REG - RTC Group PLC - Final results for the year ended 31 December 2025
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RNS Number : 5776X RTC Group PLC 23 March 2026
23 March 2026
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RTC Group Plc
("RTC", "the Company" or "the Group")
Final results for the year ended 31 December 2025
RTC Group Plc (AIM: RTC) is pleased to announce its audited results for the year ended 31 December 2025.
Highlights
· Profit from operations maintained at £2.5m (2024: £2.5m)
· EBITDA maintained at £3.3m (2024: £3.3m)
· Group revenue from continuing operations £95.5m (2024: £96.8m)
· Net cash inflow from operating activities increased to £5.2m
(2024: £2.2m)
· No term debt, and no borrowing other than lease liabilities
· Cash and cash equivalents £3.9m (31 December 2024: £0.9m)
· £1.6m cash paid out in dividends and to purchase own shares to
enhance shareholder value
· Net assets £8.2m (31 December 2024: £8.0m)
· Net asset value per share (fully diluted) 65p (31 December 2024:
59p).
· Fully diluted weighted average earnings per share 14.10p (2024:
13.01p).
· There are no outstanding share options (31 December 2024: 5,000).
· Interim dividend 1.21p per share paid (2024: 1.10p).
· 5.5p final dividend proposed (2024: 5.0p).
The Directors propose a final dividend for the year of 5.5p (2024: 5.0p) per
share, subject to approval of shareholders at the Annual General Meeting on 27
May 2026. If shareholders approve the recommended final dividend, it will be
paid on 26 June 2026 to all holders of shares who are on the register of
members at the close of business on 29 May 2026, with an ex-dividend date of
28 May 2026. If approved this will bring the total dividend paid out in
respect of 2025 to £842,387 (6.71p per share).
Commenting on the results Andy Pendlebury, Chairman and Chief Executive said:
"I am delighted to report that despite a significantly challenging year for
the UK economy, and particularly the recruitment sector, our Group delivered
an extremely robust set of results in 2025.
Against a background of rising costs driven mainly by the government's
increase to Employers' National insurance (NI) contributions and increase in
minimum wage levels, and subdued confidence across many sectors of the
economy, we successfully equalled our record profit before tax in 2024 of
£2.5m. This, given we had to absorb such a large increase in NI
contributions is, I believe, an outstanding outcome for the Group and its
shareholders. It is worth noting that on a constant cost (NI 2024) basis the
Group would have delivered another record year of profit with an impressive
10% increase.
Whilst global growth sentiment remains at its most fragile and emerging
evidence suggests that the UK labour market is stagnating, we believe the
strategic direction we have been following will provide the best chance of
revenue protection for our shareholders. Our strong order book and strategic
positioning in high spend infrastructure sectors afford us some visibility of
future revenue streams and our commitment to cost optimisation is relentless
right across the Group with non-revenue generating expenditure under constant
scrutiny. The continuing impact of national insurance and minimum wage
increases, combined with the ongoing implementation of the Employment Rights
Act which brings with it further additional employment costs, cannot be
avoided and will undoubtedly bring further uncertainties.
Therefore, given our year-on-year financial performance, real-term growth,
strong balance sheet with no term debt, enhanced EPS, another year of proposed
dividend growth (10%), and a solid multi-sector order book with long-term
revenue visibility, I believe that, notwithstanding the plethora of
uncertainties facing both global and domestic economies, our Group is well
positioned to continue capturing long-term business opportunities and enhanced
value for our shareholders."
Enquiries:
RTC Group Plc Tel: 0133 286 1842
Andy Pendlebury, Chairman and Chief Executive
Sarah Dye, Group Finance Director
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)
Zeus (Broker) Tel: 020 3829 5000
Mike Coe / James Bavister (Investment Banking)
Nick Searle (Sales)
www.zeuscapital.co.uk (http://www.zeuscapital.co.uk)
About RTC
RTC Group Plc is an AIM listed recruitment 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 brands the Group provides a wide range of
recruitment services to the following sectors in the UK:
• Rail
• Energy and utilities
• Manufacturing and engineering
• Water and environment
• Transportation
• Highways
• Construction
Ganymede specialise in recruiting the best technical and engineering talent
and providing complete workforce solutions to help build and maintain
infrastructure and transportation for a wide range of UK and international
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 provide high-quality technical recruitment solutions to the
manufacturing, engineering and technology sectors. Working as an engineering
recruitment partner supporting businesses across the UK and Europe, ATA
Recruitment has a strong track record of attracting and recruiting the best
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.
