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2010 Interim Results April 2010 25 years delivering recruitment solutions

2010 Interim Results April 2010 25 years delivering recruitment solutions. Adrian Gunn - Chief Executive Officer Tony Dyer - Chief Financial Officer. Headlines Trading in line with expectations. Revenue down 5% on 2009 H2 to £125.4m Net Fee Income (NFI) down 9% on 2009 H2 to £12.5m

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2010 Interim Results April 2010 25 years delivering recruitment solutions

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  1. 2010 Interim ResultsApril 201025 years delivering recruitment solutions Adrian Gunn - Chief Executive Officer Tony Dyer - Chief Financial Officer

  2. HeadlinesTrading in line with expectations • Revenue down 5% on 2009 H2 to £125.4m • Net Fee Income (NFI) down 9% on 2009 H2 to £12.5m • Permanent recruitment fees stable for 11 consecutive months • Record number of contractors on assignment • Average time sheet value down 8% (January 2010 v July 2009) • Operational cost savings of £2.3m v 2009 H1 • Improved operating cash conversion • Net cash £0.8m - July 2009: net debt £1.2 m • Banking facilities extended until March 2013 • Interim dividend maintained at 5.0 pence per share

  3. Well balanced businessTop 50 clients - 55% of NFI • > 1,500 clients • % of NFI • Top client 10% • Top 5 26% • Top 10 33% • Top 50 55%

  4. Sector AnalysisPublic/Private split of NFI 19% UK Defence 16% Energy Private for Public : 35% 8% Marine 9% Transport Private Sector Clients: 49% 8% Technology 5% Local Authorities 6% Aerospace 5% Highways Public Bodies: 16% 5% Utilities 4% Automotive 3% Buildings 3% Health 2% Professional 3% Infrastructure 1% Pharmaceutical 2% Education 1% Other

  5. 2010 H1 Results

  6. Income Statement Performance stabilised

  7. Income Statement Earnings per share & dividends

  8. Balance Sheet Net cash at 31 January 2010

  9. Cashflow Cash generation

  10. Contract Activity Record contractor numbers

  11. Permanent ActivityStable for 11 consecutive months from May 2009 to March 2010 Engineering Average Weekly Perm Placements Built Environment Average Weekly Perm Placements

  12. Managing the cost baseoperational cost savings • Significant operational cost savings compared to 2009 H1: (Including a write back of unvested LTIP charges of £0.3m) • Capital expenditure on hold - 2010 H2 is expected to be circa £0.4m

  13. Business overview

  14. NFI Contractor/Perm split: 81:19 (2009 H1: 71:29; 2009 H2: 79:21) Gross margin 9.2% (2009 H1: 11.0%; 2009 H2: 9.7%) NFI conversion rate 44.3% (2009 H1: 43.0%; 2009 H2: 43.8%) 2,896 contractors working at period end (2009 H1: 2,495; 2009 H2: 2,625) 325 perm placements (2009 H1: 606; 2009 H2: 326) £4,000 average perm fee (2009 H1: £4,068; 2009 H2: £4,601) 76 in sales force at period end (2009 H1: 90; 2009 H2: 76) Engineering 2010 H156% of NFI

  15. Engineering 2010 H156% of NFI • Maintaining Key Clients • BAE Surface Ships (South) via Xchanging – Master Vendor to October 2011 • Babcock Marine – Preferred Supplier to June 2013 • AgustaWestland – Preferred Supplier Framework to January 2018 • ExxonMobil Chemicals – Preferred Supplier Framework rolling annual contract • Developing New Clients • BP – Preferred Supplier Framework • KBR – Preferred Supplier Framework • Invensys Process Systems – Managed Agency • Hyde Group – Sole Supplier • GE Group – Preferred Supplier Framework • Current Market Forces • Supplier rationalisation on framework agreements • Easing pressure on margins and pay rates • High demand for niche skill types • Renewed optimism across industry sectors

  16. Contractor/Perm split of NFI: 89:11 (2009 H1: 81:19; 2009 H2: 91:9) Gross margin 9.4% (2009 H1: 11.7%; 2009 H2: 10.0%) NFI conversion rate 37.0% (2009 H1: 40.5%; 2009 H2: 39.4%) 1,063 contractors working at period end (2009 H1: 1,192; 2009 H2: 1,030) 86 perm placements (2009 H1: 192; 2009 H2: 87) £3,488 average perm fee (2009 H1: £4,167; 2009 H2 £3,448) 42 in sales force at period end (2009 H1: 47; 2009 H2: 43) Built Environment 2010 H122% of NFI

  17. Built Environment 2010 H1 22% of NFI • Maintaining Key Clients • Mouchel - Master Vendor to September 2012 • WSP – Master Vendor to January 2013 • Arup – Preferred Supplier Framework rolling annual contract • Atkins - Preferred Supplier Framework to September 2010 • Transport for London – PSL Framework tender in progress • Developing New Clients • Halcrow – Preferred Supplier Framework • Ringway Jacobs – Preferred Supplier Framework • Costain – Preferred Supplier Framework • Balfour Beatty – Preferred Supplier Framework • Current Market Forces • Supplier rationalisation on framework agreements • Direct recruitment by clients internal Talent Acquisition Teams • Local Authority spend on highways and transportation projects stabilised • Consultant Engineers planning growth in the Nuclear and Renewable sectors

