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Matchtech Group plc AGM Statement

Matchtech Group plc 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."


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