41% undervalued and offering a 4.8% yield
| Matchtech is the UK's leading specialist engineering and professional services recruitment agency, providing contract, temporary and permanent staff. In early April, this year, it acquired Networkers International for £66.3m. This was a key strategic move for Matchtech, to help it respond to, and anticipate the increasing convergence of the skill sets in its three core verticals of Engineering, IT and Telecommunications, as well as the increasing globalisation of large clients' workforces. The acquisition of Networkers helped Matchtech address both of these important trends more rapidly, more cost-effectively and with less risk than the alternative of organic growth to achieve the same result. Today's final results (for the year to July 2015) were in line with market expectations, showing adjusted, diluted EPS up an impressive 17% at 43.3p, with the proposed final dividend up 12% at 16.32p, giving a full year total of 22p (up 10%). In the current financial year we anticipate a further strong performance, as we forecast adj., fully diluted EPS to rise by a further 11% to 48.1p. We also expect another 10% jump in the dividend (to 24.2p), giving a very attractive 4.8% prospective yield. Matchtech remains extremely modestly rated relative to the quoted recruitment sector: its forward P/E (of just 10.4X) contrasts sharply with valuations for most of the sector of 15 - 22 times. At current levels, Matchtech shares are 41% undervalued relative to our increased target price of 705p (up from 680p previously). |
Gattaca is an engineering and technology recruitment solutions company. Co. operates in the STEM markets (science, technology, engineering and maths), all sectors with skills shortages. Co. has three reporting segments, Engineering, Technology and International. Co.'s brands are Matchtech, an engineering recruitment specialist; Networkers, a technology recruitment specialist; Cappo, Provanis, Barclay Meade, a professional services brand, recruiting finance, procurement, sales and HR professionals., and Alderwood, which is involved in placing trainers and assessors with training providers throughout the U.K. and the Middle East.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.