REG - RTC Group PLC - Final results for the year ended 31 December 2024
24/03/2025 07:00
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RNS Number : 7552B RTC Group PLC 24 March 2025
24 March 2025
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RTC Group Plc
("RTC", "the Company" or "the Group")
Final results for the year ended 31 December 2024
RTC Group Plc (AIM: RTC.L) is pleased to announce its audited results for the year ended 31 December 2024.
Highlights
· Group revenue from continuing operations £96.8m (2023: £98.8m).
· Profit before tax £2.6m (2023: £2.5m).
· EBITDA £3.3m (2023: £3.8m).
· Cash generated from operating activities £2.2m (2023: £4.7m).
· No gearing.
· Cash and cash equivalents £0.9m (2023: £1.1m).
· Net assets £8.0m (2023: £7.9m).
· Net asset value per share (fully diluted) 59p (2023: 54p).
· Fully diluted weighted average earnings per share 13.01p (2023:
12.72p).
· Earnings per share based on year-end position 13.75p (2023:
12.51p)
· Interim dividend 1.1p per share paid (2023: 1.0p).
· 5.0p final dividend proposed (2023: 4.5p).
The Directors propose a final dividend for the year of 5.0p (2023: 4.5p) per
share, subject to approval of shareholders at the Annual General Meeting on 21
May 2025. If shareholders approve the recommended final dividend, it will be
paid on 27 June 2025 to all holders of shares who are on the register of
members at the close of business on 30 May 2025, with an ex-dividend date of
29 May 2025. If approved this will bring the total dividend paid out in
respect of 2024 to £841,468 (6.1p per share).
Commenting on the results Andy Pendlebury, Chairman and Chief Executive said:
"2024 was an extremely satisfying year for the Group. Another strong set of
results, another constructive year of value enhancement for our shareholders,
while continuing to invest in the future, and a business with an outstanding
balance sheet, and long-term revenue visibility through its strong order book
with blue chip clients. A Group with strong independent yet interlinked
subsidiary businesses with proven track records in both UK and International
markets.
I am confident that our strategy of building a diverse group of subsidiaries
partnering with companies heavily invested in long-term capital-intensive
infrastructure sectors will continue to provide us with a layer of protection
from the peaks and troughs of the traditional recruitment cycle.
Our solid order book across rail maintenance and renewals, and smart meter
roll out and upgrades alongside other key infrastructure programmes, provides
some clear visibility of revenue in 2025 and I remain cautiously confident in
our short, medium and long-term prospects.
Once again, our excellent performance is as a direct result of the exceptional
people that we employ across the Group. The accumulation of both industry and
company knowledge, experience and operational capability, coupled with the
continual and unbridled enthusiasm and energy of everybody combines to create
the unique and distinctive culture which permeates every corner of the Group
and differentiates us as a company.
A big thank you to everybody for all your hard work."
Enquiries:
RTC Group Plc Tel: 0133 286 1842
Andy Pendlebury, Chairman and Chief Executive
SPARK Advisory Partners Limited (Nominated Adviser)
Tel: 0203 368 3550
Matt Davis / Mark Brady
www.Sparkadvisorypartners.com (http://www.Sparkadvisorypartners.com)
SI Capital (Broker) Tel: 0148 341 3500
Nick Emerson
Sam Lomanto
www.sicapital.co.uk (http://www.sicapital.co.uk)
About RTC
Group at a glance
RTC Group Plc is an AIM listed recruitment business that focuses on white and
blue-collar recruitment, providing temporary and permanent labour to a broad
range of industries and customers, in both domestic and international markets,
through its geographically defined operating divisions.
UK division
Through its Ganymede and ATA brands the Group provides a wide range of
recruitment services in the UK.
Ganymede specialises in recruiting the best technical and engineering talent
and providing complete workforce solutions to help build and maintain
infrastructure and transportation for a wide range of UK customers. Ganymede
is a market leader in providing a diverse range of people solutions to the
rail, energy, construction, highways, and transportation sectors. With offices
strategically located across the country, Ganymede provides its customers with
the benefit of a national network of skilled personnel combined with local
expertise.
Ganymede tailors its solutions to suit its customers' needs. Whether it is
recruiting permanent and temporary technical, engineering and safety-critical
roles or providing fully managed workforce solutions of recruitment, training,
account management, contingent labour and fleet provision, Ganymede works
closely with its customers to understand their requirements, keeping their
goals in mind every step of the way.
