<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report: January 28, 1999
TMP WORLDWIDE INC.
------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 0-21571 13-3906555
------------------- ------------------------- --------------------
(State of (Commission File No.) (I.R.S. Employer
Incorporation) Identification No.)
1633 Broadway, New York, New York 10019
-------------------------------------------------- ----------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 212-977-4200
--------------
<PAGE>
Item 2. ACQUISITION OR DISPOSITION OF ASSETS.
On January 28, 1999, pursuant to the terms of the Scheme
Implementation Agreement, dated August 17, 1998, as amended (the
"Agreement"), TMP Worldwide Inc. ("TMP") acquired, through a wholly-owned
subsidiary, all of the outstanding capital stock and options to purchase such
stock, of Morgan & Banks Limited ("M&B") for an aggregate of approximately
5,450,000 shares of common stock, $.001 par value, of TMP ("TMP Common
Stock"), and such share amount considers the effect of options that can be
converted into TMP stock. M&B provides human resource services to both the
public and private sectors in Australasia. The employment related services
provided by M&B include consulting, permanent recruitment (selection) and
temporary contracting. As a result of the transaction, M&B became an indirect
wholly-owned subsidiary of TMP and the former shareholders of M&B became
stockholders of TMP.
For the six months ended September 30, 1998, M&B's revenue was
approximately A$204.6 million ($133.6 million) and net income was
approximately A$7.7 million ($5.1 million). For the year ended March 31,
1998, M&B's revenue was A$330.4 million ($235.8 million) and net income was
A$11.0 million ($7.9 million). The pro forma impact of the transaction is set
forth in Item 7 of this Report.
2
<PAGE>
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL STATEMENTS AND EXHIBITS.
(a) (i) Financial Statements of Morgan & Banks Limited for the six
months ended September 30, 1998, filed herewith as Exhibit 99.1.
(ii) Financial Statements of Morgan & Banks Limited for the
year ended March 31, 1998, filed herewith as Exhibit 99.2.
(b) Unaudited Pro Forma Condensed Combined Financial Information.
3
<PAGE>
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
The Unaudited Pro Forma Condensed Combined Financial Information reflects
financial information which gives effect to the Company's acquisition of all
the outstanding stock of M&B and the assumed replacement of all options to
acquire M&B stock with options to purchase TMP stock in exchange for the
issuance of approximately 5,150,000 shares of TMP's Common Stock and
approximately 300,000 options to purchase shares of TMP Common Stock (the
"Transaction"). The share amounts and option amounts were calculated using an
exchange formula based on a per share price for M&B shares of 4.65 Australian
dollars, translated at 0.6292 US dollar per Australian dollar for the periods
presented and gives effect to 70,421,773 M&B shares and 3,866,625 M&B options
outstanding at January 27, 1999. The Pro Forma Financial Information included
herein reflects the use of the pooling-of-interests method of accounting,
after giving effect to the pro forma adjustments discussed in the
accompanying notes. Such financial information has been prepared from, and
should be read in conjunction with, the historical consolidated financial
statements and notes thereto of TMP and M&B.
The Pro Forma Condensed Combined Financial Information (i) gives effect to
the Transaction, (ii) gives effect, in the Combined Statement of Operations for
the year ended December 31, 1997, to the acquisition, in August 1997, of all the
outstanding stock of Austin Knight Limited, ("Austin Knight"), for a purchase
price of approximately $47.2 million, and (iii) includes the adjustments
described in the notes hereto.
The Pro Forma Condensed Combined Balance Sheet gives effect to the
Transaction as if it had occurred on September 30, 1998, combining the
balance sheets of TMP at September 30, 1998 with that of M&B as of September
30, 1998. The Pro Forma Condensed Combined Statements of Operations give
effect to the Transaction as if it had occurred at the beginning of the
earliest period presented, combining the results of TMP for the nine months
ended September 30, 1998 and each year in the three-year period ended
December 31, 1997 with those of M&B for the nine months ended September 30,
1998 and each year in the three-year period ended March 31, 1998,
respectively. The results for M&B for the three months ended March 31, 1998
are included in the Pro Forma Condensed Combined Statement of Operations for
both the year ended December 31, 1997 and the nine months ended September 30,
1998. When translated at the appropriate exchange rates for the December 31,
1997 and September 30, 1998 periods, revenue was approximately $62.1 million
and $54.9 million, net income was approximately $2.0 million and $1.7
million, and the effect on the diluted net income per share was $0.06 and
$0.05, respectively. In addition, the Pro Forma Condensed Combined Statement
of Operations for the year ended December 31, 1997 includes the results of
Austin Knight for the period prior to its acquisition by TMP on August 26,
1997.
The consolidated financial statements of M&B included in the Pro Forma
Condensed Combined Financial Information utilize Australian GAAP (which
substantially conforms to US GAAP) and were translated at the following
exchange rates: Australian dollars were translated to US dollars at the rate
of 0.5933, 0.6318, 0.7137, 0.7874 and 0.7455, respectively, with respect to
the Balance Sheet at September 30, 1998 and the Statement of Operations for
the nine months ended September 30, 1998 and the years ended March 31, 1998,
1997 and 1996. The Statement of Operations of Austin Knight included in the
December 31, 1997 Pro Forma Condensed Combined Statement of Operations was
translated from British Pounds Sterling to US dollars at the rate of 1.634 US
dollars per British Pound Sterling.
The Pro Forma Condensed Combined Statements of Operations presented do
not include any potential cost savings. The Company believes that it may be
able to reduce salaries and related costs and office and general expenses as
it eliminates duplication of overhead. However, there can be no assurance
that the Company will be successful in effecting any such cost savings.
The Pro Forma Condensed Combined Financial Information is unaudited and
is not necessarily indicative of the consolidated results which actually
would have occurred if the above transactions had been consummated at the
beginning of the periods presented, nor does it purport to present the future
financial position and results of operations for future periods.
4
<PAGE>
TMP WORLDWIDE INC.
PRO FORMA CONDENSED COMBINED BALANCE SHEET
SEPTEMBER 30, 1998
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
TMP MORGAN & BANKS PRO FORMA
WORLDWIDE INC. LIMITED ADJUSTMENTS COMBINED
-------------- ---------------- ------------- -----------
<S> <C> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents...................... $ 12,855 $ 11,263 $ -- $ 24,118
Accounts receivable, net....................... 317,048 25,284 -- 342,332
Work-in-process................................ 16,367 -- -- 16,367
Deferred income taxes.......................... -- 1,114 -- 1,114
Prepaid and other.............................. 19,385 2,418 -- 21,803
-------------- ------- ------ -----------
Total current assets....................... 365,655 40,079 -- 405,734
Property and equipment, net...................... 49,928 7,894 -- 57,822
Deferred income taxes............................ 4,084 117 -- 4,201
Intangibles, net................................. 184,463 5,412 -- 189,875
Other assets..................................... 5,473 27 -- 5,500
-------------- ---------- --------- -----------
$ 609,603 $ 53,529 $ -- $ 663,132
-------------- ---------- --------- -----------
-------------- ---------- --------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable............................... $ 254,864 $ 4,121 $ -- $ 258,985
Accrued expenses and other liabilities......... 50,808 27,380 6,000 (a) 84,188
Accrued restructuring costs.................... 20,902 -- -- 20,902
Deferred revenue............................... 13,923 -- -- 13,923
Deferred income taxes.......................... 13,519 34 -- 13,553
Current portion of long-term debt.............. 8,908 167 -- 9,075
-------------- ---------- --------- -----------
Total current liabilities.................. 362,924 31,702 6,000 400,626
Long-term debt, less current portion............. 128,581 4,511 -- 133,092
Other liabilities................................ -- 1,007 -- 1,007
Minority interests............................... -- 475 -- 475
Stockholders' equity:
Common stock................................... 27 -- 5 (b) 32
Class B common stock........................... 2 -- -- 2
Common stock of Morgan & Banks Limited......... -- 1,392 (1,392)(c) --
Additional paid-in capital..................... 171,973 2,841 1,387(b,c) 176,201
Foreign currency translation adjustment........ (543) 172 -- (371)
Retained earnings (deficit).................... (53,361) 11,429 (6,000)(a) (47,932)
-------------- ---------- --------- -----------
Total stockholders' equity................. 118,098 15,834 (6,000) 127,932
-------------- ---------- --------- -----------
$ 609,603 $ 53,529 $ -- $ 663,132
-------------- ---------- --------- -----------
-------------- ---------- --------- -----------
</TABLE>
- ------------------------
(a) To accrue for costs to be incurred in connection with the Transaction.
(b) Represents par value of the 5,150 shares to be issued in connection with the
Transaction, excluding options that could be exercised by current holders
of M&B options, based on the number of outstanding M&B Shares as of the
balance sheet date.
(c) Par value of the M&B Shares is reclassified as additional paid-in capital
net of the par value of the newly issued TMP Common Stock.
5
<PAGE>
TMP WORLDWIDE INC.
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
<TABLE>
<CAPTION>
TMP MORGAN & BANKS PRO FORMA
WORLDWIDE INC. LIMITED COMBINED
-------------- --------------- -----------
<S> <C> <C> <C>
Revenue:
Commissions and fees.......................................... $297,854 $ 50,719 $348,573
Temporary contracting......................................... -- 133,501 133,501
--------- -------- --------
Total revenue............................................. 297,854 184,220 482,074
--------- -------- --------
Operating expenses:
Salaries and related costs.................................... 164,012 45,061 209,073
Temporary contracting costs................................... -- 111,227 111,227
Office and general............................................ 91,060 17,727 108,787
Amortization of intangibles................................... 6,403 365 6,768
CEO bonus..................................................... 1,125 -- 1,125
Merger costs.................................................. 9,577 -- 9,577
--------- -------- --------
Total operating expenses.................................. 272,177 174,380 446,557
--------- -------- --------
Operating income................................................ 25,677 9,840 35,517
Interest expense, net........................................... (7,507) (137) (7,644)
Other expense, net.............................................. (842) (1) (843)
--------- -------- --------
Income before provision for income taxes, minority interests and
equity in losses of affiliates................................ 17,328 9,702 27,030
Provision for income taxes...................................... 7,735 3,728 11,463
Minority interests.............................................. -- (17) (17)
Equity in losses of affiliates.................................. (297) -- (297)
--------- -------- --------
Net income...................................................... $ 9,296 $ 5,991 $ 15,287
--------- -------- --------
--------- -------- --------
Net income per common and Class B common share:
Basic......................................................... $ 0.32 $ 0.45(a)
Diluted....................................................... $ 0.31 $ 0.44(a)
Weighted average shares outstanding:
Basic......................................................... 29,142 34,206(a)
Diluted....................................................... 29,949 35,135(a)
</TABLE>
- ------------------------
(a) Gives effect to the additional shares and options expected to be issued in
connection with the Transaction, including M&B's weighted average basic and
diluted shares outstanding for the periods, which were 69,239 and 70,899,
respectively, multiplied by the Exchange Ratio of 0.07314.
6
<PAGE>
TMP WORLDWIDE INC.
