24th Jul 2014 10:51
LONDON (Alliance News) - RTC Group PLC said Thursday that pretax profit jumped in the first-half as it recorded increased revenues from each of its businesses.
RTC Group said group revenue from continuing operations came in at GBP25.3 million, up from GBP23.4 million last year. Pretax profit for the half-year jumped to GBP405,000 compared to the GBP5,000 reported for the first-half of 2013.
Overall group profit from operations was GBP467,000, up from GBP66,000 last year.
The business services company said that all of its core businesses have performed at least in line with expectations, the Ganymede Solutions division continues to achieve accelerated growth, said RTC.
During the first-half of 2013 the company invested heavily in its ATA Recruitment business, both in consultant headcount and the management team, said Chairman Bill Douie. "The rewards from that investment began to emerge during the second half of 2013 and I am delighted to report that this has continued into 2014," he said.
ATA Recruitment profit from operations came in at GBP502,000, up from GBP385,000 last year.
Profit in RTC Group's Ganymede Solutions business saw profit from operations increase by 80% to GBP510,000 from GBP274,000 last year as increased levels of activity with existing customers were continued.
Global Staffing Solutions saw increased profit from operations of GBP463,000 compared to GBP364,000 the previous year. RTC said this reflects continuing efficiencies in managing the contract in Afghanistan offsetting a slight decline in number of contractors as the contract begins to draw down, coupled with an increase in income from other sources.
Compared to the first-half of 2013, the company also improved its cash flow from operations, which grew to GBP1.3 million, compared to the GBP1.3 million outflow reported last year.
RTC Group proposed an interim dividend of 0.5 pence per share, compared to the nil dividend in 2013. Subject to approval of the directors, the interim dividend will be paid on the October 1, 2014 to shareholders on the register on September 5, 2014.
"The staffing and structural changes in ATA Recruitment have settled in well and are continuing to deliver value to the Group. This coupled with the solid first half performance of all our core businesses give the Directors confidence that the year as a whole will meet market expectations," said Douie.
Shares in RTC Group shares were trading 16.22% higher at 43 pence per share Thursday morning, one of the biggest gainers on the London market.
By Alice Attwood; [email protected]; @AliceAtAlliance
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