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Matchtech Group plc (MTEC:LSE), the specialist technical recruitment company, has reported a 9% fall in net fee income in the 12 months ending 31 July 2009 due to a drop in demand for permanent recruitment services.
Permanent recruitment fees were down by 24% to 8.3 million Pounds. Total net fee income fell by 9% to 30.2 million Pounds.
Net fee income from contract placements was almost unchanged from the previous year at 29.1 million Pounds. The company said that although contractor numbers have essentially remained unchanged since 31 January 2009, contract margins remain under pressure.
The company has reduced its staff numbers by 20% to 263 at 31 July 2009 from 330 in December 2008. Matchtech says â€œshort-term trading conditions remain challenging with no sign yet of any pick up in the level of permanent recruitment and continued pressure on contract margins. As a result the board remains cautious with regard to the outlook for 2010 and its expectations have been reset to reflect this trading environment.â€VbCrLf
After an initial fall in share price to 121 Pence the companyâ€™s shares were up again in early trading by 3.47% to 134 Pence.