REG - RTC Group PLC - Interim Results - Six Months Ended 30 Jun 2025
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RNS Number : 6923S RTC Group PLC 28 July 2025
This announcement contains inside information as stipulated under The Market
Abuse Regulation (EU No. 596/2014).
28 July 2025
RTC Group Plc
("RTC", "the Company" or "the Group")
Interim Results for the Six Months Ended 30 June 2025
RTC Group Plc (AIM: RTC.L), the engineering and technical recruitment Group,
is pleased to announce its unaudited results for the six months ended 30 June
2025.
Summary:
· Profit from operations maintained at £1.3m (2024:
£1.3m)
· Group revenue from continuing operations £48.3m (2024:
£49.0m)
· Net cash inflow from operating activities increased to
£3.3m (2024 £0.4m)
· £1.5m cash paid out in dividends and to purchase own
shares to enhance shareholder value
· Net assets £7.4m (31 December 2024: £8.0m)
· No term debt, and no borrowings other than lease
liabilities
· Fully diluted weighted average earnings per share 6.62p
(2024: 6.0p). There are no outstanding share options.
· Fully diluted earnings per share based on period end
number of shares 7.07p (2024: 6.01p)
· Strong and sustainable order book across multiple
sectors
The final dividend in respect of the year ended 31 December 2024 of 5.0p per
share (2024: 4.5p per share) was approved at the AGM on 21 May 2025 and paid
to shareholders on 27 June 2025. The Directors propose an interim dividend of
1.21p per share (2024: 1.10p per share). The interim dividend will be paid on
3 October 2025 to shareholders on the register on 5 September 2025.
Commenting on the results, Andy Pendlebury, Chairman and Chief Executive,
said:
"I am pleased to report that the Group has delivered profit from operations of
no less than £1.3m for the fourth consecutive six-month period, underlining
the reliability, robustness and continued resilience of the Group's strategy,
against a shifting market backdrop.
I believe our year-on-year like for like performance highlights the underlying
strength of our operating model with real-term profit growth and exceptional
cash generation mitigating the need for both term and working capital
borrowings. Additionally, our order book remains extremely resilient with
clear visibility of future revenue streams, and this, coupled with our
strategic positioning across the industries and sectors we have targeted, sees
us well positioned to navigate future challenges as they emerge and gives us
significant encouragement with regard to the prospects of the Group as market
conditions improve.
Our strategy of building a diverse Group in high growth sectors continues to
position us well to navigate the peaks and troughs of the traditional
recruitment cycle whilst further enhancing our long-term order book for
shareholders as the key sectors in which we operate are set to benefit from
the Government's long-term infrastructure investment plans. Our solid order
book across rail maintenance and renewals, and the continuing smart meter roll
out, provides clear revenue visibility for the remainder of 2025 and well into
2026.
Our balance sheet remains in a very healthy position with no term debt and no
borrowings other than lease liabilities and despite the broader uncertainties
facing the recruitment sector, we remain confident in our positioning and
optimistic about our short, medium, and long-term prospects."
The interim report is available on the Company's website www.rtcgroupplc.co.uk
(http://www.rtcgroupplc.co.uk) .
ENDS
Enquiries:
RTC Group Plc Tel: 01332 861 816
Andy Pendlebury, Chairman and Chief Executive Contact Us - RTC Group Plc
(https://www.rtcgroupplc.co.uk/contact-us/)
www.rtcgroupplc.co.uk (http://www.rtcgroupplc.co.uk)
SPARK Advisory Partners Limited (Nominated Adviser) Tel: 0203 368 3550
Matt Davis / James Keeshan
www.Sparkadvisorypartners.com (http://www.Sparkadvisorypartners.com)
SI Capital (Broker) Tel: 0148 341 3500
Nick Emerson / Sam Lomanto
www.sicapital.co.uk (http://www.sicapital.co.uk)
About RTC
RTC Group Plc is an AIM listed business that focuses on white and blue-collar
recruitment, providing temporary and permanent labour to a broad range of
industries and customers in both domestic and international markets through
its geographically defined operating divisions.
UK division
Through its Ganymede and ATA Recruitment brands the Group provides a wide
range of recruitment services in the UK.
