How long high fuel costs will last after the Iran conflict ends – according to a UK firm planning around it
Key Points
- RTC Group told investors that elevated fuel costs could persist for around eight months beyond the resolution of the conflict involving Iran.
- The group runs a vehicle fleet supporting rail maintenance and smart metering work across the UK.
- Fuel sits first among six headwinds the company expects to carry into the second half of 2026.
- Group gross margin held at 18.3% against 18.4% a year earlier.
- RTC has deferred resuming formal market guidance until it has greater clarity on how long these factors will run.
RTC Group told investors that elevated fuel costs could persist for around eight months beyond the resolution of the conflict involving Iran.
The AIM-listed engineering and technical recruitment group set out the expectation in its interim results for the six months to 30 June 2026, listing higher operating costs first among six headwinds it expects to carry into the second half.
It said fuel costs driven by geopolitical tensions in the Middle East continue to place pressure on margins across its UK labour supply business.
Chairman and Chief Executive Andy Pendlebury did not publish the workings behind the eight-month figure, and the statement gives no expectation for when the conflict itself might resolve.
RTC supplies technical and engineering labour through its Ganymede brand to the rail, energy, construction, highways and transportation sectors, work that runs on vehicles moving crews to sites across the country. The group held right of use assets of £1.6 million and property, plant and equipment of £829,000 at the period end.
Pendlebury identified the significant increase in fleet fuel costs, alongside above-inflation increases in the National Living Wage, as the main pressure on margins across the rail and infrastructure business during the half. He said performance across rail and infrastructure ran ahead of the same period last year.
Fuel also affected the group’s energy division, which supports the UK smart metering programme. Pendlebury said revenue there fell below the corresponding period last year and margins took an impact from higher operating costs, particularly increased fuel prices.
He attributed the revenue fall to the metering market moving beyond its initial rollout phase towards maintaining the meters already installed, and to short-term uncertainty around investment decisions following the proposed acquisition of OVO Energy by E.ON announced on 11 May 2026.
Elevated energy costs have also impacted the group’s clients. Pendlebury said they continue to affect demand for temporary labour within parts of the manufacturing sector served by ATA Recruitment.
Group finance director Sarah Dye said UK recruitment maintained its gross profit margin at 17.8% despite cost increases including the fuel price rise resulting from the Iran conflict. Group gross margin came in at 18.3% against 18.4% a year earlier.
Revenue fell to £45.2 million from £48.3 million, cost of sales to £36.9 million from £39.4 million, and profit from operations to £786,000 from £1.3 million.
