RTC Group, a UK-based recruitment business, posted weaker earnings for the first half as a mix of higher operating expenses and softer market conditions weighed on performance.
Revenue for the period fell to £45.22 million. The company recorded profit from operations of £786,000 and a pretax profit of £747,000. Gross profit for the half stood at £8.28 million, and earnings per share declined compared with the prior period.
Management cited rising fuel prices, linked to tensions in the Middle East, and higher employment costs as key drivers of margin compression. The company said these cost pressures reduced profitability across its operations.
The energy division experienced a temporary reduction in activity as the UK smart metering market moved from the rollout phase into maintenance. That transition led to lower revenue and thinner margins in the unit during the half.
Economic uncertainty and higher employment costs also influenced client behaviour, the company said. Employers adopted a more cautious stance, dampening permanent recruitment demand, while candidate mobility slowed over the period.
Despite the weaker trading, RTC Group maintained its interim dividend payment and described its order book as resilient.
In light of continued market uncertainty, the company stated it will not resume issuing formal market guidance. It expects elevated operating costs and subdued recruitment activity to continue through 2026, while flagging longer-term opportunities tied to UK infrastructure investment and ongoing smart metering programmes.
Clear summary
RTC Group's half-year results show lower revenue and profits driven by higher operating costs and softer energy-sector work as smart metering moves into maintenance. The board has kept the interim dividend in place but will not provide formal guidance, and it anticipates persistent cost and demand headwinds into 2026 while still highlighting potential long-term opportunities from UK infrastructure and meter programmes.
Key points
- Revenue declined to £45.22 million; operating profit was £786,000 and pretax profit £747,000, with gross profit at £8.28 million.
- Rising fuel costs and increased employment expenses reduced margins; the energy division saw a temporary drop in activity as smart metering moved from rollout to maintenance.
- Company maintained its interim dividend, reported a resilient order book, and will not resume formal guidance amid ongoing market uncertainty.
Outlook and context
RTC Group expects that elevated operating costs and subdued recruitment activity will continue through 2026. The company also pointed to long-term demand drivers from UK infrastructure spending and smart metering programmes, though those opportunities were described as prospective rather than immediate offsets to current headwinds.