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RTC claims acquisition plan 'vindicated' by strong 2017
Recruitment firm RTC Group outlined its plans for the continuation of its "transformational acquisition plan" on Monday, after releasing strong year end financial results.
The company saw a 6% increase in revenue to £71.69m compared to the previous year, and a 40% increase in pre-tax profits up to £1.3m from £1m over the same period.
The Derby based company has increased its net working capital 57% to £2.2m and the group has no term debt, being financed solely using its confidential invoice discounting facility with HSBC
The AIM-listed company claims these results have "vindicated" its acquisition plan which has so far included acquiring complementary businesses to its Ganymede subsidiary, which this year obtained a long term contract to train and supply over 250 dual fuel installers to Scottish and Southern Electric.
Ganymede supplies labour into safety critical environments and has benefitted from "good demand in the Rail industry," according to RTC and the company is confident of further business from the sector after the collapse of Carillion.
Andy Pendlebury, chief executive of RTC, said: "In addition to our incremental organic growth plan the Board now believes the time is right for RTC to pursue a transformational acquisition plan. During 2018 we will continue the process of identifying complementary organisations that offer a broad range of consolidatory and diversification opportunities for our Group to integrate into and alongside our existing subsidiary businesses."
Aside from Ganymede, RTC's other subsidiaries are ATA, an engineering and technical recruitment consultancies, and GSS. GSS provides service solutions to predominantly international clients and this arm increased its net contribution to the group by over 40%, landing a contract with KBR to supply staff to Afghanistan, Iraq, Somalia, Oman, UAE and Bahrain.
Pendlebury added: "I believe our success demonstrates that our business model of building and investing in independent and complementary subsidiary businesses is both robust and capable of delivering long term value to our shareholders. We enter 2018 with optimism."
As of 0832 GMT, RTC's shares were up 13.45% at 67.50p.