Interim Results
Summary by AI BETAClose X
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.
27 July 2026
RTC Group Plc
("RTC", "the Company" or "the Group")
Interim Results for the Six Months Ended 30 June 2026
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 2026.
Summary:
· Group revenue from continuing operations £45.2m (2025: £48.3m)
· Gross margin 18.3% (2025: 18.4%) similar despite cost of sales price increases e.g. fuel
· Administrative costs well-controlled in rising cost environment £7.5m (2025: £7.6m)
· Solid profit from operations of £0.8m (2025: £1.3m) in line with revenue levels
· Net cash inflow from operating activities £0.9m (2025 £3.2m)
· £0.7m cash paid out in dividends - a 10% increase on the dividend per share paid out in H1 2025
· Cash and cash equivalents £3.8m - near level on 31 December 2025: £3.9m
· No term debt, and no borrowings other than lease liabilities
· Net assets £8.0m (31 December 2025: £8.2m)
· Fully diluted weighted average earnings per share 4.21p (2025: 6.62p)
· Strong and sustainable order book across multiple sectors
The final dividend in respect of the year ended 31 December 2025 of 5.5p per share (2025: 5.0p per share) was approved at the AGM on 27 May 2026 and paid to shareholders on 26 June 2026. The Directors propose an interim dividend of 1.21p per share (2025: 1.21p per share). The interim dividend will be paid on 2 October 2026 to shareholders on the register on 4 September 2026.
Commenting on the results, Andy Pendlebury, Chairman and Chief Executive, said:
"I am pleased to report that, despite the myriad headwinds I highlighted in May, the Group delivered a solid first half performance and at the same time, maintained levels of investment in the business that sets us apart from our competition, in particular our ongoing investment in both the training and development and the health and safety of the people we supply to our clients.
Whilst the geopolitical and domestic economic environments are worrying for the global economy and could continue to present challenges in the short to medium term, we remain encouraged by the long-term investment planned across the markets in which we operate. The Group is well positioned to benefit from the UK's planned infrastructure investment programme of more than £700bn, including continued investment across Network Rail's Control Period 7 and Water AMP8, together with the growing opportunity presented by the UK's smart metering programme as it moves from rollout to long-term maintenance.
The Group's order book remains resilient, and during the period we secured six significant contract wins and extensions, including long-term agreements with key clients. Together with our strategic positioning across the sectors we serve, this leaves the Group well placed to benefit from improving activity levels.
Combined with our strong balance sheet, no term debt, continued operating cash generation and disciplined cost management aligned to activity levels, we have a solid platform from which to navigate the current environment whilst continuing to invest in future growth."
The interim report is available on the Company's website www.rtcgroupplc.co.uk.
ENDS
Enquiries:
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RTC Group Plc |
Tel: 0133 286 1842 |
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Andy Pendlebury, Chairman and Chief Executive |
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SPARK Advisory Partners Limited (Nominated Adviser) Matt Davis / James Keeshan
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Tel: 0203 368 3550 |
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Zeus (Broker) Mike Coe / James Bavister (Investment Banking) Nick Searle (Corporate Broking)
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Tel: 020 3829 5000 |
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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 2026
Overview
In May I reported that the Group had continued to trade positively during the first quarter of 2026, with strong cash generation and solid order book growth, whilst also highlighting the emerging impact that a combination of geopolitical tensions, predominately the conflict involving Iran, and government policy, resulting in significantly increased employment costs, were having on both our direct operating costs and on clients' activity.
I am pleased to report that, despite these myriad headwinds, the Group delivered a solid first half performance with profit from operations of £0.8m (2025: £1. 3m). We have delivered these solid profits while at the same time maintaining levels of investment in the business that set us apart from our competition, in particular our ongoing investment in the training and development and the health and safety of the people we supply to our clients.
As we enter the second half of 2026, we believe these headwinds will continue to impact trading across the Group, including the following:
1. Higher operating costs - Fuel costs, driven by geopolitical tensions in the Middle East, continue to place pressure on margins across our UK labour supply business. Current expectations indicate that these elevated costs could persist for around eight months beyond the resolution of the conflict.
