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Matchtech Group publishes pre-close trading update

NFI performance is analysed as follows:

H1 2014

H2 2013

H1 2013

H1 v H1

&poundm

&poundm

&poundm

%

Engineering

13.1

12.5

11.5

14%

Professional Services

8.1

7.4

7.0

16%

Continuing Operations

21.2

19.9

18.5

15%

Provanis (acquired 6 September 2013)

0.8

-

-

Total Group

22.0

19.9

18.5

19%

Number of weeks in period

24.2

25.0

24.2

Average weekly NFI

0.91

0.80

0.76

20%

The business mix remained the same as the previous year, with Contract NFI accounting for 71% and Permanent Fees 29% of total NFI in the period.

Since its acquisition for a net consideration* of &pound3.6 million on 6 September 2013, Provanis, a technology recruitment business, has traded in line with the Board’s expectations.  The integration is going well as we look to cross sell its services into the Group’s wider client base.

*Being a total cash consideration of &pound4.3 million including net assets of &pound0.7m.

Contract NFI

The demand for contract labour continues to be strong across the engineering and technology sectors.

Contract NFI from continuing operations of &pound14.9m was 13% up on the same period last year.

After accounting for the planned reduction of some 300 contractors its largest client, which was already factored into its forecasts, the compay has maintained the number of contractors on assignment at the same level since 31 July 2013 at 7,000.

Contract NFI performance is analysed as follows:

H1 2014

H2 2013

H1 2013

H1 v H1

&poundm

&poundm

&poundm

%

Engineering

10.8

10.1

9.5

14%

Professional Services

4.1

3.9

3.7

11%

Continuing Operations

14.9

14.0

13.2

13%

Provanis

0.8

-

-

Total Group

15.7

14.0

13.2

19%

Number of weeks in period

24.2

25.0

24.2

Average weekly fees from Continuing Operations

0.65

0.56

0.55

18%

Contractors on assignment at end of period

7,000

7,000

6,700

4%

Permanent Fees

Demand for permanent staff from our customers continues to improve, with permanent fees of &pound6.3m up 19% compared with the same period last year.

Permanent fee performance is analysed as follows:

H1 2014

H2 2013

H1 2013

H1 v H1

&poundm

&poundm

&poundm

%

Engineering

2.3

2.4

2.0

15%

Professional Services

4.0

3.5

3.3

21%

Total – Continuing Operations

6.3

5.9

5.3

19%

Number of weeks in period

24.2

25.0

24.2

Average weekly fees

0.26

0.24

0.22

18%

Net Debt

Net debt may be analysed as follows:

31 January

2014

31 July

2013

31 January

2013

&poundm

&poundm

&poundm

Net Debt

8.7

10.6

8.0

As the economy recovers the company will continue to invest appropriately in its sales teams and is pleased that it is seeing an increase in its contract percentage margin and the number of permanent placements.

Its balanced business model and strong niche sector expertise give the Board confidence that the Group will continue to grow and take market share.

The Group intends to release its Interim Results for the period ending 31 January 2014 on 8 April 2014.

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