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UK – RTC revenue and profits up despite “patchy” recovery

26 March 2013

The recruitment and conferencing provider RTC Group Plc (RTC:LSE) today reported that revenue in 2012 rose by +39% to £43.0 million with gross profit rising +30% to £5.2 million. The firm made an operating profit of £592,000, compared to a loss of £465,000 a year ago. Net profit in the year was £575,000 with the firm recovering from a loss of £499,000 in the previous year.

RTC runs its recruitment services under the brands Ganymede Solutions and ATA.

Chairman Bill Douie said: “2012 has been a year of strong growth both in turnover and operating profit. However, it comes as no surprise to us all that material recovery from the recent recession remains patchy and volatile. 

“Nonetheless, we are confident that we have a range of activities which all hold much promise for the Group.  In addition, ATA UK was restructured with effect from 1 January 2013 and we are currently investing in additional headcount and recruitment technology.  We therefore expect to be approximately break-even for the first half of the financial year and generate the vast majority of projected profits in the second half as these staff become fully effective and we start to see the benefits of the additional investment in the new structure. We believe this longer term strategy will permit sustainable and profitable growth in the years to come.”

The firm said the UK recruitment market remained challenging. But its UK white collar staffing business, ATA Recruitment, saw revenue rise +30% to £20.601 million and operating profit was up to £0.252 million from a loss of £206,000 in 2011.

Ganymede Solutions which specialises in the provision of contingent labour within rail, telecoms, civil engineering, agriculture, forestry/horticulture, food processing, packaging and construction, saw revenue grow +42% to £6.9 million, posting an operating profit of £201,000, up from £171,000 in the previous year. The firm’s international recruitment unit, ATA Global Supply Solutions which specialises in the oil and gas sector, posted a +66% rise in revenue at £13.736 million. Operating profit in this segment was £123,000, compared to a loss of £87,000 a year ago.    

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