UK-based engineering and technical recruitment firm RTC Group (AIM: RTC.L), reported revenue today for the six months ended 30 June 2023 of £45.6 million, up 32.4% when compared with last year.

RTC Group said the key driver of the increase was contract revenue which was £43.0 million (2022: £32.1 million). The growth predominantly coming from the Rail and Energy divisions. Overall gross profit from contract revenues increased to £6.1 million (2022: £3.7 million).

Revenue by segment

Within UK Recruitment, Ganymede Rail worked with Network Rail to successfully address issues that severely impacted the division in 2022, such as fuel and general price increases coupled with the significant disruption caused by Network Rail’s decision to award all suppliers new contract delivery areas in 2022. This, together with growth with other clients, has resulted in a significantly improved performance both in terms of revenues and profits in the first half of 2023.

Ganymede Energy continued its growth trajectory in the first half of 2023. It increased first half revenues by 47% to £8.4 million (2022: £5.7 million). The division’s white-collar recruitment, serviced by its ATA brand continued to perform well with client demand remaining strong across permanent and temporary UK recruitment. The division delivered revenues of £4.3 million (2022: £3.5 million) with the increase mainly coming from growth in temporary recruitment.

Within International Recruitment, revenue was slightly higher than the same period in 2022 as the division steadily increased revenues under new framework agreements.

Within UK Central Services, the group’s hotel and conference centre business delivered revenues of £1.2 million (2022: £0.9 million) as the good levels of activity relating to conferences, events and bedroom sales seen throughout 2022 continued in the first half of 2023.

Bill Douie, Chairman, said, “We remain cautiously confident that our progress will continue in the second half of 2023. We continue to invest in our businesses and to further strengthen our balance sheet through retained profits.”

RTC Group set a new 52-week high during today's trading session when it reached £37.00. Over this period, the share price is up 67.27%. Shares last traded at £36.80, up 104.44% on the day. The company has a market cap of £2.64 million.