Net fee income at technical recruiter Matchtech Group increased by 8% to £16.5m in the six months ending 31 January 2009  compared to the same period a year ago.

Net fee income from contract placements was up 13% to £11.5m. However, permanent fees were virtually unchanged from the same period last year at £5m. NFI  in Q1 rose 13% but this slowed to 3% in Q2.

In its trading update, the company describes the economic climate as “increasingly challenging”, with “notable falls in demand particularly in the automotive sector, privately funded projects in the built environment, and permanent recruitment in support services. This has resulted in a 5% decline in contractor numbers at 31 January 2009 as compared with 31 July 2008”.

“The group continues to focus on those clients which operate in the publicly funded defence, transport and infrastructure sectors, where demand has been most resilient.

“In addition, the board continues to take steps to ensure that the group’s cost base is appropriately aligned with prevailing market conditions.”