ATA provides high-quality technical recruitment solutions to the
manufacturing, engineering, and technology sectors. Working as an engineering
recruitment partner supporting businesses across the UK, ATA has a strong
track record of attracting and recruiting the best engineering talent for its
customers. ATA's regional offices which are strategically located in Leicester
and Leeds each have dedicated market experts to ensure ATA delivers excellence
to both its customers and candidates.
The Group headquarters are located at the Derby Conference Centre which also
provides office accommodation for its operating divisions in addition to
generating rental and conferencing income from space not utilised by the
Group.
International division
Internationally, through our GSS brand we work with customers across the globe
that are focused on delivering projects in a variety of sectors. GSS has a
track record of delivery in some of the world's most hostile locations.
Working closely with its customers GSS provides contract and permanent
staffing solutions on an international basis, providing key personnel into new
projects and supporting ongoing large-scale project staffing needs. GSS
typically recruits across a range of disciplines and skills from operators and
supervisors, through to senior management level.
www.rtcgroupplc.co.uk (http://www.rtcgroupplc.co.uk)
Chairman and Chief Executive's operational and strategic review
For the year ended 31 December 2024
Overview
2024 was another extremely satisfying year for RTC with the Group delivering
an exceptional set of results in a difficult year for the recruitment sector.
Despite a relatively small reduction in revenue at Group level, our UK and
international business have delivered increased gross profit and this, when
benchmarked across the broader recruitment sector, and in particular the
quoted market contingent where sentiment has become increasingly subdued, is a
significant achievement for the Group.
Whilst modest in size when compared to many of our quoted peers I believe our
performance should not be understated and our strategy of building a diverse
and complementary portfolio of sector specific subsidiaries continues to build
sustainable value for our shareholders.
We have established market leading positions both in the UK and overseas and
as we enter the 2025 financial year, we believe we can continue to unlock
further earnings opportunities through our strong relationships with clients
and our substantial order book which continues to provide the solid foundation
for future growth and our long-term investment plans.
During 2024 the Group achieved a number of significant financial milestones of
which I am extremely proud, and which I believe deserve highlighting to our
shareholders. Our cumulative revenue since I assembled new leadership and
subsidiary management teams to deliver my vision and strategy for the Group's
shareholders, has now surpassed £1bn with total gross profit generated
approaching £200m and committed dividends of over £4m to our shareholders.
It should be noted that, across the Group, at the core of this success, key
individuals who started this journey with me remain in senior leadership
positions in management teams across the Group with a significant number
having over 20 years' service with their businesses. This is testament to, and
a measure of, the exceptional culture which pervades RTC and bodes well for
the long-term future of the Group.
Our achievements are even more pleasing considering the multiple disruptions
to our strategic progress caused by the global economic downturns as a
consequence of the 2008/2009 financial crisis and the COVID epidemic of
2020/2021 and compounded by protracted industrial relations disturbances
across the rail sector in the UK during 2023. Collectively these
uncontrollable events denied the Group the opportunity to deliver even greater
success for its shareholders.
Our balance sheet continues to go from strength to strength with another year
of extremely positive cash generation and we remain completely term debt free
with zero gearing. During the year we took the opportunity to acquire a large
holding of shares from a long-standing shareholder at a sensible price for our
shareholders and through utilising free cash flow. Even taking account of this
transaction, we increased the net assets of our balance sheet which has now
grown, fully diluted, to 59p per share giving an annual increase of over 9%
for our shareholders. Furthermore, our reported fully diluted earnings per
share (eps) grew 2% from 12.72p to 13.01p per share. I note, however, that
moving beyond standard accounting, and based on the year-end position, the
increase in eps is no less than 8%, at 13.75p, a very positive outcome.
As result of both our strong financial performance and our prudent treasury
management, we are able to reward our shareholders with a very healthy final
dividend of 5p representing an 11% increase year on year. It is also worth
noting for reference that at year end our net assets represented nearly 60% of
our closing share price.
During the year the Group announced the appointment of three new directors to
the Board. Paul Crompton, executive director, and Nick Spoliar and Wayne
Thornhill as non-executive directors. All have exceptional experience and
skills which I believe will help RTC execute its short, medium, and long-term
strategic plans and establish a future for its shareholders capable of
building on its outstanding successes to date.
