(PRP.L) Prime People PLC Buy/Sell

For further information please contact:

Prime People 020 7318 1785

Robert Macdonald, Executive Chairman Chris Heayberd, Finance Director

Cenkos Securities 020 7397 8900

Nick Wells Elizabeth Bowman Julian Morse

Prime People plc

Interim Results for the six months ended 30 September 2009

Chairman's Statement

Results

I am able to report the results for Prime People Plc for the half-year ended 30 September 2009.

The first half shows an operating loss of £46,000 before deduction of non-recurring items of £116,000. Whilst this contrasts unfavourably with the operating profit of £1.013 million produced in the comparable period last year, it contrasts well with the immediately preceding half year when the group recorded operating losses of £263,000.

During the period being reported the Group has continued to rationalise its management and organisation to reflect the level of business it expects to do in the remainder of the current financial year and is now positioned to be profitable in the second half of the year on the basis of the budgeted level of net fee income. The results reflect the challenging global market conditions in all our markets during the period being reported and the impact of redundancy costs of £116,000 associated with ensuring that the Group is the right size for the immediate future.

The net fee income split is:

Six months ended30 September2009 Six monthsended30 September2008
£'000 £'000
Permanent- UK- International 1,337953 3,3362,207
Temporary (UK only) 2,290760 5,5431,137
Total 3,050 6,680

Net cash

The Group retains a strong net cash position of £1.81million (2008: £1.07million) and is positioned to be able to exploit both cyclical opportunities that may present themselves and the upturn in its markets when they come.

Dividend

The Board has decided not to declare an interim dividend for the six months ended 30 September 2009 but will give consideration to recommending a final dividend once the outcome for the full year is known.

Outlook

In recent months trading in all offices has reached a level at which revenues appear to be stabilising and from which good progress can be made.

The Group's overseas offices continued to contribute significantly to Group NFI providing 31 per cent of Group NFI (2008: 33 per cent).

Freelance (temporary placement) activity also continues to provide a material part of the Company's revenue mix contributing 25 per cent of Group NFI (2008: 17 per cent) in the period.

Prime Insight, the Company's business which specialises in the placement of insight professionals and which we started in October last year, continues to make steady progress. This start-up and incubation provides a business model from which to grow new recruitment businesses and we are actively looking for similar opportunities.

With signs of a general, if modest, economic recovery in global activity and an increased interest in property as a yielding asset class noticeable in the UK and Far East I hope to report improved performance in the second half of the year.

R J G Macdonald

Executive Chairman

19 November 2009

Consolidated income statement

for the six months ended 30 September 2009 (unaudited)

Notes Six monthsended30 Six monthsended30 Yearended31
September2009 September2008 March2009
£'000 £'000 £'000

Continuing operations
Gross Fee Income 7,071 12,089 20,668
Direct costs (4,021) (5,409) (10,255)

Net fee income 3,050 6,680 10,413
Administrative expenses (3,212) (5,667) (9,663)

Operating (loss)/profit (162) 1,013 750

Finance income 5 6 14
Finance expense 2 (5) (25) (37)

(Loss)/profit before taxation (162) 994 727

Taxation 31 (301) (190)

(Loss)/profit after tax (131) 693 537

attributable to equity shareholders
Earnings per share 5
Basic (1.10)p 5.76p 4.47p
Diluted (1.10)p 5.36p 4.18p

Consolidated statement of changes in shareholders equity at 31 March 2009

for the six months ended 30 September 2009 (unaudited)

Called up share Capital redemption Share premium Otherreserve Share option reserve Foreigncurrencytrans Retainedearnings Total
capital reserve account lation
£*000 £*000 £*000 £*000 £*000 £*000 £*000 £*000
At 1 April 2008 1,203 - 7,095 173 136 (15) 4,087 12,679
Currency translation - - - - - 130 - 130

difference
Profit for the period - - - - - - 693 693
Adjustment in respect of share - - - - 29 - - 29

schemes
Equity dividends - - - - - - (289) (289)

At 30 September 2008 1,203 - 7,095 173 165 115 4,491 13,242

Currency translation - - - - - 371 - 371

differences
Loss for the period - - - - - - (156) (156)
Adjustment in respect of share - - - - 11 - - 11

schemes
At 31 March 2009 1,203 - 7,095 173 176 486 4,335 13,468

Currency translation - - - - - (82) - (82)

differences
Loss for the period - - - - - - (131) (131)
Adjustment in respect of share - - - - (107) - 113 6

schemes
Shares purchased for (9) 9 (18) - - - - (18)

cancellation
At 30 September 2009 1,194 9 7,077 173 69 404 4,317 13,243

Consolidated balance sheet

at 30 September 2009 (unaudited)

As at30 As at30 September2008 As at31 March2009
September2009
£'000 £'000 £'000

Assets Non-current assets
Intangible assets 9,769 9,769 9,769
Property, plant and equipment 298 376 379
Deferred tax asset 79 66 49

