Pubished 29th August 2017
InterQuest Group PLC - ITQ
Released 07:49 29-Aug-2017
RNS Number : 1428P
InterQuest Group PLC
29 August 2017
29 August 2017
InterQuest Group plc
("InterQuest" or "the Company")
InterQuest Group plc (AIM: ITQ.L), the specialist recruiter in the technology, analytics and digital market today announces the following trading update ahead of its interim results for the six months to 30 June 2017.
The Company announced on 15 June 2017 that it was facing challenges in the political and trading environment resulting from BREXIT, the result of the UK election and the subsequent hung Parliament.
The Company today confirms that like-for-like Net Fee Income ("NFI") for the six months to 30 June 2017 was down 14% to £9.5m (2016: £11.0m). Total NFI for the six months to 30 June 2017, including that of Rees Draper Wright which was acquired on 3 August 2016, was £11.2m. Total Earnings before Interest, Tax and Amortisation ("EBITA") before exceptional costs decreased by 19% to £1.3m (2016: £1.6m).
Market conditions in one of the Company's core markets, Financial Services, remain challenging, specifically in the contracting market which is experiencing pressure on margins. The Company is therefore more reliant on fees from permanent placements which are more volatile, particularly in the higher value search business. The Company has benefitted from better performances in its public sector, solutions and North American search market but these have only partly mitigated the larger underperforming divisions which are taking longer than expected to turn around. Accordingly, the Company expects that Net Fee Income will be materially affected and EBITA for the year to 31 December 2017, before taking into account approximately £0.5m of costs incurred in the failed defence of the bid by Chisbridge Limited, will be approximately £3.1m.
Further detail will be provided within the Company's interim results for the six months to 30 June 2017 which are expected to be published in September 2017.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
InterQuest Group Plc
David Bygrave (CFO) Tel: +44 (0) 20 7025 0100
Panmure Gordon (UK) Limited (Nomad and Broker)
Karri Vuori or Dominic Morley
Tel: +44 (0) 20 7886 2500
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