RTC Group (AIM:RTC) reported revenue of £45.2m for the six months ended 30 June, down from £48.3m a year earlier, as profit from operations fell to £0.8m from £1.3m.
The AIM-listed engineering and technical recruitment group, which operates through its Ganymede, ATA Recruitment and GSS brands, held gross margin broadly steady at 18.3% against 18.4% in the prior period, despite rising fuel costs.
Andy Pendlebury, Chairman and Chief Executive, said the Group delivered "a solid first half performance" while maintaining investment in training and safety, "despite the myriad headwinds I highlighted in May".
The UK division's rail and infrastructure business traded ahead of last year, though this was offset by weaker demand in the Energy division, where smart metering installation activity has slowed as the market shifts from rollout to maintenance, a transition compounded by uncertainty around E.ON's proposed acquisition of OVO Energy.
Net cash inflow from operating activities fell to £0.9m from £3.2m, reflecting lower revenue and working capital timing.
Cash stood at £3.8m at period end, close to the £3.9m held at 31 December, with no term debt and no borrowings beyond lease liabilities.
The Group paid £0.7m in dividends during the period, a 10% increase per share on H1 2025, while net assets stood at £8m against £8.2m at the end of December.
Fully diluted earnings per share fell to 4.21p from 6.62p.
The Group secured six significant contract wins and extensions during the period but has deferred resuming formal market guidance "until there is greater clarity" on the duration of current market headwinds.
News Intelligence what this means for the company
RTC Group's H1 2026 results show revenue down 6.4% to £45.2m and operating profit down 38% to £0.8m, driven by softer energy demand as smart metering work shifts from installation rollout to maintenance, compounded by E.ON's proposed OVO Energy acquisition uncertainty. Management has suspended forward guidance pending clarity on market headwinds, signalling near-term visibility remains poor despite holding gross margins steady and securing six contract wins.
The company's profitability is under pressure from structural headwinds in its Energy division that extend beyond near-term cyclicality. While the rail and infrastructure business performed ahead of prior year and the balance sheet remains debt-free with £3.8m cash, the 10% dividend increase per share despite a 38% profit decline and 72% drop in operating cash flow (to £0.9m) suggests limited room for error if market conditions deteriorate further.
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