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Specialist engineering and technical recruiter Matchtech Group (MTEC:LSE) has benefitted from wide-spread skill shortages which are driving demand for contract staff, the company said on Friday.
Ahead of the annual general meeting today, chairman George Materna said the firm has performed in line with expectations since the end of its 2011/12 financial year in July. Then, full-year revenue rose by +23% to £371.4 million with the firm having seen strong growth in its German business.
“Skill shortages are driving unprecedented demand for contract staff in our markets and our diversification strategy is broadening our client base and allowing us to take market share,” said Mr Materna.
Gross profit in the quarter (Q1) to October 2012 was £9.5 million, a +10% increase from a year ago. Gross profit from contract placements increased by +16% to £6.7 million with the number of contractors on assignment growing by +2% from the previous quarter. However, permanent fees in Q1 were £2.8 million, flat from a year ago.
Matchtech is a technical staffing business and among the 15 largest providers in the UK, according to Staffing Industry Analysts’ research. In Europe, the firm currently ranks among the top thirty staffing companies based on revenue.
In early trading, the company’s share price increased by +2.2%to 238 pence, a +11.5% increase from a year ago and -6.7% below its 52-week high of 255 pence seen last month. The firm has a market value of £54.63 million.