TIDMMTEC
RNS Number : 1899G
Matchtech Group PLC
04 August 2016
4 August 2016
Matchtech Group plc
("Matchtech" or, "the Group")
Trading Update for 12 months ended 31 July 2016
Matchtech Group plc (LSE-AIM: MTEC), the UK's leading specialist
Engineering and Technology (IT & Telecoms) recruitment agency,
today provides the following pre-close trading update for the 12
months ended 31 July 2016.
The Board expects profits to be in-line with its previous
expectations.
Group performance
Net Fee Income (NFI) performance can be summarised as
follows:
Actual FY FY 2015 Change
2016
GBPm GBPm %
Contract
NFI 53.9 40.0 +35%
Permanent
NFI 19.3 14.8 +30%
----------- ------ ------- ------
Total
NFI 73.2 54.8 +34%
----------- ------ ------- ------
Like for H1 H2 FY
Like(1)
2016 2015 Change 2016 2015 Change 2016 2015 Change
H1 H1 H2 H2
GBPm GBPm % GBPm GBPm % GBPm GBPm %
Contract
NFI 26.5 27.0 -2% 27.3 26.9 +1% 53.8 53.9 0%
Permanent
NFI 9.4 9.2 +2% 9.4 8.8 +7% 18.8 18.0 +4%
------------- ----- ---- ------ ---- ----- ------ ---- ---- ------
Total
NFI 35.9 36.2 -1% 36.7 35.7 +3% 72.6 71.9 +1%
------------- ----- ---- ------ ---- ----- ------ ---- ---- ------
2016 2015 Change 2016 2015 Change 2016 2015 Change
H1 H1 H2 H2
GBPm GBPm % GBPm GBPm% GBPm GBPm %
Engineering 21.7 20.3 +7% 21.8 20.8 +5% 43.5 41.1 +6%
Technology 14.2 15.9 -11% 14.9 14.9 0% 29.1 30.8 -6%
------------- ----- ---- ------ ---- ----- ------ ---- ---- ------
Total
NFI 35.9 36.2 -1% 36.7 35.7 +3% 72.6 71.9 +1%
------------- ----- ---- ------ ---- ----- ------ ---- ---- ------
(1) Like for Like assumes Networkers had been owned for the
entire prior period and excludes NFI from the Networkers Search
business divested in January 2016 and from the discontinued
Professional Staffing London operation (2015 H1: GBP1.0m; 2015 H2
GBP1.3m; 2016 H1: GBP0.6m; 2016 H2: GBPnil)
Group NFI of GBP73.2m, including the full year effect of the
Networkers acquisition which was completed on 2 April 2015, was up
34% on the prior year (+1% on a LFL basis).
On a LFL basis Engineering's NFI was up 6% on prior year with
similar levels of growth in both halves of the year, up 7% and 5%
respectively. Contract NFI increased by 5% (H1: 5%, H2: 5%) and
Permanent Fees increased by 9% (H1: 12%, H2: 5%). There was
particularly strong annual growth in Infrastructure, Professional
Staffing, and Engineering Technology offset by weaker performance
in Oil & Gas and Maritime.
On a LFL basis Technology's NFI was down 6% year on year (H1:
-11%, H2: 0%). Telecoms performed strongly with NFI up 9% (H1: +3%,
H2: +15%), but as previously reported, due to a challenging first
half, the IT division's NFI was down 16% year on year (H1: -21%,
H2: -12%). The IT market segmentation and sales restructure,
announced at April's Interim results and carried out in Q4 2016 is
already starting to bear fruit. NFI stabilised in H2 and was
broadly in line with H1. Further benefits are expected to be seen
in the new financial year.
People
We continue to invest in appropriate areas with sales headcount
up 9% on 31 July 2015 to 544.
During the period we appointed Regional Managing Directors to
run our Asia and Americas operations and a number of experienced
and successful, UK based consultants and managers are transferring
to our Dallas office in order to accelerate the development of our
Engineering business in the US.
Net Debt
Net debt at 31 July 2016 was GBP27.5 million, down GBP6.1
million on 31 July 2015.
Integration of Networkers
The integration continues to go well and is expected to be fully
completed by the end of Calendar 2016.
Change of name
As announced on 18 July 2016, Matchtech Group plc intends,
subject to shareholder approval, to rename as Gattaca plc.
The proposed change follows extensive research conducted by the
Group of its employees, candidates and current and potential
clients as to their view of the constituent brands that make up the
enlarged Group. This research showed that the Group brand
(Matchtech Group plc) and the operating engineering brand
(Matchtech) sharing the same name could be a source of
confusion.
Preliminary Results
The Group expects to announce its full year results for the 12
months to 31 July 2016 on Thursday 3 November 2016.
Brian Wilkinson, Chief Executive Officer, said:
"As I reported at the time of the Interim Results in April,
demand for skilled engineers remains strong in the UK and, notably,
we have yet to see any impact on vacancy flow in the six weeks
since the EU Referendum.
"We have seen strong growth in our Engineering division and, in
Technology, the market segmentation and sales restructuring we have
undertaken in the IT business has given us confidence for the new
financial year.
"We remain committed to our strategy of being the leading
specialist Engineering and Technology recruitment group. The
proposed change of plc name is the next step in the Group's
development, following the acquisition of Networkers International
plc in April 2015. The acquisition brought Telecoms and Technology
expertise to Matchtech's existing strength in Engineering and
Technology. It has enabled the Group to capitalise on the
convergence of the skill sets demanded by these markets and allowed
Matchtech to internationalise its existing service offering by
leveraging Networkers' global infrastructure.
"Our proposed new name, Gattaca, is a sign of our ambition and I
remain confident that we will convert the exciting opportunities
available to the Group into growth."
- ENDS -
For further information please contact:
Matchtech Group plc +44 (0) 1489 898989
Brian Wilkinson, Chief
Executive Officer
Tony Dyer, Chief Financial
Officer
Citigate Dewe Rogerson
- Financial PR +44 (0) 20 7638 9571
Rob Newman/Nick Hayns
Numis Securities Limited +44 (0) 20 7260 1000
Michael Meade / Tom Ballard
About Matchtech
Matchtech Group plc (LSE-AIM: MTEC), is the UK's leading
specialist Engineering and Technology (IT & Telecoms)
recruitment agency, providing contract, temporary and permanent
staff. Established in 1984 and AIM-listed in 2006, the Group is one
of the fastest growing staffing organisations listed in the UK,
with a well-balanced business model; approximately 70% contract and
30% permanent.
In April 2015, Matchtech Group plc announced the completion of
the acquisition of Networkers International, a global recruitment
company specialising in the delivery of recruitment services
focussing on Telecoms and Technology.
Recruiting in over 100 countries across the world from 14
offices in 11 countries, the Group has over 550 sales staff, with
over 9,000 contractors on assignment and places 4,000 candidates
into permanent positions each year.
The combined group is well-placed to take advantage of the
convergence between Engineering, Technology and Telecoms skill sets
and creates a specialist recruiter, of scale, in the UK and
internationally.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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