Made Tech Share Discussion Threads

[protean] 10/4/2014 11:11

Breaking out to a new high by the looks of it.

[quepassa] 10/4/2014 10:20

Very positive write-up and BUY recommendation in the Telegraph yesterday. Questor column.
Worth reading.

ALL IMO. DYOR.
QP

[davebowler] 10/4/2014 08:50

Equity Development;
Matchtech Group has 30 years' experience providing niche recruitment services to the engineering, technology, professional staffing and the employability & skills markets.

This morning they have posted another set of better than expected results for the 6 months to January 2014. Net Fee Income (NFI) jumped 19% (or 15.4% LFL) to £22.1m, delivering adjusted EBITA of £6.6m (+53%) - exceeding our estimates of £22.0m and £6.2m respectively. Net debt also improved to close January, 2014 at £8.6m from £10.5m in July, thanks to tight debt collection. The dividend ticked up 5% to 5.41p.

We highlight sector leading NFI growth from both the Engineering (+15.5% LFL to £13.3m) and Professional Services (+15.2% LFL to £8.8m) divisions. NFI conversion climbed 3.9% to 29.7%, assisted by favourable customer mix and operational gearing.Cash conversion was strong at 115%, generating operational cash inflow of £7.1m, with net borrowing falling to a comfortable 0.65x EBITDA.

Our FY14 PBTA figures have been increased by £0.2m to £11.85m. Moreover, we believe the Board's strategy of accelerating growth will further bear fruit in FY15 and beyond, and have lifted our price target from 580p to 650p/share.

[hannahh] 08/4/2014 14:12

Hi, if you're interested in listening to the management present their results and asking them questions feel free to join them tomorrow for a webinar at 1pm (9th April).

[iamb4ne1] 08/4/2014 13:33

Yep great results, shame its on such a bad market day

[quepassa] 08/4/2014 08:34

Excellent results this morning.

Good increase by 5% in interim dividend to 5.45p. - Quote "This reflects the strength and resilience of the business and the Board's confidence in the future."

An astonishing 43% increase in EPS.

Highly positive Outlook with statement that full-year results expected to be slightly AHEAD OF EXPECTATIONS.

Further commentary about the Group's " ambitious growth plans".


This morning 8th April:-

NUMIS SECURITIES REITERATE their BUY RECOMMENDATION with a TARGET PRICE OF 660p.

EQUITY DEVELOPMENT lift their PRICE TARGET from 580p to 650p (with scope to increase).


ALL IMO. DYOR.
QP

[davebowler] 08/4/2014 08:25

Equity Development;
Matchtech Group has 30 years' experience providing niche recruitment services to the engineering, technology, professional staffing and the employability & skills markets.

This morning they have posted another set of better than expected results for the 6 months to January 2014. Net Fee Income (NFI) jumped 19% (or 15.4% LFL) to £22.1m, delivering adjusted EBITA of £6.6m (+53%) - exceeding our estimates of £22.0m and £6.2m respectively. Net debt also improved to close January, 2014 at £8.6m from £10.5m in July, thanks to tight debt collection. The dividend ticked up 5% to 5.41p.

We highlight sector leading NFI growth from both the Engineering (+15.5% LFL to £13.3m) and Professional Services (+15.2% LFL to £8.8m) divisions. NFI conversion climbed 3.9% to 29.7%, assisted by favourable customer mix and operational gearing.Cash conversion was strong at 115%, generating operational cash inflow of £7.1m, with net borrowing falling to a comfortable 0.65x EBITDA.

Our FY14 PBTA figures have been increased by £0.2m to £11.85m. Moreover, we believe the Board's strategy of accelerating growth will further bear fruit in FY15 and beyond, and have lifted our price target from 580p to 650p/share.

