Matchtech’s net fee income fell 14 per cent year-on-year to £26.2m as the technical recruiter experienced pressure on margins and pay rates. That reflects a move by clients to cut costs while still maintaining staff levels in order to complete projects.
But management did respond quickly with a restructuring effort. That appears to be delivering some positive results, too, with permanent recruitment fees for the fourth quarter having risen 14 per cent year-on-year. While, at the year-end, there were a record number of contractors on assignment - 5,100, in fact, compared with 4,500 at end-July 2009.
The group’s core focus remains the technical markets of engineering, science and medical, built environment and IT. But two new professional services operations have been launched under the brands Barclay Meade and Alderwood Education - with offices in London, St Albans and Aberdeen. What's more, Matchtech's expansion into Germany has progressed further. Management also invested in a recruitment outsourcing brand, elemense, for the technical sector - that specialises in offering clients a full human resources service.
KBC Peel Hunt expects adjusted pre-tax profit of £9.4m for 2011, giving EPS of 28.6p (2010: £8.6m/26.4p).
MATCHTECH (MTEC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 197p | MARKET VALUE: | £46m | |
| TOUCH: | 193-200p | 12-MONTH HIGH: | 261p | LOW:188p |
| DIVIDEND YIELD: | 7.9% | PE RATIO: | 6 | |
| NET ASSET VALUE: | 102p | NET DEBT: | 19% | |
| Year to 31 Jul | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 157 | 7.84 | 26.3 | nil |
| 2007 | 203 | 9.87 | 29.9 | 13.7 |
| 2008 | 259 | 12.8 | 39.3 | 15.6 |
| 2009 | 270 | 11.3 | 26.4 | 15.6 |
| 2010 | 264 | 8.58 | 34.4 | 15.6 |
| % change | -2 | -24 | +30 | - |
Ex-div:3 Nov Payment:3 Dec | ||||
