Results Centre

Preliminary Results for the year to 31st July 2016

Please see the video below to hear Brian Wilkinson, Chief Executive Officer, and Tony Dyer, Chief Financial Officer, present the preliminary results for the year ended 31st July 2016 and then answer investors' questions. 

Please click here to see a summary of the Group's results for 2016 or download the full annual report here. 

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Interim Results for the six months to 31st January 2016

The Group today announces another solid set of results, reflecting the continuing strategic and operational progress we are making.

The acquisition of the Networkers business in April 2015 has enabled the Group to deliver a 62% increase in NFI for the period. Cost synergies are being realised as planned, with more to come in the second half-year.

Performance in the first half of FY 2016 is in line with management's expectations, with NFI growth in Engineering of 7% and Telecoms of 11% compared to the second half of last year. IT declined 20% against 2015 H1, improving to a 9% decline against 2015 H2, and management actions are in hand to deliver an improved performance, with a new IT market segmentation implemented post period end giving clear niche specialist focus in attractive markets where we have high levels of capability.

Demand for skilled engineers remains strong in the UK. Having identified a number of opportunities to roll out our Engineering recruitment services internationally, we have taken the first practical steps to realise sales synergies through our new overseas network, with some encouraging initial results.  Investment in headcount is continuing in these areas as we aim to build market share and I remain confident that we will convert these exciting opportunities into significant growth over the next few years.

Please click here to view the Interim Results and Presentation.

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Results for the year to 31st July 2015

The acquisition of Networkers International plc, completed in April 2015, brings the Group not only a well-regarded presence in the Telecoms market, but also a new competence in multi-site, multi-jurisdiction management.

The combination of Networkers' international candidate database with Matchtech's largely UK contractor resource will allow the enlarged Group to address the global skills shortage issues reported by our fast-developing UK client-base, enabling us to better service more of their recruitment needs.

By enhancing our global capability, we are increasingly attractive to UK qualified engineers, who are highly valued throughout the world and are increasingly seeking to gain experience on the largest and most prestigious international projects.

Overall, the acquisition creates a significantly more geographically balanced business with scale in fast-growing international markets and the increased client base opens up many cross-selling opportunities across the Group.

 

Financial Highlights1

Group Revenue - £502.3m (2015 excluding Networkers: £445.0m | 2014: £451.6m)

Net fee income2 - £54.8m (2015 excluding Networkers: £45.3m | 2014: £45.0m)

Adjusted EBITA3 - £16.8m (2015 excluding Networkers: £14.5m | 2014: £13.6m)

EBITA - £14.0m (2014: £13,6m)

Adjusted profit before tax3 - £15.7m (2015 excluding Networkers: £13.8m | 2014: £12.6m)

Profit before tax - £11.3m (2014: £11.9m)

Adjusted basic earnings per share3 - 45.3p (2014: 39.2p)

Basic earnings per share - 31.0p (2014: 37.0p)

Dividend per share - 22.0p (2014: 20.0p)

Dividend cover - 2.1x (2014: 2.0x)

1 Results include 4 months trading of Networkers International plc
2 Net fee income is calculated as revenue less contractor payroll costs
3 Adjusted results excluding acquisition costs of £1.7m, non-recurring costs of £1.0m and amortisation of acquired intangibles of £1.7m (2014: £0.7m)
 

Please click here to view our 2015 Annual Report.

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Interim Results for the six months to 31st January 2015

The Group has delivered a steady performance in the period. We continue to sharpen the focus in our core business areas, in line with our strategy. 

We now enter the next phase in our development of the Group following the completion of the acquisition of Networkers and are very excited by the prospects of the enlarged group. We continue to see major opportunities in our core markets.

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. 

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.

Financial highlights

Net Fee Income

  • Net fee income (NFI) up 2% to £22.5m (2014 H1: £22.1m)
  • Contract NFI up 3% to £16.3m (2014 H1: £15.9m), with contract margins improving slightly at 7.5% (2014 H1: 7.4%)
  • Permanent recruitment fees of £6.2m, consistent with H1 2014

Profitability & Net Debt

  • Profit from Operations of £5.3m, down £0.9m (2014 H1: £6.2m), due to non-recurring items of £0.7m of acquisition costs and £0.2m of restructuring costs
  • Underlying1 Profit from Operations of £6.5m, consistent with H1 2014
  • Profit before tax down £0.6m to £5.1m, (2014 H1: £5.7m)
  • Underlying1 Profit before tax up 5% to £6.3m (2014 H1: £6.0m)
  • Basic earnings per share of 15.1p (2014 H1: 18.1p)
  • Underlying1 Basic earnings per share up 2% to19.9p (2014 H1: 19.6p)
  • Net debt at 31 January 2015 reduced by £6.7m to £1.9m (2014 H1: £8.6m)

1 Underlying results exclude acquisition costs, amortisation of acquired intangibles and non-recurring restructuring costs.

Interim Dividend

  • Interim dividend increased by 5% to 5.68p (2014 H1: 5.41p) to be paid on 19 June 2015 to shareholders on the register at 29 May 2015