[prop_joe] 14/3/2014 08:50

QuePassa,
Agreed, I am also encouraged that whenever I read an article about engineering it mentions shortages of available engineers and increasing demand so I believe that Matchtech is sitting in the sweet spot.
Regards

[quepassa] 14/3/2014 08:22

Temporary recruitment behemoth Adecco, world's largest specialist temp agency, reported some excellent results the other day.

Citing a strong pick-up and more favourable economic conditions, Adecco quintupled net profit to E174m.

Good sector feed-back which further supports prospects for Matchtech in the current improving environment.

ALL IMO. DYOR.
QP

[quepassa] 11/2/2014 13:59

On Friday 7th. January, Numis Securities issued a broker update for MTEC.

Numis REITERATED their BUY recommendation for MTEC with a PRICE TARGET of 660p.

ALL IMO. DYOR.

QP

[old tyke] 07/2/2014 15:02

One of the punting mags will latch on to it in due course, then you will see it leap on a Friday morning!

[painter] 07/2/2014 14:28

Being ignored by Mr Market again today strange! Still I'll take up 0.5% a day if it keeps coming for a few months.

[painter] 07/2/2014 00:04

Surprised this only up 0.5% today with the market up 1.5%?

[davebowler] 06/2/2014 11:02

Edison;
Matchtech's Pre-close Trading Update confirms that it had a strong H1 across the board: H1 Net Fee Income (from continuing operations) increased 15% to £21.2m. Contract NFI of £14.9m was up 13%, and demand for permanent staff also improved, with Permanent Fees of £6.3m, up 19% compared with H1 last year.

Matchtech stated that it expects its results for the full year to be slightly ahead of current expectations. As a result we have upgraded our FY14 Net Fee Income, PBT and adjusted EPS forecasts to £44.1m (+5.5%), £11.65m (+4.5%) and 36.8p (+4.5%) respectively.

Our target price moves up from 556p per share to 580p. At the current 550p Matchtech is trading on a forward PER of 15x (a 25% discount to its peers), and paying a 3.5% dividend yield.

[old tyke] 06/2/2014 08:18

Revenue growth is 19%. Although there is no mention of margins, forecasts (I'm going on stockop here) show FY rev growth of only 7.8%, and eps growth of 7.1%.So I think they are being conservative when they say "expects its results for the full year to be slightly ahead of current expectations."

Cheap.

[m.t.glass] 06/2/2014 07:59

full text

6 February 2014

Matchtech Group plc

Pre-close Trading Update

Matchtech Group plc (the "Group"), one of the UK's leading specialist engineering and professional services recruitment companies, today provides the following Pre-close Trading Update for the six months ending 31 January 2014.

Since our last update on 15 November 2013, the Group has continued to trade well and expects its results for the full year to be slightly ahead of current expectations.

Net Fee Income ("NFI")

There was a strong first half performance generating total NFI of GBP22.0 million, representing a 15% increase from Continuing Operations compared with the same period last year. We are seeing growth in both Contract NFI and Permanent Fees across all sectors in the business.

NFI performance is analysed as follows:

H1 2014 H2 2013 H1 2013 H1 v H1
GBPm GBPm GBPm %
Engineering 13.1 12.5 11.5 +14%
Professional Services 8.1 7.4 7.0 +16%
------- ------- ------- -------
Continuing Operations 21.2 19.9 18.5 +15%
Provanis (acquired 6 September 2013) 0.8 - -
Total Group 22.0 19.9 18.5 +19%
------- ------- ------- -------


Number of weeks in period 24.2 25.0 24.2
Average weekly NFI 0.91 0.80 0.76 +20%

The business mix remained the same as the previous year, with Contract NFI accounting for 71% and Permanent Fees 29% of total NFI in the period.

Since its acquisition for a net consideration* of GBP3.6 million on 6 September 2013, Provanis, a technology recruitment business, has traded in line with the Board's expectations. The integration is going well as we look to cross sell its services into the Group's wider client base.

*Being a total cash consideration of GBP4.3 million including net assets of GBP0.7m.