2. UK recruitment market conditions - UK Business confidence is at historically low levels with employers continuing to exercise caution in response to wider economic uncertainty, increased employment costs and additional forthcoming employment legislation. These conditions continue to affect permanent recruitment activity across the sector, with many recruitment businesses responding through operational restructuring and reductions in headcount. Given the strength of our balance sheet, and the high cost of recruiting experienced consultants, it is our intention to continue with our base level headcount throughout the remainder of 2026, so that we are poised to take advantage of any upturn in 2027.
3. UK smart metering market transition - As highlighted in previous updates, the smart metering market remains in a period of transition as the industry moves beyond the initial rollout phase towards ongoing management of the existing smart meter estate. I reported at the AGM that this has resulted in a temporary reduction in activity levels within our Energy business. Separately, the proposed acquisition of OVO Energy by E.ON, announced on 11 May 2026, has introduced an additional degree of short-term uncertainty. However, we remain confident that 2027 and beyond will present enhanced growth opportunities for our energy team.
4. International markets - Changes to the United States' international priorities, and in particular the relationship with NATO and its member states, continue to impact opportunities for our international business as long-term deployment commitments are reviewed. However, we remain well positioned with existing contracts and strong relationships with key supply partners to both the UK and United States governments.
5. UK infrastructure investment - The long-term commitment to invest more than £700bn across the UK's infrastructure over the coming decade remains a significant opportunity for the Group. However, recent government decisions to reprioritise elements of planned infrastructure expenditure in favour of increased defence spending highlight the potential for programmes to be deferred or rescheduled. Whilst the long-term opportunity remains significant, any delay in delivery could affect activity levels across parts of our infrastructure business.
6. Government policy - During the period the Group absorbed approximately £100,000 of additional employment costs compared with the first half of 2025, principally arising from increases in employers' National Insurance contributions and the National Living Wage and National Minimum Wage. Together with the ongoing implementation of the Employment Rights Act, these measures also continue to influence our clients' recruitment behaviour.
Notwithstanding these headwinds, I remain confident in the Group's long-term prospects. During the first half of the year, we announced six significant contract wins and extensions across the Group, including further long-term agreements with key clients. These contracts strengthen our forward order book and provide a solid platform for the continued delivery of sustainable profits and cash generation.
Our balance sheet remains strong, with no term debt and no borrowings other than lease liabilities. During the period the Group generated operating cash inflows of £0.9m, paid dividends of £0.7m and ended the period with net assets of £8.0m (31 December 2025: £8.2m), representing a fully diluted net asset value per share of 64p.
We also continued our strategy of returning value to shareholders through the payment of a final dividend for 2025 of 5.5p per share, approved at the Annual General Meeting on 27 May 2026. (Total dividends paid in respect of 2025 were 6.71p per share, representing a 10% increase on dividends paid in respect of 2024.)
At the Annual General Meeting in May, I indicated my intention to resume the publication of market guidance. However, given the current level of uncertainty across our markets, we, like many other quoted companies, have decided to defer the resumption of formal market guidance until there is greater clarity on the duration and longer-term impact of the factors outlined above.
Whilst the results are lower than we would want and do not reflect the hard work put in across the Group and its subsidiary businesses, we still view them as encouraging, as despite the plethora of challenges both domestic and international, they highlight the resilience of our business. Furthermore, given our well-established order book, ongoing positive cash generation and nil term debt, the Board believes that it should continue with its commitment to reward shareholder loyalty through our dividend strategy and we are therefore recommending a maintained interim dividend of 1.21 per share (2025: 1.21p per share), reflecting the Board's continued commitment to delivering long-term shareholder returns. The interim dividend will be paid on 2 October 2026 to shareholders on the register on 4 September 2026.
UK Division
The UK division delivered a resilient performance during the first half of 2026. Trading across our rail and infrastructure business remained strong, although this was partially offset by softer trading within our Energy division (see below) and continuing challenging conditions across the permanent recruitment market.
Performance across our rail and infrastructure business was ahead of the same period last year. However, margins continued to be impacted by higher operating costs, most notably the significant increase in fleet fuel costs and above-inflation increases in the National Living Wage.