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1997
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
<TABLE>
<CAPTION>
TMP AUSTIN KNIGHT MORGAN & BANKS PRO FORMA
WORLDWIDE INC. LIMITED(A) ADJUSTMENTS SUBTOTAL LIMITED COMBINED
-------------- ------------- ----------- ---------- -------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Revenue:
Commissions and fees.......... $310,619 $ 34,800 $ -- $345,419 $ 71,950 $417,369
Temporary contracting......... -- -- -- -- 163,831 163,831
-------- -------- --------- -------- -------- --------
Total revenue............. 310,619 34,800 -- 345,419 235,781 581,200
-------- -------- --------- -------- -------- --------
Operating expenses:
Salaries and related costs.... 172,528 28,480 -- 201,008 60,342 261,350
Temporary contracting costs... -- -- -- -- 136,185 136,185
Office and general............ 101,176 5,758 -- 106,934 25,258 132,192
Amortization of intangibles... 6,269 -- 1,323(b) 7,592 558 8,150
CEO bonus..................... 1,500 -- -- 1,500 -- 1,500
-------- -------- --------- -------- -------- --------
Total operating
expenses................ 281,473 34,238 1,323 317,034 222,343 539,377
-------- -------- --------- -------- -------- --------
Operating income................ 29,146 562 (1,323) 28,385 13,438 41,823
Interest expense, net........... (8,813) (244) (2,896)(c) (11,953) (247) (12,200)
Other income (expense), net..... (181) 1,547 -- 1,366 (22) 1,344
-------- -------- --------- -------- -------- --------
Income before provision for
income taxes, minority
interests and equity in losses
of affiliates................. 20,152 1,865 (4,219) 17,798 13,169 30,967
Provision for income taxes...... 9,571 1,442 (1,158)(d) 9,855 5,153 15,008
Minority interests.............. 143 -- -- 143 153 296
Equity in losses of affiliates.. (33) -- -- (33) -- (33)
-------- -------- --------- -------- -------- --------
Net income...................... 10,405 423 (3,061) 7,767 7,863 15,630
Preferred stock dividends....... (123) -- -- (123) -- (123)
-------- -------- --------- -------- -------- --------
Net income applicable to common
and Class B common
stockholders.................. $ 10,282 $ 423 $(3,061) $ 7,644 $ 7,863 $ 15,507
-------- -------- --------- -------- -------- --------
-------- -------- --------- -------- -------- --------
Net income per common and Class
B common share:
Basic......................... $ 0.38 $ 0.48(e)
Diluted....................... $ 0.37 $ 0.47(e)
Weighted average shares
outstanding:
Basic......................... 27,224 32,234(e)
Diluted....................... 27,716 32,857(e)
</TABLE>
- ------------------------
(a) For the period January 1, 1997 through the date of the acquisition by TMP of
Austin Knight on August 26, 1997.
(b) To record amortization of intangibles arising from the acquisition of Austin
Knight, as if such acquisition occurred on January 1, 1997. Such
amortization is based on a 30 year life and is computed on an intangible
asset of $59,523, amortized for eight months.
(c) To record interest expense on borrowings in connection with the acquisition
of Austin Knight, as if such acquisition occurred on January 1, 1997. Debt
of $47,208 at 9.2% for eight months.
7
<PAGE>
TMP WORLDWIDE INC.
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS (CONTINUED)
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1997
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
(d) To record the tax benefit on interest expense of $2,896 on borrowings for
the acquisition of Austin Knight, at an estimated tax rate of 40%.
(e) Gives effect to the additional shares and options expected to be issued in
connection with the Transaction, including M&B's weighted average basic and
diluted shares outstanding for the period, which were 68,489 and 70,289,
respectively, multiplied by the Exchange Ratio of 0.07314.
8
<PAGE>
TMP WORLDWIDE INC.
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1996
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
<TABLE>
<CAPTION>
TMP MORGAN & BANKS PRO FORMA
WORLDWIDE INC. LIMITED COMBINED
-------------- ---------------- -----------
<S> <C> <C> <C>
Revenue:
Commissions and fees.......................................... $223,319 $ 61,084 $284,403
Temporary contracting......................................... -- 113,299 113,299
--------- -------- --------
Total revenue............................................. 223,319 174,383 397,702
--------- -------- --------
Operating expenses:
Salaries and related costs.................................... 122,964 45,507 168,471
Temporary contracting costs................................... -- 93,585 93,585
Office and general............................................ 74,252 21,944 96,196
Amortization of intangibles................................... 4,440 292 4,732
Special compensation.......................................... 52,019 -- 52,019
--------- -------- --------
Total operating expenses.................................. 253,675 161,328 415,003
--------- -------- --------
Operating income (loss)......................................... (30,356) 13,055 (17,301)
Interest expense, net........................................... (14,216) (27) (14,243)
Other income (expense), net..................................... (755) 141 (614)
--------- -------- ---------
Income (loss) before provision for income taxes, minority
interests and equity in earnings of affiliates................ (45,327) 13,169 (32,158)
Provision for income taxes...................................... 4,125 4,812 8,937
Minority interests.............................................. 434 583 1,017
Equity in earnings of affiliates................................ 114 -- 114
--------- -------- --------
Net income (loss)............................................... (49,772) 7,774 (41,998)
Preferred stock dividends....................................... (210) -- (210)
--------- -------- --------
Net income (loss) applicable to common and Class B common
stockholders.................................................. $(49,982) $ 7,774 $(42,208)
--------- -------- --------
--------- -------- --------
Net income (loss) per common and Class B common share:
Basic......................................................... $ (2.24) $ (1.55)
Diluted....................................................... $ (2.24) $ (1.55)
Weighted average shares outstanding:
Basic......................................................... 22,280 27,229(a)
Diluted....................................................... 22,280 27,229(a)
</TABLE>
- ------------------------
(a) Gives effect to the additional shares and options expected to be issued in
connection with the Transaction, including M&B's weighted average basic and
diluted shares outstanding for the period, which were 67,664 and 69,895,
respectively, multiplied by the Exchange Ratio of 0.07314.
9
<PAGE>
TMP WORLDWIDE INC.
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1995
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
<TABLE>
<CAPTION>
TMP MORGAN & BANKS PRO FORMA
WORLDWIDE INC. LIMITED COMBINED
-------------- ---------------- -----------
<S> <C> <C> <C>
Revenue:
Commissions and fees.......................................... $183,674 $ 44,881 $228,555
Temporary contracting......................................... -- 61,768 61,768
--------- -------- --------
Total revenue............................................. 183,674 106,649 290,323
--------- -------- --------
Operating expenses:
Salaries and related costs.................................... 100,162 31,701 131,863
Temporary contracting costs................................... -- 49,503 49,503
Office and general............................................ 57,310 17,032 74,342
Amortization of intangibles................................... 3,237 118 3,355
--------- -------- --------
Total operating expenses.................................. 160,709 98,354 259,063
--------- -------- --------
Operating income................................................ 22,965 8,295 31,260
Interest income (expense), net.................................. (10,654) 77 (10,577)
Other income (expense), net..................................... (1,057) 123 (934)
--------- -------- --------
Income before provision for income taxes, minority interests and
equity in losses of affiliates................................ 11,254 8,495 19,749
Provision for income taxes...................................... 5,100 3,136 8,236
Minority interests.............................................. 435 326 761
Equity in losses of affiliates.................................. (279) -- (279)
--------- -------- --------
Net income...................................................... 5,440 5,033 10,473
Preferred stock dividends....................................... (210) -- (210)
--------- -------- --------
Net income applicable to common and Class B common
stockholders.................................................. $ 5,230 $ 5,033 $ 10,263
--------- -------- --------
--------- -------- --------
Net income per common and Class B common share:
Basic......................................................... $ 0.24 $ 0.38(a)
Diluted....................................................... $ 0.23 $ 0.37(a)
Weighted average shares outstanding:
Basic......................................................... 22,045 26,925(a)
Diluted....................................................... 22,497 27,409(a)
</TABLE>
- ------------------------
(a) Gives effect to the additional shares and options expected to be issued in
connection with the Transaction including M&B's weighted average basic and
diluted shares outstanding for the period, which were 66,718 and 67,152,
respectively, multiplied by the Exchange Ratio of 0.07314.
10
<PAGE>
(c) Exhibits:
Exhibit 2.1 - Scheme Implementation Agreement, dated August 17,
1998, as amended, between Morgan & Banks Limited and TMP Worldwide Inc.
(incorporated by reference to TMP's Quarterly Report on Form 10-Q for the
quarter ended September 30, 1998).
Exhibit 23.1 - Consent of Pannell Kerr Forster.
Exhibit 99.1 - Financial Statements of Morgan & Banks Limited
for the six months ended September 30, 1998.
Exhibit 99.2 - Financial Statements of Morgan & Banks Limited
for the year ended March 31, 1998.
Exhibit 99.3 - Press Release, dated January 28, 1999.
11
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
TMP WORLDWIDE INC.
By: /S/ THOMAS G. COLLISON
------------------------
Thomas G. Collison
Vice Chairman
Dated: February 11, 1999
12
<PAGE>
Exhibit 23.1
The Board of Directors
Morgan & Banks Limited
Level 11, Grosvenor Place
225 George Street
SYDNEY, NSW 2000
CONSENT OF INDEPENDENT CHARTERED ACCOUNTANTS
We hereby consent to the inclusion of our report dated 16 June 1998, except
for Note 2 of Notes to and forming Part of the Consolidated Financial
Statements, for which the date is 21 September 1998, relating to the
consolidated balance sheets of Morgan & Banks Limited as at 31 March 1998 and
1997, and the consolidated profit and loss statements and cash flow
statements for each of the years in the three year period ended 31 March 1998
appearing in the Form 8-K of TMP Worldwide Inc. dated 28 January 1999.
Sydney Australia
10 February 1999
Pannell Kerr Forster, P.C.
PANNELL KERR FORSTER
<PAGE>
Exhibit 99.1
MORGAN & BANKS LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNTS
(IN AUSTRALIAN DOLLARS)
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED 30 SEPTEMBER
--------------------
1998 1997
$000 $000
--------- ---------
(UNAUDITED)
<S> <C> <C>
Sales revenue............................................................ 204,624 160,141
--------- ---------
--------- ---------
Operating profit before depreciation, amortisation, interest and income
tax.................................................................... 15,638 14,114
Depreciation, amortisation and interest.................................. 3,296 2,969
--------- ---------
Operating profit before income tax....................................... 12,342 11,145
Income tax attributable to operating profit.............................. 4,547 4,219
--------- ---------
Operating profit after income tax........................................ 7,795 6,926
Outside equity interests in operating profit after income tax............ 59 262
--------- ---------
Operating profit after income tax attributable to members of Morgan &
Banks Limited.......................................................... 7,736 6,664
Retained profits at the beginning of the financial year.................. 12,526 8,699
--------- ---------
Total available for appropriation........................................ 20,262 15,363
Dividends provided for or paid........................................... -- (3,693)
--------- ---------
Retained profits at the end of the financial period..................... 20,262 11,670
--------- ---------
--------- ---------
</TABLE>
See notes attached hereto.
