9th Apr 2015 08:36
LONDON (Alliance News) - Matchtech Group PLC Thursday reported a decline in profit for the first half of its financial year which it said was hit by acquisition and restructuring costs, as it signs various contracts with clients to assist with the search for new staff.
However it said it expects its full year results to be in line with expectations.
The specialist engineering and professional services recruiter reported a drop in pretax profit for the six months ended January 31 to GBP5.1 million from GBP5.7 million the year before, following acquisition costs of GBP0.7 million and restructuring costs of GBP0.2 million. Revenue also fell slightly to GBP220.2 million from GBP220.9 million.
However, the company said its net fee income was up 2% to GBP22.5 million from GBP22.1 million.
Last week Matchtech completed the acquisition of Networkers International for approximately GBP57.9 million. It had announced the deal in January. The company also has signed a number of contracts with clients during and since the half year end, including a six-year agreement with Southern Water.
On Thursday, the company announced that it has signed a three-year extension to an existing contract with BAE Systems, a new three-year contract with Zodiac Aerospace, and a new three-year contract with HCL Technologies.
"These contracts reflect the continued belief of our clients - market leaders in their respective industries - in Matchtech Group's ability to provide them with the highest quality talent. The focused nature of our specialist teams enables us to provide highly-skilled candidates that can fulfil specific business needs across an organisation, in engineering, technology or professional staffing," Chief Operating Officer Keith Lewis said in a statement.
The company said it will pay an interim dividend of 5.68 pence, up 5% from 5.41p in the same period a year before.
"The addition of telecoms recruitment to our portfolio creates an even stronger specialist group. The acquisition also adds long-standing, substantial and profitable overseas operations to the group which enables us to accelerate the introduction of our engineering services to our international customers, also in line with our strategy. We are now working on the integration of Networkers to ensure the combined operations provide an enhanced client experience and a stronger platform for future growth," Chief Executive Brian Wilkinson said in a statement.
"Based on opportunities won, trading in the two months since the half year and continued close cost management the board anticipates the group's results for the year to 31 July 2015 will be in line with expectations with an additional maiden four-months contribution from Networkers from April to July," he added.
Shares in Matchtech were trading down 1.9% at 525.00 pence Thursday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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