitored by the Board, and the ongoing Group strategy process.
Whistleblowing Policy
The Company is committed to maintaining the highest ethical standards and the personal and professional
integrity of its employees, suppliers, contractors and consultants. It encourages all individuals to raise any
concerns that they may have about the conduct of others in the business or the way in which the business is
run. The aim of the policy is to ensure that, as far as is possible, our employees are able to tell us about any
wrong doing at work which they believe has occurred or is likely to occur.
Dialogue with shareholders
Many of those who continue to hold shares in the Company are, or have been, employed within the business.
The original owners of Macdonald & Company Group still hold considerable share interests and retain a
strong interest in the company’s success and reputation.
Robert Macdonald
Chairman
15
PRIME PEOPLE PLC
Remuneration Report
The role of the Remuneration Committee
The Remuneration Committee met once this year and comprises John Lewis and Simon Murphy. The
Committee is chaired by John Lewis.
The purpose of the Remuneration Committee is to review, on behalf of the Board, the remuneration policy for
the Chairman, Executive Directors and other Senior Executives and to determine the level of remuneration,
incentives and other benefits, compensation payments and terms of employment of the Executive Directors
and other Senior Executives. It seeks to provide a remuneration structure that strongly aligns the interests of
management with those of shareholders.
Remuneration Policy
The main aim of the Committee is to attract, retain and motivate high calibre individuals with a compensation
comprising of basic salary, incentives and rewards which are linked to the overall performance of the Group
and which are comparable to pay levels in companies of similar size and in similar business sectors.
Directors’ Service Contracts
The Executive Chairman and Managing Director have service contracts which contain a notice period of one
year which are terminable by either party giving one years notice. The service contracts also contain
restrictive covenants preventing them from competing with the Group for one year following the termination
of employment and preventing both Directors from soliciting key employees, clients and candidates of the
employing Group and Group companies for 12 months following termination of employment. There are no
provisions for liquidated damages on the early termination of any of the Directors’ service contracts, nor
provisions for mitigating damages.
The Finance Director has a service contract which contains a notice period of 3 months which is terminable
by either party giving 3 months notice. The service contract also contains restrictive covenants preventing her
from competing with the Group for 3 months following the termination of employment and preventing her
from soliciting key employees, clients and candidates of the employing Group and Group companies for 3
months following termination of employment. There are no provisions for liquidated damages on the early
termination of any of the Directors’ service contracts, nor provisions for mitigating damages.
Non-Executive Directors’ Remuneration and Terms of Services
All Non-Executive Directors have letters of appointment which entitle either party to give three months
notice. The remuneration of the Non-Executive Directors is determined by the Board. The Non-Executive
Directors do not receive any pension or other benefits, other than out of pocket expenses, from the Group, nor
do they participate in any bonus schemes.
The remuneration agreed by the Committee for the Executive Directors contains some or all of the following
elements: a base salary and benefits, defined pension contributions, an annual bonus reflecting Group and
individual performance and share options.
Base Salary and Benefits
The Committee establishes salaries and benefits by reference to those prevailing in the employment market
generally for Executive Directors of companies of comparable status and market value. Reviews of such base
salary and benefits are conducted annually by the committee.
16
PRIME PEOPLE PLC
Remuneration Report
Emoluments of Directors
The aggregate emoluments of Directors who served during the year are shown in the table below.
Emoluments include management salaries, pension contributions, fees as Directors and benefits. Emoluments
shown are in respect of each Director's period in office during the year as a Board member of Prime People
Plc, and include emoluments from the Company and its subsidiary undertakings.
Notes
Salaries
and fees
Benefits
Pension
2016
Total
£
£
£
£
2015
Total
£
Executive Chairman
Robert Macdonald
3
114,391
4,620
21,000
140,011
118,635
Executive Directors
Peter Moore
1 & 3
183,671
10,344
35,000
229,015
230,096
Chris Heayberd
Donka Zaneva-
Todorinski
Non-Executive Directors
John Lewis
Simon Murphy
Chris Heayberd
4
5
23,217
3,010
33,333
284
19,435
19,435
4
14,038
-
-
-
-
-
-
-
-
26,227
75,707
33,617
-
19,435
19,389
19,435
58,739
14,038
-
407,520
18,258
56,000
481,778
502,566
Notes to the emoluments:
1. Peter Moore is the highest paid Director,
2. Benefits include subscriptions, medical and travel allowance,
3. Executive Directors’ Pension Contribution to two executive directors was approved by the Board on 27 May 2015,
4. Chris Heayberd retired as Finance Director and moved to a Non-Executive role on 27 October 2015. The fees noted
above cover the period to 1 November 2015 to 31 March 2016,
5. Donka Zaneva-Todorinski was appointed Finance Director and member of the Board on 27 October 2015. The fees
shown in 2016 reflect the amount paid to her from the date of appointment to 31 March 2016.
17
PRIME PEOPLE PLC
Remuneration Report
Directors’ interests in shares
Directors’ beneficial interest in the shares of the Company at 31 March 2016 was as follows:
Ordinary
shares of 10p
each held at
31 March
2016
Percentage of
issued share
capital at
31 March
2016
Ordinary
shares of 10p
each held at
31 March
2015
Percentage of
issued share
capital at
31 March
2015
2,780,000
2,907,721
1,250
1,019,000
330,000
24,000
22.62%
23.66%
0.01%
8.29%
2.70%
0.20%
2,780,000
2,907,721
-
1,088,500
330,000
24,000
22.80%
23.85%
0.00%
8.93%
2.70%
0.20%
Robert Macdonald
Peter Moore
Donka Zaneva-Todorinski
John Lewis
Simon Murphy
Chris Heayberd
Share option schemes
As at 31 March 2016 Directors’ options on ordinary shares of 10p each granted under the Prime People
Enterprise Management Incentive Scheme, were as follows:
Director
Year of
grant
Exercise
price
Granted
Number of
options
31 March
2015
Cancelled Exercised Number of
options
31 March
2016
Simon Murphy
Donka Zaneva-
Todorinski
2005/6
57.7p
84,234
2013/14
2014/15
0.00p
10.00p
2,500
30,000
-
-
-
2015/16
58.00p
-
10,000
(84,234)
-
-
-
-
-
(1,250)
-
-
1,250
30,000
10,000
Directors’ Insurance
Directors’ and officers’ liability insurance is provided at the cost of the Group for all Directors and Officers.
Annual Resolution
Shareholders will be given the opportunity to approve the Remuneration report at the Annual General
Meeting.
John Lewis
Chairman of the Remuneration Committee
18
PRIME PEOPLE PLC
Independent Auditor’s Report
Independent Auditor’s Report to the Members of Prime People Plc
We have audited the financial statements of Prime People Plc for the year ended 31 March 2016 which
comprise Group and Parent Company Statements of Financial Position, the Group Statement of
Comprehensive Income, the Group and Company Cash Flow Statements, the Group and Parent Company
Statements of Changes in Equity and the related notes.
The financial reporting framework that has been applied in their preparation is applicable law and
International Financial Reporting Standards (IFRSs) as adopted by the European Union and, as regards the
parent Company financial statements, as applied in accordance with the provisions of the Companies Act
2006.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of
the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's
members those matters we are required to state to them in an Auditor's report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company
and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and Auditor
As explained more fully in the Statement of Directors' Responsibilities, the Directors are responsible for the
preparation of the financial statements and for being satisfied that they give a true and fair view. Our
responsibility is to audit and express an opinion on the financial statements in accordance with applicable law
and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the
Auditing Practices Board's Ethical Standards for Auditors.
Scope of the audit of the Financial Statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient
to give reasonable assurance that the financial statements are free from material misstatement, whether caused
by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the
Company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of
significant accounting estimates made by the Directors; and the overall presentation of the financial
statements.
