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Matchtech Group engineering perm and infrastructure drives growth in H1 2016

Matchtech Group engineering perm and infrastructure drives growth in H1 2016


Matchtech Group plc has published its pre-close trading update for the six months to 31st January 2016. The Board currently anticipates profit for the full year to be in-line with its expectations.


NFI performance for the Group in H1 2016 was up 59% to £35.7m (H1 2015: £22.5m). On a Like for Like (LfL) basis NFI was down 1% to £35.7m (H1 2015: £36.2m) with the weekly run rate up 4% on H2 2015.


Engineering’s LfL NFI was up 7% to £21.7m, (up 7% v H2 2015), with particularly strong 17% growth in permanent fees and contract NFI growing by 4%. Within engineering, there was a strong performance from infrastructure with NFI up 19%.


Technology’s LfL NFI was down 12% to £14.0m (H1 2015: £15.9m), and down 2% on H2 2015. Within Technology, Telecoms was in line with H1 2015 and up 8% vs. H2 2015, whilst IT was down 20% vs. H1 2015 and down 9% vs. H2 2015.


Matchtech stated it is focused on delivering an improved performance in its IT division and is committed to enhancing our overall offering in this sector.


The integration of Networkers International, acquired in April 2015, is expected to be substantially completed by the end of the financial year. Spencer Manuel and Jon Plassard, the CEO and CFO of Networkers respectively, will be leaving the Group with effect from that time.


Matchtech say it has identified nearly £2m in annualised synergies since the acquisition which will be fully realised in FY 2017. Matchtech expects to identify additional cost synergies as it continues the integration process combines the remaining back office functions by Y/E 2016. It was announced it will focus on improving systems connectivity in Asia & North America and has already appointed regional senior management in both regions in order to accelerate growth in these markets for the Group.


Brian Wilkinson, chief executive officer, said, “I am pleased to report a period of encouraging operational performance and strategic progress for the Group.


"The acquisition of the Networkers business in April 2015 has enabled the Group to deliver a 59% increase in NFI for the period. We continue to realise synergies, with further cost savings being identified in addition to those previously announced, and with initial joint sales proposals going well.


“Performance in the first half of FY 2016 is in line with management’s expectations, with growth in Engineering and Telecoms compared to the second half of last year.


“Demand in the UK for skilled engineers remains robust and looking ahead we have identified a number of opportunities to roll out our Engineering recruitment services across our overseas locations. Investment in headcount is taking place in these areas and I remain confident that we will convert these exciting opportunities into significant growth over the next few years.”

The Group expects to announce its interim results for the 6 months to 31 January 2016 on Thursday 14 April 2016.

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