RTC Group (AIM:RTC) shares dropped 13.47% to 110p after the company's AGM statement said higher fuel and energy costs had materially raised fleet expenses and depressed margins in Q2.
It cautioned that geopolitical tensions and the Iran conflict's impact on global energy markets have significantly increased fuel costs, materially raising fleet expenses and depressing margins across its Rail and Energy divisions in Q2 2026.
RTC Group warned that elevated energy prices have materially lowered demand for temporary labour as some smaller manufacturing clients close or cut production, that the permanent recruitment market remains challenging with vacancy levels cited as the lowest since 2021, and that smart-metering demand has softened as the market shifts to upgrades and compliance work.
Meanwhile, the company said six major contract wins in Q1, including significant extensions of long-standing agreements, support a strong and growing long-term order book, and that demand for core rail maintenance and for conferencing remains broadly in line with 2025 levels even as rising costs hit margins.
The company's interim results for the six months ended 30 June will be published on or around 27 July.