In addition, we read all the financial and non-financial information in the Strategic Report and the Directors’
Report, Chairman’s Statement, Financial Review, Corporate Governance and Remuneration Report to identify
material inconsistencies with the audited financial statements and to identify any information that is
apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the
course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies
we consider the implications for our report.
19
PRIME PEOPLE PLC
Independent Auditor’s Report (continued)
Opinion on Financial Statements
In our opinion:
•
the financial statements give a true and fair view of the state of the Group’s and of the parent
Company's affairs as at 31 March 2016 and of the Group‘s and parent Company’s profit for the year
then ended;
• have been properly prepared in accordance with IFRSs as adopted by the European Union;
•
•
the parent Company financial statements have been properly prepared in accordance with IFRSs as
adopted by the European Union as applied in accordance with the provisions of the Companies Act
2006; and
the financial statements have been prepared in accordance with the requirements of the Companies
Act 2006.
Opinion on other Matter Prescribed by the Companies Act 2006
In our opinion the information given in the Strategic Report and the Directors' Report for the financial year for
which the financial statements are prepared is consistent with the financial statements.
Matters on which we are Required to Report by Exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to if,
in our opinion:
•
•
•
adequate accounting records have not been kept by the parent Company, or returns adequate for our
audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and
returns; or
certain disclosures of Directors' remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Stacy Eden
Senior Statutory Auditor
For and on behalf of
Crowe Clark Whitehill LLP
Statutory Auditor
St Bride’s House
10 Salisbury Square
London
EC4Y 8EH
20
PRIME PEOPLE PLC
Consolidated Statement of Comprehensive Income
For the year ended 31 March 2016
Note
2016
£’000
Revenue
Cost of sales
2, 3
20,755
(8,475)
2015
£’000
16,647
(6,425)
Net fee income
Administrative expenses
Operating profit
Finance income
Profit before taxation
Income tax expense
Profit for the year
Other comprehensive income
Items that will or may be reclassified
to profit or loss:
Exchange profit/(loss) on translating
foreign operations
Other Comprehensive income
for the year, net of tax
Total comprehensive income for the
year
Attributable to:
Equity shareholders of the parent
Earnings per share
Basic earnings per share
Diluted earnings per share
4
7
9
The above results relate to continuing operations
21
12,280
(10,131)
10,222
(8,792)
2,149
1,430
-
6
2,149
1,436
(459)
(310)
1,690
1,126
21
21
130
130
1,711
1,256
1,711
1,256
13.84p
13.52p
9.28p
9.01p
PRIME PEOPLE PLC
Consolidated Statement of Changes in Equity
For the year ended 31 March 2016
Called
up
share
capital
£’000
Capital
Redemp-
tion
reserve
£’000
Treasury
shares
Share
premium
account
Merger
reserve
Share
option
reserve
Trans-
lation
reserve
Retained
Earnings
Total
£’000
£’000
£’000
£’000
£’000
£’000
£’000
1,207
-
-
-
-
12
-
-
-
-
9
-
-
-
-
-
-
-
-
-
(143)
7,109
173
120
312
5,636
14,423
-
-
-
-
-
42
(62)
142
-
-
-
(1,800)
-
48
13
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
92
-
-
-
-
-
-
1,126
1,126
130
-
-
-
-
-
-
-
-
-
130
(1,800)
38
130
-
-
-
(142)
60
55
(62)
-
(588)
(588)
1,219
9
(21)
5,370
173
212
442
6,070
13,474
-
-
-
10
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1
-
-
-
-
-
-
-
-
88
-
-
-
1,690
1,690
21
-
21
-
-
-
78
-
166
11
(1,946)
(1,946)
1,229
9
(21)
5,371
173
300
463
5,892
13,416
At 1 April
2014
Profit for the
year
Other
comprehensive
income
Capital
reduction
Adjustment in
respect of
share schemes
Issues of
ordinary shares
Shares issued
from treasury
Shares
purchased for
treasury
Adjustment on
share disposal
Dividend
At 31 March
2015
Profit for the
year
Other
comprehensive
income
Adjustment in
respect of
share schemes
Issues of
ordinary shares
Dividend
At 31 March
2016
22
PRIME PEOPLE PLC
Consolidated Statement of Financial Position
As at 31 March 2016
Assets
Non – current assets
Goodwill
Property, plant and equipment
Current assets
Trade and other receivables
Cash at bank and in hand
Total assets
Liabilities
Current liabilities
Trade and other payables
Current tax liabilities
Non-current liabilities
Deferred tax liabilities
Total liabilities
Net assets
2016
£’000
9,769
229
9,998
4,939
953
5,892
2015
£’000
9,769
316
10,085
4,538
1,009
5,547
15,890
15,632
2,216
249
2,465
9
9
1,958
184
2,142
16
16
2,474
2,158
13,416
13,474
Note
11
10
13
21
15
16
23
PRIME PEOPLE PLC
Consolidated Statement of Financial Position
As at 31 March 2016
Note
2016
£’000
Capital and reserves attributable to the
Company’s equity holders
Called up share capital
Capital redemption reserve fund
Treasury shares
Share premium account
Merger reserve
Share option reserve
Translation reserve
Retained earnings
17
18
18
18
18
18
18
18
1,229
9
(21)
5,371
173
300
463
5,892
2015
£’000
1,219
9
(21)
5,370
173
212
442
6,070
Total equity
13,416
13,474
The financial statements on pages 21 to 55 were approved by the Board of Directors and authorised for issue
on 22 June 2016 and are signed on its behalf by:
R J G Macdonald
D Zaneva-Todorinski
24
PRIME PEOPLE PLC
Company Statement of Financial Position
As at 31 March 2016
Assets
Non-current assets
Investment in subsidiaries
Deferred tax asset
Current assets
Trade and other receivables
Cash and cash equivalents
Total assets
Liabilities
Current liabilities
Other payables
Total liabilities
Net assets
Capital and reserves attributable to the
Company’s equity holders
Called up share capital
Capital redemption reserve fund
Treasury shares
Share premium account
Merger reserve
Share option reserve
Retained earnings
Note
12
16
13
21
15
17
18
18
18
18
18
18
2016
£’000
11,176
-
11,176
14
633
647
2015
£’000
10,876
1
10,877
499
446
945
11,823
11,822
959
959
213
213
10,864
11,609
1,229
9
(21)
5,371
173
300
3,803
1,219
9
(21)
5,370
173
15
4,844
Total equity
10,864
11,609
The financial statements of Prime People Plc, Company Number 1729887 were approved by the Board and
authorised for issue on 22 June 2016 and are signed on its behalf by:
R J G Macdonald
D Zaneva-Todorinski
25
PRIME PEOPLE PLC
Company Statement of Changes in Equity
For the year ended 31 March 2016
Company
Called
up
share
capital
£’000
Capital
Redemp-
tion
reserve
£’000
Treasury
shares
Share
premium
account
Merger
reserve
Share
option
reserve
Retained
earnings
Total
£’000
£’000
£’000
£’000
£’000
£’000
At 1 April 2014
1,207
9
(143)
7,109
173
32
5,018
13,405
Total
comprehensive
income for the
year
Issue of
ordinary shares
Capital
reduction
Adjustment in
respect of share
options
Shares issued
from treasury
Shares
purchased for
treasury
Adjustment on
share disposal
Dividend
At 31 March
2015
Total
comprehensive
income for the
year
Issue of
ordinary shares
Adjustment in
respect of share
options
Investment in
Subsidiaries
Dividend
At 31 March
2016
-
12
-
-
-
-
-
-
1,219
-
10
-
-
-
-
-
-
-
-
-
-
9
-
-
-
-
-
42
-
-
-
(62)
142
-
-
48
(1,800)
-
13
-
-
-
-
-
-
-
-
-
-
-
-
-
-
539
-
-
539
102
(1,800)
(17)
17
-
13
(62)
-
-
(142)
-
(588)
(588)
-
-
-
-
(21)
5,370
173
15
4,844
11,609
-
-
-
-
-
1
-
-
-
-
-
-
-
-
890
890
-
11
(15)
15
-
300
300
-
(1,946)
(1,946)
1,229
9
(21)
5,371
173
300
3,803
10,864
26
PRIME PEOPLE PLC
Group and Company Cash Flow Statement
For the year ended 31 March 2016
Cash generated from (used
in) underlying operations
Note
20
Group
2016
£’000
2015
£’000
Company
2016
£’000
2,369
685
1,278
Income tax paid
(411)
(276)
(6)
2015
£’000
(436)
(10)
Net cash from/(used by)
operating activities
Cash flows from investing
activities
Net interest received
Net purchase of property,
plant and equipment
Dividend received
Net cash (used in)/from
investing activities
Cash flows from financing
activities
Capital reduction
Issue of ordinary share capital
Shares issued from treasury
Shares purchased for treasury
Dividend paid to shareholders
Net cash used in financing
activities
Net (decrease)/ increase in
cash and cash equivalents
Cash and cash equivalents at
beginning of the year
Effect of foreign exchange
rate changes
Cash and cash equivalents at
the end of the year
1,958
409
1,272
(446)
-
(97)
-
6
(156)
-
-
-
850
6
-
550
(97)
(150)
850
556
-
11
-
-
(1,946)
(1,800)
72
42
(62)
(588)
-
11
-
-
(1,946)
(1,800)
72
42
(62)
(588)
(1,935)
(2,336)
(1,935)
(2,336)
(74)
(2,077)
1,009
2,962
18
130
187
446
-
(2,226)
2,672
-
21
953
1,009
633
446
27
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
1 Nature of Operations
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.
