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Net fee income was down by -14% to 26 million Pounds at Matchtech Group Plc (MTEC:LSE), the specialist technical recruitment company.
A trading update for the financial year ended 31 July 2010 reveals that net fee income growth in H1 2010 was down by -25% to 12.5 million Pounds but improved to a lesser negative growth of -1% to 13.5 million Pounds in H2 2010.
Net fee income growth generated by contracts improved from -16% in H1 2010 to -3% in H2 2010. Year-on-year, net fee income generated by contracts fell by -10% to 19.9 million Pounds in FY 2010.
Net fee income growth generated by permanent placements improved from -44% in H1 2010 to +3% in H2 2010. Year-on-year, net fee income generated by permanent placements fell by -27% to 6.1 million Pounds in FY 2010.
The group says in a statement "around 50% of the group's net fee income comes directly and indirectly from across many parts of the Public Sector, much on long term contracts. The board is mindful of the potential impact on the group of changes to public expenditure after the government's forthcoming Comprehensive Spending Review."
"With our private sector markets proving relatively stable and some signs of a gradual recovery in the second half, the board remains confident about the group's prospects over the medium term."
In early trading Matchtech's shares were down by -3.41% to 198 Pence.