FINANCIALS: Networkers International sees 16.5% fall in operating profits

Networkers International, which generates the bulk of its income from overseas markets, has seen a 16.5% fall in operating profits after being adversely affected by the rising strength of sterling.
Mon, 15 Sep 2014Networkers International, which generates the bulk of its income from overseas markets, has seen a 16.5% fall in operating profits after being adversely affected by the rising strength of sterling.

In the six months ended 30 June, operating profits fell from £3.3m in 2013 to  £2.78m. Adjusted pre-tax profits fell by 15% and net fee income (NFI) was down by 6.1% to £13.77m, compared to £14.67m.

Adjusted earnings per share also fell by 12% to 2.13p, compared to 2.43p in 2013.
In a statement, Spencer Manuel, chief executive of Networkers International, said: “The reported results have been impacted by adverse currency movements for the group, with much of the group’s international business being conducted in currencies other than sterling which has strengthened by 9% compared with the corresponding period last year.”

The results also revealed that lower numbers of telecom contractors meant the company’s telecoms division was hit by a 10.4% fall in NFI. However, the energy and engineering division in the UK and the Middle East has performed well, with a NFI increase of 16%, compared to 11% in 2013. 

At the beginning of the month [September], Networkers International acquired oil & gas recruiter CAPPO Group. It does not anticipate the acquisition to make a “material contribution” to the group’s earnings in the current year but anticipates profitable growth for the business from next year.

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