RTC Group plc (RTC:LSE), the UK-based engineering and technical recruitment firm, reported revenue of £98.8 million for the full year ending 31 December 2023, an increase of 37.3% over the previous year.

Despite challenging macroeconomic conditions, the UK recruitment division saw a near 41% year-on-year increase.

Andy Pendlebury, Chairman and Chief Executive said, “All subsidiary businesses performed exceptionally well which, given the difficulties being faced by many companies across the recruitment sector, is sound reassurance for our shareholders that our business model delivers sustainable revenue generation and profit capture across each of our market sectors.”

EBITDA stood at £3.8 million (2022: £0.6 million). RTC noted that this was greater than the combined total of the three previous years.

The group’s business is split into three operating segments: UK division, International and Central Services.

Through its Ganymede and ATA Recruitment brands, the group provides a wide range of recruitment services in the UK. The group’s international division includes the GSS brand.

Within the UK division, the group said it saw a 49% increase in rail revenues, accompanied by enhanced profitability. This achievement is attributable to a blend of factors, including expansion within our existing long-term contract with Network Rail, as well as the successful acquisition of new framework contracts with tier 1 contractors operating within the rail infrastructure sector.

The international business continued to identify new growth opportunities within its existing overseas customer base and add new customers in new and existing territories. While the business saw only marginal growth in sales during the year the change in business mix brought an increase in gross profit by over 10%.

Within Central Services, the Derby Conference Centre (DCC) had another significant year of growth as it continues to rebound from the impact on the sector by the Covid-19 pandemic.

Looking ahead, Pendlebury said, “There is no doubt that we are facing further uncertainties and challenges due to local and international events. However, we remain confident that the investments we have made in our people, systems, workforce, and customers will enable us to capture further profitable business opportunities across the industries and sectors we support. This coupled with our financial competence and effective corporate governance will form the foundation for continued growth and shareholder value which remains the key priority of the group.”

On August 2023, RTC Group announced that its founder and chairman, Bill Douie, had died suddenly.

Pendlebury said, “Bill would not have wanted his passing to overshadow the success that the people in the Group have achieved, it just wasn’t his way. However, it cannot and should not go without saying that Bill was instrumental in setting the culture of the Group and was encouraging of everything we did and everybody who did it. There would be no one prouder of what we have achieved together in 2023.”

In its outlook, RTC Group said it is extremely encouraged and cautiously confident about its short, medium, and longer-term prospects.

It added that its two key strategic objectives moving into 2024 are to concentrate on increased value capture and further order book investment.

As of last trade RTC Group traded at £89.50, up 5.29% on the day and 0.56% below its 52-week high of 89.00, set on 25 March 2024. The company has a market cap of £12.45 million.