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ATA Group

Companies: ATP   
09/04/2003

Human resources support services stock ATA's share price advanced on some solid 2002 numbers, but tough trading continues in its recruitment business. For the year to December, pre-tax profits rose from £1.07m to £1.42m, but this was only after £352,000 of exceptional credits 'relating to accrued rates in the Catalis Group business before its acquisition', according to chief executive Clive Chapman. Before exceptional credits, pre-tax profit was a flat £1.07m, on fairly stagnant turnover of £12.9m (£12.8m). Within ATA's recruitment arm, the first full year at its rail recruitment company Catalis was highly successful, but profits from sales and engineering technology were under pressure. Overall, recruitment profitability waned from £639,000 to £246,000. Within training, the group enjoyed the benefits of its reorganised railway training interests and overall training profits rose to £826,000 from £415,000, but its Fairbourne Adventure arm (which provided team-building and leadership training) was closed in December. 'We couldn't make it make money,' concedes Chapman. The board maintained the 3.8p final payout, for an unchanged total dividend of 5.8p for the year. There are no forecasts available at present from recently appointed adviser and broker Williams de Broe. For now, investors are advised to hold their shares.

Market cap: £7.2m
PE Forecast: n/a
Share price: 88.5p

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