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UK – Matchtech reports H2 net fee income growth

07 August 2014

Specialist engineering and professional services recruitment firm Matchtech (MTEC: AIM) reported net fee income of £23.1 million for the six months ending 31 July 2014, a year-on-year increase of +16%.

Adrian Gunn, Chief Executive Officer of the Group, commented: “The Group has continued its track record of delivering year-on-year double-digit growth in Net Fee Income and it is particularly pleasing that contract margins have also again increased.”

“There remains very strong demand in the UK and worldwide for skilled engineers and this demand is increasing as the global economy recovers and manufacturing output rises. The Group is ideally placed to benefit from these trends due to our niche focus, market leading position and strong platform based on a balanced business model.”

“We therefore continue to invest in order to accelerate the on-going medium term success of the business particularly focussing on increasing our consultant headcount in the first half of financial year 2015,” he concluded.    

Matchtech’s business mix during H2 2014 consisted of 73% contract recruitment and 27% permanent recruitment. Net fee income from Matchtech’s contract recruitment operations increased by +13% to £15.8 million during the second half of the year. The company’s permanent net fee income rose by +7% to £6.3 million, year-on-year.

Broken down by business segment, the company’s Engineering division reported net fee income growth of +10% to £13.8 million. The Professional Services division achieved net fee income growth of +12%, year-on-year, to £8.3 million.  

In September 2013, Matchtech acquired Provanis, a niche technology recruitment business for a total cash consideration of £4 million. Provanis contributed £1 million in net fee income during the second half of the year.

According to the company’s trading update, the group continued to trade well in the second half of the year, with full year results expected to be slightly ahead of current market expectations.

Following the release of the company’s trading update, Matchtech’s share price rose by +1.3% to £5.87, an increase of +45.1% compared with a year ago. Based on its current share price, the company has a market value of £142.9 million. 

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