Daily News
View All NewsUK – RTC Group full-year revenue rises, plans acquisitions in 2018
UK-based engineering and technical recruitment firm RTC Group Plc (AIM: RTC.L), reported revenue for the full year ending 31 December 2017 of £71.7 million, an increase of 5.6% compared with last year.
| (£ million) | FY 2017 | FY 2016 | Change |
| Revenue | 71.7 | 67.9 | 5.6% |
| Gross Profit | 11.9 | 12.1 | -0.3% |
| Profit Before Tax | 1.3 | 1.1 | 24.6% |
RTC has three principal trading subsidiaries engaged in recruitment services: ATA, an engineering and technical recruitment consultancy, which supplies white and blue collar engineering and technical staff to a broad range of SME clients and vertical markets; Ganymede, which is focused on the supply and operation of blue-collar contingent labour into safety-critical markets; and GSS which predominantly provides managed service solutions for international clients.
| (£ millions) | FY 2017 | FY 2016 | Change |
| ATA | 29.1 | 25.7 | 13.5% |
| Ganymede | 30.7 | 31.3 | -2.1% |
| GSS | 10.3 | 9.5 | 7.1% |
| Central Services | 1.6 | 1.3 | 22.6% |
Last year Ganymede won a £28 million contract with Scotland-based SSE Plc, an energy and electricity supplier.
The group added that the collapse of Carillon had an impact on the Ganymede business.
“I am delighted to announce that 2017 was a very successful year for RTC,” Andy Pendlebury, CEO said. “I believe our success demonstrates that our business model of building and investing in independent and complementary subsidiary businesses is both robust and capable of delivering long-term value to our shareholders. We enter 2018 with optimism.”
“In addition to our incremental organic growth plan the Board now believes the time is right for RTC to pursue a transformational acquisition plan. During 2018 we will continue the process of identifying complementary organisations that offer a broad range of consolidatory and diversification opportunities for our group to integrate into and alongside our existing subsidiary businesses,” Pendlebury said.
“One disappointing note at the end of the year was the collapse of Carillion PLC which had an impact on our Ganymede business,” Pendlebury said. “It was a harsh reminder of the risks the recruitment sector faces, regardless of the size of client organisations and thankfully our financial diligence process ensured our exposure was kept both manageable and within our internal debt cap approved by our financial directorate.”
In trading today RTC Group traded at £61.00, up 2.52% on the day. Based on its current share price the company has a market value of £8.93 million.