1
<PAGE>
MORGAN & BANKS LIMITED
CONSOLIDATED BALANCE SHEETS
(IN AUSTRALIAN DOLLARS)
<TABLE>
<CAPTION>
30 SEPTEMBER 31 MARCH
1998 1998
$000 $000
------------- -----------
(UNAUDITED)
<S> <C> <C>
CURRENT ASSETS
Cash................................................................... 18,984 14,488
Receivables............................................................ 44,588 39,446
Other.................................................................. 3,306 2,357
------ -----------
TOTAL CURRENT ASSETS................................................... 66,878 56,291
------ -----------
NON-CURRENT ASSETS
Receivables............................................................ 46 46
Plant and equipment.................................................... 13,306 14,152
Intangibles............................................................ 9,121 9,308
Other.................................................................. 3,242 2,993
------ -----------
TOTAL NON-CURRENT ASSETS............................................... 25,715 26,499
------ -----------
TOTAL ASSETS........................................................... 92,593 82,790
------ -----------
CURRENT LIABILITIES
Accounts payable....................................................... 47,371 43,665
Borrowings............................................................. 281 481
Provisions............................................................. 5,931 9,530
------ -----------
TOTAL CURRENT LIABILITIES.............................................. 53,583 53,676
------ -----------
NON-CURRENT LIABILITIES
Borrowings............................................................. 7,604 8,121
Provisions............................................................. 2,920 1,613
------ -----------
TOTAL NON-CURRENT LIABILITIES.......................................... 10,524 9,734
------ -----------
TOTAL LIABILITIES...................................................... 64,107 63,410
------ -----------
NET ASSETS............................................................. 28,486 19,380
------ -----------
------ -----------
Shareholders' Equity
Issued capital......................................................... 7,135 2,308
Reserves............................................................... 289 3,895
Retained profits....................................................... 20,262 12,526
------ -----------
Shareholders' equity attributable to members
of Morgan & Banks Limited............................................ 27,686 18,729
Outside equity interests in controlled entities........................ 800 651
------ -----------
TOTAL SHAREHOLDERS' EQUITY............................................. 28,486 19,380
------ -----------
------ -----------
</TABLE>
See notes attached hereto.
2
<PAGE>
MORGAN & BANKS LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN AUSTRALIAN DOLLARS)
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED 30 SEPTEMBER
----------------------
1998 1997
$000 $000
---------- ----------
(UNAUDITED)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers.......................................................... 201,150 154,739
Payments to suppliers and employees.............................................. (187,234) (140,683)
Interest received................................................................ 176 101
Borrowing costs including interest and cost of finance paid...................... (301) (319)
Dividends received............................................................... -- --
Income taxes paid................................................................ (4,221) (3,654)
-------- --------
Net cash provided by operating activities........................................ 9,570 10,184
-------- --------
CASH FLOWS TO INVESTING ACTIVITIES
Payments for additional share in controlled entities............................. -- (665)
Payment for plant and equipment.................................................. (1,919) (5,786)
Proceeds from sale of plant and equipment........................................ 1 --
-------- --------
Net cash used in investing activities............................................ (1,918) (6,451)
-------- --------
CASH FLOWS TO FINANCING ACTIVITIES
Proceeds from issuance of shares................................................. 623 --
Repayments of borrowings......................................................... (508) (179)
Payments under hire purchase contracts........................................... (304) (304)
Dividends paid................................................................... (3,492) (3,308)
-------- --------
Net cash used in financing activities............................................ (3,681) (3,791)
-------- --------
Net increase (decrease) in cash held............................................. 3,971 (58)
Cash at the beginning of the year................................................ 14,488 11,067
Effects of exchange rate changes on the balances of cash held in foreign
currencies at the beginning of the year........................................ 525 146
-------- --------
Cash at the end of the period.................................................... 18,984 11,155
-------- --------
-------- --------
Non-cash financing and investing activities
During this and the previous six month period, there were no non-cash financing
and investing transactions.
</TABLE>
See notes attached hereto.
3
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
(IN AUSTRALIAN DOLLARS)
(UNAUDITED)
NOTE 1. BASIS OF PRESENTATION
The consolidated condensed interim financial statements included herein
have been prepared by Morgan and Banks Limited ("M&B"), without audit in
accordance with applicable Accounting Standards and other professional
requirements, and comply with other requirements of the law. Although certain
information and footnote disclosures normally included in M&B's annual
financial statements prepared in accordance with generally accepted accounting
principles in Australia ("Australian GAAP") have been condensed or omitted
pursuant to such rules and regulations, M&B believes that the disclosures
are adequate to make the information presented not misleading.
These statements reflect all adjustments, consisting of normal recurring
adjustments which, in the opinion of management, are necessary for fair
presentation of the information contained therein. It is suggested that these
consolidated condensed financial statements be read in conjunction with the
financial statements and notes thereto included in M&B's year end
report dated March 31, 1998. M&B follows the same accounting policies
in preparation of interim reports.
Results of operations for the interim periods may not be indicative of
annual results.
NOTE 2. RECONCILIATION OF ISSUED CAPITAL
<TABLE>
<CAPTION>
($000)
--------
<S> <C>
Balance at 31 March, 1998.................................. 2,308
Shares issued in connection with the exercise
of options............................................... 623
Share premium being classified to issued capital
as a result of changes in Australian Corporation Law
which eliminated the par value amount per common share... 4,204
--------
Balance at 30 September, 1998.............................. 7,135
--------
--------
</TABLE>
4
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN AUSTRALIAN DOLLARS)
(UNAUDITED)
NOTE 3. RECONCILIATIONS FROM AUSTRALIAN GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES TO US GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
Reconciliation of operating profit after income tax for the six months ended 30
September,
<TABLE>
<CAPTION>
1998 1997
$000 $000
--------- ---------
(UNAUDITED)
<S> <C> <C>
Operating profit after income tax attributable to members of
Morgan & Banks Limited.................................................................... 7,736 6,664
Settlement of litigation*................................................................... 998 --
--------- ---------
Net income in accordance with US Generally
Accepted Accounting Principles............................................................ 6,738 6,664
--------- ---------
--------- ---------
</TABLE>
Reconciliation of shareholders' equity at
<TABLE>
<CAPTION>
30 September, 31 March,
1998 1998
$000 $000
--------- ---------
<S> <C> <C>
Shareholders' equity attributable to members of
Morgan & Banks Limited.................................................................... 27,686 18,729
Settlement of litigation*................................................................... 998 --
--------- ---------
Shareholders' equity in accordance with US Generally
Accepted Accounting Principles............................................................ 26,668 18,729
--------- ---------
--------- ---------
</TABLE>
* For US GAAP, this settlement will be recorded in October, 1998 because that
is when the favorable court decision was delivered.
- --------------------------
Under Australian GAAP, companies were not allowed to use the equity method
of accounting for investments in associates in the consolidated profit and loss
statement or balance sheet. Instead companies record the investment at cost and
bring to account dividend income. US GAAP requires investments in associates to
be accounted for under the equity method after elimination of unrealised profits
on transactions with associates. The adjustment was not material and therefore
not included in the summary of differences.
Under Australian GAAP, no cost attributable to executive options has been
recognised in the profit and loss statement. Under US GAAP the compensation cost
is zero for each year ended to date.
Under Australian GAAP, Operating Income before Depreciation,
Amortization, Interest and Income Tax is an appropriate measure. M&B
understands that this measure is not recognized under US GAAP.
5
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN AUSTRALIAN DOLLARS)
(UNAUDITED)
NOTE 3. RECONCILIATIONS FROM AUSTRALIAN GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES TO US GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (CONTINUED)
The disclosure of operating expenses as required under US GAAP are included
below. This disclosure is not an Australian GAAP requirement.
<TABLE>
<CAPTION>
SIX MONTHS ENDED
30 SEPTEMBER
--------------------
1998 1997
$000 $000
--------- ---------
<S> <C> <C>
Cost of sales.............................................................................. 124,379 88,944
Salary and related costs................................................................... 48,926 40,567
Office and general expenses................................................................ 19,670 18,888
Amortisation of intangibles................................................................ 395 418
--------- ---------
Total operating expenses................................................................... 193,370 148,817
--------- ---------
--------- ---------
</TABLE>
NOTE 4. SUBSEQUENT EVENT.
On January 28, 1999, pursuant to the terms of the Scheme
Implementation Agreement, dated August 17, 1998, as amended (the
"Agreement"), TMP Worldwide Inc. ("TMP") acquired, through a wholly-owned
subsidiary, all of the outstanding capital stock and options to purchase such
stock, of M&B for an aggregate of approximately 5,450,000 shares of common
stock, $.001 par value, of TMP ("TMP Common Stock"), and such share amount
considers the effect of options that can be converted into TMP Common Stock.
NOTE 5. EARNINGS PER SHARE
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED 30 SEPTEMBER
----------------------------------------
<S> <C> <C>
1998 1997
$ $
------------ ------------
Basic earnings per share................................................ 0.110 0.097
Diluted earnings per share.............................................. 0.109 0.093
<CAPTION>
NUMBER NUMBER
------------ ------------
<S> <C> <C>
Weighted average number of ordinary shares outstanding during the
six months:
Used in the calculation of basic earnings per share................... 69,785,579 69,239,148
Used in the calculation of diluted earnings per share................. 73,166,329 72,988,023
</TABLE>
The prior period numbers have been adjusted to reflect the capital
reconstruction for the purposes of comparability.
6
<PAGE>
Exhibit 99.2
INDEPENDENT AUDITOR'S REPORT TO MEMBERS
SCOPE
We have audited the financial statements of Morgan & Banks Limited for
the financial years ended 31 March 1998, 1997 and 1996 as set out on pages 2
to 26 included herein. The financial statements include the consolidated
accounts of the economic entity comprising the company and the entities it
controlled at each year's end or from time to time during the financial year.
The company's directors are responsible for the preparation and presentation
of the financial statements and the information they contain. We have
conducted an independent audit of these financial statements in order to
express an opinion on them to the members of the company.
Our audit has been conducted in accordance with Australian Auditing
Standards which do not differ in any material respects from generally accepted
auditing standards in the United States of America to provide reasonable
assurance as to whether the financial statements are free of material
misstatement. Our procedures included examination, on a test basis, of evidence
supporting the amounts and other disclosures in the financial statements, and
the evaluation of accounting policies and significant accounting estimates.
These procedures have been undertaken to form an opinion as to whether, in all
material respects, the financial statements are presented fairly in accordance
with Australian Accounting Standards and other mandatory professional reporting
requirements (Urgent Issues Group Consensus Views) and statutory requirements so
as to present a view which is consistent with our understanding of the company's
and the economic entity's financial position, and the results of their
operations and their cash flows.
The names of the entities controlled during all or part of, or at the end
of, the financial year, but of which we have not acted as auditors are set out
in Note 32 to the financial statements. We have, however, received sufficient
information and explanations concerning these controlled entities to enable us
to form an opinion on the consolidated accounts. The audit opinion expressed in
this report has been formed on the above basis.
AUDIT OPINION
In our opinion, the financial statements of Morgan & Banks Limited are
properly drawn up:
(a) so as to give a true and fair view of
- the state of affairs as at 31 March 1998 and 1997 and the profit and cash
flows for the financial years ended 31 March 1998, 1997 and 1996 of the
company and the economic entity; and
- the other matters required by Divisions 4, 4A and 4B of Part 3.6 of the
Corporations Law to be dealt with in the financial statements;
(b) in accordance with the provisions of the Corporations Law; and
(c) in accordance with applicable Australian Accounting Standards and other
mandatory professional reporting requirements.
