RNS Number : 9723M
Matchtech Group PLC
09 February 2009
9 February 2009
Matchtech Group plc
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
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
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.
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.
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