Rtc Grp. Regulatory News (RTC)

RTC Group Plc ("RTC" or "the Company")

Unaudited interim results for the six months ended 30 June 2010

RTC Group Plc, a support services group, which provides recruitment and conferencing services, is pleased to announce its interim results for the six months ended 30 June 2010.

HIGHLIGHTS

Revenue increased by 3% to £8.5m (2009: £8.3m).

Operating loss from continuing activities of £0.4m (2009: loss £0.8m).

Loss per share from continuing activities of 4.22p (2009: loss of 8.89p).

Loss on discontinued operations (Training Division) of £0.5m (2009 £0.4m)

No interim dividend declared (2009: nil).

Commenting on the results Bill Douie, Chairman, said:

'The discontinuation of our Training activities has removed a significant threat to our return to good profitability.

Although there are still many uncertainties in the near future, we believe that we have dealt with the major problems at the Derby Conference Centre, we are now less vulnerable to trading setbacks and we are confident that we are well placed to continue our expansion in recruitment worldwide'.

29 September 2010

ENQUIRIES:

RTC Group Plc Tel: 01332 861835

Bill Douie, Executive Chairman.

Andy Pendlebury, Group Chief Executive.

Evolution Securities Limited Tel: 0207 071 4300

Jeremy Ellis / Chris Clarke

CHAIRMAN'S STATEMENT

I am pleased to present the interim report of the Company for the six months to 30 June 2010.

Group

The period has been one of exceptional change. Following the difficult trading conditions experienced in 2009, markets have begun to stabilise across many areas of the economy with the exception of Rail. There has been increasing evidence, even before the election of the present Government, that many projects to renew and improve the National Railway Infrastructure have been delayed, postponed or even cancelled. Expenditure in the industry has been focused on maintenance, now largely handled by Network Rail internally. As a consequence, after a reasonable start to the year affected only by inclement weather conditions in January, during the second quarter demand for training products offered by Catalis suffered a further significant drop confirming our view that increases in activity from similar markets were vital to ensure continuing viability. The only possible way to achieve an adequate result in an acceptable timescale was to offer Catalis for sale to other organisations involved in similar activities to achieve rationalisation benefits and economies of scale.

Accordingly, agents were appointed to find a buyer and heads of terms were agreed for a sale. Given the severe volatility in the sector and the potential exposure to pension liability and service rights the sale of the business was not possible.

Given these circumstances and the potential impact on the wider Group, the Board felt unable to continue to fund the Catalis operation and there was no alternative other than to appoint an Administrator.

Since the period end, the Administrator has succeeded in selling the trade and assets of Catalis to a third party who will continue the trade from all premises, including London Road Derby and Clapham, through separate long term agreements between the buyer and the RTC Group.

Trading

General

As presaged in our Report and Accounts in March, trading conditions have remained difficult. Accordingly, as expected, losses have been incurred in the first six months of 2010. As outlined above a significant proportion of those losses have arisen in Catalis and are treated as discontinued. Excluding those, the only remaining material negatives have occurred in The Derby Conference Centre.

Recruitment

Although the last two year period has been extremely difficult, during that time development of all sections of our recruitment business has continued steadily. In particular, our Vertical division has continued to expand and grow both sectorially and geographically, and with significant UK and overseas revenue, is set to continue in the near to medium term. Our Vertical business now forms the largest element of our recruitment portfolio. The traditional Branch business, mainly serving SME's, has retrenched in the face of a continually subdued UK SME marketplace. Cost control and efficiency measures were implemented to limit damage to the business. The branch network has also been refined and is now well placed to serve a recovering market.

Training

The Group is no longer involved in Training.

Conferencing

The Derby Conference Centre, after a major efficiency drive has succeeded in achieving a sound cost base from which to build and is now enjoying a steady increase in sales. Revenues from Catalis, now under new ownership have been secured for the immediate future.

Dividends

Your Directors consider that it would be inappropriate to declare an interim dividend.