Investment under Network Rail's Control Period 7 ("CP7"), particularly within enhancement programmes, has continued to materialise more slowly than originally anticipated. Despite this, demand for our core rail maintenance activities has remained resilient throughout the period, while activity across our other infrastructure markets, including water and environmental services, has continued at broadly similar levels.
During the period we secured four significant contract awards and extensions across the rail and infrastructure sectors, including long-term agreements with key clients. These contract wins further strengthen our forward order book and long-standing client relationships, positioning the business well to benefit from ongoing investment across Network Rail's CP7 and the water sector's AMP8 programme, providing a strong platform for future growth.
Whilst elevated energy costs, driven by geopolitical tensions, have continued to impact demand for temporary labour within parts of the manufacturing sector served by our ATA Recruitment business, opportunities across infrastructure recruitment continue to strengthen, supported by the UK's long-term infrastructure investment programmes. In response, we have taken steps to strengthen our Ganymede Infrastructure business further by repositioning resources, to capitalise on the growing opportunities across the infrastructure sector and support our long-term growth.
Our Energy division is experiencing a period of transition as the UK smart metering market moves beyond the initial rollout phase. Across the industry, installation activity has moderated as the market transitions from the initial rollout of smart meters towards maintaining the performance and health of those already installed. This has resulted in lower activity levels across the market, with a number of suppliers adjusting their workforce capacity during the period Against this backdrop, the proposed acquisition of OVO Energy by E.ON has introduced an additional degree of short-term uncertainty around investment decisions. Consequently, revenue during the period was below the corresponding period last year and margins have also been impacted by higher operating costs, particularly increased fuel prices.
We believe the current slowdown represents a period of transition rather than structural decline. The long-term outlook for the metering market remains positive, supported by both the continued rollout of smart meters to complete the national programme by the end of the decade, and a substantial pipeline of work associated with the over 40 million smart and advanced meters already installed across homes and businesses in Great Britain. This includes SMETS1 upgrades, communications hub replacements, smart mode compliance and the replacement of legacy Radio Teleswitch Service (RTS) meters.
During the period we secured two significant contract extensions in this area, further strengthening our long-standing customer relationships. Combined with our established relationships across the wider energy sector, including both OVO and E.ON, this leaves the business well positioned to benefit as market activity recovers.
Our UK permanent recruitment business, ATA Recruitment, delivered revenues broadly in line with the corresponding period last year despite continuing challenging market conditions. Recruitment activity remained subdued during the period as employers continued to exercise caution in response to increased employment costs, wider economic uncertainty and forthcoming changes to employment legislation. At the same time, lower levels of employee confidence have reduced labour mobility, resulting in fewer candidates seeking career moves.
Whilst we expect these conditions to persist in the near term, ATA Recruitment remains a well-established business with a strong client base and is well positioned to benefit as confidence returns to the permanent recruitment market.
International division
International recruitment revenues reduced year-on-year, reflecting the nature of project life cycles within the international market. We continue to support our long-standing client base whilst pursuing opportunities with new clients across a broad range of emerging long-term projects. However, as noted in the overview, changes to the United States' international priorities are affecting opportunities to support our international clients and have created greater uncertainty around the timing of new project awards and mobilisation.
Central services
Our conferencing business is performing ahead of prior year levels. This is due to a combination of cost control measures taken in H2 2025 to mitigate significantly increased government-imposed employer's National Insurance and National Living wage and National Minimum wage costs, and consistent customer demand.
Outlook
The Group's order book remains resilient, and during the period we secured six significant contract wins and extensions, including long-term agreements with key clients. Together with our strategic positioning across the sectors we serve, this leaves the Group well placed to benefit from improving activity levels.
Whilst the geopolitical and domestic economic environments are worrying for the global economy and could continue to present challenges in the short to medium term, we remain encouraged by the long-term investment planned across the markets in which we operate. The Group is well positioned to benefit from the UK's planned infrastructure investment programme of more than £700bn, including continued investment across Network Rail's Control Period 7 and Water AMP8, together with the growing opportunity presented by the UK's smart metering programme as it moves from rollout to long-term maintenance.
