5th Aug 2019 11:35
(Alliance News) - RTC Group on Monday reported a dip in profit in the first half of 2019 on higher expenses and less stable market conditions, despite growth in revenue.
Shares in the engineering and technical recruiter were 14% lower at 49.60 pence on Monday.
For the six months to the end of June, RTC posted pretax profit at GBP708,000, down 8.1% from GBP770,000 the year before, as administrative expenses rose to GBP6.2 million from GBP5.4 million.
Revenue, however, grew by 12% year-on-year to GBP46.0 million from GBP41.1 million.
Segmentally, Ganymede's revenue rose by 34% to GBP21.1 million on higher levels of demand from Network Rail, while GSS revenue increased by 17% to GBP8.1 million, on an increase in workers supplied to US engineering firm KBR Inc.
This more than made up for an 11% drop in revenue to GBP15.9 million from ATA, as contract recruitment slowed amid market conditions clouded by Brexit uncertainty.
RTC declared an interim dividend of 1.4 pence per share, up 7.7% from 1.3p paid the prior year.
"Ganymede continues to perform well with enhanced volumes on its Network Rail contract and GSS has increased its presence internationally. ATA has encountered headwinds due to uncertainties over our future relationship with the European Union," said Chair Bill Douie.
"However, although the fog has not lifted in the political arena and, therefore, by extension in industry and commerce, we remain confident of continuing our satisfactory performance in the second half of 2019 and as such are maintaining our progressive dividend policy," Douie added.
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