Prime People : Interim Report for the six months ended 30 September 2016

Prime People Plc

Interim Report

for the six months ended 30 September 2016

2016

PRIME PEOPLE PLC

UNAUDITED CONDENSED CONSOLIDATED INTERIM REPORT

For the six months ended 30 September 2016

Contents Page

Chairman's statement 1

Unaudited condensed consolidated interim statement of comprehensive income 3

Unaudited condensed consolidated interim statement of financial position 4

Unaudited condensed consolidated interim statement of changes in equity 5

Unaudited condensed consolidated interim statement of cash flow 6

Notes to the unaudited condensed consolidated report 7

9thNovember 2016

Prime People Plc Unaudited Condensed Consolidated Interim Report for the six months ended 30 September 2016 CHAIRMAN'S STATEMENT Overview

I am pleased to be able to report the results for Prime People Plc for the half-year ended 30 September 2016.

The first half shows an operating profit of £0.76m (2015: £1.06m), consistent with the expectation in our recent trading statement of not less than £0.70m.

In line with the Outlook statement in the Company's 2016 Annual Report and Accounts, market conditions in the period became softer for our UK business. Offsetting this, our businesses in Asia performed strongly. The outcome for the period reflects the Company's commitment to grow internationally and to support new business lines, which increased our fixed cost base in the period being reported.

Financial Results

Group revenue increased by 12.55% for the period to £11.48m (2015: £10.20m).

Net Fee Income ("NFI") in the period for the Group was £6.33m which is a 1.87% increase on last year (2015: £6.21m). The first half of the financial year showed strong NFI performances in our Hong Kong and Singapore business units. In Asia NFI increased by 36.84% from £1.90m to £2.60m and in the UK NFI decreased by 12.82% from £3.90m to £3.40m.

Administrative costs for the group increased from £5.15m in 2015 to £5.57m in the first half of the financial year driven by talent investment and higher commission costs in Asia, in line with the fee income growth in the region.

Profit before taxation for the period has decreased to £0.76m (2015: £1.06m).

The charge for taxation of £0.15m is based on the expected annual effective tax rate of 20% (2015: 20%). Basic earnings per share for the period decreased to 4.92p (2015: 6.97p).

CHAIRMAN'S STATEMENT (cont) Cash Flow

The Group continues to maintain a strong net cash position. At the end of the period the Group had net cash of £1.34m (2015: £1.04m).

Dividend

The Board will be declaring an interim dividend of 1.75p (2015: 1.75p).

Outlook

We have reasonable expectations that the UK businesses will perform in the second half year at levels comparable to the first half. Sentiment in the UK property sector has improved but there is uncertainty for the sector in the medium term. In Asia we expect similar performance from our businesses in the second half and increased opportunities for growth in the medium and long term.

The present focus for the Group is to maximize the returns from recent investment in businesses and people and to increase the productivity of the business. We continue to recruit new heads into those markets where there is potential for NFI and profit growth.

Robert Macdonald Executive Chairman 9thNovember 2016

For further information please contact:

Prime People	020 7318 1785
Robert Macdonald, Executive Chairman
Donka Zaneva-Todorinski, Finance Director
Cenkos Securities	020 7397 8900
Ivonne Cantu - Nomad Elizabeth Bowman - Nomad
Julian Morse - Sales