/s/ Pannell Kerr Forster /s/ A.P. WHITING
- ---------------------------- ----------------------------
Pannell Kerr Forster A.P. Whiting
Chartered Accountants Partner
New South Wales Partnership
Sydney, 16 June 1998, except for Note 2 of
Notes to and Forming Part of the Consolidated
Financial Statements, for which the date is
21 September 1998.
1
<PAGE>
MORGAN & BANKS LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNTS
(IN AUSTRALIAN DOLLARS)
<TABLE>
<CAPTION>
FOR THE YEAR ENDED 31 MARCH
-------------------------------
1998 1997 1996
NOTES $000 $000 $000
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Sales revenue.......................................................... 4 330,364 221,467 143,057
--------- --------- ---------
Operating profit before depreciation, amortisation, interest and income
tax.................................................................. 25,466 20,002 13,440
Depreciation, amortisation and interest................................ 6,312 3,276 2,046
--------- --------- ---------
Operating profit before abnormal items and income tax.................. 3 19,154 16,726 11,394
Abnormal loss before income tax........................................ 5 703 -- --
--------- --------- ---------
Operating profit before income tax..................................... 18,451 16,726 11,394
Income tax attributable to operating profit............................ 6 7,220 6,118 4,200
--------- --------- ---------
Operating profit after income tax...................................... 11,231 10,608 7,194
Outside equity interests in operating profit after income tax.......... 214 741 437
--------- --------- ---------
Operating profit after income tax attributable to members of Morgan &
Banks Limited........................................................ 11,017 9,867 6,757
Retained profits at the beginning of the financial year................ 8,699 4,848 2,499
Retrospective adjustments for the introduction of AASB 1028............ -- -- (123)
--------- --------- ---------
Total available for appropriation...................................... 19,716 14,715 9,133
Dividends provided for or paid......................................... 7,190 6,016 4,285
--------- --------- ---------
Retained profits at the end of the financial year...................... 12,526 8,699 4,848
--------- --------- ---------
--------- --------- ---------
</TABLE>
The above Profit and Loss Accounts are to be read in conjunction with the
attached Notes.
2
<PAGE>
MORGAN & BANKS LIMITED
CONSOLIDATED BALANCE SHEETS
(IN AUSTRALIAN DOLLARS)
<TABLE>
<CAPTION>
AS AT 31 MARCH
--------------------
1998 1997
NOTES $000 $000
----------- --------- ---------
<S> <C> <C> <C>
CURRENT ASSETS
Cash................................................................................... 22 14,488 11,067
Receivables............................................................................ 9 39,446 30,175
Other.................................................................................. 10 2,357 1,844
--------- ---------
TOTAL CURRENT ASSETS................................................................... 56,291 43,086
--------- ---------
NON-CURRENT ASSETS
Receivables............................................................................ 11 46 42
Plant and equipment.................................................................... 12 14,152 10,385
Intangibles............................................................................ 13 9,308 10,147
Other.................................................................................. 14 2,993 2,339
--------- ---------
TOTAL NON-CURRENT ASSETS............................................................... 26,499 22,913
--------- ---------
TOTAL ASSETS........................................................................... 82,790 65,999
--------- ---------
CURRENT LIABILITIES
Accounts payable....................................................................... 15 43,665 34,029
Borrowings............................................................................. 16 481 665
Provisions............................................................................. 17 9,530 8,230
--------- ---------
TOTAL CURRENT LIABILITIES.............................................................. 53,676 42,924
--------- ---------
NON-CURRENT LIABILITIES
Borrowings............................................................................. 18 8,121 5,915
Provisions............................................................................. 19 1,613 1,719
--------- ---------
TOTAL NON-CURRENT LIABILITIES.......................................................... 9,734 7,634
--------- ---------
TOTAL LIABILITIES...................................................................... 63,410 50,558
--------- ---------
NET ASSETS............................................................................. 19,380 15,441
--------- ---------
--------- ---------
Shareholders' Equity
Issued capital......................................................................... 21 2,308 2,283
Reserves............................................................................... 8 3,895 3,664
Retained profits....................................................................... 12,526 8,699
--------- ---------
Shareholders' equity attributable to members
of Morgan & Banks Limited............................................................ 18,729 14,646
Outside equity interests in controlled entities........................................ 31 651 795
--------- ---------
TOTAL SHAREHOLDERS' EQUITY............................................................. 19,380 15,441
--------- ---------
--------- ---------
</TABLE>
The above Balance Sheets are to be read in conjunction with the attached Notes.
3
<PAGE>
MORGAN & BANKS LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN AUSTRALIAN DOLLARS)
<TABLE>
<CAPTION>
FOR THE YEAR ENDED 31 MARCH
----------------------------------
1998 1997 1996
NOTES $000 $000 $000
----------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers............................................... 322,055 216,454 135,179
Payments to suppliers and employees................................... (296,859) (192,397) (122,187)
Interest received..................................................... 188 220 259
Borrowing costs including interest and cost of finance paid........... (472) (99) (165)
Dividends received.................................................... -- 151 --
Income taxes paid..................................................... (7,217) (6,577) (4,025)
---------- ---------- ----------
Net cash provided by operating activities............................. 23(a) 17,695 17,752 9,061
---------- ---------- ----------
CASH FLOWS TO INVESTING ACTIVITIES
Payments for businesses acquired 23(b) -- -- (102)
Payments for investments in controlled entities....................... 23(b) -- (6,647) --
Payments for additional shares in controlled entities................. (665) (1,075) --
Payment for investments -- -- (1,491)
Payment for plant and equipment....................................... (9,407) (4,558) (4,324)
Proceeds from sale of plant and equipment............................. 155 104 --
Long-term loans to related bodies corporate........................... (4) -- (61)
---------- ---------- ----------
Net cash used in investing activities................................. (9,921) (12,176) (5,978)
---------- ---------- ----------
CASH FLOWS TO FINANCING ACTIVITIES
Proceeds from borrowings.............................................. 2,900 6,815 --
Repayments of borrowings.............................................. (179) (1,500) --
Payments under hire purchase contracts................................ (608) (608) (359)
Proceeds from exercise of options..................................... 420 -- --
Dividends paid........................................................ (7,148) (5,325) (4,060)
---------- ---------- ----------
Net cash used in financing activities................................. (4,615) (618) (4,419)
---------- ---------- ----------
Net increase (decrease) in cash held.................................. 3,159 4,958 (1,336)
Cash at the beginning of the year..................................... 11,067 6,141 7,514
Effects of exchange rate changes on the balances of cash held in
foreign currencies at the beginning of the year..................... 262 (32) (37)
---------- ---------- ----------
Cash at the end of the year........................................... 22 14,488 11,067 6,141
---------- ---------- ----------
---------- ---------- ----------
Non-cash financing and investing activities........................... 23(c)
Financing arrangements................................................ 23(d)
</TABLE>
The above Statements of Cash Flows are to be read in conjunction with the
attached Notes.
4
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
(IN AUSTRALIAN DOLLARS)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted by the economic entity comprising
the chief entity Morgan & Banks Limited and its controlled entities are stated
in order to assist in a general understanding of the financial statements. These
policies have been consistently applied except as otherwise indicated.
The financial statements, which constitute a general purpose financial
report, have been drawn up in accordance with applicable Accounting Standards
and other mandatory professional requirements, and comply with other
requirements of the law.
ACCOUNTS PAYABLE
Accounts payable represent the principal amounts outstanding at balance
date. The carrying amounts of accounts payable approximate net fair values.
NON-CURRENT ASSETS
The carrying amounts of non-current assets do not exceed the net amounts
that are expected to be recovered through the cash inflows and outflows arising
from their continued use and subsequent disposal. The expected net cash flows
included in determining the recoverable amount have not been discounted to their
present values.
DEPRECIATION AND AMORTISATION OF PLANT AND EQUIPMENT
Items of plant and equipment are depreciated over their estimated useful
lives using the straight line method. Leasehold improvements are amortised over
the period of the lease.
GOODWILL
Goodwill, representing the excess of the cost of acquisition over the fair
values of the net assets acquired, is being amortised over the period of time
during which benefits are expected to arise. The period over which goodwill is
being amortised is reviewed annually and does not exceed 20 years.
RECEIVABLES
Trade accounts receivable, amounts due from related parties and other
receivables represent the principal amounts due at balance date less any
provisions for doubtful debts and approximate net fair value.
EMPLOYEE ENTITLEMENTS
AASB 1028 Accounting for Employee Entitlements was adopted as at 1 April
1995. The net effect of the adoption was accounted for against profits at that
date. The adjustment to retained profits net of the tax effect of $69,000 was
$123,000.
REVENUE RECOGNITION
Income from contracting activities is brought to account when earned. All
other fee income is brought to account when billed.
5
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN AUSTRALIAN DOLLARS)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
SUPERANNUATION
The economic entity contributes to superannuation funds which provide
benefits to employees and contractors and their dependants on retirement, total
and permanent disability or death. The economic entity's commitment in respect
of these accumulation funds is limited to making the specified contributions as
required by the relevant award and legislation. The economic entity's
contributions to the superannuation funds are expensed in the profit and loss
accounts as incurred.
TRANSLATION OF FOREIGN CURRENCY TRANSACTION
Transactions in foreign currencies are initially measured and brought to
account at the rate of exchange in effect at the date of each transaction.
As foreign controlled entities are self sustaining, the assets and
liabilities are translated into Australian currency at rates of exchange current
at balance date, while its revenue and expenses are translated at the average of
rates ruling during the year. Exchange differences arising on translation are
taken to the foreign currency translation reserve.
Foreign currency monetary items outstanding at balance date have been
translated at the spot rates current at balance date.
Exchange differences arising on the translation of foreign currency
borrowings designated as hedges of investments in controlled foreign entities
are taken to the foreign currency translation reserve.
BORROWINGS
Bank loans are recognised in the financial statements on the basis of the
nominal amounts outstanding at balance date plus accrued interest. The carrying
amounts of borrowings approximate net fair values.
6
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN AUSTRALIAN DOLLARS)
NOTE 2. RECONCILIATIONS FROM AUSTRALIAN GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES TO US GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
Reconciliation of operating profit after income tax for the year ended 31 March,
<TABLE>
<CAPTION>
1998 1997 1996
$000 $000 $000
--------- --------- ---------
<S> <C> <C> <C>
Operating profit after income tax attributable to members of
Morgan & Banks Limited.......................................................... 11,017 9,867 6,757
Deferred income taxes............................................................. -- 7 (7)
--------- --------- ---------
Net income in accordance with US Generally
Accepted Accounting Principles.................................................. 11,017 9,874 6,750
--------- --------- ---------
--------- --------- ---------
Reconciliation of shareholders' equity at 31 March,
<CAPTION>
1998 1997 1996
$000 $000 $000
--------- --------- ---------
<S> <C> <C> <C>
Shareholders' equity attributable to members of
Morgan & Banks Limited.......................................................... 18,729 14,646 9,495
Deferred income taxes............................................................. -- -- 7
--------- --------- ---------
Shareholders' equity in accordance with US Generally
Accepted Accounting Principles.................................................. 18,729 14,646 9,502
--------- --------- ---------
--------- --------- ---------
</TABLE>
Generally accepted accounting principles in Australia ("Australian GAAP") as
utilized by the Company differ in certain respects from generally accepted
accounting principles in the United States ("US GAAP"). With respect to the
Company's financial statements, these differences primarily relate to accounting
for income taxes. Australian GAAP stipulates that an announcement of the
Government's intention to change the rate of company income tax in advance of
the periods in which the change will apply is adequate evidence for deferred tax
balances to be restated. US GAAP requires the adjustment in the year that a
change in tax rate is effective.
The provision for employee entitlements prepared in accordance with AASB
1028 "Accounting for Employee Entitlements" substantially approximates the
required provision under US GAAP. As such the provision for employee
entitlements for 1996, 1997 and 1998 as prepared under Australian GAAP require
no adjustment. In order to reflect the adoption of AASB 1028 in 1996, and
therefore US GAAP in preceding years, the adjustment booked through opening
retained profits in 1996 has been reversed and effected through net income in
1994 and 1995.
Under Australian GAAP, companies were not allowed to use the equity method
of accounting for investments in associates in the consolidated profit and loss
statement or balance sheet. Instead companies record the investment at cost and
bring to account dividend income. US GAAP requires investments in associates to
be accounted for under the equity method after elimination of unrealised profits
on transactions with associates. The adjustment was not material and therefore
not included in the summary of differences.
Under Australian GAAP, no cost attributable to executive options has been
recognised in the profit and loss statement. Under US GAAP the compensation cost
is zero for each year ended to date.
