REG - RTC Group PLC - AGM trading update

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RNS Number : 7791F  RTC Group PLC  27 May 2026

27 May 2026

 

Certain information contained within this Announcement is deemed by the
Company to constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014 ("MAR") as applied in the United Kingdom. Upon
publication of this Announcement, this information is now considered to be in
the public domain.

 

 

RTC Group Plc

("RTC", "the Company" or "the Group")

AGM trading update

 

RTC Group Plc will hold its Annual General Meeting at 12 noon today.  At the
meeting, A M Pendlebury, Executive Chairman and Chief Executive, will make the
following statement:

 

"In March I was delighted and very proud, to report another year of record
profit after tax, positive cash generation and balance sheet growth in 2025
resulting in another 10% increase in dividend for our shareholders. This was
achieved despite a significantly challenging year for the UK economy and
particularly the recruitment sector.

 

In the first quarter of 2026 the Company continued its trajectory of positive
trading and cash generation and announced six major contract wins across the
Group, including significant extensions of long-standing agreements with key
clients, supporting a strong and growing long-term order book. In addition,
demand for our core maintenance activities in Rail remains positive and in
line with 2025 levels, although there is inevitably an impact on margins from
rising costs. However, there is potential for activity to increase as CP7 Rail
enhanced funding is released. Demand across other infrastructure markets,
including water and environmental services, also continues at similar levels.

 

Our conferencing business, despite significantly increased government-imposed
costs, is performing ahead of prior year levels, supported by strong customer
demand, and we remain optimistic about further opportunities in international
markets.

 

However, as we navigate Q2 of 2026, geopolitical tensions, driven by the
impact of the Iran conflict on global energy markets, have led to
significantly increased fuel costs, materially raising fleet expenses, and
this is, and will continue to, unavoidably impact margins within our Rail and
Energy divisions. In addition, because of elevated energy prices, client
activity, particularly in relation to our smaller manufacturing client base,
where higher costs have led to site closures or reduced production, has
materially lowered demand for temporary labour. This uncertainty is
contributing to more cautious hiring behaviour among clients, with some
delaying, scaling back or, in certain cases, cancelling recruitment plans.

 

In addition, the permanent recruitment market continues to be challenging,
with vacancy levels now at their lowest point since 2021 following a sustained
multi-year decline (ONS, Jobs and Vacancies in the UK: May 2026). Demand
continues to be constrained by rising employment costs, including above
inflation increases in the National Living Wage, alongside ongoing employer
caution regarding the Employment Rights Act. This is compounded by the growing
reluctance of workers to seek career moves as the resignation rate has fallen
to its lowest level since covid (workers cling to jobs as fears put brakes on
resignation: Telegraph May 2026).

 

Within our Energy division, demand is transitioning as the smart metering
market moves beyond the initial rollout phase. Following the extension of
targets to 2028, demand for new installations has softened in the short-term,
reflected across the industry through workforce reductions. Clients are
increasingly focused on meter health activities, including SMETS1 to SMETS2
upgrades, communications hub replacements, and smart mode compliance. This has
led to a short-term reduction in demand, which we anticipate will increase in
the medium-term as these programmes scale.

 

Whilst Rail operations have slowly improved since the commencement of the
current contract, they are not yet where they were anticipated to be at the
outset of CP7. This is consistent with the wider industry experience
particularly relating to Rail enhancement projects.

 

While we recognise these challenges which are affecting the sector as a whole,
due to excellent cash generation in 2025, the Group has a very solid
foundation upon which to navigate them. Notably, it retains a clean balance
sheet with no term debt and continues to build on this foundation through the
generation of strong operating cash flows and disciplined cost management
aligned to activity levels.

 

The Company's interim results for the six months ended 30 June 2026 will be
published on or around 27 July 2026."

 

 

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)

 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.

 

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