Trading update

Pubished 8th January 2015


InterQuest Group plc (AIM: ITQ), the specialist information technology recruitment group, is today issuing a trading update for the financial year ending 31st December 2014.

Highlights

  • Full year adjusted EBITA expected to be slightly ahead of consensus at circa £4.9m; approximately 96% up year on year from £2.5m reported for 2013
  • Full year Net Fee Income (“NFI”) expected to be circa £23.3m, up 34% year on year with similar levels of NFI growth in both the Group’s Contract and Permanent businesses
  • Net operating margin (adjusted EBITA/NFI) improved by circa 660-basis points from 14.4% to approximately 21.0>#/li###
  • Excellent growth in the Group’s Contract book which increased organically by circa 18% between January 2014 and the year end
  • Continued strong organic growth performance from the Group’s niche recruitment brands
  • ECOM acquisition successfully integrated and performing ahead of expectations

Chief Executive Officer, Mark Braund commented: “We are delighted with the progress made throughout 2014, maintaining the positive momentum delivered during the last five consecutive reporting periods and building upon the foundations put in place over the last three years. Our focus on specialist niche recruitment services and on providing some of the market’s most in-demand skill sets is delivering significant benefits to the Group and our client relationships.

“The performance of our Contract business, which generates approximately two-thirds of the Group’s NFI, accelerated further during the second half of 2014; year on year growth of 34% was underpinned by strong organic (like-for-like) growth of circa 18% over the year.

“Looking forward, the economic backdrop remains uncertain but we remain very positive about the Group’s long term prospects. The growth and strength of our Contract book business, coupled with our focus on providing talent in high-growth markets where there remains significant demand, such as analytics, digital, web technologies and information security, presents our specialist recruitment brands and the Group with a strong and sustainable platform for continued growth in 2015.”

The Group will publish its final results for the year ended 31 December 2014 on 10th March 2015.

Enquiries:

InterQuest Group Plc Tel: +44 (0) 20 7025 0117
Mark Braund, Chief Executive Officer
Michael Joyce, Chief Financial Officer
Charles Stanley Securities (Nomad and Broker)
Marc Milmo Tel: +44 (0) 20 7149 6000

Karri Vuori

Media enquiries:

Maitland
Neil Bennett Tel: +44 (0) 20 7379 5151
Andy Donald