Progility : Annual Report y/e June 2017 and AMG Notice

Progility Plc ANNUAL REPORT 2017

Company No. 03525870

CONTENTS PAGES

Our Performance
Chairman's statement	3
Strategic Report	4
Governance
Board of directors	13
Directors' report	14
Remuneration report	18
Corporate governance	19
Independent auditor's report	23
Financial statements
Consolidated statement of comprehensive income	29
Consolidated statement of financial position	30
Company statement of financial position	31
Consolidated cash flow statement	32
Company cash flow statement	33
Consolidated statement of changes in equity	34
Company statement of changes in equity	35
Notes to the financial statements	36 -75
Shareholder Information
Notice of Annual General Meeting	21

Chairman's Statement Dear Shareholder

I am pleased to present Progility's results for the twelve months to 30 June 2017. Our focus during the year has been to seek further improvement in the efficiency and effectiveness of our operations within our three business sectors; Professional Services, (comprising our training and recruitment businesses), Healthcare (comprising Starkstrom) and Communications (comprising our technology businesses in India and Australia).

Financial Performance

Overall revenue was £74.7 million, an increase of 21% from continuing operations, which is broadly in line with our revenue growth in the first half. Of this increase of £13.1 million, £10.5 million arises in our Communications segment where underlying revenue growth of 17% in India and 6% in Australia translated into sterling growth of 34% and 26% respectively.

Our reported operating profit on continuing activities was £3.4 million. This was after crediting £1.0 million arising from the release of provisions in our Indian business. Our operating profit before highlighted items was £2.45 million as compared to a loss of £0.1 million in the prior year. We achieved a reported profit before tax of £0.1 million (2016 a loss of £1.4 million). Our strategic report on page 4 contains more commentary on our three business areas.

Management and the Board

During the year we have changed the senior management in our Australian business and have continued to work on improving the operational management throughout the group.

I have remained both Chairman and interim Chief Executive throughout the period and I am now working with a senior experienced consultant to implement the next stage of operational effectiveness and to re-examine the potential for the group's constituent businesses and the strategic direction of the group.

During the year the company's Board of Directors has remained unchanged.

Prospects

Although the last year has shown substantial progress we have still not yet achieved acceptable financial performance, neither have we raised our operational efficiency and processes to an acceptable level.

The next year will be focussed on embedding greater operational controls and efficiencies and ensuring that this will be reflected in long term consistent financial performance. Progress in the current year may potentially be held back as we implement the necessary changes.

Wayne Bos Executive Chairman

Strategic Report

Progility Plc - Overview

The Progility Group comprises three business segments: Professional Services, (comprising the training and recruitment businesses), Healthcare (comprising Starkstrom) and Communications (comprising our technology businesses in India and Australia).

The group continues to be run as a portfolio. Mergers, acquisitions and disposals are considered when the opportunity to generate above average returns arises. The current and prior period saw no transactions occur.

Principal activity

The principal activities of the Group during the period, as outlined above, are Professional Services, Healthcare and Communications.

Corporate management and segmental reporting

The Group's global headquarters remain in central London, to suit the diverse needs of the various businesses within the Group and is collocated with our professional services London based operations. Operational management is delegated to the senior management in each segment, with a very small team in corporate headquarters now maintaining oversight of business performance and control over cash management. The annual budget process has become increasingly rigorous and will continue to be improved with greater accountability and transparency being provided to the group.

Our business is managed through three business segments to maximize our ability to communicate and to deliver our full range of products and expertise to our key clients' decision makers across the diverse territories and time zones in which we operate. These three segments reflect the management responsibility and accounting arrangements used to manage and report upon the performance of the business.

Key performance indicators (KPI's) for each business are revenue, gross profit margin and operating profit.

The Group's chief operating decision maker remains the Executive Chairman who reviews and considers these reports at the formal board meetings and in regular dialogue with the senior management in each segment.

Business Review Professional Services

As reported As reported

Year ended Year ended

30.6.17 30.6.17 30.6.16 30.6.16

£000 £000 £000 £000

Revenue Segment Profit

Revenue Segment Profit

Professional Services continuing operations 15,310 1,277 15,924 1,087

Professional Services discontinued operations 416 1 824 (268)

Professional Services total 15,726 1,278 16,748 819