Specialist engineering and professional services recruitment firm Matchtech (MTEC: AIM) reported revenue of £220.9 million for the six months ending 31 January 2014, an increase of +12% compared with £197.3 million last year. Group revenue for the period includes £5.5 million in contribution from Provanis, which was acquired in September 2013 for a total consideration of £4.3 million.

The company reported a gross profit of £22.1 million, up by +19% from £18.5 million last year. Matchtech achieved an operating profit of £6.2 million for the six months, a year-on-year rise of +48% from £4.2 million in H1 2013.

Commenting on the results, Adrian Gunn, Chief Executive Officer, said: “The Group delivered a strong performance in the first half of the year with a +43% increase in earnings per share. These results reflect the benefits of our longstanding leadership position in Engineering, with the infrastructure, automotive and marine sectors experiencing particularly strong levels of activity. Our newer, but now well established Professional Service businesses, have also shown strong underlying growth and were further boosted by the acquisition of Provanis in September.”

“Demand for contractors remains high while the permanent marketplace continues its recovery, we are seeing increasing margins and an improving NFI conversion ratio across the business. The integration of Provanis is going well as we focus on cross selling its services to our wider client base,” he added.

In the six months to 31 January 2014, the company achieved revenue of £153.2 million in its Engineering division, up by +8% from £141.7 million last year. Contract net fee income rose by +16% from £9.5 million in 2013 to £11 million this year, while permanent fees rose by +15% to £2.3 million from £2 million a year ago.

Matchtech’s Professional Services division reported revenue of £62.2 million for the six months, up by +12% from £55.6 million in 2013. Contract net fee income rose by +11% from £3.7 million last year to £4.1 million this year. Permanent fees rose by +18% to £3.9 million up from £4.1 million a year ago.

Looking forward, Mr Gunn added: “The skills shortages in Engineering will increase demand for contractors. Our specialist focus on more profitable business, in conjunction with a recovering permanent market will further improve our margins. The integration of Provanis is going well as we look to cross-sell its services into the Group’s wider client base.”

“We will continue to invest appropriately to support the Group’s ambitious growth plans. Our diverse, balanced business model, and niche sector expertise give the Board confidence that the Group will continue to grow and increase our market share,” he concluded.

In trading today, the company’s share price rose by +2.2% to £6.18, an increase of +81.5% compared with a year ago. Based on its current share price, the company has a market value of £151 million.