AGM Statement

Released : 19/11/10 07:00

RNS Number : 4601W
Matchtech Group PLC
19 November 2010
 



19 November 2010

 

Matchtech Group plc ("Group")

 

AGM Statement

 

At the Group's Annual General Meeting of Matchtech Group plc later today, the Chairman will make the following statement.

 

"Since we reported our Preliminary Results on 7 October 2010 the Group has continued to trade in line with the Board's expectations with Net Fee Income (NFI) for the three months to 31 October 2010 of £7.0 million, up 8% compared with the same period in the previous year.

 

Increased demand has seen contractors on assignment grow to record levels of 5,300 at 31 October 2010, however contract NFI of £5.0m was down 3% due to margin reductions on two major contract renewals. Permanent fees of £2.1m were up 44% on the same period last year.

 

The outcome of the Government's Comprehensive Spending Review was generally favourable to the Group, with the confirmed build of the two QE Class aircraft carriers and the committed investment of £30bn in transport infrastructure including Crossrail and the London Underground.

 

During the year to 31 July 2010, the Group launched two new brands in Professional Services to accelerate the development of our existing business model:

 

·    Barclay Meade which focuses on Procurement & Supply Chain, Accountancy, Financial Services, Sales & Marketing, HR and Executive Search; and

 

·    Alderwood Education which is developing the existing work based learning and welfare to work business and expanding into the Supply Teaching market.

 

Both brands commenced trading on 1 August 2010 and have made a promising start in identifying new opportunities.

 

Our sales force headcount is now above pre-recessionary levels and the Board believes this early investment is necessary to take full advantage of the increasing momentum in our business. As reported in our Preliminary Results, we invested £0.9 million during the year to 31 July 2010 and expect to invest a further £2.0 million during the current year; most of this expenditure is on sales force headcount.

 

The majority of the new headcount was already in place at the start of the current financial year.  While we are already seeing the early benefits of our investment, our aim remains for the increased headcount to deliver a step change in NFI in the second half of the current financial year and to become profitable in the year to 31 July 2012. 

 

Whilst the economic outlook remains uncertain, our robust business model, the ambitious plans we have for our sector diversification and the successful start of our new brands and our international network all continue to give the Board confidence in the medium term prospects for the Group."

 

- Ends -

 

For further information please contact:

 

Matchtech Group plc                                                      01489 898 989

Adrian Gunn, Chief Executive Officer

Tony Dyer, Chief Financial Officer

 

MHP Communications                                                    020 7357 9477

John Olsen / Ian Payne / Giles Robinson

 

Arbuthnot Securities

James Steel / Ben Wells                                                020 7012 2000

  

Background on Matchtech Group

 

Established in 1984, the Group specialises in the provision of contract, temporary and permanent staff and has grown organically to become one of the UK's leading technical, professional and recruitment outsourcing specialists.

 

The Group is split into four dedicated business units Matchtech, Barclay Meade, Alderwood Education and elemense; providing specialist recruitment solutions to a broad range of clients across the UK and Europe. The Group's Head Office is based in Fareham Hampshire and has strategic office locations in London, St Albans, Aberdeen and Stuttgart.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
AGMKKFDPABDDODD