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UK – RTC Group announces strong profit growth

24 July 2014

Blue and white-collar staffing company RTC Group (RTC: LSE) announced revenue for the six months ending 30 June 2014 of £25.3 million, an increase of +8% compared with £23.4 million during the same period last year.

Gross profit for the period increased to £5 million, up by +15% from £4.4 million during H1 2013. The company achieved an operating profit of £467,000, a marked improvement compared with £66,000 a year ago.

Bill Douie, Chairman of RTC, commented: “All of our core businesses have at least performed in line with expectations with Ganymede Solutions continuing to achieve accelerated growth. During the first half of 2013, we invested heavily in ATA Recruitment both in consultant headcount and the management team. The rewards from that investment began to emerge during the second half of 2013 and I am delighted to report that this has continued into 2014.”

“Global Staffing Solutions has begun managing the gradual decline of contractors deployed in Afghanistan as NATO involvement in the region comes to a close. Whilst we anticipate some level of activity during 2015, precise numbers are not yet clear. However, the business is continuing to secure other international opportunities to mitigate the anticipated reduction. Given the solid performance in the first half, we are now confident that the year as a whole will meet market expectations,” Mr Douie added.

Revenue derived from the company’s ATA Recruitment division during H1 2014 was £11.1 million, an increase of +1.5% compared with £11 million a year ago. Operating profit for the division increased by +30% to £502,000, up from £385,000 last year.

ATA GSS reported a decline of -5% in revenue during the period to £7 million, down from £7.4 million in H1 2013. Operating profit for the division, however, increased by +45% to £463,000, up from £364,000 last year.

Ganymede Solutions reported revenue growth of +48%, rising to £6.3 million from £4.3 million a year ago. Operating profit for the period rose by +86% to £510,000, up from £274,000 in H1 2013.

RTC has three principle subsidiaries engaged in recruitment and the provision of managed services. ATA Recruitment supplies blue- and white-collar engineering and technical staff. Ganymede Solutions supplies blue- and white-collar contingent labour primarily to the rail industry, but also provides and manages contingent labour within the sectors of construction, infrastructure, highways, and general civil engineering. ATA Global Staffing Solutions (GSS) is a managed service provider, which provides support to commercial enterprises and organisations; such as NATO and defence agencies.  

In trading today, the company’s share price rose by +21.6% to £0.45, an increase of +181.3% compared with a year ago. Based on its current share price, the company has a market value of £4.2 million.