Ganymede specialises in recruiting technical and engineering talent and
providing complete workforce solutions to help build and maintain
infrastructure and transportation for a wide range of clients. Ganymede is a
market leader in providing a diverse range of people solutions to the rail,
energy, construction, highways, and transportation sectors. With offices
strategically located across the country, Ganymede provides its clients with
the benefit of a national network of skilled personnel combined with local
expertise.
ATA Recruitment provides technical recruitment solutions to the manufacturing,
engineering, and technology sectors. Working as an engineering recruitment
partner supporting businesses across the UK. ATA Recruitment has a strong
track record of attracting and recruiting engineering talent for our clients.
ATA's regional offices which are strategically located in Leicester and Leeds
each have dedicated market-experts to ensure ATA delivers excellence to both
our clients and candidates.
International division
Through its GSS brand the Group works with customers across the globe that are
focused on delivering projects in a variety of engineering sectors. GSS has a
track record of delivery in some of the world's most hostile locations.
Working closely with its customers GSS provides contract and permanent
staffing solutions on an international basis, providing key personnel into new
projects and supporting ongoing large-scale project staffing needs. GSS
typically recruit across a range of disciplines and skills from operators and
supervisors, through to senior management level.
UK Central Services
The Group headquarters are located at the Derby Conference Centre which also
provides office accommodation for its operating divisions in addition to
generating rental and conferencing income from space not utilised by the
Group.
Chairman and Chief Executive's statement
Six months ended 30 June 2025
Overview
I am pleased to report that the Group has delivered profit from operations of
no less than £1.3m for the fourth consecutive six-month period, underlining
the reliability, robustness and continued resilience of the Group's strategy
against a shifting market backdrop.
Profit from operations of £1.3m for the first half of 2025 has been achieved
despite a continuation of a challenging trading environment, with softening
demand in the permanent recruitment market and delays in rail infrastructure
work impacting contingent labour requirements within our rail business.
Furthermore, this has been compounded by significant increases to our cost
base, as a result of Government legislation which has seen the Group absorb
around £200,000 of national insurance increases imposed in the October 2024
budget.
Therefore, despite the combination of these industry wide headwinds and
Government-enforced cost increases, I believe our year-on-year like for like
performance highlights the underlying strength of our operating model with
real term profit growth and exceptional cash generation mitigating the need
for both term and working capital borrowings. Additionally, our order book
remains extremely resilient with clear visibility of future revenue streams,
and this coupled with our strategic positioning across the industries and
sectors we have targeted, sees us well positioned to navigate future
challenges as they emerge and gives us significant encouragement with regard
to the prospects of the Group as market conditions improve.
During the period we continued our strategy of increasing shareholder value by
buying back a further 1,063,699 shares at a discount to the market and paid
out a final dividend for 2024 of 5.0p per share, an increase of 11% on the
final dividend for 2023.
Our balance sheet remains in a very healthy position with no term debt and no
borrowings other than lease liabilities. We have generated cash inflows from
operating activities of £3.3m, paid £1.5m out in dividends, and share
purchases, and ended the period with net assets of £7.4m (31 December 2024:
£8.0m) representing a healthy and fully diluted net asset value per share of
59.1p.
Given these consistently solid half-year results, delivering a pre-tax profit
of £1.2m for the period and the robustness of the Group's balance sheet, the
Directors propose an interim dividend of 1.21p per share (2024: 1.10p per
share). This represents a substantial increase of 10% versus 2024. The interim
dividend will be paid on 3 October 2025 to shareholders on the register on 5
September 2025.
UK Division
The UK division delivered a solid performance during the first half of 2025,
with notable progress in our Energy business and white-collar temporary
recruitment operations, offsetting challenges in permanent recruitment and
weaker demand for contingent labour across rail infrastructure projects.
Our Energy business continued to perform strongly, benefitting from increased
demand driven by sustained activity in smart metering upgrades and meter
replacements. This strong start reinforces our confidence in delivering a
robust full year outcome and further strengthens our strategic position as a
leading provider to the energy sector.
Our white-collar temporary recruitment teams across ATA and Ganymede delivered
encouraging results, with revenues increasing by 12% compared to the same
period in 2024. This growth reflects continued demand for flexible workforce
solutions, particularly across infrastructure, engineering, and manufacturing
sectors, and demonstrates our ability to adapt effectively to evolving client
requirements and market conditions.
In contrast, the UK permanent recruitment market has remained subdued through
the first half of 2025. Reduced client confidence in committing to long-term
hires, further impacted by increased employer costs following changes to NI
contributions, resulted in a year-on-year decline of approximately 15% in
permanent recruitment revenues within our ATA and Ganymede white collar teams.
