Matchtech has announced a 7% increase in pre-tax profits for the six months ended 31 January 2009. 

Profit before tax increased to £6.1m compared to £5.7m in the first half of 2008.

Revenue rose by 18% to £138m (2008 H1: £116.6m), while net fee income (NFI) was up 8% to £16.6m (2008 H1: £15.3m).

George Materna, chairman of Matchtech, says: “We are pleased with these first half results in what are increasingly very challenging economic conditions. 

“In the six months to 31 January 2009 we have continued to grow; contract NFI was up 12%, while permanent fees were essentially unchanged from the same period last year.  Operating margins have fallen due to a combination of operational gearing and pay rates and margins being put under increasing pressure.

“With lower interest costs and a write back of unvested LTIP (long-term incentive plan) charges, we have increased profits before tax by 7% to £6.1m. Basic earnings per share were up 12% to 19.03p per share. 

“Since the period end the group has extended its banking facilities with Barclays Bank for two years, giving the group £27.5m of funding in place until 2011.

“The board has also taken steps to align the group’s cost base with prevailing market conditions. We have reduced headcount by 10% from 315 at 31 January 2009 to 286 at 31 March 2009.  

“Based upon current market conditions and expected run rates, the outlook for remainder of financial year to 31 July 2009 is now below the board’s previous expectations.”