AIM:PRP

Stock Analysis Report

Executive Summary

Prime People Plc, together with its subsidiaries, provides permanent and contract recruitment services in the United Kingdom, Asia, and internationally.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

How has Prime People's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PRP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.9%

PRP

6.8%

GB Professional Services

3.9%

GB Market


1 Year Return

-42.6%

PRP

0.5%

GB Professional Services

-22.4%

GB Market

Return vs Industry: PRP underperformed the UK Professional Services industry which returned 2.3% over the past year.

Return vs Market: PRP underperformed the UK Market which returned -23% over the past year.


Shareholder returns

PRPIndustryMarket
7 Day-1.9%6.8%3.9%
30 Day-36.7%-11.0%-16.1%
90 Day-61.2%-14.1%-26.1%
1 Year-31.6%-42.6%2.8%0.5%-18.2%-22.4%
3 Year-30.1%-47.6%24.1%15.7%-11.7%-23.1%
5 Year-36.4%-57.8%72.3%52.0%1.9%-21.5%

Price Volatility Vs. Market

How volatile is Prime People's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Prime People undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRP (£0.46) is trading below our estimate of fair value (£2.95)

Significantly Below Fair Value: PRP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PRP is good value based on its PE Ratio (3.7x) compared to the Professional Services industry average (15.5x).

PE vs Market: PRP is good value based on its PE Ratio (3.7x) compared to the UK market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PRP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PRP is good value based on its PB Ratio (0.4x) compared to the GB Professional Services industry average (2.1x).


Next Steps

Future Growth

How is Prime People forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.2%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Prime People has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Prime People performed over the past 5 years?

4.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRP has high quality earnings.

Growing Profit Margin: PRP's current net profit margins (6%) are lower than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: PRP's earnings have grown by 4.5% per year over the past 5 years.

Accelerating Growth: PRP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PRP had negative earnings growth (-16.5%) over the past year, making it difficult to compare to the Professional Services industry average (12%).


Return on Equity

High ROE: PRP's Return on Equity (13.3%) is considered low.


Next Steps

Financial Health

How is Prime People's financial position?


Financial Position Analysis

Short Term Liabilities: PRP's short term assets (£8.1M) exceed its short term liabilities (£3.5M).

Long Term Liabilities: PRP's short term assets (£8.1M) exceed its long term liabilities (£1.1M).


Debt to Equity History and Analysis

Debt Level: PRP is debt free.

Reducing Debt: PRP had no debt 5 years ago.

Debt Coverage: PRP has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: PRP has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: PRP has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if PRP's debt is covered by short term assets.


Next Steps

Dividend

What is Prime People's current dividend yield, its reliability and sustainability?

11.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PRP's dividend (11.4%) is higher than the bottom 25% of dividend payers in the UK market (2.69%).

High Dividend: PRP's dividend (11.4%) is in the top 25% of dividend payers in the UK market (7.48%)


Stability and Growth of Payments

Stable Dividend: PRP's dividend payments have been volatile in the past 10 years.

Growing Dividend: PRP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.4%), PRP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.3yrs

Average board tenure


CEO

Peter Moore (49yo)

14.17s

Tenure

UK£231,028

Compensation

Mr. Peter H. Moore, MRICS has been Managing Director of Prime People Plc since January 3, 2006. Mr. Moore served as Managing Director of Prime People Plc since December 2005. Mr. Moore worked with Strutt & ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD287.63K) is about average for companies of similar size in the UK market ($USD335.89K).

Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Robert J. MacDonald
Executive Chairman14.17yrsUK£149.97k22.7% £1.3m
Peter Moore
MD & Executive Director14.17yrsUK£231.03k23.63% £1.3m
Donka Zaneva-Todorinski
Finance Director4.42yrsUK£88.08k0.14% £8.0k
John Henry Lewis
Non Executive Director14.17yrsUK£25.84k8.9% £499.2k
Christopher Heayberd
Non Executive Director4.42yrsUK£41.45k0.20% £10.9k

9.3yrs

Average Tenure

68.5yo

Average Age

Experienced Board: PRP's board of directors are considered experienced (9.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.5%.


Top Shareholders

Company Information

Prime People Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Prime People Plc
  • Ticker: PRP
  • Exchange: AIM
  • Founded:
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: UK£5.612m
  • Shares outstanding: 12.31m
  • Website: https://www.prime-people.co.uk

Number of Employees


Location

  • Prime People Plc
  • 2 Harewood Place
  • Hanover Square
  • London
  • Greater London
  • W1S 1BX
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRPAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMay 2005

Biography

Prime People Plc, together with its subsidiaries, provides permanent and contract recruitment services in the United Kingdom, Asia, and internationally. It offers professional recruitment consultancy for the real estate and built environment sectors under the Macdonald & Company brand; and professional recruitment consultancy for the energy, renewables, and environmental sectors under the Prime Energy brand. The company also provides professional recruitment consultancy for the insights, data analytics, and market research sectors under the Prime Insight brand; and recruitment consultancy for the construction and engineering, infrastructure, design and development, real estate, and professional services under the Command Recruitment brand. The company is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 22:15
End of Day Share Price2020/03/31 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.