Combined with our strong balance sheet, no term debt, continued operating cash generation and disciplined cost management aligned to activity levels, we have a solid platform from which to navigate the current environment whilst continuing to invest in future growth.
Finally, I would like to reemphasise the financial wellbeing of the Group, the quality and depth and strength of our group's and its subsidiaries' management teams and our overall strategic positioning to capitalise on further growth opportunities across all our markets once the intensity of these global headwinds subside.
A M Pendlebury
Chairman and Chief Executive
27 July 2026
Finance Director's statement
Six months ended 30 June 2026
Highlights
For the six months ended 30 June 2026, the Group delivered revenues of £45.2m (2025: £48.3m) and gross profit of £8.3m (2025: £8.9m). Gross margin was 18.3% (2025: 18.4%). Profit before tax was £0.7m (2025: £1.2m). Administrative costs have been tightly managed and show an overall reduction versus H1 2025 of £0.1m after absorbing government policy related increases and general price increases.
UK recruitment
UK Recruitment delivered revenues of £42.3m (2025: £45.2m). Gross profit margins were maintained at 17.8% (2025: 17.8%) despite cost increases e.g. fuel price increase as a result of the Iran conflict and ongoing cost pressures relating to government decisions on National Insurance, National Living wage and National Minimum wage costs, where we have seen further increases in H1 2026 v 2025 that impact both direct costs and administrative costs. Profit from operations was £2.4m (2025: £2.8m).
International recruitment
Revenues for the period reduced to £2.0m (2025: £2.1m) with gross profit reduced to £287,000 (2025: £433,000) and gross margin down to 14.6% (2025: 20.5%) reflecting the nature of project life cycles and mix of delivery models. There remains a core cost to maintain the agile team that deliver our international business and so, due to project life cycle timing and the headwinds affecting our international customers decision making, profit from operations was reduced at £59,000 (2025: £228,000) while we maintain capability and remain poised to deliver should the situation change.
UK Central Services
Within UK Central Services, our hotel and conference centre business has had a promising start to the year, delivering increased revenue compared to the same period last year £970,000 (2025: £946,000). Gross profit also increased to £447,000 (2025: £416,000) and gross margin improved to 46.1% (2025: 44.0%) due to a combination of cost control measures taken in H2 2025 to mitigate significantly increased government-imposed employer's National Insurance and National Living wage and National Minimum wage costs, and rising prices.
Taxation
The total tax charge for the period is estimated at £219,000 (2025: £327,000). 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.
Earnings per share
The basic and diluted weighted average earnings per share figure is 4.21p (2025: 6.62p). There is no dilution as there are no share options remaining.
Dividends
The final dividend in respect of the year ended 31 December 2025 of 5.5p per share (2025: 5.0p) was approved at the AGM on 27 May 2026 and paid to shareholders on 26 June 2026. The Directors propose an interim dividend of 1.21p per share (2025: 1.21p per share). The interim dividend will be paid on 2 October 2026 to shareholders on the register on 4 September 2026.
Statement of financial position
Net working capital is £7.1m (31 December 2025: £7.2m) due to a combination of lower revenues (and thus debtors, together with further improvements in aged debt levels), and a reduction in trade payables as year-end specific accruals have been paid and overall VAT liabilities reduced due to the level and mix of revenue in H1 2026. Cash and cash equivalents are £3.8m (31 December 2025: £3.9m), having paid out £0.7m in dividends during the period. Overall, the movement in net asset levels mirrors working capital movements with net assets £8.0m (31 December 2025: £8.2m). 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 2026 there were no overdrafts in use, and no invoice discounting funds in use (2025: Nil).
Cash flow
The net cash inflow from operating activities for the period was £0.9m (2025: £3.2m). The reduction compared to 2025 takes account of the lower revenues in 2026 and reflects movement on working capital in one period compared to the other. The timing of VAT payments in 2024 v 2025 affecting the change in trade and other payables in H1 2025 (making it unusually low). During 2025 debtors were reducing from a high point in December 2024 as we worked through and significantly cleared aged debt, that process has continued in 2026 but not to the same extent as we started 2026 with much reduced aged balances. In addition, H1 2026 revenue mix is skewed in favour of faster paying clients.
