Technical recruiter Matchtech Group has seen net fee income (NFI) decline by 9% in its interim results for the six months ended 31 January 2010.

Its trading update shows that NFI was £12.4m, on the previous six months to 31 July 2009. However taking into consideration seasonally fewer billing days in the period the NFI run rate (predicted outcome) was down 4%.

NFI from contract placements for the period was £10.6m, down from £11.4m in H1, while NFI from permanent placements was £3.1m, falling from £5.2m in the first half of the year.

Matchtech adds that its new Stuttgart operation, which focuses on the German engineering markets and began trading in August, has made a sound start, while elemense, its new recruitment process outsourcing (RPO) brand, launched in July 2009, has shown early signs of success in delivering broader RPO services.

The firm now has a net cash position of £0.8m at 31 January 2010 (Net debt: 31 January 2009: £3.7m; 31 July 2009: £1.2m).

Matchtech’s outlook for the current financial year to 31 July 2010 is unchanged from that set out at the time of the board’s AGM Statement on 20 November 2009 and the firm intends to release its interim results for the six months ended 31 January on 8 April, when it will provide a further update on trading.