10,146 10,211 10,197

Current assets
Trade and other receivables 2,863 4,673 3,351
Cash and cash equivalents 2,237 1,780 2,499

5,100 6,453 5,850

Total assets 15,246 16,664 16,047

Liabilities Current Liabilities
Financial liabilities - 288 290 429

borrowings
Trade and other payables 1,575 2,179 1,848
Current tax liabilities - 533 22

1,863 3,002 2,299

Non current liabilities
Financial liabilities - 140 420 280

borrowings
Total liabilities 2,003 3,422 2,579

Net assets 13,243 13,242 13,468

Capital and reserves
Called up share capitalCapital 1,1949 1,203- 1,203-

redemption reserve
Share premium account 7,077 7,095 7,095
Other reserve 173 173 173
Share option reserve 69 165 176
Currency translation 404 115 486

differences
Retained earnings 4,317 4,491 4,335

Equity shareholders funds 13,243 13,242 13,468

Consolidated Cash Flow Statement

for the six months ended 30 September 2009 (unaudited)

Notes Six months Six monthsended30 September2008 Yearended31 March2009
ended30 September

£'000 £'000 £'000

Cash inflow from operating activities
Cash generated by operations 6 14 1,953 3,187
Corporation tax received 34 (248) (631)

/(paid)
Net cash from/(used) in 48 1,705 2,556

operating activities Cash flows from investing activities
Interest received 5 6 14
Interest paid (5) (25) (37)
Net purchase of property, (12) (163) (290)

plant and equipment
Net Cash used in investing (12) (182) (313)

activities Cash flows from financing activities
Repayment of borrowings (140) (140) (280)
Dividends paid to shareholders - (289) (289)
Shares purchased for (18) - -

cancellation
Net cash used in financing (158) (429) (569)

activities
Net (decrease) / increase in (122) 1,094 1,674

cash and cash equivalents
Cash and cash equivalents at 1 676 676
April 2009 2,350

Cash and cash equivalents at 2,228 1,770 2,350

30 September 2009

Notes to the Interim Financial Statements

For the six months ended 30 September 2009 (unaudited)

1. Accounting Policies

The consolidated interim financial statements are for the six months ended 30 September 2009. They have been prepared in accordance with International Financial Reporting Standards (IFRS) using the same accounting policies as those used in the preparation of the accounts for the year ended 31 March 2009.

2. Finance Expense

Six monthsended30 September2009 Six monthsended30 September2008 Yearended31 March2009
£'000 £'000 £'000
Bank interest: 5 25 37

3. Taxation on profit on ordinary activities

Taxation has been provided by applying the standard rate of corporation tax in the UK.

4. Dividends

Six months Six months Year
ended ended ended
30 September 30 September 31 March

£'000 £'000 £'000

Final dividend for 2008 of 2.40 pence per share

Notes to the Interim Financial Statements (continued)

for the six months ended 30 September 2009 (unaudited)

5. Earnings per share

Earnings per share (EPS) has been calculated in accordance with IAS 33 "Earnings per share" and is calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the period.

Earnings and weighted average number of shares used in the calculations are show below:

Six months ended 30 September Six monthsended30 September2008 Yearended31 March2009

£'000 £'000 £'000
Retained (loss)/profit for (131) 693 537

basic earnings per share
Number Number Number

Weighted average number of 11,941,500 12,028,899 12,028,899

shares used for basic and continuing earnings per share
Dilutive effect of share 841,510 902,621 835,156

options and shares to be issued
Diluted weighted average 12,783,010 12,931,520 12,864,055

number of shares used for diluted earnings per share

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Company has only one category of dilutive potential ordinary shares: share options. The basic and diluted loss per share is the same, as the exercise of share options would reduce the loss per share and is, therefore, anti-dilutive.

Pence Pence Pence

Basic (loss)/earnings per share (1.10)p 5.76p 4.47p
Diluted (loss)/earnings per share (1.10)p 5.36p 4.18p

6. Reconciliation of operating profit to net cash inflow from operating activities

Six monthsended30 Six monthsended30 Yearended31
September2009 September2008 March2009
£'000 £'000 £'000

Group operating (162) 1,013 750
(loss)/profit

Depreciation 93 100 224
Share option reserve 6 29 40
movement
Effects of exchange (82) 130 501
rate changes
Decrease in debtors 487 1,078 2,400
(Decrease)/increase in creditors (328) (397) (728)

Net cash inflow from operating 14 1,953 3,187

activities

7. Nature of the financial information

The interim financial information for the six months ended 30 September 2009, was approved by the board on 19 November 2009.

The financial information set out above does not constitute full accounts within the meaning of Section 240 of the Companies Act 1985. The comparative results for the year ended 31 March 2009 have been extracted from the Group's financial statements for that period which have received an unqualified audit report and have been filed with the Registrar of Companies.

A copy of the interim results will be available on the company's website www.prime-people.co.uk

This information is provided by RNS The company news service from the London Stock Exchange

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