Profits at technical recruiter Matchtech fell in the year ending 31 July 2010, but the company was buoyed by record contractor numbers, and a rise in permanent recruitment fees.

Financial highlights of preliminary results

- Revenue £264.4m down 2% (2009: £269.6m), with H2 up 11% on H1
- Net fee income (NFI) £26.2m, down 14% (2009: £30.3m), with H2 up 10% on H1
- Permanent recruitment fees in Q4 of £1.6m, up 14% on Q4 2009
- Record number of contractors on assignment at year end at 5,100 (July 2009: 4,500)
- Operating profit of £8.8m (2009: £11.7m)
- Profit before tax of £8.6m (2009: £11.3m)
- Low net debt of £4.5m at year end (2009: £1.2m)
- Continuing to generate positive cashflow, with net cashflow from operating activities of £0.8m (2009: £5.9m)

George Materna, chairman of Matchtech, says: “We have a healthy balance of business mix, clients and relationships, and although we have exposure to the public sector, both directly and indirectly, much is on long-term contracts, and protected, to an extent, by the specialist nature of the vacancies that we have to fill.”