Background on Matchtech

Matchtech specialises in the provision of contract and permanent staff in the Engineering, Built Environment and Professional Services sectors across the UK.

It was established in 1984 and has grown organically to become the UK's 2nd largest technical recruitment specialist and the UK's 14th largest recruitment company (Source: Recruitment International Top 100 Report - August 2009).

The candidates placed by Matchtech are supplied to clients through a variety of client relationships, from contingency-based placements through to master vendor contracts. The Engineering and Built Environment recruitment markets are being driven and are underpinned by the demand for qualified project and contract staff needed for the design, construction, management and maintenance of long-term capital assets and infrastructure projects funded by both the private and public sectors.

Operating from a single site near Southampton, Matchtech provides predominantly professionally-qualified candidates to clients in a broad range of industries including oil and petrochemicals, marine, aerospace, water, electronics, civil engineering, building structures and transport infrastructure. It structures its business across three main sectors: Engineering, Built Environment and Support Services.

On 27th October 2006 Matchtech Group plc, announced its admission to AIM, at a Placing Price of 310p per Ordinary Share and based on the Placing Price and 22,420,406 Ordinary Shares in issue, Matchtech had a market capitalisation of £69.5 million on Admission (£72.4 million including outstanding EMI options*).

The Placing raised £22.0 million before expenses for the selling shareholders and no new money was raised for the Group. On Admission, 31.7% of the Group's issued share capital is held by institutional investors, 53.2% by the Group's Directors and balance by staff of the group;

The Admission to the AIM market has benefited the Company by raising its profile amongst clients and candidates. It has provided the selling shareholders with an opportunity to realise part of the value of their investment while remaining significant shareholders of the Company going forward and has enabled the Group to continue to attract, retain, motivate, and incentivise key employees through their shareholdings, existing option arrangements and the proposed share incentive schemes.

The Company has not applied for or agreed to trade on any platforms of exchanges other than AIM and no restrictions on the transfers of AIM securities other than in relation to the shares held by employees as detailed in the admission document.