RTC Group plc (RTC) AI Stock Analysis

• Market Cap: £11.93M
• Dividend Yield: 10.53%
• Average Volume (3M): 6.70K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.52
• Revenue Growth: -2.04%
• EPS Growth: 2.36%
• Country: UK
• Employees: 196
• Sector: Industrials
• Sector Strength: 86
• Industry: Staffing & Employment Services
• EPS (TTM): 0.07
• Shares Outstanding: 12,554,198
• 10 Day Avg. Volume: 4,226
• 30 Day Avg. Volume: 6,695
• PEG Ratio: <0.01
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.16
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: 104.00p ▲(9.47%Upside)

RTC Group plc's overall stock score is primarily driven by its attractive valuation and positive corporate events. Financial performance is moderate, with revenue contraction and cash flow challenges needing attention. Technical analysis suggests neutral to slightly bullish sentiment, with some resistance at longer-term moving averages.

RTC Group plc Business Overview & Revenue Model

Company Description

RTC Group plc, through its subsidiaries, provides recruitment services in the United Kingdom and internationally. It offers technical recruitment solutions to the general engineering, manufacturing, transport, build environment, infrastructure, commercial disciplines, sales and technical sales, scientific, chemical, energy and utilities, and defense and aerospace sectors; technical and engineering workforce solutions, such as recruitment, training, account management, contingent labor, and fleet provision to the rail, energy, construction, highways, and transportation sectors; and contract and permanent staffing solutions. The company also provides conferencing rooms of various sizes to accommodate meetings, en-suite hotel bedrooms, and bar and dining facilities to accommodate business and leisure guests. In addition, it offers office space. The company was founded in 1963 and is headquartered in Derby, the United Kingdom.

How the Company Makes Money

RTC Group plc makes money primarily through its recruitment and staffing services. The company's revenue model is based on fees generated from placing candidates in temporary and permanent positions across various industries. Key revenue streams include contract staffing, where RTC provides temporary workers to clients and charges a markup on the employees' wages, and permanent placement fees, which are typically a percentage of the candidate's first-year salary paid by the hiring company. Additionally, RTC benefits from significant partnerships with companies in sectors such as rail and engineering, where there is a high demand for skilled labor. These partnerships can provide stable and recurring revenue streams, as clients rely on RTC for ongoing workforce management solutions.

RTC Group plc Financial Statement Overview

Summary

RTC Group plc demonstrates moderate financial performance. While profitability margins and return on equity are solid, challenges exist with revenue contraction and cash flow generation. The company maintains operational efficiency but needs to enhance its cash flow.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	96.76M	98.78M	71.91M	77.72M	81.36M
Gross Profit	17.93M	17.44M	10.92M	10.97M	9.48M
EBITDA	3.32M	3.76M	609.00K	739.00K	-661.00K
Net Income	1.87M	1.84M	-351.00K	5.00K	666.00K
Balance Sheet
Total Assets	21.66M	22.16M	20.27M	19.03M	21.31M
Cash, Cash Equivalents and Short-Term Investments	934.00K	1.07M	467.00K	946.00K	2.83M
Total Debt	2.37M	2.64M	6.01M	5.92M	4.19M
Total Liabilities	13.65M	14.23M	14.08M	12.48M	14.23M
Stockholders Equity	8.01M	7.93M	6.20M	6.55M	7.08M
Cash Flow
Free Cash Flow	2.00M	4.21M	-471.00K	-2.72M	4.84M
Operating Cash Flow	2.22M	4.65M	-54.00K	-2.44M	5.13M
Investing Cash Flow	-213.00K	-437.00K	-417.00K	-279.00K	-293.00K
Financing Cash Flow	-2.14M	-3.61M	-8.00K	837.00K	-2.81M

RTC Group plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 95.00
• 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 95 is below the 20-day moving average (MA) of 96.38, above the 50-day MA of 93.06, and above the 200-day MA of 94.54, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 45.46 is Neutral, neither overbought nor oversold. The STOCH value of 67.91 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
STEM	72 Outperform	£303.72M	6.44	21.08%	5.59%	-10.24%	-11.60%
RTC	69 Neutral	£11.93M	7.30	23.50%	10.53%	-2.04%	2.36%
STAF	69 Neutral	£56.06M	―	8.52%	―	5.83%	19.29%
Sector *	65 Neutral	$10.77B	15.80	5.51%	1.90%	3.03%	-26.66%
GATC	60 Neutral	£25.21M	42.11	3.66%	2.56%	4.14%	-45.24%
RWA	56 Neutral	£119.82M	29.69	-3.96%	14.32%	-16.16%	-145.46%
EMR	46 Neutral	£13.33M	―	-34.21%	3.51%	-1.64%	-255.16%

RTC Group plc Corporate Events

RTC Group Reports Record Profit Amidst Sector Challenges

RTC Group Plc reported a record profit after tax and strong cash generation for 2024, leading to an increased dividend for shareholders, despite challenges in the rail sector. The company continues to experience positive trading in 2025 but is cautious about the impact of increased employer NI contributions and minimum wage on recruitment. However, RTC remains optimistic about leveraging new growth opportunities due to its strategic positioning across targeted sectors.

RTC Group Announces Exercise of Share Options and Capital Increase

RTC Group Plc has announced the exercise of options over 5,000 ordinary shares, which will be admitted to trading on AIM. This increases the company’s total issued share capital to 12,554,198 ordinary shares, each carrying one vote. The move reflects the company’s ongoing operational activities and may impact shareholder calculations under the FCA’s Disclosure and Transparency Rules.

RTC Group PLC Announces Change in Voting Rights Structure

RTC Group PLC, a UK-based company, has announced a change in the breakdown of its voting rights. Northern Venture Trust PLC has crossed a threshold, holding 3.0546% of the total voting rights, which amounts to 383,330 shares. This notification reflects a significant shift in shareholder structure, potentially impacting the company’s governance and decision-making processes.

RTC Group Plc Repurchases Significant Portion of Its Shares

RTC Group Plc has repurchased 1,063,699 ordinary shares, representing approximately 7.81% of its issued shares, at a discount of 13.51% to the recent closing price. The shares were acquired from Chelverton Asset Management, a significant shareholder, making this a related party transaction. The company plans to cancel the repurchased shares, affecting its total voting rights, which will now consist of 12,549,198 ordinary shares. This move is seen as fair and reasonable by independent directors and may impact shareholder calculations under FCA rules.