Join our community of smart investors

Matchtech benefits from skills shortage

RESULT: An engineering focus shelters Matchtech from the general recruitment slowdown, but there are few catalysts to spark a re-rating in the high-yielding shares
October 4, 2012

There is no doubting that recruitment markets are tough at the moment, and the outlook is still far from certain, but Matchtech (MTEC) has delivered solid growth and a recovery in profits by focusing on a buoyant market for UK engineers. Tony Dyer, finance director, said a shortage of skilled engineers combined with strong worldwide demand for British brands such as Jaguar Land Rover were key to the company growing net fee income by 21 per cent to £36.1m in the last financial year.

IC TIP: Hold at 214p

Strong demand in the automotive sector was matched in aerospace as Airbus develops its A350 planes and Matchtech had a record 6,700 contractors on hire at the year-end. However, reflecting the uncertainty in the wider economy, companies are taking longer to make hiring decisions for permanent recruitment, which meant this segment accounts for a third of placements with contractors making up the majority.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in