RTC Group expects to continue to grow its businesses during 2014 as it completes its IT systems upgrade.
In 2013, group revenues grew 14% to £49m, while pre-tax profit was 55% higher at £736,000 but that improvement was offset by a higher tax charge. The figures benefited from the withdrawal from training.
There was a small cash inflow during the year. Net debt was £3.66m at the end of 2013.
The core ATA Recruitment permanent and contract recruitment business reported a lower contribution to profit although revenues grew. ATA is adding new consultants and rebuilding its branch network coverage.
ATA Global Staffing Solutions grew its profit on the back of the provision of services to NATO personnel in Afghanistan but this will decline from this year and the business will need to be replaced. Ganymede Solutions, which provides technical personnel for the rail sector, is gaining market share. Future growth is dependent on securing long-term contracts through Control Period 5 – Network Rail’s strategic plan for 2014-15. Final selection will be announced in September. There was a lower contribution from the Derby conference centre.
House broker Allenby forecasts a £900,000 profit in 2014 as the second half growth continues.
At 30p a share, up 4.5p, RTC is valued at £4.05m. The shares are trading on less than seven times 2014 prospective earnings.
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