Matchtech sees better-than-expected FY results

8th Apr 2014 07:30

Engineering and professional services recruitment agency Matchtech said an increase in full-time jobs in the first half should help it to post better-than-expected annual results.The group said demand for contractors remained high while the permanent marketplace had continued its recovery in the six months to January 31st.Chief executive Adrian Gunn said second half trading was progressing well."The board anticipates the results for the year to July 31st 2014 will be slightly ahead of its previous expectations," he said.There was strong demand for contractors across most of the company's specialist disciplines, with the number of contractors on assignment at 7,000, the same level as at July 31st last year, despite a reduction of some 300 contractors at its largest client which was already factored into its forecasts.Matchtech said it had increased overall contract margins to 7.4% against 6.9% in the first half of 2013, with underlying contract margins increasing to 7.2%. "Encouragingly, the number of permanent placements has increased by 26% as confidence returns in the marketplace, with permanent recruitment fees up 17% to £6.2m," the group said in its results statement.Group revenues in the period rose 12% to £220.9m against the same time last year including a £5.5m contribution from an acquisition last September.Net fee income was up 19% to £22.1m from £18.5m a year ago and pre-tax earnings before interest and amortisation rose 53% to £6.6m. Pre-tax profit lifted 43% to £5.7m.Matchtech increased its interim dividend by 5% to 5.41p.PW