News blog

Prime People

• BY: Andrew Hore |
• POSTED: 26/02/2014 |

Construction professionals recruiter Prime People intends to return surplus cash to investors. 

The share price rose 3.5p to 77p, which values Prime people at £9.14m. there was £2.76m in the bank at the end of September 2013. Management will not want to pay out all of this cash but there is scope for a significant special dividend. Working capital and money to finance organic growth will be required and the exact amount of the special dividend will be announced later in the year.

Prime People paid an unchanged interim dividend of 1p a share and the total annual dividend is 4.09p a share. That provides an annual yield of 5.3%.

In the six months to September 2013, revenues improved from £6.28m to £6.81m, while pre-tax profit jumped from £117,000 to £297,000. UK and Asian operations are growing but the rest of the world contribution was lower. The fastest growth was in temporary recruitment in the UK. There was a swing from loss to profit in Asia and that was where most of the profit improvement came.

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