In conclusion, another strong set of results, another constructive year of
value enhancement for our shareholders, a business with an outstanding balance
sheet and long-term revenue visibility through its strong order book with blue
chip clients and a company with strong independent yet interlinked subsidiary
businesses with proven track records in both UK and International markets.
Whilst there are unquestionable concerns clouding the confidence of the
broader recruitment sector as we enter 2025, and the impact of rising
employment costs through the combination of employer national insurance
increases and the new Employment Rights Bill have yet to be fully digested, I
remain cautiously optimistic of our prospects as we enter the new financial
year.
Business review
UK Division
In 2024, our UK recruitment division delivered an exceptionally strong
performance, all the more so allowing for the general environment, yet again
demonstrating resilience and adaptability in a challenging economy and an
uncertain recruitment market. Whilst revenue was slightly down at £88.9m
(2023: £91.2m), gross profit was up at £15.6m (2023: £15.3m), reflecting
our commitment to both strategic focus and operational efficiency to maintain
enhanced value creation.
Ganymede Energy continued to build on the success it enjoyed in 2023 by
delivering another strong performance in 2024 with a steady increase in gross
profit, which is particularly pleasing given the ongoing, and well publicised
challenges within the metering industry. Based on the latest government
statistics, as of the end of September 2024, there were 37 million smart and
advanced meters installed in homes and small businesses across the UK,
accounting for 65% of all gas and electricity meters. Whilst the sector
continues to face ongoing challenges, smart meters present significant
long-term opportunities for our energy business as, in addition to the
completion of existing planned installations, first generation installations
are becoming increasingly obsolete and upgrades to first generation SMETS1
meters to ensure full interoperability remains a high priority. In addition,
the decommissioning of Radio Teleswitch Service (RTS) meters, with around
600,000 still in operation and set for replacement before the RTS shutdown in
June 2025, represents a crucial area of ongoing metering work in the immediate
future. Furthermore, the upcoming 2G/3G network switch-off will necessitate
the proactive replacement or upgrade of a significant volume of 2G/3G enabled
meters to ensure continued communication and functionality. These essential
transitions across the industry's technology capability will drive significant
activity in the medium term, and this will provide a strong pipeline of demand
for Ganymede engineers.
In addition to the continued metering rollout programme, our energy business
is also seeing significant opportunities for medium to long-term growth in the
wider decarbonisation of homes and the transformation of energy supply. As the
UK accelerates its transition to a low-carbon economy through increased
electrification, heat pump installations, and the expansion of renewable
energy infrastructure, our expertise and market position leave us well-placed
to support and benefit from these changes. Given our proven track record,
market positioning, and secure order book in excess of £20 million, we remain
firmly established as a leading labour supplier to the energy sector. The
scale of the visible opportunity which lies ahead presents further significant
opportunities for our business, reinforcing our confidence in the long-term
growth and resilience of the energy division. Finally, our training centre
which was established in 2023 to upskill Ganymede engineers is now also being
used by our clients to train their employees justifying our investment
commitment to the sector and enabling us to remain at the forefront of energy
recruitment as the sector continues to expand.
Throughout 2024, the mainstream UK recruitment market faced persistent
challenges driven by economic uncertainty, suppressed client and candidate
confidence, and extended hiring timescales, resulting in a sustained slowdown
in vacancy numbers. Despite these headwinds, Ganymede and ATA's white-collar
permanent recruitment teams delivered an extremely robust performance,
resulting in an 8% increase in permanent recruitment fees compared to 2023.
This was in marked contrast to its peer group which was typically reporting
net fee income decline of anywhere between 20%-30%. A truly outstanding
performance recognising the strong team effort within the division and
highlighting why our strategy of long-term partnering with industry leaders
remains pivotal to our continued success. Alongside this, both the Ganymede
and ATA businesses capitalised on stronger demand for temporary and contract
staff, achieving a combined 14% increase in contract gross profit, year on
year. These increases in permanent fees and temporary and contract gross
profit are extremely pleasing given the weakening sentiment impacting the
sector.
This success was underpinned by our strategic positioning across key growth
sectors that continued to invest in talent throughout the year. Demand across
our infrastructure, manufacturing, and transportation client base remained
relatively resilient, driving sustained hiring activity enabling us to
circumvent much of the negative market sentiment and deliver strong growth
across all our target sectors. We are particularly encouraged with the
accelerating growth we are seeing with clients servicing the water sector,
which is set to benefit from the impending regulatory investment cycle, AMP8
(Asset Management Period 8) which runs from April 2025 to March 2030, and set
to invest a projected £100bn in critical water infrastructure projects. Given
our track record of providing personnel into safety critical environments, and
our solid relationships with key sector suppliers we believe we are well
placed to capture new opportunities as they emerge.
