Engineering recruiter RTC Group reported a dip in full year profit for 2016, following a small rise in the first half.
Revenues improved from £64.9m to £67.9m but gross margin declined and pre-tax profit dipped from £1.28m to £1.07m. Net debt was £4.23m. Cash generation improved but it was spent on the company’s Derby site.
The decline in profit was mainly due to a greater proportion of contract revenue than previously due to a reduction in permanent business at engineering and technical staff provider ATA. Delays in infrastructure project decisions hampered the third quarter performance but trading improved at the end of the year. There was also additional costs for reconfiguring the Derby site.
Ganymede supplies safety staff to Network Rail and it became the largest profit contributor last year. That was not enough to offset declines elsewhere.
GSS provides a managed staff service for international clients and business in Afghanistan stabilised last year. GSS is withdrawing from Qatar.
RTC increased the interim dividend from 1p a share to 1.1p a share but the final dividend is unchanged at 2p a share.
The share price is 50.5p.
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