Matchtech Group plc Results
Matchtech Group plc
Preliminary Results for the year ended 31 July 2011
Matchtech Group plc ("Matchtech" or the "Group"), one of the UK's leading specialist technical recruitment companies, today announces its Preliminary Results for the year ended 31 July 2011.
· Revenue £301.8m up 14% (2010: £264.4m)
· Net Fee Income* (NFI) £29.8m up 14% (2010: £26.2m)
· Permanent recruitment fees £9.4m up 54% (2010: £6.1m)
· Permanent fees now account for 32% of NFI (2010: 23%)
· Investment of £4.9m, £4.6m in additional sales force, support and marketing
· Profit from operations £6.8m down 23% (2010: £8.8m), reflecting investment in growth strategies
· Trading performance in H2 improved significantly, with profit from operations of £4.3m, up 72% from H1 £2.5m
· Basic earnings per share 20.3 pence down 23% (2010: 26.4 pence)
· Final dividend maintained at 10.6 pence per share
· Net debt of £16.0m (2010: £4.5m)
* Net Fee Income (NFI) is calculated as Revenue less Contractor Payroll Costs.
Commenting on the results, George Materna, Chairman of Matchtech said:
"The Board is pleased with these results, the progress made this year in broadening the business and the growth achieved in challenging economic conditions.
Growing the Group's core technical base is central to our business plan. We have built on our strong client relationships and taken the business into new markets where the Board believes there are opportunities for further growth. The new Professional Services brands continue to develop particularly well.
Reflecting our confidence in the future and the strength and resilience of the business, the Board is pleased to propose a maintained final dividend of 10.6 pence per share.
Trading for the first two months of the current year has been in line with the Board's expectations with a continued increase in contractor numbers, up 5% on 31 July 2011, and permanent fees up 18% on the same period last year. We are mindful that client sentiment can change rapidly as the economic backdrop alters but, with the benefit of last year's investment in place and business momentum beginning to come through as the new staff increase their productivity, the Board remains cautiously optimistic that the business will deliver a strong performance this year, albeit again weighted to the second half.
Overall, with the new structure now in place the Board is confident that the Group will continue to progress well over the coming years."