News

Investment holding company focusing on HR products has issued audited results for the year ended 31 December 2009 which shows revenue down by 3% from R539,9 million to R523,5 million as businesses continued to bear the effects of the global economic slowdown

Group EBITDA fell by 19% from R23,6 million to R19,1 million with operating profit down by 20% from R21,8 million to R17,5 million.

The Group's effective tax rate increased from 15% in 2008 to 24% in 2009. Profit after tax for the year was R11,8 million, 34% lower than the R17,9 million recorded for the prior period.

Diluted headline earnings per share of 10,51 cents are 30% lower than the prior year.

But the total annual dividend has been maintained at 3 cents per share.

Despite the poor trading environment, the Group's balance sheet continued to strengthen with cash flows from operations improving by R20,4 million, while cash flows from investing and financing activities improved by 71%. Working capital invested in trade receivables improved by R13,1 million from R92,0 million to R78,9 million at year-end. Cash and cash equivalents improved by 70% from R16,3 million to R27,8 million at year-end, while bank borrowings reduced by 16% from R35,3 million to R29,5 million.

Overall, PrimeServe’s net gearing improved from 29% to 3% over the 12 months under review.

Primeserv has warned that revenue in the Outsourcing division declined by 5% from R501,7 million to R478,1

million and the division's full year operating profit declined by 31% from R27,8 million to R19,2 million.

That’s after the logistics, warehousing, construction and industrial flexible staffing units continued to experience depressed trading conditions.

Primeserv Group Limited is an investment holding company, focusing on delivering human resources (HR) products, services and solutions through its operating pillar, Primeserv HR Services. This incorporates two main areas of specialisation: Human Capital Development operating through two divisions, Primeserv HR Solutions and Primeserv Colleges; and Human Capital Outsourcing