REG-Matchtech Group PLC Trading Update

Released : 09/02/09 07:00

http://pdf.reuters.com/Regnews/regnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20090209:RnsI9723M
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RNS Number : 9723M  
  
Matchtech Group PLC  
  
09 February 2009  
  
9 February 2009  
  
Matchtech Group plc  
  
Trading Update  
  
Matchtech Group plc ("Matchtech" or the "Group"), one of the UK's leaders in 
specialist technical recruitment, provides the following trading update ahead of 
the publication of its interim results for the six month ended 31 January 2009.  
  
In the six months ended 31 January 2009 the Group has seen 8% growth in Net Fee 
Income ("NFI") to £16.5m, comprising of 13% growth in Quarter 1 and 3% growth in 
Quarter 2. NFI from contract placements was up 13% to £11.5m and permanent fees 
were essentially unchanged from the same period last year at £5.0m. This has 
resulted in a business mix of 70% (2008 H1: 67%) of NFI generated from contract 
placements.  
  
Support Services and Engineering saw the largest changes in NFI from the 
previous year with increases at the half year of 17% and 10% respectively, 
whilst Built Environment saw a decline of 2%.    
  
The economic climate is increasingly challenging as evidenced by the significant 
reduction in growth in the second quarter, noted above, which has left the Group 
with much reduced visibility for the remainder of this financial year. Notable 
falls in demand were seen particularly in the automotive sector, privately 
funded projects in the Built Environment and permanent recruitment in Support 
Services. This has resulted in a 5% decline in contractor numbers at 31 January 
2009 as compared with 31 July 2008. Fees from permanent placements decreased 
c.20% to £1.4m in December and January compared with the same two months last 
year.   
  
The Group continues to focus on those clients that operate in the publicly 
funded defence, transport and infrastructure sectors, where demand has been most 
resilient. In addition, the Board continues to take steps to ensure that the 
Group's cost base is appropriately aligned with prevailing market conditions. 
These measures, along with the flexibility and cost benefits from the Group's 
single site model, should provide a measure of resilience.  
  
The Group continues to benefit from low net debt which at 31 January 2009 was 
£3.9m (31 January 2008: £5.8m).   
  
Matchtech intends to release its interim results for the six months ended 31 
January 2009 on Tuesday 7 April 2009 at which point it will provide a further 
update on trading.   
  
For further information please contact:  
  
 
  Matchtech Group plc                      01489 898989   
  George Materna, Chairman                                
  Adrian Gunn, Group Managing Director                    
  Tony Dyer, Group Finance Director                       
                                                          
  Hogarth Partnership                      020 7357 9477  
  John Olsen / James Longfield                            
                                                          
  Arbuthnot Securities                     020 7012 2000  
  James Steel / Katie Shelton                             
  
  
Background on Matchtech (AIM: MTEC.L)  
  
Established in 1984, Matchtech specialises in the provision of contract and 
permanent staff and has grown organically to become one of the UK's leading 
technical and engineering recruitment specialists.  
  
Operating from a single site near Southampton, Matchtech provides predominantly 
professionally-qualified candidates to a broad range of clients across the UK in 
the Engineering, Built Environment and Support Services sectors.  
www.matchtech.com  
  
Cautionary Statement  
  
This announcement is prepared for and addressed only to the Group's shareholders 
as a whole and to no other person. The Group, its directors, employees, agents 
or advisers do not accept or assume responsibility to any other person to whom 
this announcement is shown or into whose hands it may come and any such 
responsibility or liability is expressly disclaimed. Statements contained in 
this announcement are based on the knowledge and information available to the 
Group's Directors at the date it was prepared and therefore the facts stated and 
views expressed may change after that date. By their nature, any statements 
concerning the risks and uncertainties facing the Group involve uncertainty 
since future events and circumstances can cause results and developments to 
differ materially from those anticipated. To the extent that this announcemetn 
contains any statement dealing with any time after the date of its preparation 
such statement is merely predictive and speculative as it relates to events and 
circumstances which are yet to occur. The Group undertakes no obligation to 
update these forward-looking statements.  
  
 
This information is provided by RNS  
  
The company news service from the London Stock Exchange  
  
  END  
  
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