Interim results for the six months ended 31 January 2007

Matchtech Group plc ("Matchtech" or the "Group"), one of the UK's leading specialist technical recruitment companies, is pleased to announce its maiden interim results for the six months ended 31 January 2007, following its Admission to AIM in October 2006.

Financial Highlights

  • Turnover up 30% to £93.4m (2006: £72.1m)*
  • Net fee income up 29% to £12.5m (2006: £9.7m)*
  • Operating profit up 35% to £5.0m (2006: £3.7m)*
  • Operating profit margin 5.4% (2006: 5.1%)*
  • Profit before tax up 34% to £4.7m (2006: £3.5m)*
  • Reported profit before tax after non-recurring items up 14% to £4.1m (£2006: 3.6m)
  • Basic earnings per share (pre non-recurring items) up 38% to 15.66p (2006: 11.33p)
  • Basic reported EPS up 18% to 13.36p (2006: 11.33p)
  • Maiden interim dividend of 4.4p per share

* 2006 and 2007 results exclude the sales and profits from the US business sold on 31 August 2006 as well as the non-recurring costs of the IPO

Operating Highlights

  • Strong organic growth across all sectors (Engineering, Built Environment and Support Services)
  • Results reflect continuing strong demand for permanent placements
  • 27% increase in permanent placements and 15% increase in contractor numbers in the period
  • Major Master Vendor contract secured with Mouchel Parkman
  • Successful Admission to AIM in October 2006
  • Adrian Gunn assumed the role of Group Managing Director on 1 February 2007

Commenting on the results, George Materna, Chairman of Matchtech said:

"We are very pleased with these results, our first as an AIM-listed company, which show that Matchtech has continued to make strong progress on all fronts. The markets we serve are demonstrating strong demand for qualified white collar staff and we are continuing to develop our offering though further investment in the business.

There is evidence of continuing salary inflation in each of the sectors in which we operate and the market remains candidate driven. In the Engineering and Built Environment sectors, a shortage of suitably qualified engineers continues to be a key factor in the marketplace, favouring our superior service delivery capabilities which derive from our systems and people.

The second half has started well and we believe that we will be able to build on what has been achieved in the first half, benefiting from our ongoing investment in staff, systems and additional office space. We look forward with confidence to the future."