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 operational and strategic review
For the year ended 31 December 2025
Overview
I am delighted to report that despite a significantly challenging year for the
UK economy, and particularly the recruitment sector, our Group delivered an
extremely robust set of results in 2025.
Against a background of rising costs driven mainly by the government's
increase to Employers' National insurance (NI) contributions and increase in
minimum wage levels, and subdued confidence across many sectors of the
economy, we successfully equalled our record profit before tax in 2024 of
£2.5m. This, given we had to absorb such a large increase in NI
contributions is, I believe, an outstanding outcome for the Group and its
shareholders. It is worth noting that on a constant cost (NI 2024) basis the
Group would have delivered another record year of profit with an impressive
10% increase.
We continue to grow our balance sheet which, I am pleased to say, remains free
of term debt, which places us on a very solid footing, and given the financial
strength of our blue chip client base and our outstanding financial management
controls we have ended the year with around £4m of net cash, a very
reassuring position to be in given the potential headwinds facing the global
economy. Additionally, and at a time when UK insolvency
rates remain worryingly high, our exposure to trade debt is significantly
mitigated through strong in-house debt management processes supported by
payment default insurance.
Furthermore, and without materially impacting the strength of our balance
sheet, we have continued to grow our earnings per share (EPS) by over 8%
primarily as a result of our share buy-back initiative which has seen us
acquire over 2 million shares at a significant discount to the market,
benefitting all shareholders, and we continue to press ahead with our proposed
strategy of progressive dividends to further distribute cash to our
shareholders.
When compared to both our direct small cap peer group, and more broadly the UK
listed recruitment sector in total, our performance across a wide range of key
financial metrics demonstrates the strength of our business model which has
been the bedrock of the strategic transformation I initiated when appointed
Group CEO.
What was solely a UK-based, provider of permanent recruitment services to
higher risk, small and medium size manufacturing organisations on a spot basis
is now a long-term strategic partner of financially strong major blue chip and
government based organisations, for whom we deploy and manage large volumes
of personnel across a broad spectrum of industries both within the UK and
across a wide international footprint. Our business model now sees us firmly
embedded alongside our major clients as programme partners where firstly, we
guarantee continuity of supply for them on time and cost critical contracts;
secondly, we invest in the growth and development of our workforce to ensure
their long-term employability, and finally, we capture long-term revenue
streams across our Group businesses which in turn builds confidence when
attracting the very best employees to continually deliver consistent growth
for our shareholders over the long-term.
Our financial performance since initiating this strategic shift, which
includes navigating a global financial crisis, a deep UK recession and the
COVID pandemic, has delivered total shareholder return (TSR) in excess of 230%
and despite a sluggish UK economy post-COVID, our TSR has delivered a 3-year
and 5-year return of 555% and 86% respectively. It is this strong
performance that will enable us to return over £2.4m in dividends to our
shareholders in respect of the past 3 years with an average dividend yield of
7.4%.
Underpinning this exceptional financial performance, and a key driver of our
competitive strategy, is our contract order book, which is strong, growing,
and provides the Group with a large degree of revenue resilience across our
rail, energy, and international businesses. This in turn fuels our multiyear
investment commitment in workforce training, which we remain committed to
despite the large increase in employment related costs driven by government
policy, as it continues to differentiate us in a crowded marketplace. Recent
announcements of new contract awards and project extensions
further demonstrate the continued success of our strategic transformation,
and we are extremely confident that more awards across both existing and new
sectors are on the horizon.