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
27 July 2026
Consolidated statement of comprehensive income:
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|
|
Six-month period ended 30 June 2026 |
Six-month period ended 30 June 2025 |
Year-ended 31 December 2025
|
|
|
|
Unaudited |
Unaudited |
Audited |
|
|
Notes |
£'000 |
£'000 |
£'000 |
|
Revenue |
2 |
45,222 |
48,271 |
95,538 |
|
Cost of sales |
2 |
(36,946) |
(39,373) |
(77,660) |
|
Gross profit |
2 |
8,276 |
8,898 |
17,878 |
|
Administrative expenses |
2 |
(7,490) |
(7,629) |
(15,278) |
|
Profit from operations |
2 |
786 |
1,269 |
2,600 |
|
Finance expense |
|
(39) |
(55) |
(108) |
|
Profit before tax |
|
747 |
1,214 |
2,492 |
|
Tax expense |
3 |
(219) |
(327) |
(679) |
|
Total profit and other comprehensive income for the period attributable to owners of the parent |
|
528 |
887 |
1,813 |
|
|
|
|
|
|
|
Earnings per ordinary share |
|
|
|
|
|
Basic |
|
4.21p |
6.62p |
14.10p |
|
Fully diluted |
|
4.21p |
6.62p |
14.10p |
Consolidated statement of changes in equity for the six months ended 30 June 2026:
|
|
Share capital |
Share premium |
Capital redemption reserve |
Profit and loss |
Total equity |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Balance at 1 January 2026 |
126 |
120 |
70 |
7,873 |
8,189 |
|
Total comprehensive income for the period |
- |
- |
- |
528 |
528 |
|
Transactions with owners: |
|
|
|
|
|
|
Dividends |
- |
- |
- |
(690) |
(690) |
|
Total transactions with owners |
- |
- |
- |
(690) |
(690) |
|
At 30 June 2026 (Unaudited) |
126 |
120 |
70 |
7,711 |
8,027 |
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 |
887 |
|
Transactions with owners: |
|
|
|
|
|
|
|
Dividends |
- |
- |
- |
- |
(628) |
(628) |
|
Own shares purchased |
(10) |
- |
10 |
|
(850) |
(850) |
|
Share options exercised |
- |
- |
- |
(3) |
3 |
- |
|
Total transactions with owners |
(10) |
- |
10 |
(3) |
(1,475) |
(1,478) |
|
At 30 June 2025 (Unaudited) |
126 |
120 |
70 |
- |
7,100 |
7,416 |
Consolidated statement of changes in equity for the year ended 31 December 2025:
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|
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 |
Consolidated statement of financial position:
|
|
|
As at 30 June 2026 Unaudited |
As at 30 June 2025
Unaudited |
As at 31 December 2025 Audited |
|
|
|
£'000 |
£'000 |
£'000 |
|
Assets |
|
|
|
|
|
Non-current |
|
|
|
|
|
Goodwill |
|
132 |
132 |
132 |
|
Other intangible assets |
|
99 |
70 |
128 |
|
Property, plant, and equipment |
|
829 |
1,012 |
884 |
|
Right of use assets |
|
1,590 |
1,766 |
1,779 |
|
Deferred tax asset |
|
1 |
- |
1 |
|
|
|
2,651 |
2,980 |
2,924 |
|
Current |
|
|
|
|
|
Inventories |
|
10 |
12 |
10 |
|
Trade and other receivables |
|
12,686 |
15,278 |
13,850 |
|
Cash and cash equivalents |
|
3,793 |
2,480 |
3,871 |
|
|
|
16,489 |
17,770 |
17,731 |
|
Total assets |
|
19,140 |
20,750 |
20,655 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Current |
|
|
|
|
|
Trade and other payables |
|
(8,105) |
(10,039) |
(9,518) |
|
Lease liabilities |
|
(317) |
(294) |
(317) |
|
Corporation tax |
|
(958) |
(964) |
(714) |
|
|
|
(9,380) |
(11,297) |
(10,549) |
|
Non-current liabilities |
|
|
|
|
|
Lease liabilities |
|
(1,668) |
(1,930) |
(1,827) |
|
Deferred tax liabilities |
|
(65) |
(107) |
(90) |
|
|
|
(1,733) |
(2,037) |
