One of the North East’s leading providers of training and temporary staffing solutions has been acquired by Japanese-listed company Trust Tech Inc. in a £17.1 million deal that will create hundreds of new jobs in the region.
Newcastle-headquartered MTrec Ltd specialises in recruiting contracting professionals and other temporary workers for the engineering, manufacturing and industrial sectors. On 30th August, it became Trust Tech’s first strategic acquisition in Europe and will provide a foundation for more acquisitions on the continent.
Trust Tech says that it will work closely with MTrec’s management team to build a genuinely global staffing and training company by pooling their joint resources, experience and talent.
By the close of the financial year ending 31st March 2016, MTrec had achieved a turnover of £46 million and is on course for a turnover of £59 million by the end of the current financial year. Presently, it employs 56 staff and has a cohort of 2,500 Umbrella Company Employees and other contractors and temps on its books – numbers that are on course to expand significantly in line with its projected turnover growth.
The Newcastle company’s wholly-owned subsidiary, MTrec Care Limited, provides contracting nurses, carers and support workers to the region’s health and care sector. Founded in 2006 by its directors David Musgrave and Rob Armstrong, MTrec now works with blue chip clients across a swathe of industries, including automotive, aerospace and Fast Moving Consumer Goods (FMCG).
Mr Musgrave said: “The completion of the deal marks the beginning of a new and exciting chapter at MTrec that will see us invest heavily in our operations to develop our service provision even further. The combined knowledge of MTrec and Trust Tech Inc. will enable us to deliver further growth by offering our clients training and staffing solutions on a regional, national and international basis.”
Prospects, indeed, look promising for a business specialising in the provision of skilled flexible workers in conditions of worsening skills shortages and ongoing post-Brexit uncertainty about the future relationship between the UK and the EU. A number of recent surveys, including the Recruitment and Employment Confederation’s (REC’s) Report on Jobs, data from the Association of Professional Staffing Companies (APSCo), the London Employment Monitor from Morgan McKinley and the latest labour market statistics from the Office for National Statistics (ONS), have shown faltering demand for permanent appointees and steady demand for temporary/contracting workers.
Employers appear to be adopting a “wait and see” approach until the post-Brexit landscape is clearer, drafting in skilled flexible workers in preference to new permanent staff in order to complete business-critical projects and manage fluctuations in demand.