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RTC Group PLC on Wednesday said that the conflict between the US and Iran will ‘unavoidably impact margins’ within its Rail and Energy divisions, while noting positive trading in the first quarter. The Derby, England-based recruitment company said it continued its positive trading trajectory in the first quarter of 2026, with six ‘major’ contract wins, including ‘significant’ extensions and long-standing agreements with key clients. However, RTC, which held its annual general meeting on Wednesday, noted that the conflict between the US and Iran has led to sharply higher fuel costs, materially increasing fleet expenses. It added the war ‘will continue to, unavoidably impact margins within our Rail and Energy divisions. In addition, because of elevated energy prices, client activity, particularly in relation to our smaller manufacturing client base, where higher costs have led to site closures or reduced production, has materially lowered demand for temporary labour. ‘This uncertainty is contributing to more cautious hiring behaviour among clients, with some delaying, scaling back or, in certain cases, cancelling recruitment plans.’ Further, the company said that the permanent recruitment market remains challenging, as vacancy levels in the three months to the end of April fell to their lowest point since 2021, following a sustained multi-year decline. Chief Executive Officer & Executive Chair Andy Pendlebury said: ‘While we recognise these challenges which are affecting the sector as a whole, due to excellent cash generation in 2025, the group has a very solid foundation upon which to navigate them. Notably, it retains a clean balance sheet with no term debt and continues to build on this foundation through the generation of strong operating cash flows and disciplined cost management aligned to activity levels.’ RTC will publish half-year results on or around July 27. RTC shares fell 12% to 108.25 pence each on Wednesday afternoon in London. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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