(1,917) |
|
Total liabilities |
|
(11,113) |
(13,334) |
(12,466) |
|
Net assets |
|
8,027 |
7,416 |
8,189 |
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
Share capital |
|
126 |
126 |
126 |
|
Share premium |
|
120 |
120 |
120 |
|
Capital redemption reserve |
|
70 |
70 |
70 |
|
Profit and loss account |
|
7,711 |
7,100 |
7,873 |
|
Total equity |
|
8,027 |
7,416 |
8,189 |
Consolidated statement of cash flows:
|
|
Six-month period ended 30 June 2026 Unaudited |
Six-month period ended 30 June 2025 Unaudited |
Year ended 31 December 2025 Audited |
|
|
£'000 |
£'000 |
£'000 |
|
Cash flows from operating activities |
|
|
|
|
Profit before tax |
747 |
1,214 |
2,492 |
|
Adjustments for: |
|
|
|
|
Depreciation, loss on disposal and amortisation |
352 |
325 |
690 |
|
Finance expense |
39 |
55 |
108 |
|
Change in inventories |
- |
1 |
3 |
|
Change in trade and other receivables |
1,164 |
2,184 |
3,612 |
|
Change in trade and other payables |
(1,413) |
(497) |
(1,018) |
|
Cash inflow from operations |
889 |
3,282 |
5,887 |
|
Income tax paid |
- |
- |
(620) |
|
Interest paid |
(39) |
(55) |
(108) |
|
Net cash inflow from operating activities |
850 |
3,227 |
5,159 |
|
Cash flows from investing activities |
|
|
|
|
Purchases of property, plant and equipment and intangibles |
(79) |
(56) |
(150) |
|
Net cash used in investing activities |
(79) |
(56) |
(150) |
|
Cash flows from financing activities |
|
|
|
|
Shares purchased |
- |
(850) |
(851) |
|
Dividend paid |
(690) |
(628) |
(780) |
|
Payments of lease liabilities |
(159) |
(147) |
(441) |
|
Net cash (outflow) from financing activities |
(849) |
(1,625) |
(2,072) |
|
Net (decrease)/increase in cash and cash equivalents |
(78) |
1,546 |
2,937 |
|
Cash and cash equivalents at beginning of period |
3,871 |
934 |
934 |
|
Cash and cash equivalents at end of period |
3,793 |
2,480 |
3,871 |
Notes to the interim statement for the six months ended 30 June 2026:
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 those detailed in our last Annual Report and Accounts to 31 December 2025 in addition to the current headwinds as set out in the Chairman and Chief Executive's statement.
b) Basis of preparation
The unaudited interim Group financial information of RTC Group Plc is for the six months ended 30 June 2026 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 2025, 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 27 July 2026. No significant events, other than those disclosed in this document, have occurred between 30 June 2026 and this date.
c) Comparatives
The comparative figures for the year ended 31 December 2025 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 2026 Annual Report and Accounts and there are not expected to be any changes in the accounting policies compared to those applied at 31 December 2025.
A full description of accounting policies is contained with our 2025 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 2025.
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 2026, two customers in the UK Recruitment segment contributed 10% or more of that segment's revenues being £11.9m (2025: £11.5m), £6.4m (2025: £5.5m), respectively, and two customers in the International Recruitment sector contributed 10% or more of that segment's revenues being £1.7m (2025: £1.0m) and £0.2m (2025: £0.9m).
