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Pin to quick picksGattaca Regulatory News (GATC)

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Trading Update

15 Feb 2024 07:00

RNS Number : 1917D
Gattaca PLC
15 February 2024
 

15 February 2024

 

Gattaca plc

 

("Gattaca" or the "Group")

 

Trading Update

Robust performance in line with market expectations

 

Gattaca plc, the specialist staffing solutions business, today provides the following trading update for the six months ended 31 January 2024 ("H1 24").

 

·

Group Net Fee Income1 ("NFI") expected to be £18.9m (H1 232 £22.5m), a decrease of 16% year-on-year ("YoY")

·

NFI shows anticipated shift towards Contract 76% / Permanent 24% (H1 232: 68% / 32%), reflecting increased focus on contract market and maintaining contractor volumes which ended the period flat with the prior year

·

Permanent NFI down 38% YoY as a result of market weakness, with placements continuing to show weakness since the turn of the year, and the exit of a large permanent Recruitment Process Outsourcing ("RPO") client in prior year as referenced at year end

·

Significant progress in business development, with two large client extensions and two more Managed Service Provider wins

·

Defence continues to be the Group's strongest performing sector with 9% YoY growth excluding the RPO account exit as above

·

Marginal reduction in sales headcount during H1 24 to 312 from 315 at the year-end, focused UK headcount investment in specific sectors showing growth opportunities, these being Energy, Defence and Gattaca Projects

·

The Group expects to report statutory net cash at 31 January 2024 of £22.1m (31 July 2023: net cash of £21.6m)

 

 

Notice of Interim Results

The Group will announce its results for the six months to 31 January 2024 on Tuesday 16 April 2024.

 

 

Matthew Wragg, Chief Executive Officer said:

"Despite the tough market conditions, I am pleased to report the Group is trading in line with current market expectations. I am also pleased to see our strategy to invest in business development is starting to bear fruit, with two large client extensions and two more Managed Service Provider (MSP) wins for the Group in H1 and a growing pipeline. We continue to see high engagement, staff attrition below long-term targets and productivity levels beginning to improve. In H1 we have continued to focus the business more on specific markets and geographies. We have reduced our workforce in North America.

 

However, the economic conditions have led to a challenging market in H1 and we have not been immune to this. Permanant fee income is down 38% due to much lower than anticipated volumes at the back end of 2023 and compounded by reduced NFI from the exiting of a major programme last year. We anticipate that Permanant fees will pick up gradually as we go through 2024. Contract income has remained stable, and we are starting to see growth from our investment and focus into this area.

 

Recognising that trading conditions are expected to remain challenging, we plan to keep tight control on operating costs including headcount during H2, whilst we are mindful to ensure we are well placed to build market share in our chosen sectors as the economy recovers.

 

I would like to add my personal thanks to everyone in and from the business, our special community, customers and partners for their support in what has been an extremely tough week for the Group following the sudden passing of our very good friend and Chief Sales Officer Grahame Carter. The way everyone has united is testament to the strength we have as a team. Our love and condolences go to his family, friends and everyone who had the pleasure to know him."

 

 

1. NFI is calculated as revenue less contractor payroll costs

2. H1 23 results have been restated for the correction of a FY22 revenue cut-off error, and the FY23 reassessment of the Group's accounting policy over how accrued revenue and accrued cost balances have been calculated at the period end. The aggregated impact of these items on H1 23 reported NFI is £0.2m reduction. Further details on this error and policy change were provided in the Group's FY23 Annual Report & Accounts.

 

 

 

For further information please contact:

 

Gattaca plc

+44 (0) 1489 898989

Matthew Wragg, Chief Executive Officer 

Oliver Whittaker, Chief Financial Officer

Liberum Capital Limited (Nomad and Broker)

+44 (0) 20 3100 2000

Lauren Kettle

Richard Lindley

IFC Advisory (Financial PR and IR)

+44 (0) 203 934 6630

Tim Metcalfe

Graham Herring

Florence Chandler

 

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TSTBIGDDUXBDGSS
Date   Source Headline
5th Jun 20094:11 pmRNSBlocklisting Interim Review
29th May 20092:18 pmRNSAdditional Listing
7th May 200912:13 pmRNSHolding(s) in Company
1st May 200912:47 pmRNSHolding(s) in Company
28th Apr 200910:05 amRNSHolding(s) in Company
27th Apr 20099:46 amRNSDirector/PDMR Shareholding
2nd Apr 20097:00 amRNSHalf Yearly Report
2nd Mar 20094:38 pmRNSHolding(s) in Company
9th Feb 20097:00 amRNSRe: Board Change
9th Feb 20097:00 amRNSTrading Update
3rd Feb 200912:41 pmRNSTotal Voting Rights
9th Dec 20084:41 pmRNSBlocklisting Interim Review
9th Dec 20084:37 pmRNSDirector/PDMR Shareholding
2nd Dec 20082:04 pmRNSDirector/PDMR Shareholding
21st Nov 200812:34 pmRNSResult of AGM
31st Oct 20083:24 pmRNSDirector/PDMR Shareholding
30th Oct 200812:00 pmRNSAnnual Report and Accounts
28th Oct 200810:33 amRNSHolding(s) in Company
14th Oct 20087:00 amRNSFinal Results
29th Sep 20082:59 pmRNSDirector/PDMR Shareholding
24th Sep 20084:22 pmRNSNotice of Results
29th Aug 20084:16 pmRNSDirector/PDMR Shareholding
31st Jul 20087:00 amRNSPre-Close Trading Update
30th Jul 20085:22 pmRNSAdditional Listing
28th Jul 200810:40 amRNSDirector/PDMR Shareholding
30th Jun 200811:25 amRNSDirector/PDMR Shareholding
5th Jun 200812:06 pmRNSHolding(s) in Company
4th Jun 200811:02 amRNSAdditional Listing and Direct
2nd Jun 20086:14 pmRNSDirector/PDMR Shareholding
23rd May 200811:07 amRNSHolding(s) in Company
25th Apr 20084:26 pmRNSDirector/PDMR Shareholding
3rd Apr 20089:19 amRNSDirector/PDMR Shareholding
3rd Apr 20089:17 amRNSDirector/PDMR Shareholding
28th Mar 20083:18 pmRNSDirector/PDMR Shareholding
17th Mar 20087:01 amRNSInterim Results
3rd Mar 200810:23 amRNSDirector/PDMR Shareholding
29th Feb 20084:10 pmRNSHolding(s) in Company
19th Feb 20087:00 amRNSStatement re: Impact of IFRS
30th Jan 20087:01 amRNSPre Close Trading Update
28th Jan 20082:31 pmRNSDirector/PDMR Shareholding
25th Jan 20082:09 pmRNSDirector/PDMR Shareholding
11th Jan 20082:26 pmRNSAnnual Report and Accounts
3rd Jan 20089:54 amRNSDirector/PDMR Shareholding
17th Dec 200712:53 pmRNSDirector/PDMR Shareholding
4th Dec 20071:53 pmRNSDirector/PDMR Shareholding
23rd Nov 20073:20 pmRNSResult of AGM
16th Nov 20079:33 amRNSDirector/PDMR Shareholding
7th Nov 200710:12 amRNSBlocklisting Interim Review
7th Nov 20079:53 amRNSDirector/PDMR Shareholding
7th Nov 20079:50 amRNSDirector/PDMR Shareholding

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