The Company is a public limited Company which is quoted as an AIM Company and is incorporated and
domiciled in the UK. The address of the registered office and the principal place of business is 2 Harewood
Place, London W1S 1BX. The registered number of the Company is 1729887.
2 Summary of Significant Accounting Policies
Basis of Preparation
The financial statements of Prime People Plc consolidate the results of the Company and all its subsidiary
undertakings. As permitted by Section 408 of the Companies Act 2006, the profit and loss account of the
Company has not been included as part of these financial statements. The amount of profit after tax and before
dividends dealt with in the financial statements of the parent is £890,249 (2015: profit £537,595). The financial
statements have been prepared on a going concern basis.
The consolidated financial statements of Prime People Plc have been prepared in accordance with
International Financial Reporting Standards (“IFRS”) as endorsed by the European Union and also comply
with IFRIC interpretations and Company Law applicable to Companies reporting under IFRS. The
consolidated financial statements have been prepared under the historical cost convention modified as
necessary so as to include any items at fair value, as required by accounting standards.
The consolidated financial statements for the year ended 31 March 2016 (including comparatives) are
presented in GBP ‘000.
The accounting polices applied by the Group in these consolidated financial statements are the same as those
applied by the Group in its consolidated financial statements as at and for the year ended 31 March 2016 and
are described below.
International Accounting Standards (IAS/IFRS) and Interpretations in issue but not yet EU approved
At the date of authorisation of these financial statements, certain new standards, amendments and
interpretations to existing standards have been published by the IASB but are not yet effective. These have not
been adopted early by the Group and the initial assessment indicates that either they will not be relevant or
will not have a material impact on the Group:
Standards
•
•
•
•
IFRS 14 Regulatory Deferral Accounts (Issued January 2014, effective date 1 January 2016)
IFRS 15 Revenue from Contracts with Customers (Issued May 2014, effective date 1 January 2018)
IFRS 9 Financial Instruments (Issued July 2014, effective date 1 January 2018)
IFRS 16 Leases (Issued January 2016, effective date 1 January 2019)
Amendments (Effective date for all amendments listed is 1 January 2016)
• Amendments to IFRS 10, IFRS 12 and IAS 28: Investment Entities – Applying the Consolidation
Exception (Issued December 2014)
28
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
2 Summary of Significant Accounting Policies (continued)
International Accounting Standards (IAS/IFRS) and Interpretations in issue but not yet EU approved
(continued)
Amendments (Effective date for all amendments listed is 1 January 2017)
• Amendments to IAS 12: Recognition of Deferred Tax Assets for Unrealised Losses (Issued January
2016)
• Amendments to IAS 7: Disclosure Initiative (Issued January 2016)
• Clarifications to IFRS 15 Revenue from Contracts with Customers (Issued April 2016, effective date
1 January 2018)
International Accounting Standards (IAS/IFRS) and Amendments (and EU adopted) but not yet
effective
• Amendments to IAS 1: Disclosure Initiative (Issued December 2014)
• Amendment to IAS 27: Equity Method in Separate Financial Statements (Issued August 2014)
•
Amendments to IAS 16 and IAS 38: Clarification of Acceptable Methods of Depreciation and
Amortisation (Issued May 2014)
• Amendments to IFRS 11: Accounting for Acquisitions of Interests in Joint Operations (Issued May
2014)
• Amendments to IAS 16 and IAS 41: Bearer Plants (Issued June 2014)
The directors do not expect the adoption of the Standards and Interpretations listed above will have a material
impact on the financial statements of the Group in future periods, except for disclosure of IFRS 15 that may
have an impact on revenue recognition and related disclosures. Beyond the information above it is not
practicable to provide a reasonable estimate of the impact of IFRS 15 until a detailed review has been
completed.
Consolidation
Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies,
generally accompanying a shareholding of more than one half of the voting rights. Subsidiaries are fully
consolidated from the date on which control is transferred to the Group. They are de-consolidated from the
date that control ceases.
Business combinations are accounted for using the acquisition method of accounting. The cost of an
acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred
or assumed at the date of exchange, plus costs directly attributable to the acquisition. The excess of the cost of
acquisition over the fair value of the Group’s share of the identifiable net assets acquired is recorded as
goodwill.
Inter-Company transactions and balances on transactions between Group companies are eliminated in
preparing the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the
policies adopted by the Group.
Going Concern
The Directors have prepared cash flow forecasts for a period of at least 12 months from the date of approval
of the financial statements and have a reasonable expectation that the Company and the Group have adequate
resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the
going concern basis of accounting in preparing the financial statements.
29
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
2 Summary of Significant Accounting Policies (continued)
Revenue recognition
a) Revenue
Revenue, which excludes value added tax (“VAT”), constitutes the value of services undertaken by the Group
from its principal activities, which are recruitment consultancy and other ancillary services. These consist of:
- Revenue from contract placements, which represents amounts billed for the services of contract staff,
including the salary of these staff. This is recognised when the service has been provided;
- Revenue from permanent placements, which is based on a percentage of the candidate’s remuneration
package and is derived from both retained assignments (income recognised on completion of defined
stages of work) and non-retained assignments (income recognised at the date an offer is accepted by a
candidate, a start date has been agreed but employment has not yet commenced). The latter includes
revenue anticipated but not invoiced at the balance sheet date, which is correspondingly accrued on the
balance sheet within prepayments and accrued income. A provision is made against accrued income based
on past historical experience for possible cancellations of placements prior to, or shortly after, the
commencement of employment; and
-
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective
interest rate applicable.
b) Cost of Sales
Cost of sales consists of the salary cost of contract staff and costs incurred on behalf of clients, principally
advertising costs.
c) Net Fee Income
Net fee income represents revenue less cost of sales and consists of the total placement fees of permanent
candidates, the margin earned on the placement of contract candidates and the margin on advertising income.
d) Foreign Currency Translation
(i) Functional and Presentation Currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of
the primary economic environment in which the entity operates (‘the functional currency’). The consolidated
financial statements are presented in Sterling, which is the Company’s functional and presentation currency.
