LONDON (ShareCast) - (Sharecast News) - RTC Group's shares slid on Monday as interim profits edged lower after permanent and contract recruitment was hampered by continued Brexit uncertainty.
Overall revenue came in at £46.0m for the six months ended 30 June, 12% higher than the same point last year, but pre-tax profit dropped 8% to £0.7m as cost of sales rose by 12% to £39.0m.

The AIM-listed company said that market conditions, reflecting uncertainties around Brexit negotiations, resulted in a slow-down in both permanent and contract recruitment for ATA, leading the division's revenues 11% lower to £15.9m and operating profits from £0.5m to £0.4m.

Meanwhile, the Ganymede division's revenues rose 34% to £21.1m amid higher levels of demand from Network Rail, while GSS grew revenues by 17% to £8.1m following a steady increase in the number of workers supplied to KBR, its longstanding international partner.

Chairman Bill Douie said: "Ganymede continues to perform well with enhanced volumes on its Network Rail contract and GSS has increased its presence internationally. ATA has encountered headwinds due to uncertainties over our future relationship with the European Union.

"However, although the fog has not lifted in the political arena and, therefore, by extension in industry and commerce, we remain confident of continuing our satisfactory performance in the second half of 2019 and as such are maintaining our progressive dividend policy."

RTC Group shares were down 14.26% at 49.30p at 0842 BST.

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