7
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN AUSTRALIAN DOLLARS)
NOTE 2. RECONCILIATIONS FROM AUSTRALIAN GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES TO US GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (CONTINUED)
Under Australian GAAP, Operating Income before Depreciation, Amortization,
Interest and Income Tax is an appropriate measure. The Company understands that
this measure is not recognized under US GAAP.
Under Australian GAAP the item identified as an abnormal loss is
characterized as an extraordinary item under US GAAP. This is not appropriate
under US GAAP and would be treated as an operating expense.
The disclosure of operating expenses as required under US GAAP are included
below. This disclosure is not an Australian GAAP requirement.
<TABLE>
<CAPTION>
1998 1997 1996
$000 $000 $000
--------- --------- ---------
<S> <C> <C> <C>
Cost of sales.................................................................... 190,816 118,853 66,403
Salary and related costs......................................................... 84,548 57,794 42,523
Office and general expenses...................................................... 35,390 27,869 22,846
Amortisation of intangibles...................................................... 782 371 158
--------- --------- ---------
Total operating expenses......................................................... 311,536 204,887 131,930
--------- --------- ---------
--------- --------- ---------
</TABLE>
8
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN AUSTRALIAN DOLLARS)
NOTE 3. OPERATING PROFIT
<TABLE>
<CAPTION>
FOR THE YEAR ENDED 31 MARCH
-------------------------------
<S> <C> <C> <C>
1998 1997 1996
$000 $000 $000
--------- --------- ---------
Operating profit before income tax has been determined after:
(A) CREDITING AS REVENUE:
Dividends received/receivable
Associated entities............................................................ -- 151 189
--------- --------- ---------
--------- --------- ---------
Interest:
Others......................................................................... 188 229 259
--------- --------- ---------
--------- --------- ---------
(B) CHARGING AS EXPENSE:
Net expenses resulting from movements in provision for:
Amortisation of goodwill....................................................... 782 274 158
Amortisation of leasehold improvements......................................... 1,318 565 299
Depreciation of plant and equipment............................................ 3,866 2,402 1,692
Employee entitlements.......................................................... 204 748 278
--------- --------- ---------
6,170 3,989 2,427
--------- --------- ---------
--------- --------- ---------
Borrowing Costs:
Interest expense other persons................................................. 440 116 --
Hire purchase interest charges................................................. 94 147 156
--------- --------- ---------
534 263 156
--------- --------- ---------
--------- --------- ---------
Other:
Net bad and doubtful debts expense............................................. 814 671 781
Goodwill written off........................................................... -- 97 --
(Gain) loss on sales/write-off of plant & equipment............................ (1) (11) 24
Operating lease rental expense................................................. 7,293 5,493 3,769
--------- --------- ---------
8,106 6,250 4,574
--------- --------- ---------
--------- --------- ---------
</TABLE>
NOTE 4. OPERATING REVENUE
<TABLE>
<CAPTION>
FOR THE YEAR ENDED 31 MARCH
-------------------------------
<S> <C> <C> <C>
1998 1997 1996
$000 $000 $000
--------- --------- ---------
Sales revenue.................................................................... 330,364 221,467 143,057
Interest......................................................................... 188 229 259
Dividends........................................................................ -- 151 189
Proceeds from sales of non-current assets........................................ 155 104 --
--------- --------- ---------
Total operating revenue.......................................................... 330,707 221,951 143,505
--------- --------- ---------
--------- --------- ---------
</TABLE>
9
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN AUSTRALIAN DOLLARS)
NOTE 5. ABNORMAL ITEM
In August 1997, the Company commenced operations in Jakarta, Indonesia. The
Company closed its Jakarta, Indonesia office in March 1998 due to continued
political unrest and instability. The costs of opening and closing its Jakarta
Indonesia office and the related tax effect as shown below.
<TABLE>
<CAPTION>
FOR THE YEAR ENDED 31 MARCH
-------------------------------
<S> <C> <C> <C>
1998 1997 1996
$000 $000 $000
--------- --------- ---------
INDONESIAN OPERATION
Set-up of operations............................................................. 494 -- --
Office closure costs............................................................. 209 -- --
--------- --------- ---------
703 -- --
Income tax expense............................................................... 8 -- --
Outside equity interest.......................................................... (2) -- --
--------- --------- ---------
709 -- --
--------- --------- ---------
--------- --------- ---------
</TABLE>
NOTE 6. INCOME TAX
<TABLE>
<CAPTION>
FOR THE YEAR ENDED 31 MARCH
-------------------------------
<S> <C> <C> <C>
1998 1997 1996
$000 $000 $000
--------- --------- ---------
The amount provided in respect of income tax differs from the amount prima facie
payable on operating profit. The difference is reconciled as follows:
Prima facie tax on operating profit at 36%....................................... 6,642 6,021 4,102
Add tax effect of:
(Over)/Under provision in prior years.......................................... (35) 95 --
Entertainment not allowable.................................................... 181 174 194
Goodwill amortisation.......................................................... 266 93 57
Non-deductible expenses........................................................ 30 114 23
Abnormal item not allowable (Note 5)........................................... 8 -- --
Deduct tax effect of:
Overseas income tax differential............................................... 128 (334) (78)
Non-assessable profit of overseas subsidiaries................................. -- -- (30)
Exempt income.................................................................. -- (45) (68)
--------- --------- ---------
Income tax attributable to operating profit...................................... 7,220 6,118 4,200
--------- --------- ---------
--------- --------- ---------
</TABLE>
NOTE 7. EVENTS SUBSEQUENT TO BALANCE DATE
No matter or circumstance has arisen since the end of the financial year
that has significantly affected or may significantly affect the operations of
the economic entity, the results of those operations, or the state of affairs of
the economic entity, in subsequent financial years.
10
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN AUSTRALIAN DOLLARS)
NOTE 8. RESERVES
<TABLE>
<CAPTION>
AS AT 31 MARCH
--------------------
1998 1997
$000 $000
--------- ---------
<S> <C> <C>
Share premium account.......................................................................... 4,204 3,809
Foreign currency translation reserve........................................................... (309) (145)
--------- ---------
3,895 3,664
--------- ---------
--------- ---------
MOVEMENTS IN RESERVES
Share premium account:
Balance at beginning of the financial year................................................... 3,809 2,399
Exercise of 250,000 options at a premium of $1.58 per share.................................. 395 --
Issue of 275,170 ordinary shares at a premium of $5.124 per share............................ -- 1,410
--------- ---------
Balance at end of the financial year......................................................... 4,204 3,809
--------- ---------
--------- ---------
Foreign currency translation reserve:
Balance at beginning of the financial year................................................... (145) (7)
Exchange differences arising from the translation of the net assets of self-sustaining
foreign operations......................................................................... (164) (138)
--------- ---------
Balance at end of the financial year........................................................... (309) (145)
--------- ---------
--------- ---------
</TABLE>
NOTE 9. CURRENT RECEIVABLES
<TABLE>
<CAPTION>
AS AT 31 MARCH
--------------------
1998 1997
$000 $000
--------- ---------
<S> <C> <C>
Trade accounts receivable...................................................................... 40,422 31,374
Provision for doubtful debts................................................................... (2,012) (1,837)
--------- ---------
38,410 29,537
Non-trade accounts receivable from:
Other debtors................................................................................ 1,036 638
--------- ---------
39,446 30,175
--------- ---------
--------- ---------
Amounts receivable in foreign currencies
New Zealand dollars.......................................................................... 6,137 4,789
British pounds............................................................................... 1,980 1,814
Singapore dollars............................................................................ 568 1,447
Hong Kong dollars............................................................................ 1,352 1,736
Trade accounts receivable are subject to normal terms of trade which provide for settlement
within seven to fourteen days. Non-trade accounts receivable are due within various periods of
less than 12 months.
</TABLE>
NOTE 10. OTHER CURRENT ASSETS
<TABLE>
<CAPTION>
AS AT 31 MARCH
--------------------
1998 1997
$000 $000
--------- ---------
<S> <C> <C>
Prepayments.................................................................................... 2,357 1,844
--------- ---------
--------- ---------
</TABLE>
11
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN AUSTRALIAN DOLLARS)
NOTE 11. NON-CURRENT RECEIVABLES
<TABLE>
<CAPTION>
AS AT 31 MARCH
--------------------
1998 1997
$000 $000
--------- ---------
<S> <C> <C>
Loans to related bodies corporate.............................................................. 46 42
--------- ---------
--------- ---------
</TABLE>
NOTE 12. PLANT AND EQUIPMENT
<TABLE>
<CAPTION>
AS AT 31 MARCH
--------------------
1998 1997
$000 $000
--------- ---------
<S> <C> <C>
Leasehold improvements
At cost...................................................................................... 6,992 3,421
Provision for amortisation................................................................... 2,535 1,172
--------- ---------
4,457 2,249
--------- ---------
Plant and equipment
At cost...................................................................................... 19,882 14,364
Provision for depreciation................................................................... 10,187 6,228
--------- ---------
9,695 8,136
--------- ---------
Total plant and equipment at cost.............................................................. 26,874 17,785
Provision for depreciation and amortisation.................................................... 12,722 7,400
--------- ---------
14,152 10,385
--------- ---------
--------- ---------
</TABLE>
NOTE 13. INTANGIBLES
<TABLE>
<CAPTION>
AS AT 31 MARCH
--------------------
1998 1997
$000 $000
--------- ---------
<S> <C> <C>
Goodwill--at cost.............................................................................. 10,551 10,608
Accumulated amortisation....................................................................... 1,243 461
--------- ---------
9,308 10,147
--------- ---------
--------- ---------
</TABLE>
12
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN AUSTRALIAN DOLLARS)
NOTE 14. OTHER NON-CURRENT ASSETS
<TABLE>
<CAPTION>
AS AT 31 MARCH
------------------------
<S> <C> <C>
1998 1997
$000 $000
----------- -----------
Future income tax benefits -- timing differences.............................................. 2,684 2,339
-- tax losses.......................................................... 309 --
----------- -----------
2,993 2,339
----------- -----------
----------- -----------
</TABLE>
NOTE 15. CURRENT ACCOUNTS PAYABLE
<TABLE>
<CAPTION>
AS AT 31 MARCH
------------------------
<S> <C> <C>
1998 1997
$000 $000
----------- -----------
Trade accounts payable........................................................................ 6,683 4,264
Other creditors:
Commissions/bonus accrual................................................................... 13,108 10,392
On hire contractor's wages.................................................................. 11,412 9,876
Employee related taxes accrued.............................................................. 3,190 1,370
Other general accruals...................................................................... 9,272 8,127
----------- -----------
43,665 34,029
----------- -----------
----------- -----------
Amounts payable in foreign currencies:
New Zealand dollars......................................................................... 7,089 6,032
British pounds.............................................................................. 3,589 2,898
Singapore dollars........................................................................... 746 548
Hong Kong dollars........................................................................... 740 848
</TABLE>
NOTE 16. CURRENT BORROWINGS
<TABLE>
<CAPTION>
AS AT 31 MARCH
------------------------
<S> <C> <C>
1998 1997
$000 $000
----------- -----------
Hire purchase creditors (Note 24)--secured*................................................... 481 486
Bank loan--secured............................................................................ -- 179
----------- -----------
481 665
----------- -----------
----------- -----------
</TABLE>
- ------------------------
* Partly secured by a first ranking fixed charge over the book debts of the
chief entity to an amount of $1 million, and also secured by the assets
acquired.
