09 January 2012
Networkers International plc ('Networkers International' or the 'Company' or 'Group')
Pre-Close Statement and Trading Update
Networkers International, the AIM quoted technical and professional staffing company, today issues its pre-close statement and updates the market on current trading.
Highlights
· Net fee income (gross margin) for the 2011 financial year is expected to increase by approximately 20% compared to 2010, and approximately 27% when compared with H2 2010. This growth has been driven principally by the international telecoms and specialist IT sectors within which the Company operates;
· The board expects pre-tax profits to exceed the top end range of market expectations for the year ended 31 December 2011;
· Notwithstanding the dilutive effect of various share option awards from prior years, the earnings per share is expected to be slightly above the top end range of market expectations for the 2011 financial year;
· The Group has continued to increase its proportion of international business which now approaches 70% of net fee income (2010: 64%); and
· Strong balance sheet and good liquidity, with net current assets of approximately £12m. The Group has funded its strong growth in the second half of the year through operating cash flows and the board expects net debt to be in line with that reported at 30 June 2011.
Commenting on today's announcement, Spencer Manuel, CEO said "2011 has been a very successful year for the Group with trading activity at its highest levels since the Group's inception 12 years ago.
"We have had a strong finish to 2011 driven by trading within our international emerging markets. Market conditions within the UK, which now only accounts for approximately 30% of our net fee income, remain somewhat subdued.
"Whilst we have not experienced any overall deterioration in market conditions, we are mindful of the current general economic malaise within the UK and Europe that could impact the wider global economic environment, and by extension the emerging markets that the Group primarily operates within. However, as we have previously demonstrated over the years, the Group's geographical diversification and specialist market focus means we are well placed to successfully weather any global downturn should it arise in the future."
The Company expects to announce its preliminary results on 16 April 2012.
Enquiries:
Networkers International 020 8315 9000
Spencer Manuel, CEO
Jon Plassard, CFO
www.networkersplc.com
Numis Securities Limited 020 7260 1000
David Poutney / James Serjeant (Corporate broking)
Richard Thomas (Nominated adviser)
