STHREE PLC
(1) RoW (Rest of the World) includes all countries other than listed.
Non-current assets
30 November 30 November
2020 2019
GBP'000 GBP'000
UK 16,255 11,160
Germany 10,725 949
USA 6,466 600
Netherlands 3,928 596
Japan 118 43
RoW(1) 7,736 1,500
45,228 14,848 (1) RoW (Rest of the World) includes all countries other than listed.
Non-current assets from discontinued operations included in RoW amount to GBPnil (2019: GBP0.2 million).
The following segmental analysis by brands, recruitment classification and sectors (being the profession of candidates placed) have been included as additional disclosure to the requirements of IFRS 8.
Revenue Net fees
2020 2019 2020 2019
GBP'000 GBP'000 GBP'000 GBP'000
Brands
Computer Futures 376,053 400,184 95,530 103,533
Progressive 372,568 430,390 92,295 101,234
Real Staffing Group 253,682 255,951 75,884 76,473
Huxley Associates 200,319 238,178 44,866 56,756
1,202,622 1,324,703 308,575 337,996 Other brands including Global Enterprise Partners, JP Gray, Madison Black, Newington International and Orgtel are rolled into the above brands.
Revenue Net fees
2020 2019 2020 2019
GBP'000 GBP'000 GBP'000 GBP'000
Recruitment classification
Contract 1,124,817 1,236,459 233,343 251,410
Permanent 77,805 88,244 75,232 86,586
1,202,622 1,324,703 308,575 337,996
Revenue Net fees
2020 2019 2020 2019
GBP'000 GBP'000 GBP'000 GBP'000
Sectors
Technology 591,333 630,369 138,234 150,602
Engineering 271,861 308,286 68,083 72,985
Life Sciences 223,655 207,738 71,604 67,841
Banking & Finance 101,196 147,631 25,760 36,611
Other 14,577 30,679 4,894 9,957
1,202,622 1,324,703 308,575 337,996 Other includes Procurement & Supply Chain and Sales & Marketing. Engineering includes Energy. 3. ADMINISTRATIVE EXPENSES a. Operating profit from continuing operations is stated after charging/(crediting):
2020 2019
GBP'000 GBP'000
Staff costs 209,397 211,029
Depreciation 16,285 3,000
Amortisation 2,786 2,982
Loss/(gain) on disposal of property, plant and equipment 14 (3)
Impairment of intangible assets 1,124 -
Loss on disposal of intangible assets - 51
Impairment losses on financial assets 1,689 2,376
Service lease charges (2019: operating lease charges)
? Buildings 1,892 12,415
? Cars 402 1,843
Foreign exchange losses/(gains) 677 (518)
Other operating expenses (see 3(b)) 1,666 2,273 b. Other operating expenses:
2020 2019
GBP'000 GBP'000
1. Net exceptional (income)/expense (468) 2,273
2. Impact of COVID-19:
Business optimisation expenses 3,300 -
Government assistance income (1,166) -
Total 1,666 2,273
Net exceptional income/expense
In line with the Group's prior year practice and accounting policy, the following items of material or non-recurring nature were excluded from the directly reconcilable IFRS measures.
Support function relocation
This is a legacy programme, which was partially funded by a grant receivable from Scottish Enterprise. The Group is entitled to the grant over several years until 2021, subject to the terms of the grant being met. In 2020, the Group recognised GBP0.5 million in grant income (2019: net exceptional income of GBP0.1 million, comprising GBP0.6 million in personnel and property costs less government grant income of GBP0.7 million).
Senior leadership restructuring
In 2019, several key changes were made to the senior leadership structure within the EMEA excluding DACH region. In 2020, true-up of GBP0.1 million (2019: GBP1.2 million) in remaining charges was recognised.
CEO change
In the prior period, operating expenses classified as exceptional also included costs of GBP1.2 million associated with the appointment of the new CEO.
Impact of COVID-19
The COVID-19 had implications on certain items of income and expense in the Group Consolidated Financial Statements, affecting the profit before tax for the year ended 30 November 2020.
Business optimisation expense
In response to the significantly changed economic environment and increased risk and uncertainty caused by COVID-19, the Directors took steps to right size the structure and strategy of certain local businesses. These changes resulted in a charge of GBP3.3 million (2019: GBPnil) that was recognised in the current year.
Government assistance income
The Group took advantage of job retention schemes launched by local national Governments in Australia, Belgium, France, Hong Kong, Japan, Luxembourg, Singapore and Spain, whereby it was reimbursed for a portion of salaries of furloughed staff. In 2020, the Group, recognised a total benefit, including the associated payroll savings, of GBP1.2 million (2019: GBPnil). The compensation was presented as a deduction in reporting the related staff expense. The Group decided to repay UK furlough money as performance exceeded Directors' expectations. 4. Taxation a. Analysis of tax charge for the year
2020 2019
Before
Exceptional Before Exceptional
exceptional items Total exceptional items items Total
items
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Current income tax
Corporation tax charged/(credited) on 8,651 89 15,917 (428)
profits for the year 8,740 15,489
Adjustments in respect of prior periods 438 - 438 1,110 - 1,110
Total current tax charge/(credit) 9,089 89 9,178 17,027 (428) 16,599
Deferred income tax
Origination and reversal of temporary 2,582 - (678) - (678)
differences 2,582
Adjustments in respect of prior periods 73 - 73 (441) - (441)
Total deferred tax charge/(credit) 2,655 - 2,655 (1,119) - (1,119)
Total income tax charge/(credit) in the 11,744 89 15,908 (428) 15,480
Consolidated Income Statement 11,883
The total income tax charge relates to continuing operations. b. Reconciliation of the effective tax rate
The Group's tax charge for the year exceeds (2019: exceeds) the UK statutory rate and can be reconciled as follows:
2020 2019
Before Exceptional Before Exceptional
exceptional items Total exceptional items Total
items items
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Profit before income tax from continuing operations 30,127 468 30,595 59,074 (2,273) 56,801
Loss before income tax from discontinued operations (1.809) - (1,809) (2) - (2)
Profit before income tax for the Group 28,318 468 28,786 59,072 (2,273) 56,799
Profit before income tax multiplied by the standard (MORE TO FOLLOW) Dow Jones Newswires
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