Despite this, we continue to maintain strong client relationships and remain
well placed to respond when market sentiment improves.
Trading within the rail sector was affected by a slower than anticipated start
to Network Rail's Control Period 7 (CP7), which commenced in April 2024.
Activity levels remained subdued throughout the first half of 2025. However,
in line with historic trends, we anticipate activity will normalise as CP7
progresses and Ganymede Rail remains well positioned to capitalise on the
significant opportunities presented by CP7, which includes an expected £43
billion investment programme over the five-year period.
International division
International recruitment revenue has reduced year-on-year, reflecting the
nature of project life cycles in the international arena. However, profit
margins improved in the first half of 2025 due to a change in mix of contracts
(each contract has bespoke service arrangements), and profit from operations
for the period was similar to 2024.
Whilst the present revenue run-rate reflects the current position across the
range of international contracts GSS is currently supporting, we continue to
work with a range of long-standing existing clients and a growing number of
new clients across a broad range of new and emerging long-term project
opportunities. GSS is a market leader as a United Kingdom recruiter supplying
multinational workers to overseas contracts, especially in hostile
environments, and we remain confident given current global tensions that
opportunities to win both long-term military and civil support contracts will
continue to emerge.
Central services
After a slow start to the year, activity in Q2 improved and the Derby
Conference Centre has delivered a first half in line with 2024. We are
confident that despite the increase in NI costs from April 2025
disproportionately impacting our hospitality business, the outstanding
services provided by the conference centre will stand it in good stead for the
remainder of the year.
Outlook
In July last year, I noted that while we were in the early days of a new
Government, we were encouraged by the proposed 10-year infrastructure plan set
out in Labour's manifesto, which signalled significant investment across key
sectors aligned with our strategic focus. While that ambition has since been
formalised through the recently announced £725 billion National
Infrastructure Strategy, the pace of delivery has so far been slow, and we
have yet to see tangible increases in demand, particularly within rail
infrastructure where, as noted above, CP7 investment remains subdued. However,
with long-term infrastructure commitments now more clearly defined, we are
confident that investment activity will accelerate and begin to drive
increased demand across the sectors in which we operate.
In March, this year I highlighted the potential headwinds facing the broader
UK economy, which have traditionally flowed through to the recruitment sector.
The increase in employer NI costs, alongside uncertainty surrounding the
proposed Employment Rights Bill, yet to be implemented, is contributing to
more cautious hiring behaviour, which is expected to continue impacting
permanent recruitment in the near term.
Nonetheless, our strategy of building a diverse Group in high growth sectors
continues to position us well to navigate the peaks and troughs of the
traditional recruitment cycle whilst further enhancing our long-term order
book for shareholders as the key sectors in which we operate are set to
benefit from the Government's long-term infrastructure investment plans. Our
solid order book across rail maintenance and renewals, and the continuing
smart meter roll out, provides clear revenue visibility for the remainder of
2025 and well into 2026.
Despite the broader uncertainties facing the recruitment sector, we therefore
remain confident in our positioning and optimistic about our short, medium,
and long-term prospects.
A M Pendlebury
Chairman and Chief Executive
28 July 2025
Finance Director's statement
Six months ended 30 June 2025
Highlights
For the six months ended 30 June 2025, the Group delivered revenues of £48.3m
(2024: £49.0m). Revenues were reduced predominantly as a contract in our
international division came to an end. Gross profit levels were maintained at
£8.9m (2024: £8.9m) as was profit before tax of £1.2m (2024: £1.2m).
UK recruitment
UK Recruitment delivered revenues of £45.2m (2024: £45.4m). Overall profit
from operations increased to £2.8m (2024: £2.5m). The rate of conversion
of gross profit to profit from operations increased to 35.3% (2024: 31.9%),
despite increased employment costs relating to the NI changes. We continued to
invest in training our people and completed the replacement of our front-end
recruitment software systems.
International recruitment
Revenues for the period reduced to £2.1m (2024: £2.7m) due to services
delivered on a project in 2024 that were not repeated in 2025. Absolute gross
profit also reduced to £433,000 (2024: £485,000) but gross margin increased
to 20.5% (2024: 17.9%) reflecting the change in mix of contracts (each
contract has a bespoke service delivery model) and, due to the agile nature of
the division yielding overhead savings, profit from operations was only
slightly reduced at £228,000 (2024: £247,000) as a result.