  18. Contractor/Perm split of NFI: 56:44 (2009 H1: 50:50; 2009 H2: 58:42) Gross margin 13.2% (2009 H1: 15.8%; 2009 H2: 13.1%) NFI conversion rate 22.2% (2009 H1: 26.3%; 2009 H2: 25.8%) 776 contractors working at period end (2009 H1: 830; 2009 H2: 805) 367 perm placements (2009 H1: 538; 2009 H2: 371) £3,270 average perm fee (2009 H1: £3,511; 2009 H2: £3,504) 49 in sales force at period end (2009 H1: 60; 2009 H2: 50) Professional Services 2010 H122% of NFI

  19. Professional Services 2010 H1 22% of NFI • Maintaining Key Clients • NHS via Buying Solutions - PSL Framework to December 2011 • VT Group – RPO to January 2012 • Arqiva – PSL Framework to April 2012 • Transport for London – PSL Framework Tender in progress • Developing New Clients • IT PSL wins - Cap Gemini, Cognizant, Diageo, Samsung, Tate & Lyle and SAB Miller • Commercial PSL wins – Shell, BP, Anglo American, Rathbone, Bombardier, Procurement Scotland, Grant Thornton and BDO Stoy Hayward • Current Market Forces • Supplier rationalisation on framework agreements • Direct recruitment by clients internal Talent Acquisition Teams • Increased importance of Social & Professional networking for candidate sourcing • IT, HR and Sales & Marketing seeing a marked increase in permanent activity • Key senior appointments made as part of our plans for expansion in FY2010/11

  20. Growth Strategy

  21. Growth StrategyMatchtech UK :Building on core revenue streams Restructuring Matchtech UK into four markets: Engineering Built Environment IT & Technology Scientific & Medical Increasing sales force headcount across all four markets Maximising revenue from new Preferred Supplier Framework wins Improving functionality of www.matchtech.com Focusing business development activity in key markets: Nuclear Renewable Energy Rail Infrastructure

  22. Growth StrategyDeveloping additional revenue streams International Expansion Germany : already moving into new larger premises Netherlands : creating a virtual office Middle East : developing agency partnerships Elemense RPO Dedicated profit centre from August 2010 onwards Continuing to win new business in the technical sector Recruiting senior individuals to win business in the Non-Technical space Professional Services Restructured our professional service offering Nigel Lynn recruited at Group Executive level to Head Professional Services Planning to open additional strategic offices Launching Barclay Meade and Alderwood Education brands Summer 2010

  23. Matchtech Group Strategic Vision

  24. OutlookStrong fundamentals & Growth strategy Resilient : Matchtech UK - Single site technical contract business model Contractors : Record number on assignment Permanent Fees : Capability and resource to increase rapidly International : Expanding into selected markets Professional Services : Strategic managerial appointments, strategic office rollout & new brands Sales force headcount : Increasing across all sectors Cash : Good cash generation & extended bank facilities Dividend policy : Board’s commitment to maintain a strong dividend payout “The Board now expects the results for the year to 31 July 2010 to be slightly ahead of its previous expectations and remains confident in the Group’s prospects over the medium term .”

  25. Appendices

  26. 25 years of delivering compliant recruitment solutionsinnovative Matchmaker Personnel established Matchmaker Personnel & Matchtech Engineering merge forming Matchtech Group plc Matchtech Group plc floats on the AIM market of the London Stock Exchange RPO solution ‘elemense’ launched Matchtech Engineering & Matchtech Inc established Matchtech GmbH established Managed Service Division established Matchtech Inc sold INC 1984 1985 1990 1997 2002 2003 2004 2005 2006 2007 2008 2009 Matchtech joined REC Launch of Online Recruitment Management System BS25999:2008 Business Continuity Standard achieved ISO 9001:2000 Quality ISO 14001:1999 Environmental OHSAS 18001:1999 Health and Safety Matchmaker joined REC Launch of in-house Database ‘eMploy’ Diversity Assured standard achieved Joined APSCO Achieved REC Audited standard

  27. Market leader in technical recruitment14th largest UK recruitment business • Established for 25 years • Strong track record of organic NFI and profit growth • Experienced management team, with high staff retention • Resilient contractor-driven business, with effective permanent strategy • Well balanced business: broad spread of clients/sectors, many longstanding relationships • Focus on sectors with long-term investment horizons • Efficient systems and high operational flexibility, with UK covered from a single site • Strong balance sheet. Net cash at 31 January 2010 • Clear momentum in the business, despite market downturn • Long term growth strategy in place growth cash generation

  28. Highly experienced management team75% of management have over 8 years service George Materna - Non-Executive Chairman Over 30 years experience of the recruitment industry, and is the founder of Matchtech. Adrian Gunn - Chief Executive Officer Joined in 1988; appointed to PLC Board in 2004 as Business Development Director, Group Sales Director and Group MD before becoming CEO in 2009. Non-Executive Director of Recruitment and Employment Confederation Tony Dyer – Chief Financial Officer Qualified as Chartered Management Accountant in 1995. Joined Matchtech in 1996 as management accountant. Appointed to PLC Board in 2004 as Finance Director before becoming CFO in 2009. Andy White - Non-Executive Deputy Chairman A chartered engineer, he formed Matchtech Engineering with George Materna in 1990. Ric Piper - Non-Executive Director Chairman and NED of a number of AIM & privately owned businesses. A Chartered Accountant, Ric is a member of the Financial Reporting Review Panel. He has been a member of the Matchtech board since 2006. Stephen Burke - Non-Executive Director Over 25 years experience in the recruitment industry with Michael Page in 1981, including 10 years setting up businesses in Europe and then as a plc Director from 2001-2005. A member of the Matchtech board since 2006. Experienced management team

  29. 2000-2010 NFI & Operating ProfitConsistent performance Consistent Successful

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