Interim profits squeeze at Prime People
Article Date: Sep 14 2000Recruitment and training group Prime People is cushioning the blow of an 11 per cent profits fall to £400,379 in the first half year by paying a 'one-off' special dividend to shareholders.
PP's chairman Richard Lee and chief executive David Coubrough blame the profits drop on investment in staff and technology to support expansion in the recruitment business. The company, which specialises in the leisure industry, boosted its turnover by nearly 30 per cent to £2.23 million over the same period.
The directors point out that, even paying out £1.45 million on this dividend, presented as a loyalty bonus to shareholders after ten years business, Prime People will still have £1.6 million in cash to help fund its expansion plans. 'Current activity levels are strong in all the businesses, which we anticipate will be reflected in the final results for the year', they add.
At 23.25p, the shares, quoted on the London Stock Exchange, are almost midway between their high and low points for the year.
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