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Matchtech Group announces 18% increase in NFI

&middot      An 18% increase in Net Fee Income ("NFI") to &pound45.2 million (FY2013: &pound38.4 million)

&middot      The placement of higher paid contractors, increases in average contract percentage margin and contractor wage inflation

&middot      Heightened permanent placement activity as the UK economy recovers

&middot      Improved efficiencies within the business

&middot      Strong cash conversion, with Net Debt of &pound3.0m (2013: &pound10.6m)

Summary Performance

 

 

 

Change v comparable period

FY 2013

H1 2014

H2 2014

FY 2014

H1 2014

H2 2014

FY 2014

&poundm

&poundm

&poundm

&poundm

 

 

Contract NFI

27.2

15.1

15.8

30.9

14%

13%

14%

Permanent NFI

11.2

6.2

6.3

12.5

17%

7%

12%

Underlying NFI

38.4

21.3

22.1

43.4

15%

11%

13%

Provanis1

-

0.8

1.0

1.8

-

-

-

Total NFI

38.4

22.1

23.1

45.2

19%

16%

18%

 

 

 

 

Segmental Split

 

 

 

 

Engineering

24.0

13.3

13.8

27.1

16%

10%

13%

Professional Services

14.4

8.0

8.3

16.3

14%

12%

13%

Underlying NFI

38.4

21.3

22.1

43.4

15%

11%

13%

Provanis1

-

0.8

1.0

1.8

 

 

Total NFI

38.4

22.1

23.1

45.2

19%

16%

18%

 

 

 

 

Business Mix

 

 

 

 

Contract

71%

72%

73%

72%

 

 

Permanent

29%

28%

27%

28%

 

 

 

 

 

 

Contractors on assignment2

7,000

7,000

7,200

7,200

 

 

 

 

 

 

Net Debt (&poundm) 2

10.6

8.6

3.0

3.0

 

 

1 Provanis was acquired in September 2013

2 At end of period

New Banking Arrangements

On 30 July 2014 the Group agreed to transfer its banking relationship to HSBC.

The new agreement is for a three year, &pound60m Invoice Financing Facility, at a lower rate of 1.1% over HSBC bank base rate.

Preliminary Results

The Group expects to announce its full year results to 31 July 2014, on Tuesday 14 October 2014.

Adrian Gunn, Chief Executive Officer of the Group, commented:

"The Group has continued its track record of delivering year-on-year double-digit growth in Net Fee Income and it is particularly pleasing that contract margins have also again increased.

"There remains very strong demand in the UK and worldwide for skilled engineers and this demand is increasing as the global economy recovers and manufacturing output rises. The Group is ideally placed to benefit from these trends due to our niche focus, market leading position and strong platform based on a balanced business model.

"We therefore continue to invest in order to accelerate the on-going medium term success of the business particularly focussing on increasing our consultant headcount in the first half of FY2015."

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