In last year's annual report, I confirmed that our rail division was ideally
positioned to capitalise on Network Rail's next five-year infrastructure
investment plan (Control Period 7), which commenced in April 2024, and has an
expected value of approximately £43 billion. However, the first nine months
of CP7 have seen a slower than anticipated start, with Network Rail holding
back and activity levels below initial expectations. Despite these challenges,
our rail division still delivered a like-for-like performance at the gross
profit level compared to a very strong 2023. This was achieved through robust
revenue generation across other supply chain partners engaged in maintenance
and renewals activities.
Given our dominant position across key routes with Network Rail, I remain
optimistic that the committed expenditure plans across the rail network in CP7
will materialise, and our rail division, which is widely recognised as a
market leader in the sector, remains well positioned to maximise opportunities
as investment activity accelerates.
In 2023, we committed to a significant investment programme to replace our
front-end recruitment software systems, consolidating them into a single and
centralised cloud-based platform. This investment will enhance our recruitment
efficiency, generating both stronger and more uniform compliance, while
providing improved reporting capabilities for our subsidiary leadership and
recruitment teams. I am pleased to report that the first phase of this
transition is now complete, with the final phase scheduled to go live in Q2
2025.
In summary, the UK division delivered another very strong financial
performance in 2024, demonstrating its strength, resilience and adaptability
in challenging market conditions. Despite industry and economic headwinds, we
further consolidated our position across all our key sectors reinforcing the
quality of our strategic focus and operational agility. Our increasing gross
profit driven by the continued success of our recruitment divisions, and our
expanding role in critical industries highlights our ability to deliver growth
in a climate of uncertainty.
Our strong market presence, combined with strategic investments in technology,
operational efficiencies, and workforce development, positions us well to
capitalise on opportunities and drive future growth. We see significant
opportunities for continued success through the ongoing rollout of smart
metering, the transition to net-zero energy solutions, and record investment
plans within AMP8 and CP7, all of which we believe will continue to provide a
substantial pipeline of work and order book generation.
International division - Global Staffing Solutions (GSS)
Our international business had another successful year with revenue up 6% and
gross profit up over 30% reflecting both an increase in product mix and the
impact of unique revenue generating initiatives by the business. In order to
provide a recruitment solution to our largest international client, GSS 'wet
leased' an airbus A320 and through its international recruitment reach, the
business sourced, prepared and deployed 150 workers to Diego Garcia in the
Chagos islands. The project which involved recruiting candidates from over 15
countries and mobilising them firstly to a central location for security
clearance and capability authentication, was the first time a commercial
project of this nature had been given military clearance for Diego Garcia. The
project, which was an outstanding success, has further demonstrated the unique
capabilities and project reach of GSS and contributed to a year-on-year
increase in profit from operations of over 50%. A superb achievement by the
team.
Whilst international projects can by their very nature time expire, and
associated revenues can fluctuate due to new project lead times, I am
confident that our broad client base will continue to generate new
opportunities for our international team, and I remain extremely confident in
both its ability to identify and secure new opportunities as they emerge.
Central services
Yet again I am delighted that the Derby Conference Centre (DCC) continued to
stand out in the highly crowded and immensely competitive East Midlands
hospitality and conferencing sector. Whilst the business faced increased costs
fuelled mainly through wages-based inflation, it performed extremely well and
continued to deliver a positive contribution to the Group. In addition to its
exceptional direct B2B and B2C sales success the business continues to
collaborate with other Group businesses to develop complementary
opportunities. Furthermore, the DCC is working with industry partners to
develop long term hospitality and accommodation partnerships, and this has led
to a number of long-term contracts with training companies and local companies
in the East Midlands community.
Finally, as has been widely reported across the hospitality sector, the
changes outlined in the October 2024 budget present additional cost pressures
to the business, with employer's national insurance increases, and minimum
wage increases from April 2025 and Employment Rights Bill changes imminent.
Outlook
In assessing our future prospects, it would be irresponsible of me to not
acknowledge potential headwinds threatening the broader UK economy and which
in turn traditionally flow down to the recruitment sector. For many, 2025 has
begun with a continuation of the trading challenges which began to emerge in
2024 as the post COVID hiring boom, which began in 2022, started to normalise.
