RTC Group plc (RTC) AI Stock Analysis

• Market Cap: £11.93M
• Dividend Yield: 6.54%
• Average Volume (3M): 8.69K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.37
• 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: 8,179
• 30 Day Avg. Volume: 8,689
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £102.00
• Price Target Upside: 7.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: 102.00p ▲(7.37% Upside)

RTC Group plc's overall stock score is driven by a solid valuation with a low P/E ratio and high dividend yield, indicating potential undervaluation. Financial performance is moderate, with stable profitability but challenges in revenue and cash flow. Technical analysis shows mixed signals, with no clear momentum. The absence of earnings call and corporate events data limits further insights.

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 generates revenue through multiple streams, primarily by providing recruitment services that include sourcing and placing candidates in various industries. The company charges fees for successful placements, which typically include a percentage of the candidate's salary or a flat fee. Additionally, RTC offers training and consultancy services, which contribute to its revenue by providing clients with specialized skills development programs and operational advice. Key revenue streams also include contracts with major firms in the engineering and technical sectors, where RTC partners with these organizations to fulfill their staffing needs. The company's ability to build long-term relationships with clients and maintain a strong reputation in the industry further supports its revenue generation efforts.

RTC Group plc Financial Statement Overview

Summary

RTC Group plc demonstrates moderate financial performance with stable profitability margins and a solid return on equity. However, challenges include revenue contraction and decreased cash flow from operations, indicating room for improvement in cash flow generation.

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: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 above the 20-day moving average (MA) of 94.21, below the 50-day MA of 95.39, and above the 200-day MA of 92.91, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 51.71 is Neutral, neither overbought nor oversold. The STOCH value of 58.82 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
GATC	64 Neutral	30.10M	50.26	0.00%	3.76%	4.14%	-45.24%
RTC	64 Neutral	£11.93M	6.75	23.32%	6.54%	-6.12%	4.30%
STAF	63 Neutral	48.04M	12.18	-20.05%	―	1.44%	0.00%
STEM	62 Neutral	174.52M	6.30	19.99%	7.56%	-13.93%	-48.74%
RWA	46 Neutral	89.01M	-5.93	-4.33%	12.98%	-14.31%	-361.93%
EMR	46 Neutral	12.84M	-1.73	0.00%	―	-1.70%	-29.90%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.