7th Aug 2014 09:27
LONDON (Alliance News) - Matchtech Group PLC Thursday said its trading in the second-half has continued to improve and it now expects results to come in slightly ahead of market expectations, boosted by demand for skilled engineering and technology contract staff which drove its net fee income higher in the period.
The engineering and professional services recruitment firm said net fee income was up 18% in the year to July 31 to GBP45.2 million from GBP38.4 million a year earlier. The group said its income was pushed higher by the placement of higher-paid contractors, a rise in average contract percentage margin and contractor wage inflation. It was also boosted by more permanent placement activity in the UK as the country's economy recovers.
"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," Matchtech Chief Executive Adrian Gunn said.
"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," Gunn added.
The firm will publish its results for the year to July 31 on October 14.
Matchtech shares were up 1.3% to 586.5 pence on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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