Chief executive's statement
We have seen good demand for our services during the period and we are encouraged by the continuing flow of opportunities to grow and develop our business, both in the UK and internationally.
Financial results
We are pleased to report a strong set of results for the six months ended 30 June 2008.
The Group’s revenue from continuing operations for the period was up 9% at £113.3m (2007: £103.8m). Operating profit* increased by 10% to £9.5m (2007: £8.6m) and the operating margin* improved to 8.4% (2007: 8.3%). The increase in operating profit* was achieved despite an increase in share option costs of £0.4m. The underlying improvement in operating profit*, excluding share option costs, was 15%.
Profit before tax* was up 38% at £9.1m (2007: £6.6m) and the diluted earnings per share* increased by 37% to 7.4p (2007: 5.4p). The statutory profit before tax was £9.1m (six months ended 30 September 2007: loss of £3.8m) and basic earnings per share for continuing operations were 7.4p (six months ended 30 September 2007: loss of 6.9p).
During the six months ended 30 June 2008, the Group generated an excellent operating cash flow from continuing operations of £19.6m (2007: £15.5m), with an operating profit* to cash conversion of 207% (2007: 180%). Net debt at 30 June 2008 was £7.3m, representing gearing of 4%.
We have committed bank facilities of £40m that run until 2012.
Dividend
Following the change in our year end and the more even balance between our first and second halves of the year, it is our intention to pay an interim dividend that is approximately equal to 40% of the total dividend for the year. In respect of the six months ended 30 June 2008, the Board is proposing an interim dividend of 1.7p. This will be paid on 24 October 2008 to shareholders on the register at 26 September 2008.
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