Whilst our growth strategy in recent years has centred around capturing
organic business with new and existing clients in established markets, we have
a healthy ambition to accelerate our growth both within and across sectors and
given the strength of our balance sheet we remain open to the prospect of
targeted acquisition especially where there is a compelling argument that it
would add further penetration across the strategic markets we are strongly
positioned in. However, our first and foremost priority, especially in these
uncertain times, is to protect the future of our Group for its shareholders
and to this end we will not follow the myriad mistakes of the sector where
many acquisitions have failed to deliver promised synergy or value-add,
thereby inflicting at best, large scale devaluation of shareholder funds and
at worst, total destruction of shareholder value. It is worth noting that our
acquisition of RIG Energy, now Ganymede Energy, returns around 5 times its
original contribution since acquisition and integration into the Group.
Therefore, given our year-on-year financial performance, real-term growth,
strong balance sheet with no term debt, enhanced EPS, another year of proposed
dividend growth (10%), and a solid multi-sector order book with long-term
revenue visibility, I believe that, notwithstanding the plethora of
uncertainties facing both global and domestic economies, our Group is well
positioned to continue capturing long-term business opportunities and enhanced
value for our shareholders.
Finally, whilst it is too early to fully understand the implications of the
escalating tensions in the Middle East and the consequences this could have on
client demand, supply chains and operating costs, we will continue to monitor
developments closely and, where necessary, take appropriate steps to mitigate
any potential impact to our Group and its shareholders.
UK Division
In 2025, the UK division delivered another robust performance in a challenging
economic and operating environment. Revenue increased to £89.0m (2024:
£88.9m), while gross profit rose again to £16.0m (2024: £15.6m). This was
achieved despite increased cost pressures, most notably the higher employment
costs driven by changes to Employers' NI contributions and increases in
minimum wage levels. The result reflects our continued focus on operational
discipline, sound cost control, and exceptional service delivery across the
business, further underlining the strength of our operating model and the
quality of client relationships established across every level of the
business.
Throughout 2025, sentiment across the general UK recruitment market remained
challenging, driven by continued economic uncertainty, creating an
environment of cautious client behaviour ultimately leading to delayed
hiring decisions. The permanent recruitment market in particular
has experienced a sustained period of subdued demand, with many recruiters
across multiple sectors facing prolonged declines. Following a
particularly strong performance in 2024, our white-collar arms of ATA and
Ganymede experienced a 14% like-for-like reduction in permanent recruitment
activity during 2025, reflecting a softening in demand following a solid
period of outperformance. However, activity remained broadly consistent with
overall industry trends.
Encouragingly, and as a direct consequence of our refined business model, we
were able to offset this by improved demand for contract and temporary staff
across these businesses, resulting in a 9% year-on-year growth in both revenue
and gross profit. This shift both demonstrates our ability to adapt our
product offering to capture client revenue as demand shifts from traditional
permanent recruitment to utilisation of more flexible workforce solutions in
this uncertain climate, and our ability to adapt within short timescales to
changing market dynamics. Our continued track record of
attracting, developing and retaining skilled people has been central
to maintaining quality of service for our clients regardless of what route
they choose in order to deploy additional personnel to meet their changing
business dynamics.
Demand across infrastructure, manufacturing and transportation remained
comparatively resilient, and this also helped compensate activity levels
across our white-collar Ganymede and ATA brands, further substantiating the
diversified portfolio approach which lies at the heart of our business
model.
Despite the ongoing operational and regulatory challenges within the UK
metering market, Ganymede Energy delivered another strong year of incremental
growth in 2025, successfully building on the progress of recent years. Based
on the latest official data more than 40 million smart and advanced meters
have now been installed across homes and small businesses in Great Britain.
Following the conclusion of the smart meter rollout mandate at the end of
2025, installation activity is expected to continue under the post 2025 policy
framework, with Government proposals aimed at completing the rollout by the
end of the decade. As a result, Industry focus is increasingly shifting
towards the ongoing performance and health of previously installed meters,
which is expected to generate significant activity alongside the continued
installation of new or replacement meters as required. Other key areas of
activity include the continued upgrade of first generation SMETS1 meters, to
address the impact of the 2G and 3G mobile network switch off, and the ongoing
replacement of legacy Radio Teleswitch Service (RTS) meters. Together, these
programmes present a long-term and sustained order book of work across the
metering industry alongside other wider opportunities arising from the
continued transformation of the UK's energy infrastructure.