(ii) Transactions and Balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at
the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the consolidated statement of comprehensive income.
30
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
2 Summary of Significant Accounting Policies (continued)
d) Foreign Currency Translation (continued)
(iii) Group Companies
On consolidation the results and financial position of all the Group entities that have a functional currency
different from the presentation currency are translated into the presentation currency as follows:
• assets and liabilities for each year end presented are translated at the closing rate of that year end;
•
income and expenses for each statement of comprehensive income are translated at average exchange
rates; and
• all resulting exchange differences are recognised in other comprehensive income.
e)
Intangible Assets
(i) Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net
identifiable assets of the acquired subsidiary/associate at the date of acquisition. Goodwill on acquisitions of
subsidiaries is included in ‘intangible assets’.
As permitted by the exception in IFRS1 ‘First time adoption of International Reporting Standards’, the Group
has elected not to apply IFRS3 ‘Business combinations’ to goodwill arising on acquisition that occurred
before the date of transition to IFRS.
Separately recognised goodwill is reviewed annually for impairment and carried at cost less accumulated
impairment losses. Impairment losses on goodwill are not reversed. Determining whether goodwill is
impaired requires an estimation of the value in use of the cash-generating units to which goodwill has been
allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise
from the cash generating unit and a suitable discount rate in order to calculate present value.
(ii) Computer Software
Computer software acquired by the Group is stated at cost. These costs are amortised to write the cost off in
equal annual instalments over three years.
f) Property, Plant and Equipment
All property, plant and equipment are stated at historical cost less accumulated depreciation less provisions
for impairment. Depreciation is provided on all property, plant and equipment using the straight-line method
at rates calculated to write off the cost less estimated residual values over their estimated useful lives, as
follows:
• Leasehold improvements over the expected period of the lease.
• Furniture, fittings and computer equipment 25% – 33%
The gain or loss arising on disposal or retirement of an asset is determined by comparing the sales proceeds
with the carrying amount of the asset and is recognised as income.
31
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
2 Summary of Significant Accounting Policies (continued)
g)
Impairment of Assets
Assets that have an indefinite useful economic life are not subject to amortisation and are tested annually for
impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised
for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount
is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows
(cash-generating units).
h) Taxation
The tax expense represents the sum of the current tax expense and deferred tax expense.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported
in the statement of comprehensive income because it excludes items of income or expense that are taxable or
deductible in other years and it further excludes items that are never taxable or deductible. The Group’s
liability for current tax is calculated using tax rates that have been enacted or substantially enacted by the
balance sheet date.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements.
Deferred income tax is determined using tax rates and laws that have been enacted or substantially enacted by
the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the
deferred income tax liability is settled.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be
available against which the temporary differences can be utilised.
i) Leased Assets and Obligations
All of the Group’s leases are operating leases and the annual rentals are charged to profit and loss on a straight
line basis over the lease term.
The benefit of rent free periods received for entering into a lease is spread evenly over the lease term.
j) Pension Costs
The Group operates defined contribution pension scheme. The Group adopts the minimum legally required
employer contribution rate of 1% of qualifying earnings and up to the maximum earning threshold for
automatic enrolment for 2015-16, as set by the Pension Regulator.
The assets of the scheme are held separately from those of the Group in independently administered
workplace pension -NEST. The pension costs charged to the income statement represent the contributions
payable by the Group to Nest during the year.
The Pension liabilities at the Balance Sheet date represent employer and employee pension contributions, that
are payable to the pension provider by the 22nd date of each month.
32
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
2 Summary of Significant Accounting Policies (continued)
k) Segmental Reporting
IFRS8 requires operating segments to be identified on the basis of internal reports that are regularly reviewed
by the Board of Directors to allocate resources to the segment and to assess their performance.
l) Financial instruments
Financial assets and liabilities are recognised in the Group’s balance sheet when the Group becomes a party to
the contractual provision of the instrument.
m) Financial assets
The Group’s financial assets comprise cash and various other receivable balances that arise from its
operations. Trade receivables, loans and other receivables that have fixed or determinable payments that are
not quoted in an active market are classified as loans and receivables. Loans and receivables are initially
measured at fair value and subsequently at amortised cost using the effective interest rate method, less any
impairment. Interest income is recognised by applying the effective interest rate, except for short-term
receivables when the recognition of interest would be immaterial.
Financial assets are assessed for impairment at each balance sheet date, and are impaired where there is
objective evidence that, as a result of one or more events that occurred after the initial recognition of the
financial asset, the estimated future cash flows of the investment have been impacted.
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets
with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance
account. When a trade receivable is considered uncollectible, it is written off against the allowance account.
Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes
in the carrying amount of the allowance account are recognised in the profit or loss account. If in a subsequent
period the amount of the impairment loss decreases and the decreases can be related objectively to an event
occurring after the impairment was recognised, the previously recognised impairment loss is reversed through
profit and loss to the extent that the carrying amount of the financial asset at the date the impairment is
reversed does not exceed what the amortised cost would have been had the impairment not been recognised.
Cash and cash equivalents includes cash in hand and bank deposits that are readily convertible to a known
amount of cash and are subject to an insignificant risk of changes in value. Bank overdrafts are classified with
current liabilities in the statement of financial position.
33
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
2 Summary of Significant Accounting Policies (continued)
n) Financial liabilities and equity
Financial liabilities and equity instruments are initially measured at fair value and are classified according to
the substance of the contractual arrangements entered into. Financial liabilities are subsequently measured at
amortised cost. The Group’s financial liabilities comprise trade payables, borrowings, bank overdrafts and
other payable balances that arise from its operations. They are classified as ‘financial liabilities measured at
amortised cost’.
o) Share-Based Compensation
The Group operates equity-settled share-based compensation plans.
The fair value of the employee services received in exchange for the grant of the options is recognised as an
expense. The total amount to be expensed over the vesting period is determined by reference to the fair value
of the options granted, excluding the impact of any non-market vesting conditions (for example, profitability
and sales growth targets). At the balance sheet date the number of outstanding options is adjusted to reflect
those options that have been granted during the year or have lapsed in the year.
p) Dividend Distribution
A final dividend distribution to the Company’s shareholders is recognised as a liability in the Group’s
financial statements in the period in which the dividends are approved by the Company’s shareholders.
Interim dividend distributions are recognised in the period in which they are approved and paid.
q) Critical Accounting Estimates and Judgements
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting
estimates and judgements. It also requires management to exercise judgement in the process of applying the
Company’s accounting policies.
Estimates and judgements are continually evaluated and are based on historical experience and other factors,
including expectations of future events that are believed to be reasonable under the circumstances.
In particular, information about significant areas of estimation uncertainty and critical judgements in applying
accounting policies that have the most significant effect on the amount recognised in the financial statements
are described below:
Revenue Recognition
Revenue from permanent placements is recognised when a candidate formally accepts an offer of
employment, a start date has been agreed, but employment has not commenced. A ‘fall-through’ provision is
made by management, based on historical experience, for the proportion of those placements where the offer
of employment is not taken up. Management have reviewed the past assumptions made with respect to the
‘fall-through’ provisions and consider that they remain reasonable. The fall through provision is estimated at
20.02% of those offers where employment has yet to commence (2015: 16.5%). The Directors consider that a
change in the range of possible outcomes, or sensitivity, would not have a material impact on the business.
