RTC Group Plc - Preliminary results
RTC Group Plc - Preliminary results for the year ended 31 December 2010
RTC Group Plc is pleased to announce its unaudited preliminary results for the year ended 31 December 2010.
Group operating loss from continuing operations before exceptional items of 490,000 (2009: 1,153,000).
Group pre-tax loss before taxation of 450,000 (2009: loss 1,832,000).
Loss per share of 10.62p (2009: 25.99p).
Dividends the Board believes that it would not be prudent to use financial resources to pay a final dividend at this time (2009: nil).
Recruitment made an operating profit of 212,000 (2009: loss 460,000).
Commenting on the results Bill Douie, Chairman, said: "We believe that given the prolonged nature of the recessionary impact across the recruitment industry per se, we acquitted ourselves very well in 2010 especially given the scale of some of the challenges we faced. Although we could no longer justify continuing to trade in Railway Training, an area of declining opportunity and increasing costs, the termination of our exposure to training removed the main threat to the future health of RTC Group and this has enabled an increasing focus on recruitment where we believe an upward trend will continue to provide opportunities for the Group."
Following the appointment of Andy Pendlebury as Chief Executive Officer of the Group in October 2007 a full review of the composition of the Group was conducted and the process of focusing Group activities on recruitment was completed during 2010 with the disposal, outlined in my Interim Statement, of our training subsidiary, Catalis limited. Although it did not prove possible to find a buyer for the company, the business has continued to trade under new owners who are now a significant tenant of our Derby Conference Centre at London Road, Derby.
The Recruitment division performed well in 2010. In particular contract recruitment has continued to expand across all areas of our business and this has been significantly accelerated by our second large contract to supply long term support staff to NATO bases in Afghanistan, now expected to reach over 700 personnel during the current year. Although the business environment is still tough and impacting on our branch network, vertical markets, operating from Derby and led by Rail and Energy, have grown strongly. In addition to the permanent recruitment activities we provide to a broad range of European clients we now have recruitment activity in Germany and to support this have established a formal European presence.
Growth has also continued in our labour supply company, Ganymede Solutions Limited, again led by Rail, with opportunities in other industry sectors broadening the portfolio.
The Catalis training business was placed into administration in June and is treated as discontinued in the accounts.
Whilst The Derby Conference Centre made major advances in cost control and gross margin enhancements during 2010 the business continued to experience difficult trading as customers continued to conduct conferencing activities in-house.
Although there can be no room for over-optimism, overall Group trading performance, built on a profitable recruitment division, closely approached breakeven in the second half and consequently had stabilised by the year end.
During the year, although only essential repairs and maintenance expenditure was incurred, it was possible to continue the upgrade of the Derby Conference Centre premises as further space was brought back into use.
Your directors do not feel able to recommend any dividends for 2010.
Building on the achievements of 2009, we continued the expansion of senior management for our operating subsidiaries during 2010. Our management team led by our Chief Executive continues to grow from strength to strength and has successfully captured growth opportunities as they emerged during 2010.
We believe that given the prolonged nature of the recessionary impact across the recruitment industry per se, we acquitted ourselves very well in 2010 especially given the scale of some of the challenges we faced. Although we could no longer justify continuing to trade in Railway Training, an area of declining opportunity and increasing costs, the termination of our exposure to training removed the main threat to the future health of RTC Group and this has enabled an increasing focus on recruitment where we believe an upward trend will continue to provide opportunities for the Group.
Although there will undoubtedly be continuing worldwide global economic challenges, trading in the first quarter of 2011 has been satisfactorily ahead of expectations and the general outlook remains encouraging.
Since the year end, having succeeded in securing the second contract with our client in Afghanistan, which will serve to accelerate revenue growth rates, we have also concluded arrangements to establish an office in India to service that business and to pursue opportunities in that fast growing part of the world.
We have also negotiated new five year arrangements with the owners of our premises at London Road, Derby, which, coupled with a five year sublet to a substantial support services company, has markedly improved the outlook for the Derby Conference Centre.
We continue to enjoy the benefits of a loyal and conscientious team of management and staff. They have my admiration and thanks and I feel privileged to work with them.