DERBY: Engineering and technical recruitment firm RTC Group Plc (AIM: RTC.L) reported a resilient set of interim results for the six months ended June 30, 2025, maintaining profit from operations at £1.3 million while delivering a sharp rise in operating cash flow.
Group revenue from continuing operations stood at £48.3 million, slightly below £49.0 million last year. Net cash inflow rose to £3.3 million from £0.4 million, enabling RTC to return £1.5 million to shareholders through dividends and buybacks. Net assets decreased to £7.4 million from £8.0 million at year-end 2024.
Chairman and CEO Andy Pendlebury said the Group’s fourth consecutive half-year operating profit of £1.3 million underscored its “reliability, robustness and continued resilience” despite ongoing market challenges. RTC continues to operate with no term debt and limited lease liabilities.
Earnings per share improved year-over-year, with fully diluted EPS reaching 6.62p compared to 6.0p in 2024. Based on period-end shares, EPS rose to 7.07p from 6.01p.
The company’s UK Energy division drove first-half growth with strong demand for smart meter upgrades, while white-collar temporary staffing rose 12% amid infrastructure and manufacturing projects. Permanent recruitment revenue fell roughly 15% due to cautious hiring and increased employer costs stemming from revised National Insurance contributions.
Rail sector activity remained sluggish during Network Rail’s Control Period 7, which began in April 2024. Despite slower progress, RTC expects a rebound, citing CP7’s £43 billion investment outlook.
International revenues declined, reflecting typical project cycle volatility, but profit margins rose following a shift in contract mix. RTC’s overseas arm GSS continues to secure long-term military and civil contracts.
Central services, including the Derby Conference Centre, matched prior-year performance despite cost pressures from NI changes.
Looking ahead, RTC said it remains well positioned to benefit from the UK’s £725 billion National Infrastructure Strategy, with smart metering and rail renewals supporting revenue visibility into 2026. The company noted slower government project delivery but expressed confidence in medium- and long-term prospects.
An interim dividend of 1.21p per share (2024: 1.10p) will be paid on Oct. 3 to shareholders registered by Sept. 5. A final dividend of 5.0p for FY2024 was paid on June 27.