In addition, the acceleration of wage inflation coupled with a proliferation
in operating costs has forced many companies to reconsider headcount plans.
Also, and as alluded to earlier, there are further uncertainties arising from
the national insurance increases which become effective from April and the
proposed Employment Rights Bill announced in the October budget which have yet
to be fully digested by industry. These concerns alongside other broader
geopolitical headwinds will undoubtedly prolong unease across the business
community.
However, and whilst mindful of these challenges, I am confident that our
strategy of building a diverse group of subsidiaries partnering with companies
heavily invested in long-term capital-intensive infrastructure sectors will
continue to provide us with a layer of protection from the peaks and troughs
of the traditional recruitment cycle. Our solid order book across rail
maintenance and renewals, and smart meter roll out and upgrades alongside
other key infrastructure programmes, provides some clear visibility of revenue
in 2025 and I remain cautiously confident in our short, medium and long-term
prospects.
Our people
Once again, our excellent performance is as a direct result of the exceptional
people, we employ across the Group. Earlier I drew reference to the length of
service some of our senior leadership teams have with the company. These
highly committed teams of people span our group finance, human resources,
information technology departments and are embedded within each and every one
of subsidiary businesses. The accumulation of both industry and company
knowledge, experience and operational capability, coupled with the continual
and unbridled enthusiasm and energy of everybody, combine to create the unique
and distinct culture which permeates every corner of the Group and
differentiates us as a company.
A big thank you to everybody for all your hard work.
A M Pendlebury
Chairman and Chief
Executive
21 March 2025
Finance Director's report
For the year ended 31 December 2024
Financial highlights
The Group overall delivered revenues of £96.8m (2023: £98.8m). Overall gross
profit increased to £17.9m (2023: £17.4m) and gross margin improved to 18.5%
(2023: 17.6%). The profit from operations of £2.6m (2023: £2.7m) reflects a
year that saw good overall performances across all areas of the Group.
UK Recruitment
Overall, our UK Recruitment division delivered a strong performance, revenues
were £88.9m (2023: £91.2m) and gross profit increased to £15.6m (2023:
£15.3m). Gross margin was also better at 17.5% (2023: 16.8%). Profit from
operations was £5.0m (2023: £5.0m), reflecting our strategic focus on
efficiency and value creation.
Ganymede Energy continued to build on the success of 2023, delivering a strong
performance in 2024 with a steady increase in gross profit, which is
particularly pleasing given the ongoing challenges within the metering
industry.
Ganymede Rail delivered a like-for-like performance at the gross profit level
compared to a very strong 2023, supported by robust revenue generation across
maintenance and renewals activities.
The division's traditional white-collar recruitment, serviced by our ATA and
Ganymede Recruitment brands performed well throughout the year with permanent
and contract revenues combined increasing by 15%, defying broader market
trends.
Refer to Chairman and Chief Executive's operational and strategic review for a
detailed consideration of markets and opportunities.
International
Revenue increased to £5.6m (2023: £5.3m) with a corresponding increase in
gross profit to £1.2m (2023: £0.9m) and gross margin increasing to 21.3%
(2023: 17.3%). The division delivered a profit from operations of £0.7m
(2023: £0.5m) largely due to increased activity with a key client which
included an innovative charter flight solution for getting workers to a key
client location.
Central Services
Within Central Services, the Derby Conference Centre saw good levels of
activity relating to conferences, events and bedroom sales for the majority of
2024 and a strong finish on festive activities. Revenue generated by the
segment was £2.2m (2023: £2.3m) and gross profit was £1.1m (2023: £1.2m),
reflecting the continuing impact of wage and price inflation on direct costs
which have continued to erode the gross margin to 50.7% (2023: 52.2%).
Taxation
The tax charge for the year was £0.7m (2023: £0.7m). The variance between
this and the expected charge if a 25% corporation tax rate was applied to the
result for the year is explained in note 3.
Dividends
During the year, the Company paid an interim dividend of £160,823 (2023:
£145,003) to its equity shareholders. This represents a payment of 1.1p
(2023: £1.0p) per share (refer to note 20). The directors have proposed a
final dividend of £680,645 (5.0p per share) (2023: £659,263 (4.5p per
share)) to be paid on 27 June 2025 to shareholders registered on 30 May 2025.
