Matchtech engineering strong growth

Specialist recruiter Matchtech is seeing strong across-the-board demand for contractors from engineering companies.

Pre-tax profits for the year ending July 31st rose 25% to £8m on revenues of £371.4m, up 23% on the previous year. This was driven by what the company described as "unprecendented" demand for contractors across all engineering sectors. The company operates in four key sectors, engineering, built environment, Information systems and technology, and science and medical.

Net debt at July 31st 2012 was £14.5m with bank interest for the year increasing from to £711,000 compared with £461,000 in 2011. In June 2012 Matchtech agreed an increase in its facilities with Barclays from £35m to £50m on improved terms, committed until June 2015.

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The final dividend is being held at 10.6p a share, making a total of dividend for the year of 15.6p, covered 1.6 times by earnings per share.

Consensus estimates are for earnings per share of 30.42p in 2013, putting the company on a forward price earnings ratio of 6.8 with a prospective yield of 7.6%.

CM