NOTE 17. CURRENT PROVISIONS
<TABLE>
<CAPTION>
AS AT 31 MARCH
------------------------
<S> <C> <C>
1998 1997
$000 $000
----------- -----------
Dividends..................................................................................... 3,497 3,196
Taxation...................................................................................... 4,581 3,772
Employee entitlements......................................................................... 1,452 1,262
----------- -----------
9,530 8,230
----------- -----------
----------- -----------
</TABLE>
13
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN AUSTRALIAN DOLLARS)
NOTE 18. NON-CURRENT BORROWINGS
<TABLE>
<CAPTION>
AS AT 31 MARCH
------------------------
<S> <C> <C>
1998 1997
$000 $000
----------- -----------
Hire purchase creditors (Note 24)--secured*................................................... 91 600
Commercial bills--unsecured (Note 23(d))...................................................... 8,030 5,315
----------- -----------
8,121 5,915
----------- -----------
----------- -----------
</TABLE>
- ------------------------
* Partly secured by a first ranking fixed charge over the book debts of the
chief entity to an amount of $1 million, and also secured by the assets
acquired.
NOTE 19. NON-CURRENT PROVISIONS
<TABLE>
<CAPTION>
AS AT 31 MARCH
------------------------
<S> <C> <C>
1998 1997
$000 $000
----------- -----------
Employee entitlements......................................................................... 996 983
Deferred income taxation...................................................................... 617 736
----------- -----------
1,613 1,719
----------- -----------
----------- -----------
</TABLE>
NOTE 20. FOREIGN CURRENCY MONETARY ITEMS
Current and non-current assets and liabilities not effectively hedged to a
date at least 12 months after balance date:
<TABLE>
<CAPTION>
AS AT 31 MARCH
------------------------
<S> <C> <C>
1998 1997
$000 $000
----------- -----------
British pounds:
Current assets.............................................................................. 1,029 577
Non-current assets.......................................................................... 729 636
----------- -----------
1,758 1,213
----------- -----------
----------- -----------
New Zealand dollars:
Non-current assets.......................................................................... 8,658 10,629
Current liabilities......................................................................... (7,139) (7,452)
----------- -----------
1,519 3,177
----------- -----------
----------- -----------
Hong Kong dollars:
Current assets.............................................................................. 1,433 930
Non-current assets.......................................................................... 345 441
----------- -----------
1,778 1,371
----------- -----------
----------- -----------
Singapore dollars:
Current assets.............................................................................. 256 966
Non-current assets.......................................................................... 389 216
----------- -----------
645 1,182
----------- -----------
----------- -----------
</TABLE>
14
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN AUSTRALIAN DOLLARS)
NOTE 21. ISSUED CAPITAL
The Shareholders of the company approved a capital reconstruction of
three-new-shares-for-one-old at a General Shareholders' Meeting on 25 February
1998.
<TABLE>
<CAPTION>
AS AT 31 MARCH
------------------------
<S> <C> <C>
1998 1997
$000 $000
----------- -----------
ISSUED
Ordinary shares:
69,239,148 (1997: 22,829,716) ordinary shares of 3.33 cents (1997: 10 cents) each fully
paid...................................................................................... 2,308 2,283
----------- -----------
----------- -----------
Shares issued (all issued prior to capital reconstruction):
During the current year 250,000 ordinary shares of $0.10 each were issued at a premium of
$1.58 per share following the exercise of options......................................... 25 --
----------- -----------
----------- -----------
During the prior year 275,170 ordinary shares of $0.10 each were issued at a premium of
$5.124 per share as partial consideration for the acquisition of 64.5% of Morgan & Banks
Limited, New Zealand...................................................................... -- 28
----------- -----------
----------- -----------
</TABLE>
OPTIONS
Prior to the capital reconstruction and during the year 788,750 options were
issued under the Morgan & Banks Employee Share Option Scheme and 530,000 options
were issued under the new Morgan & Banks Executive Option Plan. Of such amounts,
188,500 options (1997: 212,250) were forfeited under the Morgan & Banks Employee
Share Option Scheme and 50,000 were forfeited under the Morgan & Banks Executive
Option Plan. During the year ended March 31, 1998, 250,000 options were
exercised. As at 31 March 1998, unissued shares, following the capital
reconstruction, under all option plans were as follows:
<TABLE>
<CAPTION>
SHARES UNDER EXERCISE EXERCISE
ISSUE DATE OPTION PRICE PERIOD
- ------------ ------------- --------- ------------------------
<S> <C> <C> <C>
10/11/1994 600,000 $ 0.5600 10/11/1997-09/11/1999
21/04/1995 769,875 $ 0.5233 21/04/1998-20/04/2000
19/08/1996 1,863,000 $ 1.2167 19/08/1999-17/08/2001
17/10/1997 1,440,000 $ 3.4733 17/10/2000-17/10/2002
</TABLE>
15
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN AUSTRALIAN DOLLARS)
NOTE 22. CASH
<TABLE>
<CAPTION>
AS AT 31 MARCH
--------------------
1998 1997
$000 $000
--------- ---------
<S> <C> <C>
Cash........................................................................................... 7,671 8,076
Short-term deposits............................................................................ 6,817 2,991
--------- ---------
14,488 11,067
--------- ---------
--------- ---------
</TABLE>
For the purposes of the statements of cash flows, cash includes cash on hand
and in banks and investments in money market instruments, net of outstanding
bank overdrafts.
The average floating interest rate for short-term deposits is 5.39%.
NOTE 23. NOTES TO THE STATEMENTS OF CASH FLOWS
(A) RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO OPERATING
PROFIT AFTER INCOME TAX:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED 31 MARCH
-------------------------------
1998 1997 1996
$000 $000 $000
--------- --------- ---------
<S> <C> <C> <C>
Operating profit after income tax.................................................... 11,231 10,608 7,194
Depreciation and amortisation...................................................... 5,184 2,967 1,991
Amortisation of goodwill........................................................... 782 274 158
Goodwill written-off............................................................... -- 97 --
Hire purchase interest charges..................................................... 94 146 --
(Gain) loss on sales/write-off of non-current assets............................... (1) (11) 24
Provision for doubtful debts....................................................... 175 216 550
Abnormal item...................................................................... 198 -- --
Changes in assets and liabilities net of effects of
purchases of new businesses:
Increase/(decrease) in income taxes payable........................................ 787 (124) 771
(Decrease)/increase in provision for deferred income tax........................... (120) 254 (135)
(Increase) in future income tax benefit............................................ (664) (590) (461)
(Increase) in trade debtors........................................................ (8,675) (5,013) (7,878)
(Increase) in other debtors and prepayments........................................ (910) (684) (375)
Increase in trade creditors........................................................ 2,482 1,487 1,111
Increase in other creditors........................................................ 6,928 7,377 5,857
Decrease in lease liabilities -- -- (24)
Increase in employee entitlements.................................................. 204 748 278
--------- --------- ---------
Net cash provided by operating activities............................................ 17,695 17,752 9,061
--------- --------- ---------
--------- --------- ---------
</TABLE>
(B) ENTITIES ACQUIRED
During the 1997 financial year the economic entity acquired the remaining
71.38% interest in Morgan & Banks, New Zealand in a number of stages. These
acquisitions were financed through the issue of shares and cash as detailed
below. As a result of the issue of shares, the chief entity became the
beneficial owner of 16.1% of the issued capital of Morgan & Banks, New Zealand.
This beneficial ownership was on-sold at
16
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN AUSTRALIAN DOLLARS)
NOTE 23. NOTES TO THE STATEMENTS OF CASH FLOWS (CONTINUED)
cost to Maldon Holdings Limited, a wholly owned controlled entity, and therefore
not reflected in the statements of cash flows.
During the 1996 financial year, the economic entity acquired the trading
operations of Westside Employment (Aust) Pty Limited.
Details of the acquisitions are as follows:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED 31 MARCH
---------------------------------
1998 1997 1996
$000 $000 $000
--------- --------- -----
<S> <C> <C> <C>
Consideration
275,170 ordinary shares of Morgan & Banks Limited issued at
$5.224 per share............................................................... -- 1,437 --
Cash............................................................................. -- 7,557 102
--------- --------- ---
-- 8,994 102
Equity interest at date of acquisition............................................. -- 1,491 --
--------- --------- ---
-- 10,485 102
--------- --------- ---
Fair value of net assets acquired
Current Assets
Cash........................................................................... -- 910 --
Trade debtors.................................................................. -- 3,947 --
Sundry debtors and prepayments................................................. -- 264 --
Non-Current Assets
Plant and equipment............................................................ -- 1,792 --
Intangible assets.............................................................. -- 929 --
Investments.................................................................... -- 68 --
Future income tax benefit...................................................... -- 346 --
Current Liabilities
Trade creditors................................................................ -- (1,194) --
Provisions and accruals........................................................ -- (3,816) --
Related party payable.......................................................... -- (19) --
Bank loan--secured............................................................. -- (179) --
--------- --------- ---
Net assets acquired.............................................................. -- 3,048 --
Goodwill on acquisition.......................................................... -- 7,437 102
--------- --------- ---
-- 10,485 102
--------- --------- ---
--------- --------- ---
Cash consideration................................................................. -- 7,557 102
Less: Cash balances acquired....................................................... -- 910 --
--------- --------- ---
Cash outflow....................................................................... -- 6,647 102
--------- --------- ---
--------- --------- ---
</TABLE>
On 1 April 1997, an additional 7.5% of the ordinary shares of Morgan & Banks
(Hong Kong) Limited was acquired.
On 24 January 1997, an additional 16.5% of the ordinary shares of Morgan &
Banks (Hong Kong) Limited was also acquired.
17
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN AUSTRALIAN DOLLARS)
NOTE 23. NOTES TO THE STATEMENTS OF CASH FLOWS (CONTINUED)
(C) NON-CASH FINANCING AND INVESTING ACTIVITIES
During the 1997 financial year the chief entity acquired plant and equipment
with an aggregate fair value of $72,315 (1996: $814,440) by means of hire
purchase contracts. During the 1997 financial year the chief entity issued
275,170 ordinary shares as part consideration of the acquisition of 64.5% of the
ordinary shares of Morgan & Banks Limited, New Zealand (refer to Note 23(b)).
These transactions are not reflected in the statements of cash flows.
(D) FINANCING ARRANGEMENTS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED 31 MARCH
-------------------------------
1998 1997 1996
$000 $000 $000
--------- --------- ---------
<S> <C> <C> <C>
FACILITIES SUMMARY
Bank loan facilities............................................................... -- 179 --
Fixed rate commercial bill facility................................................ 2,500 -- --
Fixed and variable rate commercial bill acceptance/discount facility............... 2,630 5,675 --
Interchangeable overdraft or fixed and variable rate commercial bill
acceptance/discount facility..................................................... 8,196 1,992 --
Overdraft facilities............................................................... -- 447 2,000
--------- --------- ---------
13,326 8,293 2,000
--------- --------- ---------
--------- --------- ---------
USED AT BALANCE DATE
Bank loan facilities............................................................... -- 179 --
Fixed rate commercial bill facility................................................ 2,500 -- --
Fixed and variable rate commercial bill acceptance/discount facility............... 2,630 5,315 --
Interchangeable overdraft or fixed and variable rate commercial bill
acceptance/discount facility..................................................... 2,900 -- --
--------- --------- ---------
8,030 5,494 --
--------- --------- ---------
--------- --------- ---------
UNUSED AT BALANCE DATE
Fixed and variable rate commercial bill acceptance/discount facility............... -- 360 --
Interchangeable overdraft or fixed and variable rate commercial bill
acceptance/discount facility..................................................... 5,296 1,992 --
Overdraft facilities............................................................... -- 447 2,000
--------- --------- ---------
5,296 2,799 2,000
--------- --------- ---------
--------- --------- ---------
</TABLE>
The bank loan facility was repaid in August 1997.