UK Central Services
Within UK Central Services, our hotel and conference centre business
experienced another quiet start to the year, but activity picked up in Q2
enabling them to deliver similar revenue to last year of £946,000 (2024:
£933,000). Gross profit was slightly reduced at £416,000 (2024: £451,000)
and gross margin was down to 44% (2024: 48.3%) reflecting the start of the
impact of NI increases that came into effect in April which disproportionally
impact hospitality due largely to the reduction in NI threshold.
Taxation
The total tax charge for the period is estimated at £327,000 (2024:
£336,000). This is higher than would be expected if the standard tax rate was
applied to the result for the period, as explained in note 3.
Share buy-back and exercise of options
In April 2025, we bought back 1,063,699 shares at an average price of 80.0
pence, representing a discount of 13.51 per cent to the closing price per
existing ordinary share on 11 April 2025. These purchased shares were
subsequently cancelled.
In May 2025, an employee exercised the remaining 5,000 share options that were
outstanding at 31 December 2024. There are no longer any share options
outstanding. New shares were issued to satisfy the exercise and the total
number of issued ordinary shares of the Company is now 12,554,198.
Earnings per share
The basic and diluted weighted average earnings per share figure is 6.62p
(2024: 6.0p). There is no dilution as there are no share options remaining.
Earnings per share based on the number of shares at the end of the period
was 7.07p (2024: 6.01p).
Dividends
The final dividend in respect of the year ended 31 December 2024 of 5.0p per
share (2024: 4.5p) was approved at the AGM on 21 May 2025 and paid to
shareholders on 27 June 2025. The Directors propose an interim dividend of
1.21p per share (2024: 1.10p per share). The interim dividend will be paid on
3 October 2025 to shareholders on the register on 5 September 2025.
Statement of financial position
Net working capital is £6.5m (31 December 2024: £7.0m) and net assets are
£7.4m (31 December 2024: £8.0m), having paid out £1.5m in dividends and to
purchase own shares during the period. The Group has no term debt and no
borrowings other than lease liabilities. It is financed using its invoice
discounting and overdraft facilities with HSBC. At 30 June 2025 there were no
overdrafts in use and no invoice discounting funds in use (2024: Nil).
Cash flow
The improvement in cash inflow from operating activities which was £3.3m
(2024: £0.4m) for the six-month period largely reflects timing of VAT
payments and the treatment of dividend payments in 2024 versus 2025.
Financing
The Group's current bank facilities comprise an overdraft of £50,000 and an
invoice discounting facility of up to £12m with HSBC at a discount margin of
1.6% above base. The Board closely monitors the level of facility utilisation
and availability to ensure there is enough headroom to manage current
operations and future needs of the business. The Group continues to be
focussed on cash generation and building a robust statement of financial
position to protect the business.
Going concern
In assessing the risks related to the continued availability of the current
facilities, the Board has taken into consideration the existing relationship
with HSBC and the strength of the security provided, together with the
quality of the Group's customer base. Based on their enquiries, the Board have
concluded that sufficient facilities will continue to remain available to the
Group and therefore the going concern basis of preparation remains appropriate
and no material uncertainty exists.
As a result, the going concern basis continues to be appropriate in preparing
the interim results.