Taken across the wider industry picture, our Rail division performed well
during 2025, demonstrating continued resilience in a challenging rail market
and maintaining consistent delivery across its core operations of
maintenance and renewals. Activity across Control Period 7 (CP7) has continued
to progress more slowly than originally anticipated, particularly within
enhancements, reflecting well publicised budgetary constraints and
affordability pressures faced by Network Rail. Despite this spending hiatus,
performance was underpinned by robust revenue generation across maintenance
and renewals activities and the strength of our long-standing relationships
with our rail clients many holding prime contractor status with Network Rail.
Whilst as mentioned, activity levels across CP7
have remained below initial expectations, we anticipate, as
in previous control periods, conditions to become more favourable as CP7
progresses. Alongside this solid operational performance, the division has
also continued to secure other new work with existing clients and also expand
its client base, strengthening its forward pipeline of opportunities and
positioning the business to benefit as government spend on rail projects
materialises over the remainder of CP7 and into the next control period.
Finally, activity within the water sector, which is a fast-growing opportunity
for Ganymede, increased during the year, following the commencement of Asset
Management Plan8 (AMP8) (April 2025 to March 2030) which has seen a
significant uplift in recruitment requirements. With industry wide investment
expected to exceed £100 billion, AMP8 represents a significant and
sustainable growth opportunity over the coming years.
In terms of capital investment, 2025 saw the business complete the replacement
and consolidation of our front-end recruitment systems into a single,
cloud-based platform, enhancing efficiency, strengthening compliance and
improving reporting capabilities. This investment represents a significant
milestone in the modernisation of our recruitment operations and provides a
strong platform to support future growth.
In summary, despite a challenging economic and operational environment, the UK
division delivered a very strong performance in 2025, achieving further
order book growth with existing clients and securing new client opportunities
across multiple sectors. Gross profit grew and ongoing demand across our core
sectors gives every reason to suggest a positive forward
outlook demonstrating the effectiveness of both our Group strategic focus
and subsidiary capability and agility. Looking ahead, we see meaningful growth
arising from the ongoing evolution of smart metering and wider changes across
the UK energy system, and long-term infrastructure investment across the rail
and water sectors through CP7, AMP8 and future control periods. While we
remain acutely aware of ongoing challenges, including higher employment costs,
forthcoming changes to employment legislation and cautious market sentiment,
our strong market position, long-term contracts and continued investment in
technology and people leave us well placed to navigate these headwinds and
continue delivering long-term value for our clients, employees and
shareholders.
International division - Global Staffing Solutions (GSS)
Our international business experienced a reduction in revenue in 2025
primarily because the charter flight solution for getting workers to a remote
key client location in 2024 was not repeated in 2025, but also as client
demand reflected a reduction in activity as a range of long-term support
contracts came to a natural conclusion. Despite this, the business still
delivered a healthy contribution to Group gross profit.
During the year GSS secured a new and potentially long-term support contract
in Poland for over 70 personnel which, due to a natural lag in project
implementation, was commissioned towards the end of the year with a full
revenue run rate expected during 2026. The business continues to support
clients with personnel deployed across multiple locations including Poland,
Iraq, Somalia, and Diego Garcia and GSS has a healthy pipeline of new
business opportunities in support of both direct NATO projects and support
contracts with UK and USA governments. However, increasing cost pressures and
changing macro-economic policies are driving governments to secure enhanced
project delivery for significantly less financial exposure. This in turn is
driving a landscape of wholescale project evaluations and competitive
tendering exercises and, whilst this carries the risk of potential delays to
contract awards, it also brings new opportunities for GSS as major
international suppliers seek outsourcing solutions to help increase their
competitiveness.