Contract NFI

The demand for contract labour continues to be strong across the engineering and technology sectors.

Contract NFI from Continuing Operations of GBP14.9m was 13% up on the same period last year.

After accounting for the planned reduction of some 300 contractors at our largest client, which was already factored into our forecasts, we have maintained the number of contractors on assignment at the same level since 31 July 2013 at 7,000.

Contract NFI performance is analysed as follows:

H1 2014 H2 2013 H1 2013 H1 v H1
GBPm GBPm GBPm %
Engineering 10.8 10.1 9.5 +14%
Professional Services 4.1 3.9 3.7 +11%
------- ------- ------- -------
Continuing Operations 14.9 14.0 13.2 +13%
Provanis 0.8 - -
Total Group 15.7 14.0 13.2 +19%
------- ------- ------- -------


Number of weeks in period 24.2 25.0 24.2
Average weekly fees from Continuing
Operations 0.65 0.56 0.55 +18%

Contractors on assignment at end
of period 7,000 7,000 6,700 +4%

Permanent Fees

Demand for permanent staff from our customers continues to improve, with Permanent Fees of GBP6.3m up 19% compared with the same period last year.

Permanent fee performance is analysed as follows:

H1 2014 H2 2013 H1 2013 H1 v H1
GBPm GBPm GBPm %
Engineering 2.3 2.4 2.0 +15%
Professional Services 4.0 3.5 3.3 +21%
Total - Continuing Operations 6.3 5.9 5.3 +19%
------- ------- ------- -------


Number of weeks in period 24.2 25.0 24.2
Average weekly fees 0.26 0.24 0.22 +18%

Net Debt

Net debt may be analysed as follows:

31 January 31 July 31 January
2014 2013 2013
GBPm GBPm GBPm
Net Debt 8.7 10.6 8.0

As the economy recovers we will continue to invest appropriately in our sales teams and it is pleasing that we are seeing an increase in our contract percentage margin and the number of permanent placements.

Our balanced business model and strong niche sector expertise give the Board confidence that the Group will continue to grow and take market share.

The Group intends to release its Interim Results for the period ending 31 January 2014 on 8 April 2014.

- ENDS -

[quepassa] 06/2/2014 07:56

Agreed.

Another very strong Trading Update/performance with the all-important words "expects its results for the full year to be slightly ahead of current expectations. "

"Ahead of expectations" indicates a buoyant market and good trading/profitability prospects.

MTEC recently increased its final dividend by 21% in October from 10.6p to 12.85p.

I see no reason why the Company would not equally increase its last April 2013 Interim dividend of 5.15p by a similar if not higher percentage.

ALL IMO. DYOR.

QP

[prop_joe] 06/2/2014 07:55

Good growth - and with the economy recovering and shortage of engineers should be more to come I believe.

[painter] 06/2/2014 07:28

TU today very positive back above 600p soon I hope.

[kam5lc] 28/1/2014 02:14

Anyone got the date for the next ims?

[paleje] 22/1/2014 09:51

NWKI reported this morning. Apart from signs of improvement in the economy and a 19% increase in perms, their Energy & Engineering division showed huge growth with net fee income UP 80%!

Employers still complaining they can't get anywhere near enough skilled staff, I reckon more will need to come from overseas regardless of the immigration scaremongering. All good news for us anyway.

[quepassa] 16/1/2014 10:07

Very large volumes going through today.

ALL IMO. DYOR.

QP

[quepassa] 16/1/2014 08:33

Matchtech continues to storm forward and has now breached 600p.

Market cap has now gone through the £150million milestone.

ALL IMO. DYOR.

QP

[painter] 15/1/2014 14:54

Nice move up today, surprised as MPI report yesterday was not that great. Anyone know why e.g. broker update?

[quepassa] 09/1/2014 17:36

Thanks for good insights.
good luck also.

QP