S L
Dye
Group Finance Director
28 July
2025
Consolidated statement of comprehensive income:
Six-month period ended 30 June 2025 Six-month period ended 30 June 2024 Year-ended
31
December 2024
Unaudited Unaudited Audited
Notes £'000 £'000 £'000
Revenue 2 48,271 49,038 96,762
Cost of sales 2 (39,373) (40,188) (78,831)
Gross profit 2 8,898 8,850 17,931
Administrative expenses 2 (7,629) (7,598) (15,306)
Profit from operations 2 1,269 1,252 2,625
Finance expense (55) (38) (80)
Profit before tax 1,214 1,214 2,545
Tax expense 3 (327) (336) (672)
Total profit and other comprehensive income for the period attributable to 887 878 1,873
owners of the parent
Earnings per ordinary share
Basic 6.62p 6.00p 13.01
Fully diluted 6.62p 5.99p 13.01
Consolidated statement of changes in equity for the six months ended 30 June 2025:
Share capital Share premium Capital redemption reserve Share based payment reserve Profit and loss Total equity
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2025 136 120 60 3 7,688 8,007
Total comprehensive income for the period - - - - 887 888
Transactions with owners:
Dividends - - - - (628) (628)
Own shares purchased (10) - 10 (850) (850)
Total transactions with owners (10) - 10 (3) 3 -
At 30 June 2025 (Unaudited) 126 120 70 - 7,100 7,416
Consolidated statement of changes in equity for the six months ended 30 June 2024:
Share capital Share premium Capital redemption reserve Share based payment reserve Profit and loss Total equity
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2024 146 120 50 20 7,597 7,933
Total comprehensive income for the period - - - - 878 878
Transactions with owners:
Share options exercised - - - (15) (72) (87)
Total transactions with owners - - - (15) (72) (87)
At 30 June 2024 (Unaudited) 146 120 50 5 8,403 8,724
Consolidated statement of changes in equity for the year ended 31 December
2024:
Share capital Share premium Capital redemption reserve Share based payment reserve Retained earnings Total equity
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2024 146 120 50 20 7,597 7,933
Total comprehensive income for the year - - - - 1,873 1,873
Transactions with owners:
Dividends (note 20) - - - - (819) (819)
Share options exercised - - - (17) 17 -
Own shares purchased (10) - 10 - (980) (980)
Total transactions with owners (10) - 10 (17) (1,782) (1,799)
At 31 December 2024 136 120 60 3 7,688 8,007
Consolidated statement of financial position:
As at As at As at
30 June 2025 30 June 31 December 2024
Unaudited 2024 Audited
Unaudited
£'000 £'000 £'000
Assets
Non-current
Goodwill 132 132 132
Other intangible assets 70 - 93
Property, plant, and equipment 1,012 1,244 1,083
Right of use assets 1,766 2,038 1,941
Deferred tax asset - 6 1
2,980 3,420 3,250
Current
Inventories 12 13 13
Trade and other receivables 15,278 15,970 17,462
Cash and cash equivalents 2,480 954 934
17,770 16,937 18,409
Total assets 20,750 20,357 21,659
Liabilities
Current
Trade and other payables (10,039) (8,268) (10,536)
Lease liabilities (294) (300) (294)
Corporation tax (964) (861) (614)
(11,297) (9,429) (11,444)
Non-current liabilities
Lease liabilities (1,930) (2,049) (2,077)
Deferred tax liabilities (107) (155) (131)
(2,037) (2,204) (2,208)
Total liabilities (13,334) (11,633) (13,652)
Net assets 7,416 8,724 8,007
Equity
Share capital 126 146 136
Share premium 120 120 120
Capital redemption reserve 70 50 60
Share based payment reserve - 5 3
Profit and loss account 7,100 8,403 7,688
Total equity 7,416 8,724 8,007
Consolidated statement of cash flows:
Six-month period ended 30 June 2025 Unaudited Six-month period ended 30 June 2024 Unaudited Year ended 31 December 2024
Audited
£'000 £'000 £'000
Cash flows from operating activities
Profit before tax 1,214 1,214 2,545
Adjustments for:
Depreciation, loss on disposal and amortisation 325 295 691
Finance expense 55 38 80
Change in inventories 1 1 1
Change in trade and other receivables 2,184 1,452 (40)
Change in trade and other payables (497) (2,647) (379)
Cash inflow from operations 3,282 353 2,898
Income tax paid - - (602)
Interest paid (55) (38) (80)
Net cash inflow from operating activities 3,227 315 2,216
Cash flows from investing activities
Purchases of property, plant and equipment and intangibles (56) (55) (213)
Net cash used in investing activities (56) 260 (213)
Cash flows from financing activities
Shares purchased (850) (87) (980)
Dividend paid (628) - (819)
Payments of lease liabilities (147) (288) (339)
Net cash (outflow) from financing activities (1,625) (375) (2,138)
Net increase/(decrease) in cash and cash equivalents 1,546 (115) (135)
Cash and cash equivalents at beginning of period 934 1,069 1,069
Cash and cash equivalents at end of period 2,480 954 934
Notes to the interim statement for the six months ended 30 June 2025:
1. Accounting policies
a) General information
RTC Group Plc is incorporated and domiciled in
England and its shares are publicly traded on AIM. The registered office
address is The Derby Conference Centre, London Road, Derby, DE24 8UX. The
company's registered number is 02558971. The principal activities of the Group
are described in note 2.
