Human Capital Resources PLC Final Audited Results For the year ended 31 December 2011

EMBARGOED 0700hrs 18/05/2012

London, Friday 18 May 2012

I am pleased to report that since the Interim Report (released on 28 September 2011) Human Capital Resources plc ('HCR' or ‘the Company’) has responded well to its near-term financial priorities, in what the directors believe have been challenging conditions for a fledgling business, by reducing its costs in the fourth quarter of last year.

Our expectations that trading conditions in 2011 would be tough were realised, with businesses continuing to report significant delays in the approval of spending on major projects, a probable legacy of the global economic crisis. We believe that this in turn created uncertainty in our core market sector and caused many of our clients to defer spending on research and on the hiring of new individuals and teams, the impact of which was seen in our revenues and results for the period.

To confront these challenges we cut costs and implemented a range of actions across the Company intended to protect and improve our business and to focus on future revenue generation. We have continued to win new mandates throughout the period and into the current financial year, and have been encouraged by recent levels of activity. During this period we have had a number of successes particularly within "Green Finance" which has seen us working with a wide range of financial services clients, private equity houses and their portfolio companies in Asia, Continental Europe and, of course, the UK. Our research and business intelligence offering has been well received by clients and we are now selling this as a stand alone product.


Our turnover for the period was £2,496,017 (2010: £115,487), giving a loss before tax of £811,434 (2010: £1,254,285). Within this figure is an exceptional charge of £155,008 (2010: £734,819) which represents goodwill on the acquisition of Berkeley Frost Limited which we have provided against in full. The figure in 2010 represents goodwill on the acquisition of Climate Human Capital (UK) Limited.

There was also an exceptional charge in relation to the impairment of the cost of acquisition of the Kinsey Allen contractor database. The value of the investment was impaired in full in the amount of £11,500 (2010: nil).

Board Composition

During the period under review, Wayne Holtshausen has stood down from the Board (on 27 April 2011) as part of a wider re-organisation. Peter Evans also stepped down as the Non-Executive Chairman on this date, to be replaced by myself. On behalf of the Board, I would like to take this opportunity to thank Peter for his counsel and service during his time in office.

Paul Turner, the group CFO resigned his services on the 28th of November 2011.

In addition, the Board has been strengthened with the appointment of two new directors, Paul Bell and Richard Ward, on 27 April 2011, both of whom have significant recruitment sector experience and knowledge which we believe will be extremely valuable in helping us to realise our ambitious plans for the business.

On the 29th of February 2012, Mike Brennan, resigned as chief executive officer of the company and its subsidiaries.

The current directors of the company are:

Mr EC Sparkes – Chairman (Non-Executive)

Mr R Ward – Acting Chief Executive Office

Mr PA Bell – Director (Non-Executive)


Looking forward it is our intention to focus our medium to longer term strategy on seeking market leading recruitment teams and individuals with whom we can enter into joint ventures or acquisitions and with whom we can develop future revenue streams and deliver sustainable growth and shareholder value. 

The Future

The Company has weathered difficult economic conditions in the 12 months to 31 December 2011 and, thanks to the actions taken by management and the ongoing support of its shareholders, I believe it has emerged a more efficient and more focused business. As ever, we remain grateful to our employees and shareholders for their loyal support during this challenging period.

Our business has increased since the year end, which we see as a positive indicator for the future. We remain cautious in the short to medium term, however, and anticipate that the overall economic recovery will be slow and hard won.

Over the medium to longer term, the Board believes that with the increased strength of our experienced recruitment team, new Non-Executive Directors, the management actions in hand and the opportunities emerging in our markets, Human Capital Resources plc is well positioned to grow its market presence and revenues.

On the 18th of April 2012, the company acquired 75% of the share capital of Clement May Limited, an executive recruitment, from Paul Bell, the ultimate controlling party of the group. Clement May focus mainly on contractor business and to a lesser extent, permanent placements.

Copies of the full accounts will be sent out to shareholders on or before 21 May 2012.

Eduard Sparkes

Chairman (Non-Executive)

Please find the Group Profit and Loss Account below to download:

Human Capital Resources PLC Group Profit and Loss Account 2011

For further information please contact:

Human Capital Resources plc:

Richard Ward – Acting Chief Executive Officer      Tel: 020 7491 6948

WH Ireland Limited

Dan Bate – PLUS Markets Advisor         Tel: 0161 832 2174


About Us

HCR plc is a London-listed recruitment and human capital services group. Our brands include financial services specialist Berkeley Frost and Climate Human Capital which operates in the energy and environmental markets space. In addition, Climate Human Capital operates an environmental portal, Climate People. While our core product is executive search, our proprietary research teams and unique project management methodology also allow us to offer bespoke business intelligence products. These include salary surveys, benchmarking analyses, bid support data and highly-targeted competitor analysis reports. All of our clients - whether they use us for search, business intelligence or both - can expect the highest standard of service. This includes a weekly newsletter, free quarterly sector reports, frequent informal communication on market and human capital developments and privileged access to proprietary data sourced by our research team. Based in London and New York, we have a multi-lingual consulting and research team and are able to execute assignments anywhere in the world.