The fixed rate commercial bill facility matures in August 2001 with a fixed
interest rate of 5.74%.
The fixed and variable rate commercial bill acceptance/discount facility and
the interchangeable facility are subject to annual review, with the exception of
$2,630,000 of the commercial bill facility which matures in 2000. The commercial
bill facility of $2,630,000 and an additional amount of $796,000 of the
interchangeable facility may only be drawn in New Zealand dollars.
18
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN AUSTRALIAN DOLLARS)
NOTE 23. NOTES TO THE STATEMENTS OF CASH FLOWS (CONTINUED)
An interest rate option was taken out on the fixed and variable commercial
bill acceptance/discount facility drawn in New Zealand dollars until 15
September 1998. The interest rate cap is 8.50%.
Interest rates on the interchangeable overdraft and fixed and variable rate
commercial bill acceptance/ discount facility are determined by reference to the
prevailing bank bill or overdraft rate as applicable.
NOTE 24. COMMITMENTS FOR EXPENDITURE
<TABLE>
<CAPTION>
AS AT 31 MARCH
-------------------------------
1998 1997 1996
$000 $000 $000
--------- --------- ---------
<S> <C> <C> <C>
CAPITAL EXPENDITURE CONTRACTED FOR
AT 31 MARCH BUT NOT PROVIDED FOR:
Payable:
Not later than 1 year.............................................................. 76 426 179
--------- --------- ---------
--------- --------- ---------
NON-CANCELLABLE OPERATING LEASES WITH A TERM OF
MORE THAN ONE YEAR--COMMITMENTS NOT PROVIDED FOR:
Payable:
Not later than 1 year.............................................................. 7,056 5,892 3,894
Later than 1 year but not later than 2 years....................................... 6,332 5,193 3,500
Later than 2 years but not later than 5 years...................................... 13,742 12,757 7,091
Later than 5 years................................................................. 867 3,866 2,501
--------- --------- ---------
27,997 27,708 16,986
--------- --------- ---------
--------- --------- ---------
HIRE PURCHASE AGREEMENTS--ANALYSIS OF COMMITMENTS:
Payable:
Not later than 1 year.............................................................. 516 608 586
Later than 1 year but not later than 2 years....................................... 94 516 586
Later than 2 years but not later than 5 years...................................... -- 94 552
--------- --------- ---------
Total minimum lease payments......................................................... 610 1,218 1,724
Future finance charges............................................................... (38) (132) (249)
--------- --------- ---------
572 1,086 1,475
--------- --------- ---------
--------- --------- ---------
Current liability (Note 16).......................................................... 481 486 445
Non-current liability (Note 18)...................................................... 91 600 1,030
--------- --------- ---------
572 1,086 1,475
--------- --------- ---------
--------- --------- ---------
</TABLE>
The average interest rate for hire purchase liabilities is 10.776%.
NOTE 25. SUPERANNUATION COMMITMENTS
The economic entity contributes to accumulation plans to provide benefits to
permanent employees and contractors as required by Superannuation Guarantee
legislation. The economic entity does not guarantee the performance of these
funds.
The economic entity's commitment in respect of these accumulation plans is
limited to making the specified contributions as required by the relevant award
and legislation.
19
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN AUSTRALIAN DOLLARS)
NOTE 25. SUPERANNUATION COMMITMENTS (CONTINUED)
Funds are available for the purposes of the fund to satisfy all benefits
that would have been vested under the fund in the event of the termination of
the fund or the voluntary or compulsory termination of employment of each
employee member.
NOTE 26. CONTINGENT LIABILITIES
MORGAN & BANKS LIMITED
Particulars and estimated maximum amounts of contingent liabilities arising
in respect of:
Morgan & Banks New Zealand Limited has had proceedings issued against the
company for an amount of NZ$5.9 million. These proceedings are in relation to
the acquisition of the claimant's business in New Zealand prior to Morgan &
Banks New Zealand Limited becoming a controlled entity of the Group. The
directors of Morgan & Banks Limited are of the opinion that the claim is without
substance and accordingly the action will be vigorously defended.
Bank guarantees provided to third parties at 31 March 1998 amount to
$1,402,987 (1997: $1,286,391, 1996: $1,286,391).
In order to secure certain financing facilities, a deed of cross guarantee
and indemnity has been signed between Morgan & Banks Limited, Morgan & Banks New
Zealand Limited, and Maldon Holdings Limited to guarantee payment and indemnify
against losses.
20
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN AUSTRALIAN DOLLARS)
NOTE 27. REMUNERATION OF AUDITORS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED 31 MARCH
-------------------------------
1998 1997 1996
$000 $000 $000
--------- --------- ---------
<S> <C> <C> <C>
Total of all remuneration received or due and receivable for the audit and review of
financial reports by:
Auditors of the chief entity........................................................... 95 82 67
Other auditors......................................................................... 85 56 27
--------- --------- ---------
180 138 94
--------- --------- ---------
Total of all remuneration received or due and receivable for other services by:
Auditors of the chief entity........................................................... 71 124 68
Other auditors......................................................................... 35 3 8
--------- --------- ---------
106 127 76
--------- --------- ---------
286 265 170
--------- --------- ---------
--------- --------- ---------
</TABLE>
NOTE 28. DIRECTORS' INCOME
<TABLE>
<CAPTION>
FOR THE YEAR ENDED 31 MARCH
-------------------------------
1998 1997 1996
$000 $000 $000
--------- --------- ---------
<S> <C> <C> <C>
Aggregate of income paid or payable or otherwise made available from entities within the
economic entity and any related parties:............................................... 5,545 5,298 3,452
--------- --------- ---------
--------- --------- ---------
</TABLE>
The total income reported above excludes income of directors of wholly-owned
controlled corporations who are executives but not directors of the chief entity
and who are required as part of their executive duties to be directors of
controlled entities.
Directors of the chief entity in office at any time during the financial
years 1998, 1997 and 1996 were:
<TABLE>
<S> <C> <C>
W S Cutbush I G Burns A A Cox
G K Morgan M Hinves A W Whatmore
A R Banks P S Laidlaw
</TABLE>
NOTE 29. EXECUTIVES' INCOME
<TABLE>
<CAPTION>
FOR THE YEAR ENDED 31 MARCH
-------------------------------
1998 1997 1996
$000 $000 $000
--------- --------- ---------
<S> <C> <C> <C>
Total income received, or receivable by executive officers (including income received or
receivable from related parties) whose total income exceeds $100,000................... 7,624 6,997 6,442
--------- --------- ---------
--------- --------- ---------
</TABLE>
21
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN AUSTRALIAN DOLLARS)
NOTE 29. EXECUTIVES' INCOME (CONTINUED)
Number of executive officers whose total income exceeds $100,000:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED 31 MARCH
-------------------------------------------
1998 1997 1996
NUMBER NUMBER NUMBER
------------- ------------- -------------
<S> <C> <C> <C>
$100,000-$109,899................................................................... -- -- 1
$110,000-$119,999................................................................... 1 -- 1
$120,000-$129,999................................................................... 1 -- --
$130,000-$139,999................................................................... -- 1 3
$140,000-$149,999................................................................... 1 1 1
$150,000-$159,999................................................................... -- 1 --
$160,000-$169,999................................................................... 1 1 1
$180,000-$189,999................................................................... 2 -- --
$190,000-$199,999................................................................... -- -- 1
$200,000-$209,999................................................................... -- 1 --
$210,000-$219,999................................................................... -- 1 1
$220,000-$229,999................................................................... 1 1 2
$240,000-$249,999................................................................... 1 -- 1
$250,000-$259,999................................................................... 1 1 1
$260,000-$269,999................................................................... -- 1 --
$270,000-$279,999................................................................... -- 1 --
$290,000-$299,999................................................................... 1 1 1
$300,000-$309,999................................................................... 2 2 --
$320,000-$329,999................................................................... -- -- 2
$340,000-$349,999................................................................... -- 1 --
$350,000-$359,999................................................................... 1 1 --
$370,000-$379,999................................................................... 1 1 --
$390,000-$399,999................................................................... 1 -- --
$430,000-$439,999................................................................... 1 -- --
$450,000-$459,999................................................................... 1 -- --
$470,000-$479,999................................................................... -- -- 1
$500,000-$509,999................................................................... -- -- 2
$550,000-$559,999................................................................... 1 3 --
$560,000-$569,999................................................................... 1 -- --
$570,000-$579,999................................................................... 1 -- --
$590,000-$599,999................................................................... -- -- 2
$670,000-$679,999................................................................... -- 2 --
$690,000-$699,999................................................................... 2 -- --
</TABLE>
The total income reported above includes the income of executive directors. This
is also included in the income of all directors reported in Note 28.
NOTE 30. SEGMENT INFORMATION
INDUSTRY SEGMENTS
The economic entity operates in the field of human resource services.
22
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN AUSTRALIAN DOLLARS)
NOTE 30. SEGMENT INFORMATION (CONTINUED)
GEOGRAPHICAL SEGMENTS
The economic entity operated in the following geographic segments during the
year--Australia, the United Kingdom, New Zealand and Asia.
A statement of operations of geographical segments are as follows:
<TABLE>
<CAPTION>
TOTAL REVENUE TOTAL ASSETS AS AT
------------------------------- -------------------------------------
<S> <C> <C> <C> <C> <C> <C>
YEAR ENDED 31 MARCH
------------------------------- 31 MARCH 31 MARCH 31 MARCH
(A$ THOUSAND) 1998 1997 1996 1998 1997 1996
- ----------------------------------------------- --------- --------- --------- ----------- ----------- -----------
Australia...................................... 235,738 179,952 122,645 53,913 38,803 35,512
United Kingdom................................. 37,091 23,951 15,504 5,190 3,941 2,221
Asia........................................... 11,092 9,144 5,356 6,203 6,083 2,470
New Zealand*................................... 46,786 8,904 -- 17,484 17,172 --
--------- --------- --------- ----------- ----------- -----------
Consolidated................................... 330,707 221,951 143,505 82,790 65,999 40,203
--------- --------- --------- ----------- ----------- -----------
--------- --------- --------- ----------- ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
OPERATING PROFIT
BEFORE TAX AND GOODWILL OPERATING PROFIT
GOODWILL AMORTISATION AMORTISATION BEFORE TAX
YEAR ENDED 31 MARCH ------------------------------- ------------------------------- -------------------------------
(A$ THOUSAND) 1998 1997 1996 1998 1997 1996 1998 1997 1996
- --------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Australia............ 17,753 14,259 10,163 (9) (106) (19) 17,744 14,153 10,144
United Kingdom....... 526 531 239 -- -- -- 526 531 239
Asia................. 839 1,934 1,150 (262) (153) (139) 577 1,781 1,011
Asia (abnormal
loss).............. (703) -- -- -- -- -- (703) -- --
New Zealand*......... 818 373 -- (511) (112) -- 307 261 --
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Consolidated......... 19,233 17,097 11,552 (782) (371) (158) 18,451 16,726 11,394
--------- --------- --------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- --------- --------- ---------
</TABLE>
- ------------------------
There were no material intersegment sales.
* The results for New Zealand for 1997 are for the period 1 February to 31 March
1997.