The Board consider the principal risks and
uncertainties relating to the Group for the next six months to be the same as
detailed in our last Annual Report and Accounts to 31 December 2024.
b) Basis of preparation
The unaudited interim Group financial information of RTC Group Plc is for the
six months ended 30 June 2025 and does not comprise statutory accounts within
the meaning of S.435 of the Companies Act 2006. The unaudited interim Group
financial statements have been prepared in accordance with the AIM rules and
have not been reviewed by the Group's auditors. This report should be read in
conjunction with the Group's Annual Report and Accounts for the year ended 31
December 2024, which have been prepared in accordance with International
Accounting Standards in conformity with the requirements of the Companies Act
2006 and with those parts of the Companies Act 2006 applicable to companies
reporting under IFRS.
Going concern
The Group's current bank facilities include a net overdraft facility across
the Group of £50,000 and an invoice discounting facility with HSBC providing
of up to £12m, based on a percentage of good book debts, at a margin of 1.6%
above base. The Board closely monitors the level of facility utilisation and
availability to ensure there is enough headroom to manage current operations
and support the growth of the business.
In assessing the risks related to the continued availability of the current
facilities, the Board have taken into consideration the existing relationship
with HSBC and the strength of the security provided, also the quality of the
Group's customer base. Based on their enquiries, the Board have concluded that
sufficient facilities will continue to remain available to the Group and
therefore the going concern basis of preparation remains appropriate and no
material uncertainty exists.
As a result, the going concern basis continues to be appropriate in preparing
the interim results.
These unaudited interim Group financial statements
were approved for issue on 28 July 2025. No significant events, other than
those disclosed in this document, have occurred between 30 June 2025 and this
date.
c) Comparatives
The comparative figures for the year ended 31
December 2024 do not constitute statutory accounts within the meaning of S.435
of the Companies Act 2006, but they have been derived from the audited
financial statements for that year, which have been filed with the Registrar
of Companies. The report of the auditor was unqualified and did not contain a
statement under section 498 (2) or (3) of the Companies Act 2006 nor a
reference to any matters which the auditor drew attention by way of emphasis
of matter without qualifying their report.
d) Accounting policies
In preparing these interim financial statements, the Board have considered the
impact of new standards which will be applied in the 2025 Annual Report and
Accounts and there are not expected to be any changes in the accounting
policies compared to those applied at 31 December 2024.
A full description of accounting policies is contained with our 2024 Annual
Report and Accounts which is available on our website.
This interim announcement has been prepared in accordance with International
Accounting Standards in conformity with the requirements of the Companies Act
2006 and with those parts of the Companies Act 2006 applicable to companies
reporting under IFRS as effective for periods beginning on or after 1 January
2024.
2. Segment analysis
The business is split into three operating segments, with recruitment being
split by geographical area. This reflects the integrated approach to the
Group's recruitment business in the UK and independent delivery of overseas
business. Three operating segments have therefore been agreed, based on the
geography of the business unit: United Kingdom, International and Central
Services.
This is consistent with the reporting for management purposes, with the Group
organised into two reportable segments, Recruitment and Central Services,
which are strategic business units that offer different products and services.
They are managed separately because each segment has a different purpose
within the Group and requires different technologies and marketing
strategies.
Segment operating profit is the profit earned by each operating segment
defined above and is the measure reported to the Group's Board, the Group's
Chief Operating Decision Maker for performance management and resource
allocation purposes. The Group manages the trading performance of each segment
by monitoring operating contribution and centrally manages working capital,
financing, and equity.
Revenues within the recruitment operating segment have similar economic
characteristics and share a majority of the aggregation criteria set out in
IFRS 8:12 in particular the nature of the products and services, the type or
class of customers, the country in which the service is delivered, and the
processes utilised to deliver the services and the regulatory environment for
the services.
The purpose of the Central Services segment is to provide all central services
for the Group including the Group's head office facilities in Derby. It also
generates income from excess space at the Derby site including rental and
hotel and conferencing facilities.
During the first half of 2025, three customers in the UK Recruitment segment
contributed 10% or more of that segment's revenues being £11.5m (2024:
£14.7m), £5.5m (2024: £4.4m), and £5.4m (2024: £5.9m) respectively, and
two customers in the International Recruitment sector contributed 10% or more
of that segment's revenues being £1.0m (2024: £0.1m) and £0.9m (2024:
£1.1m).