This has not been accrued within these financial statements as it was not
formally approved before the year end. If approved this will bring the total
dividend paid out in respect of 2024 to £841,468 (6.1p per share).
Purchase and cancellation of own shares
During the year the Company purchased 1,132,380 of its own shares and
subsequently cancelled them with the aim of increasing remaining shareholder
value. The total share capital of the Company is now 13,612,897.
Statement of financial position and cash flows
The Group's net working capital increased to £7.0m (2023: £6.8m). The ratio
of current assets to current liabilities was 1.6 (2023: 1.6) and at the 31
December 2024 (and 31 December 2023) the Group had no borrowings outside of
lease liabilities.
The Group generated £2.2m cash from its operations in 2024 (2023: £4.7m).
This inflow from operating activities enabled the Group to pay an improved
interim dividend, propose an improved final dividend, and buy back and cancel
1,132,380 own shares, at the same time minimising use of its invoice
discounting facility thus keeping interest charges low.
The Group has no term debt and is financed using its invoice discounting and
overdraft facilities with HSBC. On 31 December 2024 the Group had no
borrowings and available funds to draw down of £9.4m (2023: £10.3m).
The Group has a very strong credit control function and, given the current
economic environment and high rate of business failures holds credit insurance
for most customers which gives us additional input to credit management from
the credit insurer's database and the more confidence to increase business
with certain customers backed by insurance.
Financing and going concern
The Group's current bank facilities include a net overdraft facility across
the Group of £50,000 and an invoice discounting facility with HSBC providing
up to £12.0m, based on a percentage of good book debts, at a margin of 1.6%
above base. The Board closely monitors the level of facility utilisation and
availability to ensure there is enough headroom to manage current operations
and support the growth of the business.
In assessing the risks related to the continued availability of the current
facilities, the Board have taken into consideration the existing relationship
with HSBC and the strength of the security provided, also taking into account
the quality of the Group's customer base. Based on their enquiries, the Board
have concluded that sufficient facilities will continue to remain available to
the Group and therefore the going concern basis of preparation remains
appropriate and no material uncertainty exists.
Liquidity risk
The Group seeks to mitigate liquidity risk by effective cash management. The
Group's policy, throughout the year, has been to ensure the continuity of
funding through a net overdraft facility of £50,000 and an invoice
discounting facility, providing up to £12m based on a percentage of good book
debts. The invoice discounting facility is the Group's core funding line and
is classed as evergreen in that it has no fixed expiry date (although it is
reviewed annually).
S L Dye
Group Finance
Director
21 March 2025
Consolidated statement of comprehensive income
For the year ended 31 December 2024
2024 2023
Note £'000 £'000
Revenue 2 96,762 98,781
Cost of sales (78,831) (81,337)
Gross profit 17,931 17,444
Administrative expenses (15,306) (14,729)
Profit from operations 2,625 2,715
Net finance expense (80) (180)
Profit before tax 2,545 2,535
Tax expense 3 (672) (690)
Total profit and other comprehensive income for the year attributable to 1,873 1,845
owners of the Parent
Earnings per ordinary share
Basic 13.01 12.75
Fully diluted 13.01 12.72
Consolidated statement of changes in equity
For the year ended 31 December 2024
Share capital Share premium Capital redemption reserve Share based payment reserve Retained earnings Total equity
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2024 146 120 50 20 7,597 7,933
Total comprehensive income for the year - - - - 1,873 1,873
Transactions with owners:
Dividends (note 20) - - - - (819) (819)
Share options exercised - - - (17) 17 -
Own shares purchased (10) - 10 - (980) (980)
Total transactions with owners (10) - 10 (17) (1,782) (1,799)
At 31 December 2024 136 120 60 3 7,688 8,007
The consolidated statement of changes in equity for the prior year was as
follows:
Share capital Share premium Own shares held Capital redemption reserve Share based payment reserve Retained earnings Total equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2023 146 120 (236) 50 122 5,993 6,195
Total comprehensive income for the year - - - - - 1,845 1,845
Transactions with owners:
Dividends (note 20) - - - - - (145) (145)
Share options exercised - - 236 - (102) (96) 38
Total transactions with owners - - 236 - (102) (241) (107)
At 31 December 2023 146 120 - 50 20 7,597 7,933
Consolidated statement of financial position
As at 31 December 2024