Central Services
Our conference centre (DCC), which has yet again firmly established itself
as a favourite venue for conferencing and events in the
East Midlands region, had a very good year despite the most difficult of
trading environments brought on by the government's decision to increase
national insurance and the national minimum wage. These additional costs
have, where possible, been absorbed by the DCC and this has resulted in a
slight reduction in gross profit. However, we believe this decision will be
received positively by our client base and whilst we cannot avoid the
difficult position the UK hospitality sector has had enforced on it, we
remain hopeful that our high levels of service, popular location and customer
retention level will help distinguish us from our competition.
RTC is headquartered at the DCC and Investments in our various Group-wide
technology systems are ongoing and will continue to ensure that we future
proof the quality and security of data across all aspects of our business.
Furthermore, we are committed to enhancing the effectiveness of our customer
and candidate relationship management platforms to enable stronger integration
and productivity of revenue generating data.
Outlook
Whilst global growth sentiment remains at its most fragile and emerging
evidence suggests that the UK labour market is stagnating, we believe the
strategic direction we have been following will provide the best chance of
revenue protection for our shareholders. Our strong order book and strategic
positioning in high spend infrastructure sectors afford us some visibility of
future revenue streams and our commitment to cost optimisation is relentless
right across the Group with non-revenue generating expenditure under constant
scrutiny. The continuing impact of national insurance and minimum wage
increases, combined with the ongoing implementation of the Employment Rights
Act which brings with it further additional employment costs, cannot be
avoided and will undoubtedly bring further uncertainties.
However, despite these challenging market conditions, 2026 has started
positively and the underlying drivers of demand, especially across our
infrastructure focused business, remain strong. We have an experienced Board
of directors and together with our subsidiary management teams, many of whom
have been with the Group for over 20 years, we have the collective capability
to achieve significant long-term growth as the UK prepares to invest over
£700bn in wide ranging multi sector infrastructure programmes.
Finally, whilst there are naturally many reasons for us to be concerned about
current geopolitical and macroeconomic conditions, we believe that despite
current market uncertainty there is every reason for us to remain positive
about the long-term prospects for RTC and its shareholders.
Our people
Our operational and financial performance is a direct result of the
outstanding people we employ across the Group. Within each of our operating
businesses, support functions and Group headquarters, our employees have
worked tirelessly to help RTC build uniqueness across everything we do. It is
our belief that because of this commitment to hard work and accountability,
RTC can differentiate itself in a very crowded marketplace.
I would therefore like to extend a huge thank you on behalf of the board of
directors to everybody across the Group.
A M
Pendlebury
20 March 2026
Chairman and Chief Executive
Finance Director's report
For the year ended 31 December 2025
Financial highlights
The Group overall delivered revenues of £95.5m (2024: £96.8m). Overall gross
profit remained consistent £17.9m (2024: £17.9m) and gross margin improved
to 18.7% (2024: 18.5%). The profit from operations of £2.6m (2024: £2.6m)
reflects a year that saw a strong overall performance from our UK division.
UK Recruitment
Overall, our UK Recruitment division delivered a strong performance with
enhanced quality of earnings, revenues were £89.0m (2024: £88.9m) and gross
profit increased to £16.0m (2024: £15.6m). Gross margin was also increased
to 17.9% (2024: 17.5%). Profit from operations was £5.6m (2024: £5.0m).
The result reflects our continued focus on operational discipline, cost
control and service delivery across the business, underlining the strength of
our model and the quality of our client relationships.
Refer to Chairman and Chief Executive's operational and strategic review for a
detailed consideration of performance, markets and opportunities of Ganymede
divisions.
International
Revenue decreased to £4.5m (2024: £5.6m) with a corresponding decrease in
gross profit to £0.9m (2024: £1.2m) and gross margin was 20.5% (2024:
21.3%). The division delivered a profit from operations of £0.5m (2024:
£0.7m). The reduction in these metrics is a result of the fact that the
charter flight solution for getting workers to a remote key client location in
2024 was not repeated in 2025 and in addition another contract ended part way
through the year. At any one time the business will be delivering on a number
of contracts for clients across a range of sites internationally and there can
be a time lag between one contract coming to an end and another taking its
place. At the start of 2025 a contract being delivered in Poland came to an
end, however, the Company was subsequently awarded a new contract in Poland
which started towards the end of the year.