Goodwill Impairment
The Group’s determination of whether goodwill is impaired requires an estimation of the value in use of the
cash generating units to which goodwill is allocated. This requires estimation of future cash flows and the
selection of a suitable discount rate details of which are disclosed in note 11.
34
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
2 Summary of Significant Accounting Policies (continued)
q) Critical Accounting Estimates and Judgements (continued)
Trade Receivables
There is uncertainty regarding customers who may not be able to pay as their debts fall due. In reviewing the
appropriateness of the provisions in respect of recoverability of trade receivables, consideration has been
given to the ageing of the debt and the potential likelihood of default, taking into account current economic
conditions. Details of the total amount of receivables past due and the movement in allowance for doubtful
debts are disclosed in note 13.
3 Segment Reporting
a) Revenue and Net Fee Income, by Geographical Region
UK
Asia
Rest of World
Revenue
Net fee income
2016
£’000
2015
£’000
2016
£’000
2015
£’000
16,249
12,957
7,774
6,532
3,626
2,992
3,626
2,992
880
698
880
698
20,755
16,647
12,280
10,222
All revenues disclosed by the Group are derived from external clients and are for the provision of recruitment
services. The accounting policies of the reportable segments are the same as the Group’s accounting policies
described in note 2. 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
Permanent
-UK
-Asia
-Rest of World
Contract (UK)
Total
Revenue
2016
£’000
2015
£’000
Net fee income
2015
£’000
2016
£’000
6,653
3,626
880
5,760
2,992
698
6,645
3,626
880
5,747
2,992
698
9,596
7,197
1,129
785
20,755
16,647
12,280
10,222
35
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
3 Segment Reporting (continued)
c) Profit before Taxation by Geographical Region
UK
Asia
Rest of World
Operating Profit
Net finance income
Profit before taxation
2016
£’000
1,527
460
162
2015
£’000
993
370
67
2,149
1,430
-
6
2,149
1,436
Operating profit is the measure of profitability regularly reviewed by the Board, which collectively acts as the
Chief Operating Decision Maker. Consequently, no segmental analysis of interest or tax expenses are
provided.
Segment operating profit is the profit earned by each operating unit and includes inter segment revenues
totalling £0.71m (2015 £0.64m) for the UK, and charges of £0.60m (2015 £0.53m) for Asia and £0.11m (2015
£0.11m) for the rest of the world.
d) Segment Assets and Liabilities by Geographical Region
UK
Asia
Rest of World
Total
Total non-current assets
2015
£’000
2016
£’000
Total liabilities
2016
£’000
2015
£’000
9,962
10,023
1,441
1,309
27
9
50
12
910
121
687
162
9,998
10,085
2,472
2,158
The analysis above is of the carrying amount of reportable segment assets, liabilities and non-current assets.
Segment assets and liabilities include items directly attributable to a segment and include income tax assets
and liabilities. Non-current asset include property, plant and equipment and computer software.
36
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
4 Profit on ordinary activities before taxation
Profit for the year is arrived at after charging:
Depreciation
Operating lease rentals
- owned assets
- land and buildings
- other operating leases
Loss/(profit) on disposal of fixed assets
Exchange rate loss
The analysis of auditors remuneration is as follows:
Audit of company
Audit of subsidiaries
2016
£’000
2015
£’000
188
487
-
-
33
21
23
170
471
-
1
1
12
31
Total audit fees
Tax compliance services (i.e. related to assistance with corporate tax returns)
Advisory Services (related to FRS102 transition)
44
-
4
43
2
-
Total fees
5 Directors’ emoluments
Emoluments for qualifying services
Highest paid Director:
Emoluments for qualifying services
48
45
2016
£’000
2015
£’000
482
503
482
503
229
230
Details of Directors’ emoluments and interests, which form part of these financial statements, are provided in
the Director’s Remuneration report on pages 16 to 18.
37
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
6 Employees
Group
The average monthly number of employees of the Group during the year,
including Directors, was as follows:
Consultants
Management and administration
Temporary staff
Company
The average monthly number of employees of the Company during the
year, including Directors, was as follows:
2016
Number
2015
Number
91
26
7
84
25
3
124
112
2016
Number
2015
Number
Management
5
5
Staff costs for all employees, including Directors, but excluding contract staff placed with clients are as
follows and have been included in Administration expenses in the consolidated statement of comprehensive
income:
Group
Wages and salaries
Social security costs
Pension contributions
Share option charge
Remuneration of key management
Short term employee benefits (excluding social security costs)
Share based payments
Key management includes executive Directors and senior divisional managers.
38
2016
£’000
6,984
598
73
166
2015
£’000
5,744
500
12
130
7,821
6,386
2016
£’000
1,090
35
2015
£’000
765
24
1,125
789
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
7
Taxation on Profits on Ordinary Activities
a) Analysis of tax charge in the year
Current tax
UK Corporation tax
UK tax under/(over) provided in previous years
Foreign tax
Foreign tax over provision in prior years
Total current tax
Deferred tax
Origination and reversal of temporary differences
Total charge on profit for the year
2016
£’000
2015
£’000
375
-
87
(4)
278
(21)
52
-
458
309
1
1
459
310
UK corporation tax is calculated at 20% (2015: 21%) of the estimated assessable profits for the year.
Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.
b) The charge for the year can be reconciled to the profit per the consolidated statement of
comprehensive income as follows:
Profit before taxation
Tax at UK corporation tax rate of 20% (2015: 21%) on profit on ordinary
activities
Effects of:
Expenses not deductible for tax purposes
Capital allowances for the period less than depreciation
Tax losses not utilised/utilised
Tax rate differences
Temporary differences recognised
Overprovision in prior years
Total current tax
Deferred Tax
Origination and reversal of temporary differences
Tax charge for the year
39
2016
£’000
2015
£’000
2,149
1,436
430
302
8
11
21
(19)
19
(4)
466
16
2
19
(20)
11
(21)
309
(7)
1
459
310
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
8 Dividends
Special second interim dividend for 2015: 4.00p per share
Final dividend for 2015: 3.09p per share (2014: 3.09p per share)
Interim dividend for 2016: 1.75p per share (2015: 1.75p per share)
Special dividend for 2016: 4.00p per share
Second Interim dividend for 2016: 3.09p per share
2016
£’000
2015
£’000
488
376
212
490
380
1,946
-
376
212
-
-
588
A special second interim dividend of 4p was paid subsequent to shareholders on the register at the close of
business on 27 March 2015. The special second interim dividend was approved by the Board on 17 March
2015 and was paid on 2 April 2015.
A final dividend of 3.09p for 2015 was proposed, the dividend was paid on 26 June 2015 to shareholders on
the register on 12 June 2015.
An interim dividend of 1.75p (2015: 1.75p) was paid on 27 November 2015 to shareholders on the register at
the close of business on 20 November 2015. The interim dividend was approved by the Board on 7 November
2015.
A special dividend of 4.00p was paid on 27 November 2015 to shareholders on the register on 20 November
2015.
A second interim dividend of 3.09p paid on 25 March 2016 to shareholders on the register on 18 March 2016.
40
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
9
Earnings per share
Earnings per share are calculated by dividing the profit attributable to ordinary shareholders by the weighted
average number of ordinary shares in issue during the year.
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.
