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UK - Matchtech expects full-year results ahead of expectations

07 February 2014

Recruitment business Matchtech Group PLC said in a Pre-close Trading Update on Thursday that the Group has continued to trade well and expects its results for the full year to be slightly ahead of current expectations.

The first half performance generated total Net Fee Income (NFI) of £22.0 million, representing a +15% increase from Continuing Operations compared with the same period last year. According to the company they are “seeing growth in both Contract NFI and Permanent Fees across all sectors in the business”.

The business mix remained the same as the previous year, with Contract NFI accounting for 71% and Permanent Fees 29% of total NFI in the period.

Since its acquisition for a net consideration of £3.6 million on 6 September 2013, Provanis, a technology recruitment business, has traded in line with the Board's expectations. The company says, “The integration is going well as we look to cross sell its services into the Group's wider client base”.

The demand for contract labour continues to be strong across the engineering and technology sectors.

Contract NFI from Continuing Operations of £14.9 million was +13% up on the same period last year.

Permanent Fees of £6.3 million was up +19% compared with the same period last year.

The company concluded its update with the following statement. “As the economy recovers we will continue to invest appropriately in our sales teams and it is pleasing that we are seeing an increase in our contract percentage margin and the number of permanent placements. Our balanced business model and strong niche sector expertise give the Board confidence that the Group will continue to grow and take market share”.

Matchtech Group plc is a technical temporary, contract and permanent staffing businesses working within four key sectors; Engineering, Science & Medical, Built Environment, and Information Systems & Technology.

This morning Matchtech Group PLC (MTEC:LSE) traded at £5.54, -14.77% below its 52-week high of £6.50, set on 16 January 2014 but +103.68% above a year ago. This means the company is valued at £135.64 million.

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