Central Services
The Derby Conference Centre saw good levels of activity relating to
conferences, events and bedroom sales for the majority of 2025 and occupation
of all rental buildings by the end of the year. However, festive season
activity was subdued probably reflecting market sentiment and a tightening of
festive spending. Revenue generated was reduced £2.1m (2024: £2.2m) and
gross profit was £1.0m (2024: £1.1m). Gross margin percentage was also
reduced at 47.6% (2024: 50.7%) reflecting continued erosion of margins due to
direct cost increases, the most notable of which related to increased
employment costs such as employer's NI and minimum wage increases set out by
the government in the October 2024 budget which also contributed to the
increase in administrative expenses for central services.
Taxation
The tax charge for the year was £0.7m (2024: £0.7m). The variance between
this and the expected charge if a 25% corporation tax rate was applied to the
result for the year is explained in note 3.
Dividends
During the year, the Company paid an interim dividend of £151,906 (2024:
£160,823) to its equity shareholders. This represents a payment of 1.21p
(2024: £1.1p) per share. The directors have proposed a final dividend of
£690,481 (5.5p per share) (2024: £680,645 (5.0p per share)) to be paid on 26
June 2026 to shareholders registered on 29 May 2026. This has not been accrued
within these financial statements as it was not formally approved before the
year end. If approved this will bring the total dividend paid out in respect
of 2025 to £842,387 (6.71p per share). Based on the share price at 31
December of 97.0p (2024:97.5p), 6.71p per share represents a yield of 6.9%
(2024: 6.3%). If the proposed final dividend for 2025 is approved, the Company
will have returned £2.4m to shareholders in dividends in respect of the last
three years 2023-2025.
Purchase and cancellation of own shares
The total share capital of the Company is now 12,554,198.
Statement of financial position and cash flows
The Group's net working capital increased to £7.2m (2024: £7.0m). The ratio
of current assets to current liabilities was 1.7 (2024: 1.6) and at the 31
December 2025 (and 31 December 2024) the Group had no borrowings outside of
lease liabilities.
The Group generated £5.2m cash from its operations in 2025 (2024: £2.2m).
This inflow from operating activities enabled the Group to continue to pay
an improved interim dividend per share (+10% v 2024), propose an improved
final dividend per share (+10% v 2024), and buy back and cancel 1,063,699 own
shares, at the same time minimising use of its invoice discounting facility
thus keeping interest charges low.
The Group has no term debt and is financed using its invoice discounting and
overdraft facilities with HSBC. On 31 December 2025 the Group had no
borrowings and available funds to draw down of £9.1m (2024: £9.4m).
The Group has a strong credit control function and, given the current economic
environment and high rate of business failures holds credit insurance for most
customers which gives us additional input to credit management from the credit
insurer's database and the more confidence to increase business with certain
customers backed by insurance.
Financing and 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
up to £12.0m, 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 taking into account
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.
Liquidity risk
The Group seeks to mitigate liquidity risk by effective cash management. The
Group's policy, throughout the year, has been to ensure the continuity of
funding through a net overdraft facility of £50,000 and an invoice
discounting facility, providing up to £12m based on a percentage of good book
debts. The invoice discounting facility is the Group's core funding line and
is classed as evergreen in that it has no fixed expiry date (although it is
reviewed annually).