Revenue, gross profit, and operating profit delivery by geography for the
six-month period ended 30 June 2025:
£'000 UK UK International Total Group
Recruitment Central Recruitment
Services
Revenue 45,209 946 2,116 48,271
Cost of sales (37,160) (530) (1,683) (39,373)
Gross profit 8,049 416 433 8,898
Administrative expenses (5,104) (1,995) (205) (7,304)
Amortisation of intangible assets (23) - - (23)
Depreciation of right of use assets (46) (128) - (174)
Depreciation (34) (94) - (128)
Total administrative expenses (5,207) (2,217) (205) (7,629)
Profit from operations 2,842 (1,801) 228 1,269
Segment profit from operations above represents the profit earned by each
segment without allocation of Group administration costs or finance costs.
Segment information for the six months ended 30 June 2024:
£'000 UK UK International Total Group
Recruitment Central Recruitment
Services
Revenue 45,394 933 2,711 49,038
Cost of sales (37,480) (482) (2,226) (40,188)
Gross profit 7,914 451 485 8,850
Administrative expenses (5,287) (1,778) (238) (7,303)
Depreciation of right of use assets (36) (122) - (158)
Depreciation (62) (75) - (137)
Total administrative expenses (5,385) (1,975) (238) (7,598)
Profit from operations 2,529 (1,524) 247 1,252
Segment information for the year ended 31 December 2024:
£'000 UK UK International Total Group
Recruitment Central Recruitment
Services
Revenue 88,939 2,225 5,598 96,762
Cost of sales (73,332) (1,096) (4,403) (78,831)
Gross profit 15,607 1,129 1,195 17,931
Administrative expenses (10,405) (3,755) (497) (14,657)
Amortisation of intangibles (47) - - (47)
Depreciation of right of use assets (79) (249) - (328)
Depreciation (120) (153) (1) (274)
Total administrative expenses (10,651) (4,157) (498) (15,306)
Profit / (loss) from operations 4,956 (3,028) 697 2,625
Recruitment revenues are generated from permanent and temporary recruitment
and long-term contracts for labour supply. Within Central Services revenues
are generated from the rental of excess space and hotel and conferencing at
the Derby site, described as Other below.
Revenue and gross profit by service classification for management purposes:
Revenue Six months ended 30 June 2025 (Unaudited) Six months ended 30 June 2024 (Unaudited) Year ended 31
December
2024
£'000 (Audited)
Permanent placements 1,226 1,435 2,823
Contract 46,099 46,670 91,714
Other 946 933 2,225
48,271 49,038 96,762
Gross profit Six months ended 30 June 2025 (Unaudited) Six months ended 30 June 2024 (Unaudited) Year ended 31 December
2024
(Audited)
£'000
Permanent placements 1,226 1,435 2,823
Contract 7,256 6,964 13,979
Other 416 451 1,129
8,898 8,850 17,931
3. Income tax
Continuing operations Six-month period ended 30 June 2025 (Unaudited) Six-month period Year ended 31
ended 30 June 2024 (Unaudited) December 2024
(Audited)
£'000 £'000 £'000
Analysis of tax:
Current tax
UK corporation tax 350 339 714
Adjustment in respect of previous periods - - (20)
350 339 694
Deferred tax
Origination and reversal of temporary differences (23) (3) (22)
Tax 327 336 672
Factors affecting the tax expense
The tax assessed for the six-month period ended 30 June 2025 is higher than
(2024: higher than) would be expected by multiplying profit by the standard
rate of corporation tax in the UK of 25% (2024: 25%).
The differences are explained below:
Six-month period ended 30 June 2025 Unaudited Six-month period ended 30 June 2024 Unaudited Year ended 31 December 2024
Audited
Factors affecting tax expense £'000 £'000 £'000
Result for the period before tax 1,214 1,214 2,545
Profit multiplied by standard rate of tax of 25% (2024: 25%) 304 304 636
Non-deductible expenses 23 32 56
Adjustment in respect of previous periods - (20)
Tax charge for the period 327 336
4. Borrowings
Included in current borrowings are bank overdrafts and an invoice discounting
facility which is secured by a cross guarantee and debenture over all Group
companies. There have been no defaults or breaches of the terms of the
facility during the current or prior period.
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