Profit for the year and earnings used in basic and diluted earnings per share
2016
£’000
1,690
2015
£’000
1,126
Number
Number
Weighted average number of shares used for basic earnings per share
Dilutive effect of share options
12,211,950
290,730
12,131,633
362,117
Diluted weighted average number of shares used for diluted earnings per
share
12,502,680
12,493,750
Basic earnings per share
Diluted earnings per share
Pence
13.84p
13.52p
Pence
9.28p
9.01p
41
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
10 Property, Plant and Equipment
Group
Cost
At 1 April 2014
Additions
Disposals
Exchange difference
At 1 April 2015
Additions
Disposals
Exchange difference
At 31 March 2016
Depreciation
At 1 April 2014
Provision for the year
Disposals
Exchange rate loss
At 1 April 2015
Provision for the year
Disposals
Exchange rate gain
At 31 March 2016
Net book value
At 31 March 2016
At 31 March 2015
At 31 March 2014
Total
£’000
896
168
(20)
13
1,057
97
(44)
8
1,118
568
170
(7)
10
741
188
(44)
4
889
229
316
328
Fixtures,
fittings and
equipment
£’000
Motor
vehicles
£’000
20
-
(20)
-
-
-
-
-
-
6
1
(7)
-
-
-
-
-
-
-
-
14
876
168
-
13
1,057
97
(44)
8
1,118
562
169
-
10
741
188
(44)
4
889
229
316
314
42
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
11 Goodwill
Cost
At 1 April 2014, 1 April 2015 and 31 March 2016
£’000
9,769
The total carrying value of goodwill is £9.77m, which relates to the acquisition of the Macdonald & Company
Group of companies in January 2006, has been tested for impairment with the recoverable amount being
determined from value in use calculations.
The recoverable amount is determined on a value in use basis utilising the value of cash flow projections. The
first year of the projections is based on detailed budgets prepared and approved by management. Subsequent
years are based on extrapolations.
The key assumptions in calculating the value in use is that the Group will meet its budgeted growth in net fee
income of 11.89% in the year to 31 March 2017. After the end of the period covered by the budget a 5%
growth rate is applied. This growth rate represents the average rate of growth in the markets in which the
Group operates. A discount rate of 9% has been applied which represents the weighted average costs of
capital for the Group. In the last two years, operating profit achieved exceeded budgeted operated profit by
approximately 20.38%.
Based upon this analysis the asset has not been impaired since the ‘recoverable amount’ (being the greater of
the net realisable value and the value in use) is in excess of its carrying amount by £15.28m. A number of
potential sensitivities have been considered and these would indicate impairment in the carrying value of
goodwill if the discount rate were to be increased to 25.2% or if the operating profit reduced to £1.1m with no
future growth or if the growth rate were to be decreased to 15.5%.
12
Investments
Company
Cost
At 1 April 2014, 1 April 2015 and 31 March 2015
Increase in investment in subsidiaries from share option
reserve charge
As at 31 March 2016
Shares in
subsidiary
undertakings
£’000
10,876
300
11,176
The share option reserve relates to employee share option arrangements provided to employees of the Group
subsidiary companies.
43
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
12
Investments (continued)
The following are subsidiary undertakings at the end of the year and have all been included in the
consolidated financial statements:
Country of
incorporation
Principal
activity
England and Wales
Holding Company
England and Wales
Recruitment
England and Wales
Recruitment
Macdonald & Company
Group Limited
Macdonald & Company
Property Limited
Macdonald and Company
Freelance Limited
Macdonald & Company
(Overseas) Limited
England and Wales
Macdonald & Company Ltd
Hong Kong
Ru Yi Consulting Limited
Hong Kong
Macdonald and Company
Pte Limited
Singapore
Macdonald & Company Pty Ltd
Australia
Macdonald & Company
Recruitment Proprietary Ltd
South Africa
The Prime Organisation Ltd
England and Wales
Dormant
Recruitment
Dormant
Recruitment
Dormant
Dormant
Dormant
For all undertakings listed above, the country of operation is the same as its country of incorporation.
The Group holds 100% of all classes of issued share capital. The percentage of the issued share capital held is
equivalent to the percentage of voting rights for all companies.
44
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
13 Trade and other Receivables
Current
Trade receivables
Allowance for doubtful debts
Other receivables
Prepayments and accrued income
Group
2016
£’000
2015
£’000
Company
2016
£’000
2015
£’000
2,706
(40)
69
2,204
2,126
(102)
578
1,936
4,939
4,538
-
-
-
14
14
-
-
4
495
499
At 31 March 2016, the average credit period taken on sales of recruitment services was 55 days (2015: 38
days) from the date of invoicing. An allowance of £40,000 (2015: £102,000) has been made for estimated
irrecoverable amounts. Due to the short-term nature of trade and other receivables, the Directors consider that
the carrying value approximates to their fair value.
Prepayments and accrued income principally comprise amounts to be billed for permanent placements with a
start date within three months from the start of the new financial year.
The Group does not provide against receivables solely on the basis of the age of the debt, as experience has
demonstrated that this is not a reliable indicator of recoverability. The Group provides fully against all
receivables where it has positive evidence that the amount is not recoverable.
The ageing of trade receivables at the reporting date was:
Not past due
Past due 0-30 days
Past due 30-90 days
Past due more than 90 days
Gross trade
receivables
2016
£’000
Provisions
2016
£’000
Gross trade
receivables
2015
£’000
1,607
630
469
-
2,706
33
-
7
-
40
1,635
322
100
69
2,126
Provisions
2015
£’000
24
-
9
69
102
45
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
13 Trade and other Receivables (continued)
Movement in allowance for doubtful debts:
1 April 2015
Impairment losses recognised
Amounts written off as uncollectable
Amounts paid by the client
Impairment losses reversed
2016
£’000
102
40
(97)
(5)
-
2015
£’000
38
100
(11)
-
(25)
31 March 2016
40
102
14 Financial Instruments
Group
Company
Note
2016
£’000
2015
£’000
2016
£’000
2015
£’000
Financial assets
Trade and other receivables
Cash and cash equivalents
13
4,087
953
4,538
1,009
5
633
499
446
Cash is held either on current account or on short term deposits at floating rates of interest determined by the
relevant bank's prevailing base rate.
5,040
5,547
638
945
Financial liabilities
Current
Trade and other payables
Group
Company
Note
2016
£’000
2015
£’000
2016
£’000
2015
£’000
15
452
478
452
478
2
2
13
13
The Group has not renewed its borrowing facilities with Barclays Bank Plc as the Board consider that the net
cash within the Group is sufficient to meet existing and foreseeable liabilities as they fall due.
There is no material difference between the book values of the Group's financial assets and liabilities and their
fair values.
The Group and the Company do not hold any derivative financial instruments.
46
PRIME PEOPLE PLC
Notes to the financial statements
For the year ended 31 March 2016
15 Trade and other Payables
Group
Company
Current
Trade payables
Other payables
Amount owed to subsidiary
undertakings
Taxation and social security
Accruals and deferred income
2016
£’000
267
185
-
664
1,100
2015
£’000
2016
£’000
2015
£’000
239
239
-
567
913
1
-
923
9
26
959
12
1
145
8
47
213
2,216
1,958
Due to the short-term nature of the trade and other payables, the Directors consider that the carrying value
approximates to their fair value. Trade payables are generally on 30–60 day terms. No payables are past their
due date.
16 Deferred Tax Liability
Group
At 1 April 2014
Charge to income
At 31 March 2015
Credit to income
At 31 March 2016
Company (Asset)
At 1 April 2013, 1 April 2014 and 31 March 2015
Charge to income
At March 2016
47
Accelerated
depreciation
£’000
Total
£’000
15
1
16
(7)
9
15
1
16
(7)
9
Accelerated
depreciation
£’000
1
Total
£’000
1
(1)
(1)
-
-
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
17 Share Capital
ALLOTTED CALLED UP
Ordinary shares of 10p each
Fully paid as at 1 April 2015
Fully paid shares issued
Unpaid shares issued
2016
2015
Number
£’000
Number
£’000
12,193,949
3,000
93,250
1,219
1
9
12,066,500
127,449
-
1,207
12
-
At 31 March 2016
12,290,199
1,229
12,193,949
1,219
The Company has one class of ordinary shares which carries no right to fixed income and which represents
100% of the total issued nominal value of all share capital.