Revenue, gross profit, and operating profit delivery by geography for the six-month period ended 30 June 2026:
|
£'000 |
UK Recruitment
|
UK Central Services |
International Recruitment
|
Total Group |
|
Revenue |
42,280 |
970 |
1,972 |
45,222 |
|
Cost of sales |
(34,738) |
(523) |
(1,685) |
(36,946) |
|
Gross profit |
7,542 |
447 |
287 |
8,276 |
|
Administrative expenses |
(5,054) |
(1,856) |
(228) |
(7,138) |
|
Amortisation of intangible assets |
(29) |
- |
- |
(29) |
|
Depreciation of right of use assets |
(47) |
(141) |
- |
(188) |
|
Depreciation |
(30) |
(105) |
- |
(135) |
|
Total administrative expenses |
(5,160) |
(2,102) |
(228) |
(7,490) |
|
Profit from operations |
2,382 |
(1,655) |
59 |
786 |
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 2025:
|
£'000 |
UK Recruitment
|
UK Central Services |
International Recruitment
|
Total Group |
|
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 information for the year ended 31 December 2025:
|
£'000 |
UK Recruitment
|
UK Central Services |
International Recruitment |
Total Group |
|
Revenue |
88,962 |
2,108 |
4,468 |
95,538 |
|
Cost of sales |
(73,002) |
(1,105) |
(3,553) |
(77,660) |
|
Gross profit |
15,960 |
1,003 |
915 |
17,878 |
|
Administrative expenses |
(10,108) |
(4,036) |
(445) |
(14,589) |
|
Amortisation of intangibles |
(64) |
- |
- |
(64) |
|
Depreciation of right of use assets |
(93) |
(283) |
- |
(376) |
|
Depreciation |
(93) |
(155) |
(1) |
(249) |
|
Total administrative expenses |
(10,358) |
(4,474) |
(446) |
(15,278) |
|
Profit / (loss) from operations |
5,602 |
(3,471) |
469 |
2,600 |
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
£'000 |
Six months ended 30 June 2026 (Unaudited) |
Six months ended 30 June 2025 (Unaudited) |
Year ended 31 December 2025 (Audited) |
|
|
Permanent placements |
1,236 |
1,226 |
|
2,412 |
|
Contract |
43,016 |
46,099 |
|
91,018 |
|
Other |
970 |
946 |
|
2,108 |
|
|
45,222 |
48,271 |
|
95,538 |
|
Gross profit
£'000 |
Six months ended 30 June 2026 (Unaudited) |
Six months ended 30 June 2025 (Unaudited) |
Year ended 31 December 2025 (Audited) |
|
|
Permanent placements |
1,236 |
1,226 |
|
2,412 |
|
Contract |
6,593 |
7,256 |
|
14,463 |
|
Other |
447 |
416 |
|
1,003 |
|
|
8,276 |
8,898 |
|
17,878 |
3. Income tax
|
Continuing operations |
Six-month period ended 30 June 2026 (Unaudited) |
Six-month period ended 30 June 2025 (Unaudited) |
Year ended 31 December 2025 (Audited) |
|
|
£'000 |
£'000 |
£'000 |
|
Analysis of tax: |
|
|
|
|
Current tax |
|
|
|
|
UK corporation tax |
244 |
350 |
714 |
|
Adjustment in respect of previous periods |
- |
- |
6 |
|
|
244 |
350 |
720 |
|
Deferred tax |
|
|
|
|
Origination and reversal of temporary differences |
(25) |
(23) |
(41) |
|
Tax |
219 |
327 |
679 |
Factors affecting the tax expense
The tax assessed for the six-month period ended 30 June 2026 is higher than (2025: higher than) would be expected by multiplying profit by the standard rate of corporation tax in the UK of 25% (2025: 25%).
The differences are explained below:
|
|
Six-month period ended 30 June 2026 Unaudited |
Six-month period ended 30 June 2025 Unaudited |
Year ended 31 December 2025 Audited |
|
Factors affecting tax expense |
£'000 |
£'000 |
£'000 |
|
Result for the period before tax |
747 |
1,214 |
2,492 |
|
Profit multiplied by standard rate of tax of 25% (2025: 25%) |
187 |
304 |
623 |
|
Non-deductible expenses |
32 |
23 |
50 |
|
Adjustment in respect of previous periods |
- |
- |
6 |
|
Tax charge for the period |
219 |
327 |
679 |
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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