S L Dye
Group Finance
Director
20 March 2026
Consolidated statement of comprehensive income
For the year ended 31 December 2025
2025 2024
Note £'000 £'000
Revenue 2 95,538 96,762
Cost of sales (77,660) (78,831)
Gross profit 17,878 17,931
Administrative expenses (15,278) (15,306)
Profit from operations 2,600 2,625
Net finance expense (108) (80)
Profit before tax 2,492 2,545
Tax expense 3 (679) (672)
Total profit and other comprehensive income for the year attributable to 1,813 1,873
owners of the Parent
Earnings per ordinary share
Basic 14.10 13.01
Fully diluted 14.10 13.01
Consolidated statement of changes in equity
For the year ended 31 December 2025
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 2025 136 120 60 3 7,688 8,007
Total comprehensive income for the year - - - - 1,813 1,813
Transactions with owners:
Dividends - - - - (780) (780)
Share options exercised - - - (3) 3 -
Own shares purchased (10) - 10 - (851) (851)
Total transactions with owners (10) - 10 (3) (1,628) (1,631)
At 31 December 2025 126 120 70 - 7,873 8,189
The consolidated statement of changes in equity for the prior year was as
follows:
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 - - - - (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 31 December 2025
2025 2024
£'000 £'000
Assets
Non-current
Goodwill 132 132
Other intangible assets 128 93
Property, plant, and equipment 884 1,083
Right-of-use assets 1,779 1,941
Deferred tax asset 1 1
2,924 3,250
Current
Inventories 10 13
Trade and other receivables 13,850 17,462
Cash and cash equivalents 3,871 934
17,731 18,409
Total assets 20,655 21,659
Liabilities
Current
Trade and other payables (9,518) (10,536)
Lease liabilities (317) (294)
Corporation tax (714) (614)
(10,549) (11,444)
Non-current liabilities
Lease liabilities (1,827) (2,077)
Deferred tax liabilities (90) (131)
(1,917) (2,208)
Total liabilities (12,466) (13,652)
Net assets 8,189 8,007
Equity
Share capital 126 136
Share premium 120 120
Capital redemption reserve 70 60
Share based payment reserve - 3
Retained earnings 7,873 7,688
Total equity 8,189 8,007
Consolidated statement of cash flows
For the year ended 31 December 2025
2025 2024
£'000 £'000
Cash flows from operating activities
Profit before tax 2,492 2,545
Adjustments for:
Depreciation, loss on disposal and amortisation 690 691
Finance expense 108 80
Change in inventories 3 1
Change in trade and other receivables 3,612 (40)
Change in trade and other payables (1,018) (379)
Cash inflow from operations 5,887 2,898
Income tax paid (620) (602)
Interest paid (108) (80)
Net cash inflow from operating activities 5,159 2,216
Cash flows from investing activities
Purchase of property, plant and equipment (150) (213)
Net cash outflow from investing activities (150) (213)
Cash flows from financing activities
Dividend paid (780) (819)
Purchase of own shares (851) (980)
Payment of lease liabilities (441) (339)
Net cash (outflows) from financing activities (2,072) (2,138)
Net increase / (decrease) in cash and cash equivalents 2,937 (135)
Cash and cash equivalents at beginning of year 934 1,069
Cash and cash equivalents at end of year 3,871 934
1. Corporate information and basis of
preparation
RTC Group Plc is a public limited company incorporated and domiciled in
England whose shares are publicly traded.
The announcement of results of the Group for the year ended 31 December 2025
was authorised for issue in accordance with a resolution of the directors on
20 March 2026.
The financial information included in this announcement has been prepared
under the historical cost convention, as modified by measurement of
share-based payments at fair value at date of grant, and in accordance with UK
adopted international accounting standards ("IFRS") and with those parts of
the Companies Act 2006 applicable to companies reporting under IFRS. This
announcement does not itself however contain sufficient information to comply
with IFRS.
The accounting policies adopted are consistent with those described in the
annual financial statements for the year ended 31 December 2024. There have
been no significant changes in the basis upon which estimates have been
determined, compared to those applied at 31 December 2024 and no change in
estimate has had a material effect on the current period.
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 the Derby site including
rental of excess space and hotel and conferencing facilities.