NOTE 31. OUTSIDE EQUITY INTEREST
<TABLE>
<CAPTION>
AS AT 31 MARCH
--------------------
1998 1997
$000 $000
--------- ---------
<S> <C> <C>
Outside equity interest in controlled entities comprises:
Share capital..................................................................................... 25 33
Foreign currency translation reserve.............................................................. 60 (31)
Retained profits.................................................................................. 566 793
--------- ---------
651 795
--------- ---------
--------- ---------
</TABLE>
23
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN AUSTRALIAN DOLLARS)
NOTE 32. CONTROLLED ENTITIES
<TABLE>
<CAPTION>
PERCENTAGE
OF SHARES HELD
--------------------
AS AT 31 MARCH
COUNTRY OF --------------------
FORMATION/ 1998 1997
CONTROLLED ENTITY INCORPORATION % %
- ------------------------------------------------------------------------------- --------------- --------- ---------
<S> <C> <C> <C>
SHARES HELD BY MORGAN & BANKS LIMITED
Morgan & Banks Management Services Pty Ltd..................................... Australia 100 100
Credential Check Pty Ltd....................................................... Australia 100 100
Labour LinQ Pty Ltd............................................................ Australia 100 100
Alectus Personnel Pty Ltd...................................................... Australia 100 100
Tristram Investments Limited................................................... Australia 100 100
The Labour LinQ Business Solution Pty Ltd j.................................... Australia 100 100
Morgan & Banks Reward Consulting Pty Ltd....................................... Australia 100 100
Morgan & Banks Investor No. 1 Pty Ltd.......................................... Australia 100 100
H. Neumann International Pty Ltd............................................... Australia 67.5 67.5
S.B.N. Convenience Pty Limited................................................. Australia 100 100
M&B Search Pte Ltd bd.......................................................... Singapore 75 67.5
Maldon Holdings Limited a...................................................... New Zealand 100 100
Morgan & Banks Holdings Ltd a.................................................. UK 100 100
Morgan & Banks Recruitment Ltd a............................................... Hong Kong 100 100
Health Resources International Pty Limited k................................... Australia 100 --
H. Neumann International Limited a............................................. New Zealand 47.5 47.5
PT Morgan Nusantara ac......................................................... Indonesia 99 --
SHARES HELD BY MALDON HOLDINGS LIMITED
Morgan & Banks New Zealand Limited ag.......................................... New Zealand 100 100
SHARES HELD BY MORGAN & BANKS NEW ZEALAND LIMITED
Compuforce Recruitment Limited ae.............................................. New Zealand 100 100
Alectus Recruitment Consultants Ltd a.......................................... New Zealand 100 100
H. Neumann International Limited a............................................. New Zealand 47.5 47.5
Sibson & Company Limited ae.................................................... New Zealand 100 100
Compubank Limited e............................................................ New Zealand -- 100
Executive Leasing & Consulting Ltd a........................................... New Zealand 100 100
Job Bank (NZ) Ltd e............................................................ New Zealand -- 100
Labour Linq Limited a.......................................................... New Zealand 100 100
MB Management Systems Ltd e.................................................... New Zealand -- 100
Job Index Limited af........................................................... New Zealand 100 --
H. Neumann International Limited............................................... Australia 27.5 27.5
</TABLE>
24
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN AUSTRALIAN DOLLARS)
NOTE 32. CONTROLLED ENTITIES (CONTINUED)
<TABLE>
<CAPTION>
PERCENTAGE
OF SHARES HELD
--------------------
AS AT 31 MARCH
COUNTRY OF --------------------
FORMATION/ 1998 1997
CONTROLLED ENTITY INCORPORATION % %
- ------------------------------------------------------------------------------- --------------- --------- ---------
<S> <C> <C> <C>
SHARES HELD BY MORGAN & BANKS HOLDINGS LTD
Morgan & Banks PLC a........................................................... UK 100 100
Morgan & Banks Payroll Services Ltd al......................................... UK 100 100
SHARES HELD BY MORGAN & BANKS RECRUITMENT LTD
Morgan & Banks (Hong Kong) Ltd ad.............................................. Hong Kong 75 67.5
SHARES HELD BY MORGAN & BANKS (HONG KONG) LTD
The Wright Company (S) Pte Ltd b............................................... Singapore 100 100
The Wright Company (Beijing) Ltd a............................................. Hong Kong 100 100
The Wright Company (Guangzhou) Ltd a........................................... Hong Kong 100 100
H. Neumann International (Asia) Ltd ah......................................... Hong Kong 95 100
The Wright Company (M) Sdn Bhd a............................................... Malaysia 100 100
Maston Development Limited a................................................... Hong Kong 100 100
PT Morgan Nusantara ac......................................................... Indonesia 1 --
</TABLE>
- ------------------------
All controlled entities carried on business in their countries of incorporation.
a Controlled entities audited by other member firms of the Pannell Kerr
Forster worldwide association.
b Controlled entities audited by firms other than Pannell Kerr Forster
worldwide association.
c Incorporated on 26 February 1997.
d Acquired an additional 16.5% effective 24 January 1997 and an additional 7.5%
effective 1 April 1997.
e Controlled entity wound up.
f Incorporated 12 June 1997.
g Name changed from Morgan & Banks Limited on 5 March 1998.
h Name changed from The Wright Company (Shanghai) Ltd. on 12 December 1997.
j Name changed from Inform International Pty Ltd on 1 August 1997.
k Incorporated on 20 May 1997.
l Name changed from Morgan & Banks Executive Leasing Ltd on 7 March 1997.
On 24 January 1997, the economic entity acquired an additional 16.5% of the
share capital of Morgan & Banks (Hong Kong) Ltd for $1,075,635 and the
additional percentage of the operating results were included in Profit and Loss
Accounts from that date. During the 1998 financial year the economic entity
25
<PAGE>
MORGAN & BANKS LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN AUSTRALIAN DOLLARS)
NOTE 32. CONTROLLED ENTITIES (CONTINUED)
acquired a further 7.5% of the share capital of Morgan & Banks (Hong Kong) Ltd
for an amount of $664,778. The acquisition took place on 1 April 1997 and the
operating results of the increased ownership interest was included in the profit
and loss account from that date.
NOTE 33. EARNINGS PER SHARE
<TABLE>
<CAPTION>
FOR THE YEAR ENDED 31 MARCH
----------------------------------------
<S> <C> <C> <C>
1998 1997 1996
$ $ $
------------ ------------ ------------
Basic earnings per share--before abnormal items......................... 0.169 0.144 0.10
Basic earnings per share--after abnormal items.......................... 0.159 0.144 0.10
<CAPTION>
NUMBER NUMBER NUMBER
------------ ------------ ------------
<S> <C> <C> <C>
Weighted average number of ordinary shares outstanding during the year
used in the calculation of basic earnings per share................... 69,239,148 68,489,148 67,663,638
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
Diluted earnings per share is not materially different from basic earnings
per share and is therefore not disclosed in the accounts.
The prior year numbers have been adjusted to reflect the capital
reconstruction for the purposes of comparability.
NOTE 34. RELATED PARTY TRANSACTIONS
During the financial period to 31 March 1998 the following transactions took
place with related parties:
Dividends totalling $1,555,334 (1997: $1,501,253, 1996: $1,522,260) were
paid during the year to entities associated with directors, this being in
accordance with normal shareholder entitlements.
An amount of $20,000 (1997: $20,000, 1996: $20,000) was paid under a
sponsorship agreement to Geoff Morgan Motor Sports, a director related entity of
Mr G K Morgan.
Director related entities of non-executive directors, Mr W S Cutbush, Mr A A
Cox, Mr A W Whatmore and joint managing directors, Mr G K Morgan and Mr A R
Banks, have from time to time utilised the services of the economic entity, this
being in the normal course of business and on standard terms and conditions.
26
<PAGE>
Exhibit 99.3
FOR IMMEDIATE RELEASE CONTACT: Lavine Surtani
January 28, 1999 (212) 445-8262
[email protected]
Jim Treacy
(212) 527-8604
[email protected]
TMP WORLDWIDE ACQUIRES MORGAN & BANKS
PURCHASE OF ONE OF THE WORLD'S LARGEST SELECTION AND SEARCH FIRMS
STRENGTHENS TMP'S GLOBAL "INTERN-TO-CEO" RECRUITMENT STRATEGY
New York, January 28, 1999 - TMP Worldwide (NASDAQ: TMPW; ASX: TMP),
the leading provider of global recruiting solutions, including the dominant
Internet careers portal, Monster.com, today announced it has acquired Morgan &
Banks Limited of Sydney, Australia in a pooling of interests transaction for
approximately 5,450,000 TMP Worldwide shares, including the effect of Morgan &
Banks options outstanding. The acquisition, the largest in TMP's history, is
expected to be immediately accretive.
In August, 1998, TMP announced its intention to acquire Morgan & Banks,
the largest executive selection and search firm in Australasia and one of the
largest in the world. Morgan & Banks reported revenues of US$ 129.0 million
(approximately A$ 204 million) for the six-months-ended September 30, 1998. On a
proforma basis, the combined companies would have reported revenues of US$ 473.0
million (approximately A$ 750 million) for the first nine months of 1998.
- more -
<PAGE>
TMP/Morgan & Banks
Page 2
"This acquisition is a particularly significant one for our company,"
said Andrew J. McKelvey, chairman and CEO of TMP Worldwide. "First, this
acquisition is about people, Morgan & Banks brings 1,100 terrific new employees
into the TMP family. Second, filling mid-level positions in the $50,000 to
$150,000 compensation range (known as `selection'), is an essential piece of
TMP's `intern to CEO' strategy. The Morgan & Banks acquisition greatly expands
our selection opportunities on Internet, and secures TMP's global leadership
position in this segment of the recruitment industry."
Under the terms of the agreement, Andrew Banks, joint managing director
and co-founder of Morgan & Banks, has agreed to join the board of directors of
TMP Worldwide this year.
"Morgan & Banks is extremely pleased to join the TMP global recruitment
network," said Andrew Banks. "We're excited by the traditional and online
recruitment opportunities the combined strengths of TMP and Morgan & Banks will
create, both in the U.S. and internationally."
With the acquisition, TMP now owns the two leading career Web sites in
Australia, Job Hound (WWW.MORGANBANKS.COM.AU) and Monster.com/Australia
(WWW.MONSTER.COM.AU).
"I've continually been impressed with Morgan & Banks' Internet
strategy," said Jeff Taylor, CEO of TMP Interactive. "Their leading Web site,
Job Hound, will merge with Monster.com/Australia to form the leading careers
portal in Australia. Adding Job Hound's traffic, job listings and Internet team
strengthens our dominant Internet strategy worldwide."
-more-
TMP/Morgan & Banks
Page 3
Founded in 1985, Morgan & Banks' global operations have more than 1,100
employees in five countries, namely Australia, New Zealand, Singapore, Hong Kong
and the United Kingdom. Morgan & Banks offers a range of advanced and
comprehensive executive selection, search and consulting services.
Founded in 1967, TMP Worldwide (NASDAQ: TMPW; ASX: TMP), now with more
than 4,750 employees in 21 countries, is the online recruitment leader and one
of the world's largest recruitment advertising agency networks, and now one of
the world's largest search and selection agencies. TMP Worldwide is also the
world's largest yellow page advertising agency and a provider of direct
marketing services. The company's clients include more than 70 of the FORTUNE
100 and more than 400 of the FORTUNE 500 companies.
Monster.com (www.monster.com), the flagship product of the Interactive
Division of TMP Worldwide, is the leading, global online network for careers,
connecting the most progressive companies with the most qualified career-minded
individuals. Monster.com is committed to leading the market by offering
innovative technology and superior services that give consumers and businesses
more control over the recruiting process. The Monster.com network consists of
sites in the United States, Canada, United Kingdom, Netherlands, Australia, and
is coming soon to Belgium, France, and Germany.
# # #
