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UK – Matchtech revenue and profits rise

15 October 2013

Recruitment firm Matchtech Group PLC (MTEC: AIM) reported revenue for the year ending 31 July 2013 of £408.9 million, a +10% increase compared with revenue of £371.4 million a year ago. Gross profit for the period increased by +6.4% to £38.4 million, up from £36.1 million last year.

Net profit for the period was £7.4 million compared with £5.8 million last year, equating to a year-on-year increase of +27.6%.

Adrian Gunn, Group CEO, commented: “Demand for contract staff remains strong and we are starting to see a candidate confidence returning, which should encourage growth in the permanent marketplace. Since our pre-close trading update on 8 August 2013 trading has remained in line with the Board’s expectations.”

“In that time we have announced our first significant acquisition: Provanis, a niche Oracle recruitment agency, for a total consideration of £4 million, subsequently funded through a placing of new shares. Integration of this business has already started and is going well,” he added.

The company reports that it achieved another record year for contractors on assignment, which at 31 July 2013 stood at 7,000, an increase of +4%, year-on-year. Contract net fee income grew by +11% to £27.2 million from £24.6 million last year. Net fee income from permanent recruitment improved by +5% on the previous year, rising to £11.2 million from £10.7 million. The demand for highly skilled labour continues to exceed supply, according to Matchtech, but the time to hire is still longer than in pre-recessionary markets.

By business segment, revenues increased in both the Engineering and Professional Services divisions. The Engineering segment reported an increase of +10% to £293.5 million in 2013 from £266.8 million in 2012. In Professional Services, revenue rose to £115.4 million from £104.5 million, year-on-year, equating to growth of +10.4%.

Revenue for the United Kingdom was £405.6 million, an increase of +10.1% from £368.3 million a year ago. Matchtech also operates in Germany, with reported revenue of £3.3 million, up by +10% from £3 million last year. 

In trading today, the company’s share price rose by +1% to £5.02, an increase of +130.7% compared with a year ago. Based on its share price, the company has a current market value of £122.8 million. 

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