Engineering, science, technology and professional services recruiter Matchtech Group is beginning to reap the rewards of investment in sector and geographic diversification, according to a pre-close trading update for the year ended 31 July 2011.

The group reports “significantly” improved trading performance in H2 on H1. After reporting profit before tax in FY2011 H1 of £2.3m, profit before tax in FY2011 H2 is anticipated to return to 2010 half-year levels (H1: £4.4m, H2: £4.2m).

The update also reveals net fee income (NFI) for the year was up 13% on FY2010 with contract NFI up from £20.1m to £20.4m, while permanent NFI rose from £6.1m to £9.2m.

The statement continues: “Since our last update on 7 April 2011, trading in the final four months of FY2011 has continued broadly in line with the Board’s expectations.

“The group’s investment in sector and geographic diversification is starting to show results, particularly in the professional services sector. However, it has taken longer than expected to bring our new sectors on stream and it is difficult therefore to gauge the pace of future development. Additionally, the board is mindful of the uncertain economic backdrop.”

Matchtech intends to release its preliminary results for the year ended 31 July 2011 on 6 October.