Matchtech Group announces preliminary results for year ended 31 July 2013
Financial Highlights 2013 2012 Change
Revenue £408.9m £371.4m 10% Net Fee Income 1 (NFI) £38.4m £36.1m 6%
Contract NFI £27.2m £24.6m 11% Permanent recruitment fees 2 £11.2m £10.7m 5%
Contract NFI / Permanent fees mix 71%/29% 68%/32% Profit from operations 3 £11.1m £8.7m 28% Profit before tax 3 £10.3m £8.0m 29%
Reported profit before tax £9.9m £8.0m 24% Basic earnings per share 3 33.4p 24.3p 37%
Reported basic earnings per share 32.0 p 24.3p 3 2%
Final dividend 12.75p 10.60p 21%
Total dividend 18.00p 15.60p 15%
Operating cash conversion 108% 106%
Net debt £10.5m £14.5m down £4.0m
The following footnotes apply, where indicated, throughout these Preliminary Results. 1 NFI is calculated as revenue less contractor payroll costs 2 Excluding discontinued operations of Executive Search and Financial Services 3 Underlying results excluding £0.4m of non-recurring restructuring costs
• Increased NFI conversion ratio to 29% (2012: 24%)
• Strong demand for contractors across all engineering sectors with record numbers on assignment
• Successful rebrand of our Technology business to Connectus
Post Year End
• Acquisition of Provanis, a niche Oracle recruitment agency
• Cash placing of net £4.1m to fund acquisition
• Appointment of Brian Wilkinson as Executive Chairman with effect from 2 December 2013
Commenting on the results, chief executive Adrian Gun, said, “The Group has delivered excellent results with 37% growth in underlying earnings per share in the year. Demand for contract staff remains strong and we are starting to see candidate confidence returning which should encourage growth in the permanent marketplace.
"Since our pre-close trading update on 8 August 2013 trading has remained in line with the Board’s expectations.
"In that time we have announced our first significant acquisition: Provanis, a niche Oracle recruitment agency, for a total consideration of £4.0m, subsequently funded through a placing of new shares. Integration of this business has already started and is going well.
"We have also announced that George Materna will be stepping down as Chairman on 2 December 2013 and that Brian Wilkinson will join as the Group Executive Chairman. As its founder, George is widely recognised as having, over the last 30 years, made Matchtech Group into the highly successful business it is today and I am pleased that his experience and wisdom will still be available to us as our Non-Executive Deputy Chairman.
"I am greatly looking forward to working with Brian, who I believe has the right credentials to help accelerate the next stage of our strategic vision. The new financial year has started well and having laid solid foundations over the last few years I am confident that the Group can make significant progress this year.”