RTC Group plc (RTC) AI Stock Analysis

• Market Cap: £11.93M
• Dividend Yield: 6.71%
• Average Volume (3M): 4.30K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.27
• Revenue Growth: -6.12%
• EPS Growth: 4.30%
• Country: UK
• Employees: 196
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.07
• Shares Outstanding: 12,554,198
• 10 Day Avg. Volume: 3,330
• 30 Day Avg. Volume: 4,303
• PEG Ratio: 0.00
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 7.13
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: 104.00p ▲(8.33% Upside)

RTC Group plc's overall stock score reflects a combination of moderate financial performance and attractive valuation. The low P/E ratio and high dividend yield are significant positives, while technical indicators suggest short-term bullish momentum with caution due to potential overbought conditions. Financial performance shows stability but highlights areas for improvement, particularly in cash flow generation.

Positive Factors

Business Model Strength

RTC's specialized recruitment and training services cater to engineering and technical sectors, ensuring a strong market position and client loyalty.

Return on Equity

A high return on equity indicates efficient use of shareholder funds, enhancing investor confidence and supporting long-term growth.

Operational Efficiency

Strong EBIT and EBITDA margins suggest effective cost management and operational efficiency, crucial for sustaining profitability.

Negative Factors

Revenue Contraction

Declining revenue can signal market challenges or competitive pressures, potentially impacting long-term growth and market share.

Decreased Cash Flow

Reduced cash flow from operations may limit the company's ability to invest in growth opportunities and manage financial obligations.

Moderate Debt Reliance

Moderate reliance on debt could constrain financial flexibility, affecting the company's ability to respond to market changes or invest in new initiatives.

RTC Group plc Business Overview & Revenue Model

Company Description

RTC Group plc (RTC) is a UK-based recruitment and staffing company that specializes in providing workforce solutions across various sectors, including engineering, construction, and rail. The company operates through multiple subsidiaries, offering a range of services such as recruitment, training, and consultancy. RTC focuses on connecting skilled professionals with employers in high-demand industries, facilitating both temporary and permanent placements.

How the Company Makes Money

RTC Group plc generates revenue primarily through its recruitment services, earning fees for placing candidates in temporary and permanent positions. The company benefits from various revenue streams, including placement fees, contract staffing, and training services. Key partnerships with industry leaders allow RTC to secure contracts and expand its market reach. Additionally, the company's focus on sectors with skills shortages, like engineering and rail, enhances its ability to command higher fees and maintain a competitive edge in the recruitment market.

RTC Group plc Financial Statement Overview

Summary

RTC Group plc's financial statements suggest moderate performance with stable profitability margins and a solid return on equity. However, challenges include revenue contraction and decreased cash flow from operations.

Income Statement

RTC Group plc has shown modest improvement in key income statement metrics. The gross profit margin stands at 18.5%, with a net profit margin of 1.9% for the latest period. Revenue decreased by 2% compared to the previous year, indicating a slight contraction. EBIT and EBITDA margins are healthy at 2.7% and 3.4%, respectively, suggesting operational efficiency despite revenue challenges.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.3, indicating controlled leverage. Return on equity is 23.4%, reflecting relatively strong returns to shareholders. However, the equity ratio is 37%, suggesting a moderate reliance on debt financing. Overall, the balance sheet is stable but could benefit from higher equity levels.

Cash Flow

Cash flow from operations has decreased significantly compared to the previous year, though the free cash flow remains positive at 2 million. The operating cash flow to net income ratio is 1.2, and the free cash flow to net income ratio is 1.1, indicating adequate cash generation relative to profits. However, the company should focus on improving operating cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	96.00M	96.76M	98.78M	71.91M	77.72M	81.36M
Gross Profit	17.67M	17.93M	17.44M	10.92M	10.97M	9.48M
EBITDA	3.10M	3.32M	3.76M	609.00K	1.09M	1.82M
Net Income	1.88M	1.87M	1.84M	-351.00K	5.00K	666.00K
Balance Sheet
Total Assets	20.75M	21.66M	22.16M	20.27M	19.03M	21.31M
Cash, Cash Equivalents and Short-Term Investments	2.48M	934.00K	1.07M	467.00K	946.00K	2.83M
Total Debt	2.22M	2.37M	2.64M	6.01M	5.92M	4.19M
Total Liabilities	13.33M	13.65M	14.23M	14.08M	12.48M	14.23M
Stockholders Equity	7.42M	8.01M	7.93M	6.20M	6.55M	7.08M
Cash Flow
Free Cash Flow	4.91M	2.00M	4.21M	-471.00K	-2.72M	4.84M
Operating Cash Flow	5.13M	2.22M	4.65M	-54.00K	-2.44M	5.13M
Investing Cash Flow	-214.00K	-213.00K	-437.00K	-417.00K	-279.00K	-293.00K
Financing Cash Flow	-3.39M	-2.14M	-3.61M	-8.00K	837.00K	-2.81M

RTC Group plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 96.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RTC, the sentiment is Positive. The current price of 96 is above the 20-day moving average (MA) of 94.18, above the 50-day MA of 93.92, and above the 200-day MA of 93.28, indicating a bullish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 69.85 is Neutral, neither overbought nor oversold. The STOCH value of 50.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RTC.

RTC Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STAF	69 Neutral	£52.55M	13.78	44.68%	―	1.44%	―
RTC	68 Neutral	£11.93M	6.75	23.32%	6.71%	-6.12%	4.30%
STEM	67 Neutral	£199.46M	7.20	12.99%	7.12%	-13.93%	-48.74%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GATC	62 Neutral	£29.78M	13.25	6.45%	3.13%	2.40%	1101.69%
RWA	53 Neutral	£100.31M	-6.51	-11.22%	12.78%	-14.31%	-361.93%
EMR	49 Neutral	£12.60M	―	-29.38%	―	-1.70%	-29.90%

RTC Group plc Corporate Events

RTC Group Maintains Stable Profits Amid Market Challenges

RTC Group Plc reported stable operational profits of £1.3m for the first half of 2025, maintaining this level for the fourth consecutive six-month period. Despite challenges such as softening demand in permanent recruitment and increased costs due to government legislation, the company achieved a net cash inflow of £3.3m and paid £1.5m in dividends and share buybacks. The company’s strong order book, particularly in rail maintenance and smart meter rollouts, ensures revenue visibility into 2026. The UK division saw growth in energy and white-collar temporary recruitment, offsetting challenges in other areas. The company remains debt-free, with net assets at £7.4m, and has proposed an interim dividend of 1.21p per share.