2024 2023
£'000 £'000
Assets
Non-current
Goodwill 132 132
Other intangible assets 93 -
Property, plant, and equipment 1,083 1,326
Right-of-use assets 1,941 2,196
Deferred tax asset 1 6
3,250 3,660
Current
Inventories 13 14
Trade and other receivables 17,462 17,422
Cash and cash equivalents 934 1,069
18,409 18,505
Total assets 21,659 22,165
Liabilities
Current
Trade and other payables (10,536) (10,915)
Lease liabilities (294) (300)
Corporation tax (614) (522)
(11,444) (11,737)
Non-current liabilities
Lease liabilities (2,077) (2,337)
Deferred tax liabilities (131) (158)
(2,208) (2,495)
Total liabilities (13,652) (14,232)
Net assets 8,007 7,933
Equity
Share capital 136 146
Share premium 120 120
Capital redemption reserve 60 50
Share based payment reserve 3 20
Retained earnings 7,688 7,597
Total equity 8,007 7,933
Consolidated statement of cash flows
For the year ended 31 December 2024
2024 2023
£'000 £'000
Cash flows from operating activities
Profit before tax 2,545 2,535
Adjustments for:
Depreciation, loss on disposal and amortisation 691 1,070
Finance expense 80 180
Change in inventories 1 1
Change in trade and other receivables (40) (2,034)
Change in trade and other payables (379) 3,078
Cash inflow from operations 2,898 4,830
Income tax paid (602) -
Interest paid (80) (180)
Net cash inflow from operating activities 2,216 4,650
Cash flows from investing activities
Purchase of property, plant and equipment (213) (437)
Net cash outflow from investing activities (213) (437)
Cash flows from financing activities
Movement on invoice discounting facility - (3,103)
Movement on perpetual bank overdrafts - (29)
Dividend paid (819) (145)
Purchase of own shares (980) -
Payment of lease liabilities (339) (334)
Net cash (outflows) from financing activities (2,138) (3,611)
Net (decrease) / increase in cash and cash equivalents (135) 602
Cash and cash equivalents at beginning of year 1,069 467
Cash and cash equivalents at end of year 934 1,069
1. Corporate information and basis
of preparation
RTC Group Plc is a public limited company incorporated and domiciled in
England whose shares are publicly traded.
The announcement of results of the Group for the year ended 31 December 2024
was authorised for issue in accordance with a resolution of the directors on
21 March 2025.
The financial information included in this announcement has been prepared
under the historical cost convention, as modified by measurement of
share-based payments at fair value at date of grant, and in accordance with UK
adopted international accounting standards ("IFRS") and with those parts of
the Companies Act 2006 applicable to companies reporting under IFRS. This
announcement does not itself however contain sufficient information to comply
with IFRS.
The accounting policies adopted are consistent with those described in the
annual financial statements for the year ended 31 December 2023. There have
been no significant changes in the basis upon which estimates have been
determined, compared to those applied at 31 December 2023 and no change in
estimate has had a material effect on the current period.
2. Segment analysis
The business is split into three operating segments, with recruitment being
split by geographical area. This reflects the integrated approach to the
Group's recruitment business in the UK and independent delivery of overseas
business. Three operating segments have therefore been agreed, based on the
geography of the business unit: United Kingdom, International and Central
Services.
This is consistent with the reporting for management purposes, with the Group
organised into two reportable segments, Recruitment and Central Services,
which are strategic business units that offer different products and services.
They are managed separately because each segment has a different purpose
within the Group and requires different technologies and marketing
strategies.
Segment operating profit is the profit earned by each operating segment
defined above and is the measure reported to the Group's Board, the Group's
Chief Operating Decision Maker, for performance management and resource
allocation purposes. The Group manages the trading performance of each segment
by monitoring operating contribution and centrally manages working capital,
financing, and equity.
Revenues within the recruitment operating segment have similar economic
characteristics and share a majority of the aggregation criteria set out in
IFRS 8:12 in particular the nature of the products and services, the type or
class of customers, the country in which the service is delivered, and the
processes utilised to deliver the services and the regulatory environment for
the services.
The purpose of the Central Services segment is to
provide all central services for the Group including the Group's head office
facilities in Derby. It also generates income from the Derby site including
rental of excess space and hotel and conferencing facilities.