Each share carries the right to one vote at general meetings of the company. No person has any special rights
of control over the company’s share capital and all its issued shares are fully paid.
Pursuant to shareholder resolutions at the AGM of the Company on 14 July 2015, the Company has the
following authorities during the period up to the next AGM.
-
-
-
-
to issue new/additional ordinary shares to existing shareholders through a rights issue up to a maximum
nominal amount of £406,465, representing one third of the then issued share capital of the Company;
to issue new/additional ordinary shares to new shareholders up to a maximum nominal amount of
£406,465 representing one third of the issued shares capital of the Company
to allot equity securities for cash, without the application of pre-emption rights, up to a maximum nominal
amount of £60,970 representing 5% of the then issued share capital of the Company; and
to purchase through the market up to 10% of the Company’s issued share capital, subject to certain
restrictions on price.
Shareholders will be asked to renew these authorities at the AGM in 2016 on 20 July 2016.
Capital Risk Management
The Group manages its capital to ensure that it will be able to continue as a going concern while maximising
returns to shareholders through the optimisation of debt and equity balances. The capital structure of the
Group consists of cash and cash equivalents and equity attributable to equity holders of the parent comprising
issued capital reserves and earnings.
The Group manages the capital structure and makes adjustments to it in the light of changes to economic
conditions and risks. In order to manage capital the Group has continued to consider and adjust the level of
dividends paid to shareholders and also made purchases of its own shares which are held as Treasury Shares.
As part of its strategy of seeking to optimise the Group’s debt and equity balance the Group also considers the
appropriate level of external borrowing and, as disclosed in Note 14, has taken the decision not to renew its
borrowing facilities with Barclays Bank.
48
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
17 Share Capital (continued)
Employee Share Schemes
The Company operates two share options schemes.
Enterprise Management Incentive Share Option Scheme
At 31 March 2016 the following options had been granted and remained outstanding in respect of the
Company’s ordinary shares:
Year of
grant
Exercise
Price
Pence
Exercise
Period
2005/6
2008/9
2009/10
57.50
2007-2015*
20.77 2011-2016*
31.50 2014-2019*
42.00 2013-2018
Number of
options
31 March
2015
84,234
48,000
100,000
11,000
Granted
Exercised
Forfeited
-
-
-
-
-
-
-
(3,000)
-
(84,234)
-
-
Number of
Options
31 March
2016
-
48,000
100,000
8,000
2011/12
68.00 2014-2019
3,000
-
-
-
3,000
2013/14
Nil
Nil
2016-2021
2019-2021
104,250
96,250
-
-
(83,250)
(10,000)
(2,000)
(5,000)
19,000
81,250
2014/15
10.00
10.00
2016-2021
2019-2021
187,500
350,500
-
-
-
-
(3,000)
(10,000)
184,500
340,500
2014/15
10.00
10.00
58.00
58.00
2017-2022
2020-2022
2017-2022
2020-2022
20,000
30,000
52,000
103,000
-
-
-
-
-
-
-
-
20,000
30,000
52,000
103,000
Total 2016
984,734
205,000
(96,250)
(104,234)
989,250
Weighted average exercise price
2016 (pence)
15.27p
46.29p
1.31p
0.48p
19.64p
Total 2015
637,734
548,000
(136,000)
(65,000)
984,734
Weighted average exercise price
2015 (pence)
27.86p
10.00p
54.84p
11.62p
15.27p
*These options have fully vested
There were 989,250 options outstanding at 31 March 2016 (2015: 984,734) which had a weighted average
price per share of 19.64p (2015: 15.27p). The options vest over a period of two to five years conditional upon
the option holders continued employment with the Company.
49
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
17 Share Capital (continued)
The conditions applying to those options which are fully vested have been achieved. The number of
outstanding options that will vest is dependent on the achievement of a number of key performance measures
of the group, measured at a regional and consolidated level for the financial years 2015 and 2016. The fair
value of the employee services received in exchange for the grant of the share options is charged to the profit
and loss account over the vesting period of the share option, based on the number of options which are
expected to become exercisable.
Option pricing model used
Weighted average share price at grant date (in pence)
Exercise price (in pence)
Fair value of options granted during the year
Expected volatility (%)
Risk-free interest rate (%)
Expected life of options (years)
2016
Black-Scholes
116.00
10 & 58
104.81
30.0
4.0
2 & 5
2015
Black-Scholes
85.00
10
76.45
14.0
4.0
2 & 5
Expected volatility was determined by reference to historical volatility of the Company’s share price.
The share based payment expense recognised within the income statement during the period was £0.17m
(2015: £0.13m).
50
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
18 Reserves
Capital Redemption Reserve Fund
The capital redemption reserve relates to the cancellation of the Company’s own shares.
Treasury Shares
At 31 March 2016, the total number of ordinary shares held in Treasury and their values were as follows:
2016
2015
Number
£’000
Number
£’000
As at 1 April 2015
Shares purchased for treasury
Shares issued from treasury
Equity reclassification on disposal of
treasury shares
21,276
-
-
-
21
-
-
-
35,000
67,210
(80,934)
-
As at 31 March 2016
21,276
21
21,276
Nominal value
Market value
2
21
143
62
(42)
(142)
21
2
23
The maximum number of shares held in treasury during the year was 21,276 shares representing 0.2% of the
called-up ordinary share capital of the Company (2015: 54,050 representing 0.4% of the called-up ordinary
share capital of the Company).
Merger Reserve
The merger reserve represents the fair value of the consideration given in excess of the nominal value of the
ordinary shares issued to acquire subsidiaries.
Share Option Reserve
The reserve represents the cumulative amounts charged to profit in respect of employee share option
arrangements where the scheme has not yet been settled by means of an award of shares to an individual.
Share Premium Account
The balance on the share premium account represents the amounts received in excess of the nominal value of
the ordinary shares.
51
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
18 Reserves (continued)
Translation Reserve
The foreign currency translation reserve comprises all presentation foreign exchange differences arising from
translation of the financial statements of foreign operations into the presentation currency of the Group
accounts.
Retained Earnings
The balance held on this reserve is the accumulated retained profits of the Group.
19 Operating Lease Commitments
As at 31 March 2016 the Group was committed to making the following total payments in respect of non-
cancellable operating leases:
leases which
Non-cancellable operating
expire:
Within one year
Within one to two years
Within two to five years
After five years
Land
and
buildings
2016
£’000
Land
and
buildings
2015
£’000
448
408
660
602
474
432
374
829
2,118
2,109
The Group leases various offices under non-cancellable operating lease agreements. The leases have varying
terms as disclosed above.
52
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
20 Reconciliation of Profit Before Tax to Net Cash Inflow from Operating Activities
Group
2016
£’000
2015
£’000
Company
2016
£’000
2015
£’000
Profit before taxation
2,149
1,436
50
Adjust for:
Depreciation
Share based payment expense
Net finance income
188
166
-
170
130
(6)
-
-
-
(6)
-
-
(6)
Operating cash flow before changes in working capital
2,503
1,730
50
(12)
(Increase)/decrease in receivables
Increase/(decrease) in payables
(401)
267
(1,003)
(42)
484
744
(489)
65
Cash generated from / (used by) underlying operations
2,369
685
1,278
(436)
21 Analysis of Cash less overdrafts
Group
At 1 April
Cash flow
At 31 March
Cash at bank and in hand
Total cash
Company
Cash at bank and in hand
Total cash
2015
£’000
1,009
£’000
(56)
1,009
(56)
2016
£’000
953
953
At 1 April
2015
£’000
446
446
Cash flow
£’000
187
187
At 31 March
2016
£’000
633
633
53
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
22 Financial Risk Management
The Board of Directors has overall responsibility for the risk management policies that are applied by the
business to identify and control the risks faced by the Group.
