Going global
Matchtech (MTEC) is the UK's leading specialist engineering and professional services recruitment agency, providing contract, temporary and permanent staff. After the recent acquisition of Networkers International on 1st April, the Group now derives 28% of Net Fee Income (NFI) overseas and has also become Britain's 5th largest technology agency. MTEC now has a profitable and ready-made global platform from which to roll-out its successful UK model. The transaction further provides attractive opportunities into complementary new verticals such as Telecoms, thus offering cross-selling opportunities. And there are substantial cost synergies as well, so it no surprise that the deal is set to be earnings enhancing in the first 12 months of ownership. Today's interims are robust as NFI increased 1.5% to £22.5m. Engineering again caught the eye, with NFI climbing 5.2% to £14.0m, plus there was a stand-out performance from Infrastructure (+26%). For investors the interim dividend was lifted 5% to 5.68p, and is well covered 3.3x by underlying diluted EPS of 18.7p (+2%). Post period contract wins are encouraging including Southern Water and (announced today) HCL, Zodiac Aerospace plus an extension with BAE Systems. We now forecast H2'15 underlying NFI (excluding Networkers) to increase 7.2% vs 1.5% in H1 - with FY15 and FY16 diluted EPS upgraded to 41.2p (vs 41.1p) and 49.9p (vs 45.3p) respectively. Adjusting for the higher sharecount, our price target is now 680p/share - over 25% above current levels.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.