|
Sep 3, 2010
trading has continued in line
Matchtech Group plc - Trading Update
Matchtech Group plc 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 months ended 31 January 2010.
Since updating shareholders at the Annual General Meeting on 20 November 2009, trading has continued in line with the Board's expectations.
In the six months ended 31 January 2010 total Net Fee Income (NFI) was £12.4 million, down 9% on the prior six months to 31 July 2009. However, taking into account the seasonally fewer billing days in the period the NFI run rate is down only 4%.
Performance during period may be summarised as follows:
|
FY2008/09 |
FY 2009/10 |
|
H1 |
H2 |
H1 |
|
£m |
£m |
£m |
Net Fee Income |
|
|
|
Contract |
11.4 |
10.6 |
9.4 |
Permanent |
5.2 |
3.1 |
3.0 |
Total |
16.6 |
13.7 |
12.4 |
|
|
|
|
Business Mix |
|
|
|
Contract |
69% |
77% |
76% |
Permanent |
31% |
23% |
24% |
|
|
|
|
Contract Margin % |
8.6% |
8.2% |
7.1% |
Contract Numbers
at end of period |
4,520 |
4,460 |
4,780 |
Contractor numbers have increased by 7% in H1, with most of this growth coming from the Engineering sector. However the Group continues to experience pressure on margins and reductions to contractor pay rates across all sectors, reducing the Group's average timesheet value by 9% in January 2010 compared with July 2009.
Income from Permanent recruitment has shown resilience, remaining stable throughout the six months at around the level achieved in the prior six months to 31 July 2009.
Net Fee Income performance by sector may be summarised as follows:
Sector |
FY2008/09 |
FY 2009/10 |
|
H1 |
H2 |
H1 |
|
£m |
£m |
£m |
Engineering |
8.6 |
7.3 |
6.9 |
Built Environment |
4.2 |
3.3 |
2.8 |
Professional Services |
3.8 |
3.1 |
2.7 |
Total |
16.6 |
13.7 |
12.4 |
The Group's new Stuttgart operation, Matchtech GmbH, which focuses on the German engineering markets, commenced trading in August 2009. It has made a sound start with NFI in line with the Board's expectations. Its NFI has been included under Engineering in the table above.
The new "elemense" Recruitment Process Outsourcing (RPO) brand, launched in July 2009, has shown early signs of success in delivering broader RPO services.
The Board has continued to take steps to ensure that the Group's cost base is appropriately aligned with prevailing market conditions, whilst still focusing on selected opportunities to strengthen the business for the future. The Group's strategic investment in key personnel to enhance its new business development capacity is starting to deliver increased exclusivity with clients. Overall headcount as at 31 January 2010 was 271 (31 January 2009: 286, 31 July 2009: 263).
The Group has moved into a net cash position of £0.8m at 31 January 2010 (Net debt: 31 January 2009: £3.7m; 31 July 2009: £1.2m).
The Board's outlook for the current financial year to 31 July 2010 is unchanged from that set out at the time of our AGM Statement on 20 November 2009.
Matchtech intends to release its Interim Results for the six months ended 31 January 2010 on 8 April 2010, at which point it will provide a further update on trading.
|