Outlook & Strategy

Although there remain challenges in the SME market place all of our recruitment activities are in good fettle and are making good progress towards significant recovery. We have succeeded in securing a significant contract from our recently established office in India to supply contract labour for re-construction activities in specific countries and are hopeful that further similar contracts will enhance revenues going forward.

The discontinuation of our Training activities has removed a significant threat to our return to good profitability.

Although there are still many uncertainties in the near future, we believe that we have dealt with the major problems at the Derby Conference Centre, we are now less vulnerable to trading setbacks and we are confident that we are well placed to continue our expansion in recruitment worldwide.

W.J.C.Douie, Chairman. 29th September 2010

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

There is no dilutive impact of share options.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONSOLIDATED STATEMENT OF CASHFLOWS

NOTES TO THE INTERIM STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2010

1. ACCOUNTING POLICIES

a) General information

RTC Group Plc is a public limited company incorporated and domiciled in England whose 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. 

b) Basis of preparation

The unaudited interim group financial statements of RTC Group Plc are for the six months ended 30 June 2010 and do 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. This report should be read in conjunction with the Group's Annual Report and Accounts for the year ended 31 December 2009, which have been prepared in accordance with IFRS's as adopted by the European Union.

These unaudited interim group financial statements were approved for issue on 28 September 2010. No significant events, other than those disclosed in this document, have occurred between 30 June 2010 and this date.

c) Comparatives

The comparative figures for the year ended 31 December 2009 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 auditors 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

The accounting policies adopted are consistent with those described in the annual financial statements for the year ended 31 December 2009. There have been no significant changes in the basis upon which estimates have been determined, compared to those applied at 31 December 2009 and no change in estimate has had a material effect on the current period.

This interim announcement has been prepared based on IFRS's which are in issue that are effective or available for early adoption at the Group's annual reporting date as at 31 December 2010.

2. SEGMENTAL ANALYSIS

The Group's continuing activities relate to Recruitment and Conferencing business activities. Segmental analysis of business activity is shown below.

In the view of the directors, there is not a seasonal aspect to the performance of the business.

3. TAX ON PROFIT ON ORDINARY ACTIVITIES

No provision has been made for tax in the period, as a result of the losses incurred. Tax charges in the previous periods were estimated at the anticipated effective rate.

4. DISCONTINUED OPERATIONS

On 25 June 2010, the Board decided to discontinue funding the Group's Training Division and hence the board of Catalis Limited put this company into Administration. The loss for the discontinued operation is stated after charging:

Details of net assets disposed as a result of the administration of Catalis Limited and the associated loss for the period resulting from this are as follows:

5. DIVIDENDS

The Board does not propose the payment of an interim dividend.

6. LOSS PER SHARE

The losses per share have been calculated on both continuing and discontinued operations after taxation, based on the weighted average number of shares in issue during the period. The outstanding share options are not considered to be dilutive in either the current or comparative periods.

7. ANALYSIS OF CHANGES IN NET DEBT

The Group has a working capital facility with Lloyds TSB plc that allows it to borrow up to 90% of the invoiced trade debtors of ATA Recruitment Limited and Ganymede Solutions Limited up to £4.0m.  

8. RECONCILIATION OF CONSOLIDATED EQUITY

9. CONTINGENT LIABILITIES

The bank facility is subject to unlimited cross guarantees between Group companies secured by mortgage debentures.

10. RELATED PARTY TRANSACTIONS

RTC Group Plc is the parent company of the Group that includes the following entities that have been consolidated:

·; ATA Management Services Limited

·; ATA Recruitment Limited

·; Catalis Limited (In administration - Note 4)

·; The Derby Conference Centre Limited

·; Ganymede Solutions Limited

·; Global Choice Recruitment Limited

The Group has taken advantage of the exemption permitted by relevant accounting standards and has not disclosed transactions with other Group companies that are eliminated on consolidation.

RTC Group Plc

Registered Office

The Derby Conference Centre,

London Road,

Derby, DE24 8UX

Approved and authorised for release

for and on behalf of RTC Group Plc