Revenue, gross profit, and operating profit delivery by geography:
2025 2024
UK UK Inter-national Recruitment Total Group UK Recruitment UK Inter-national Recruitment Total Group
Recruitment Central Central
Services Services
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Revenue 88,962 2,108 4,468 95,538 88,939 2,225 5,598 96,762
Cost of sales (73,002) (1,105) (3,553) (77,660) (73,332) (1,096) (4,403) (78,831)
Gross profit 15,960 1,003 915 17,878 15,607 1,129 1,195 17,931
Administrative expenses (10,108) (4,036) (445) (14,589) (10,405) (3,755) (497) (14,657)
Amortisation of intangibles (64) - - (64) (47) - - (47)
Depreciation of right-of-use assets (93) (283) - (376) (79) (249) - (328)
Depreciation (93) (155) (1) (249) (120) (153) (1) (274)
Total administrative expenses (10,358) (4,474) (446) (15,278) (10,651) (4,157) (498) (15,306)
Profit from operations 5,602 (3,471) 469 2,600 4,956 (3,028) 697 2,625
The revenue reported above is generated from continuing operations with
external customers. There were no sales between segments in the year (2024:
Nil). For segment reporting purposes in this note, revenue is analysed by the
geographical location in which the services are delivered.
The accounting policies of the operating segments are the same as the Group's
accounting policies. Segment profit represents the profit earned by each
segment, without allocation of Group administration costs or finance costs.
During 2025, three customers in the UK segment
contributed 10% or more of total revenue being £23.4m (2024: £28.0m),
£10.1m (2024: £11.4m) and £10.7m ( 2024 £9.4m) respectively, and one
customer in the International segment also contributed 10% or more of total
revenue being £2.7m (2024: £4.7m).
Recruitment revenues are generated from permanent and
temporary recruitment and long-term agreements for labour supply. Within
Central Services revenues are generated from the rental of excess space and
hotel and conference facilities at the Derby site, described as Other below.
Revenue and gross profit by service classification
for management purposes:
Revenue Gross profit
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Permanent placements 2,412 2,823 2,412 2,823
Temporary placements 91,018 91,714 14,463 13,979
Others 2,108 2,225 1,003 1,129
95,538 96,762 17,878 17,931
All operations are continuing. All assets and liabilities are in the UK.
3. Tax expense
2025 2024
Continuing operations £'000 £'000
Current tax
UK corporation tax 714 714
Adjustment in respect of previous periods 6 (20)
Deferred tax
Origination and reversal of temporary differences (41) (22)
Tax 679 672
Factors affecting the tax expense
The tax charge assessed for the year is higher than
(2024: higher than) would be expected by multiplying the profit by the
standard rate of corporation tax in the UK of 25% (2024: 25%). The
differences are explained below:
2025 2024
Factors affecting tax expense £'000 £'000
Result for the year before tax 2,492 2,545
Profit multiplied by standard rate of tax of 25% (2024: 25%) 623 636
Non-deductible expenses 50 56
Adjustment in respect of previous periods 6 (20)
679 672
Factors that may affect future tax charges
Deferred tax has been recognised to the extent that
it will unwind at the currently enacted rate of 25%.
4. Dividends
2025 2024
£'000 £'000
Interim dividend in respect of 2025 of 1.21p per share (2024: 1.1p). 152 161
Final dividend in respect of 2024 of 5.0p per share (2024: 4.5p) 628 658
Total dividends paid in period 780 819
A final dividend of £690,481 (2024: £627,710) has been proposed but has not
been accrued within these financial statements. This represents a payment of
5.5p (2024: 5.0p) per share.
5. Report and accounts
The above financial information does not constitute the Company's statutory
accounts for the years ended 31 December 2025 or 2024 but is derived from
those accounts. The auditor has reported on these accounts; their report was
unqualified, did not draw attention to any matters by way of emphasis without
qualifying their report and did not contain statements under s498 (2) or (3)
Companies Act 2006 or equivalent preceding legislation. The statutory accounts
for 2024 have been filed with the Registrar of Companies.
Full audited accounts of RTC Group Plc for the year ended 31 December 2025
will be made available on the Company's website at www.rtcgroupplc.co.uk
(http://www.rtcgroupplc.co.uk) later today and will be dispatched to
shareholders on 16 April 2026.
The Company's Annual General meeting will be held at 12noon on 27 May 2026 at
the Derby Conference Centre, London Road, Derby, DE24 8UX.
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. END FR AKDBNKBKKFNB
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