Investment summary

Matchtech’s H112 trading update outlines very good progress at the Net Fee Income (NFI) level, up 25% over H111, with the headcount increases needed to support this level of growth broadly in place for the entire period. With the trading environment remaining uncertain, we have lowered our sights on permanent recruitment prospects and edged our profit numbers down by 8%. The shares are nevertheless still on a relatively modest rating with premium, and safe, yield.

Last updated on 02/02/2012

Industry outlook

While generalist recruiters are feeling the impact of lower economic activity, specialist areas are still beset by skill shortages. Major project work continues, with further large-scale infrastructure projects now in the pipeline, all requiring large numbers of white collar engineers and technical staff. The client base in general remains busy. Contractors at this level are broadly unaffected by the implementation of the AWD.

Last updated on 09/12/2011