(Alliance News) - RTC Group PLC on Monday reported a fall in profit for the first half of 2021, as the virus pandemic continued to impact the firm's trading performance.
Shares in RTC Group were down 20% to 40.10 pence each in London on Monday morning.
Pretax profit for the six months ended June 30 was GBP162,000, down 30% from GBP231,000 the same period a year before.
The recruitment company posted revenue of GBP40.5 million, up 1.5% year-on-year from GBP39.9 million.
The pandemic's effect on the UK Recruitment segment was mixed, as it achieved revenue of GBP34.2 million in the first half, up from GBP31.2 million a year prior.
Throughout the period RTC has continued to provide contract workers to the infrastructure and rail sectors at slightly higher levels than the final quarter of 2020, and general UK recruitment and smart-meter installation activities gradually picked up with promising levels of UK recruitment in June especially.
Within UK Central Services, overall business levels were depressed due to government guidance curtailing conference and event activities. Revenue generated by the segment was GBP344,000, down 25% year-on-year from GBP447,000, reflecting the fact that in 2020 only second quarter trading was affected by the pandemic, whereas in 2021 restrictions on hospitality were in place for the entire period.
The group did not issue a dividend in the period and at this time, no interim dividend is proposed for the year ended December 31, in line with a year before when the company also decided against a payout.
RTC said it is in the position of having to renew its contract with Network Rail. The tender process has now been completed and the firm should know the outcome of Network Rail's decision in the second half of the year.
"The outcome for the remainder of 2021 depends on whether the present optimism over the vaccine roll-out and the consequential economic forecast plays out as the government hopes," said Chair Bill Douie.
By Amrit Sahota; newsroom@alliancenews.com
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Rtc Grp. (RTC)