Revenue, gross profit, and operating profit delivery by geography:
2024 2023
UK UK Inter-national Recruitment Total Group UK Recruitment UK Inter-national Recruitment Total Group
Recruitment Central Central
Services Services
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Revenue 88,939 2,225 5,598 96,762 91,187 2,321 5,273 98,781
Cost of sales (73,332) (1,096) (4,403) (78,831) (75,866) (1,110) (4,361) (81,337)
Gross profit 15,607 1,129 1,195 17,931 15,321 1,211 912 17,444
Administrative expenses (10,405) (3,755) (497) (14,657) (9,647) (3,587) (448) (13,682)
Amortisation of intangibles (47) - - (47) (28) - - (28)
Depreciation of right-of-use assets (79) (249) - (328) (140) (246) - (386)
Depreciation (120) (153) (1) (274) (478) (153) (2) (633)
Total administrative expenses (10,651) (4,157) (498) (15,306) (10,293) (3,986) (450) (14,729)
Profit from operations 4,956 (3,028) 697 2,625 5,028 (2,775) 462 2,715
The revenue reported above is generated from continuing operations with
external customers. There were no sales between segments in the year (2023:
Nil). For segment reporting purposes in this note, revenue is analysed by the
geographical location in which the services are delivered.
The accounting policies of the operating segments are the same as the Group's
accounting policies. Segment profit represents the profit earned by each
segment, without allocation of Group administration costs or finance costs.
During 2024, two customers in the UK segment
contributed 10% or more of total revenue being £28.0m (2023: £28.0m) and
£11.4m (2023: £9.7m) respectively, and one customer in the International
segment also contributed 10% or more of total revenue being £4.7m (2023:
£5.2m).
Recruitment revenues are generated from permanent and
temporary recruitment and long-term agreements for labour supply. Within
Central Services revenues are generated from the rental of excess space and
hotel and conference facilities at the Derby site, described as Other below.
Revenue and gross profit by service classification
for management purposes:
Revenue Gross profit
2024 2023 2024 2023
£'000 £'000 £'000 £'000
Permanent placements 2,823 2,574 2,823 2,574
Temporary placements 91,714 93,886 13,979 13,659
Others 2,225 2,321 1,129 1,211
96,762 98,781 17,931 17,444
All operations are continuing. All assets and liabilities are in the UK.
3. Tax expense
2024 2023
Continuing operations £'000 £'000
Current tax
UK corporation tax 714 532
Adjustment in respect of previous periods (20) (10)
Deferred tax
Origination and reversal of temporary differences (22) 168
Tax 672 690
Factors affecting the tax expense
The tax charge assessed for the year is higher than
(2023: higher than) would be expected by multiplying the profit by the
standard rate of corporation tax in the UK of 25% (2023: 23.5%). The
differences are explained below:
2024 2023
Factors affecting tax expense £'000 £'000
Result for the year before tax 2,545 2,535
Profit multiplied by standard rate of tax of 25% (2023: 23.5%) 636 596
Non-deductible expenses 56 66
Effect of change in tax rate - 38
Adjustment in respect of previous periods (20) (10)
672 690
Factors that may affect future tax charges
Deferred tax has been recognised to the extent that
it will unwind at the currently enacted rate of 25%.
4. Dividends
2024 2023
£'000 £'000
Interim dividend in respect of 2024 of 1.1p per share (2023: 1.0p). 161 145
Final dividend in respect of 2023 of 4.5p per share (2023: Nil) 658 -
Total dividends paid in period 819 145
A final dividend of £680,645 (2023: £657,912) has
been proposed but has not been accrued within these financial statements. This
represents a payment of 5.0p (2023: 4.5p) per share.
5. Report and accounts
The above financial information does not constitute the Company's statutory
accounts for the years ended 31 December 2024 or 2023 but is derived from
those accounts. The auditor has reported on these accounts; their report was
unqualified, did not draw attention to any matters by way of emphasis without
qualifying their report and did not contain statements under s498 (2) or (3)
Companies Act 2006 or equivalent preceding legislation. The statutory accounts
for 2023 have been filed with the Registrar of Companies.
Full audited accounts of RTC Group Plc for the year ended 31 December 2024
will be made available on the Company's website at www.rtcgroupplc.co.uk
(http://www.rtcgroupplc.co.uk) later today and will be dispatched to
shareholders on 16 April 2025.
The Company's Annual General meeting will be held at 12noon on 21 May 2025 at
the Derby Conference Centre, London Road, Derby, DE24 8UX.
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