LONDON (Alliance News) - RTC Group PLC shares on Wednesday reached their highest level since August 2008 after reporting a 55% increase in annual pretax profit and saying it is on the hunt for acquisitions that can help it grow.
RTC shares were Wednesday quoted at 32.00 pence, up 26%.
The AIM-listed job recruiter made a GBP736,000 pretax profit in 2013, compared with GBP474,000 in 2012. Revenue rose by 14% to GBP49 million and administrative expenses were broadly flat at GBP4.6 million. The strong results come after 18 months of restructuring, during which RTC increased its focus on rail-focused contingent labour supplier Ganymede Solutions and ATA Global Staffing Solutions, while withdrawing from training.
"Our subsidiary companies have all made positive contributions and established solid competitive positions in their respective markets, marking another year of growth across all our recruitment markets," Bill Douie, chairman, said in a statement.
"Contributing to our success is undoubtedly the growth in Ganymede and our increasing international capability. Although there is still work to be done in the regional branch network in ATA Recruitment in the UK to re-establish our stronghold in the SME market, we expect to complete that in 2014 and to drive for further growth in all three core businesses," Douie said.
Finance Director Sarah Dye said RTC will look to grow its existing businesses but is also considering acquisitions.
"We'd be looking at certain strategic aims," Dye told Alliance News, "for example, if we wanted to grow the business in a certain part of the country."
Dye declined to comment on the size of the potential deals.
As was the case a year earlier, RTC said it won't pay a dividend for 2013.
Dye told Alliance News that RTC is planning a return to the dividend list at the earliest opportunity.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Rtc Grp. (RTC)