RTC Group plc (RTC) AI Stock Analysis

• Market Cap: £12.87M
• Dividend Yield: 5.68%
• Average Volume (3M): 4.97K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.56
• Revenue Growth: -6.12%
• EPS Growth: 4.30%
• 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: 7,913
• 30 Day Avg. Volume: 4,967
• PEG Ratio: N/A
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.95
• 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: £104.00
• Price Target Upside: 1.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: 114.00p ▲(11.22%Upside)

RTC Group plc scores 72, driven by a combination of solid valuation metrics and strong technical momentum. Despite challenges in revenue and cash flow, the low P/E ratio and high dividend yield make it attractive. Technical indicators show strong momentum, though the high RSI warns of potential overvaluation. Corporate events highlight stability and strategic growth potential, adding positively to the assessment.

RTC Group plc Business Overview & Revenue Model

Company Description

RTC Group plc is a United Kingdom-based recruitment company that operates in the recruitment and training sectors. The company focuses on providing human resources and recruitment services, with a strong emphasis on the rail, engineering, and infrastructure sectors. RTC Group operates through its subsidiaries, which include Ganymede Solutions, ATA Recruitment, and Global Staffing Solutions, each specializing in different industry niches to meet diverse client needs.

How the Company Makes Money

RTC Group plc generates revenue primarily through the provision of recruitment services, which include permanent and temporary staffing solutions. The company earns fees by placing candidates in employment positions across various sectors, particularly focusing on rail, engineering, and infrastructure. Additionally, RTC Group benefits from long-term contracts and partnerships with major clients in these industries, providing a stable and recurring revenue stream. The company also offers training and workforce development services, which contribute to its overall revenue, as it seeks to enhance the skill sets of candidates to better meet client demands.

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: 102.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 102.5 is above the 20-day moving average (MA) of 96.13, above the 50-day MA of 96.33, and above the 200-day MA of 94.57, indicating a bullish trend. The MACD of 1.34 indicates Negative momentum. The RSI at 92.33 is Negative, neither overbought nor oversold. The STOCH value of 80.47 is Negative, 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
RTC	72 Outperform	£12.87M	7.29	23.32%	5.68%	-6.12%	4.30%
STAF	66 Neutral	£49.20M	13.05	44.68%	―	1.44%	―
Sector *	65 Neutral	$10.84B	16.29	5.52%	2.09%	3.14%	-29.96%
STEM	62 Neutral	£277.88M	10.11	12.99%	4.95%	-13.93%	-48.74%
GATC	62 Neutral	£28.37M	47.37	3.66%	3.89%	4.14%	-45.24%
RWA	46 Neutral	£98.25M	29.69	-3.96%	10.89%	-16.16%	-145.46%
EMR	46 Neutral	£12.11M	―	-34.21%	3.51%	-1.64%	-255.16%

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.

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.