The Group has exposure from its use of financial instruments to foreign currency risk, credit risk and liquidity
risk.
Foreign Currency
The Group publishes its consolidated financial statements in Sterling. The functional currencies of the
Group’s main operating subsidiaries are Sterling, the Singapore Dollar, the Hong Kong Dollar and the UAE
Dirham.
The Group’s international operations account for approximately 21.72% (2015: 22.16%) of revenue and
approximately 19.85% (2015: 15.06%) of the Group’s assets and consequently the Group has a degree of
translation exposure in accounting for overseas operations.
Currently the Group’s policy is not to hedge against this exposure but it does seek to minimise this exposure
by converting into sterling all cash balances in foreign currency that are not required for capital monetary
needs. The settlement of intercompany balances held with foreign operations is neither planned nor likely to
occur in the foreseeable future. Therefore, exchange differences arising from the translation of the net
investments are recognised in Other Comprehensive income.
Credit Risk
The Group’s principal financial assets are bank balances, trade and other receivables. The Group’s credit risk
is primarily in respect of trade receivables. Credit risk refers to the risk that a client will default on its
contractual obligations resulting in financial loss to the Group. The Group does not have any significant credit
risk exposure to any individual client. At the year end no customer represented more than 6.82% (2015: 6%)
of the total balance of trade receivables.
In reviewing the appropriateness of the provisions in respect of recoverability of trade receivables,
consideration has been given to the ageing of the debt and the potential likelihood of default, taking into
account current economic conditions.
It is the Directors’ opinion that no further provision for doubtful debts is required.
Liquidity Risk
The Group manages it liquidity risk by maintaining adequate cash and or credit facilities to meet forecast cash
requirements of the Group. Management monitors its forecasted cash flow requirements at a Group level
based on monthly returns made by the Group’s operating units.
The Group has no financial liabilities other than short term trade payables and accruals as disclosed in note
16, all due within one year of the year end.
The Group has net funds of £0.95m (2015: £1.01m) which the Board consider are more than adequate to meet
future working capital requirements and to take advantage of business opportunities.
54
PRIME PEOPLE PLC
Notes to the Financial Statements
For the year ended 31 March 2016
23 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 year is £205k (2015: £240k). The balance owed to the subsidiary undertakings at the
year end is £923k (2015: £145k).
The Company also provides corporate guarantees on the subsidiary bank accounts. At 31 March 2016
amounts overdrawn by subsidiary bank accounts were £222,350 (2015: nil).
The Directors receive remuneration from the Group, which is disclosed in the Directors’ Remuneration
Report. As shareholders, the Directors also received dividends in the year from the Company amounting to
£605,384 (2015: £339,048).
55
PRIME PEOPLE PLC
Directors and Advisers
Directors
Robert Macdonald
Peter Moore
Donka Zaneva-Todorinski
Chris Heayberd
John Lewis OBE
Simon Murphy
(Executive Chairman)
(Managing Director)
(Finance Director)
(Non-Executive Director)
(Non-Executive Director)
(Non-Executive Director)
Secretary and Registered Office
Donka Zaneva-Todorinkski, 2 Harewood Place, London, W1S 1BX.
Registered Number
1729887
Stockbrokers & Nominated Advisers
Cenkos Securities Plc, 6.7.8 Tokenhouse Yard, London, EC2R 7AS
Solicitors
Eversheds, One Wood Street, London, EC2V 7WS.
Auditor
Crowe Clark Whitehill LLP, St Bride’s House, 10 Salisbury Square, London, EC4Y 8EH
Principal Bankers
Barclays Bank Plc, Corporate Banking, 1 Churchill Place, London E14 5HP
Registrars
Neville Registrars Limited, Neville House, Laurel Lane, Halesowen, West Midlands, B63 3DA.
56
PRIME PEOPLE PLC
Board of Directors
Directors' Biographies
Robert Macdonald - Executive Chairman
Robert has held senior positions within the recruitment industry since 1973 when he founded Reuter Simkin
Limited, a recruitment business in both the legal and property sectors. Reuter Simkin had both Kleinwort
Benson Development Capital and Charterhouse Development Capital as investors. After the sale of Reuter
Simkin in 1989, he acquired shares in and was Chairman of two other recruitment companies one of which
acquired the legal business of Reuter Simkin in the West of England from PSD in 1992 and traded as
Macdonald & Company. In 1994, he established Macdonald & Company as a specialist property recruitment
consultancy in London. Lead by Robert and Peter Moore, Macdonald & Company Group Ltd completed the
reverse takeover of Prime People Plc in January 2006.
Peter Moore MRICS - Managing Director
Peter graduated from the Royal Agricultural University and then worked with Strutt & Parker from 1992 to
1995, qualifying as a Charted Surveyor in 1994. He joined Macdonald & Company in 1995 and was
appointed Managing Director in 1996. Under Peter’s management Macdonald & Company became the largest
and most respected real estate focused recruitment provider in the market and the RICS’s preferred
recruitment partner. Lead by Robert Macdonald and Peter Moore, Macdonald & Company Group Ltd
completed the reverse takeover of Prime People Plc in January 2006. Since then Peter has been instrumental
in developing Prime People into a global specialist recruitment business spanning real estate, energy &
environmental and insight & analytics.
Donka Zaneva-Todorinski ACCA – Finance Director
Donka qualified with a Business Administration and Finance Degree from St Paul’s College in 2007. She has
been a member of the Association of Chartered Certified Accountants since December 2013. Donka began her
professional career in 2003 and since has held accounting positions in the recruitment, media and publishing
industries. She joined Macdonald & Company in 2011 as a Management Accountant. In 2013 Donka was
promoted to be Financial Controller and was then appointed to the Board of Prime People as Finance Director
in October 2015. She is a member of the Finance & Management Faculty of ICAEW.
Chris Heayberd BA ACA – Non-executive Directors
Chris qualified as a Chartered Accountant in 1980 and after that date held a number of financial positions in a
broad range of industries. Since 1989 his main focus has been the business services sector. This included 4
years as Finance Director of PSD Group plc, during which time the company was admitted to trading on the
London Stock Exchange. Chris joined the Board of Prime People in June 1995 and for a period of five years
combined the role of Finance Director with other business interests. In May 2005 he took up a full time role as
Finance Director of Prime People retiring from this post in 2015 but remaining on the Board in a non-
executive capacity.
John Lewis OBE LLB (Hons) - Non-executive Director
John is a solicitor (Non Practising) and a consultant to Eversheds LLP (solicitors). Previously he served as a
partner in Lewis Lewis & Co which became part of Eversheds after a series of mergers. John is currently
Chairman of Photo-Me International Plc and several private companies. He has served as Chairman of
Cliveden Plc and Principal Hotels Plc and as deputy Chairman of John D Wood & Co Plc, retiring in each
case when the Company was sold.
57
PRIME PEOPLE PLC
Board of Directors
Simon Murphy BSc ACA - Non-executive Director
Simon qualified as a Chartered Accountant with Coopers & Lybrand. He was previously a Managing Director
in the global investment banking division of HSBC. He was Chief Executive of Prime People from May 2005
until the acquisition of Macdonald & Company Group Ltd. He is Chief Financial Officer of Battersea Power
Station Development Company and a Director of a number of private companies including OPD Group
Limited an investment company with holdings in a number of recruitment businesses.
58
Prime People Plc
2 Harewood Place Hanover Square
London W1S 1BX
T: +44 (0) 20 7318 1785
F: +44 (0) 870 442 1737
E: connect@prime-people.com
W: prime-people.co.uk