17 Feb 2021 07:00
17 February 2021
Gattaca plc
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("Gattaca" or "the Company")
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Gattaca plc, the specialist Engineering and Technology recruitment solutions business, provides the following trading update for the six months ended 31 January 2021.
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The Company expects to report Net Fee Income ("NFI") of £21.1m (H1 20 restated: £31.8m), primarily reflecting the market impact of the COVID-19 pandemic over the entire reporting period. The Company expects to report net cash before IFRS16 adjustments of £22.9m (July 2020: £27.3m)¹.
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Improving activity levels in our core markets continued through Q1 and we were pleased to deliver quarter-on-quarter UK NFI growth of 9% versus Q4. UK NFI in Q2 was 2% higher than Q1, partly impacted by the return of tiered COVID-19 restrictions and extended national lockdowns, coupled with the seasonal impact of the lower number of days worked by contractors over the Christmas period.
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Given the ongoing effects of the COVID-19 pandemic and the market impact of further national lockdowns, NFI recovery for FY21 is likely to be at a slower rate than previously forecast. However, as a result of appropriate management of the cost base and the underlying improvements in the business we are seeing through the acceleration of our Group-wide Improvement Plan, we currently expect full year underlying PBT to be in line with market expectations.
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Kevin Freeguard, CEO commented:
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"Whilst we remain cautious as to the timing of the recovery in our core markets, we have been encouraged by the resilience the business has shown over the first half. I would like to thank our colleagues in the business for their continued hard work and commitment during these challenging times.
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"Our strong cash position underpins our resilience and, together with the benefits from our ongoing Group-wide Improvement Plan and our core focus on STEM skills which will remain in short supply, positions us well for growth when market conditions inevitably improve. I remain confident of our success over the medium and long term."
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Gattaca will announce its interim results for the six months ended 31 January 2021 on 31 March 2021.
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¹VAT deferrals at 31 January 2021 were £10.3m (31 July 2020: £10.3m)
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For further information please contact:
Gattaca plc | +44 (0) 1489 898989 |
Kevin Freeguard, Chief Executive Officer Salar Farzad, Chief Financial Officer  |  |
Liberum Capital Limited (Nomad and Broker) | +44 (0) 20 3100 2000 |
Lauren Kettle Robert Morton Euan Brown | Â |
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Citigate Dewe Rogerson | +44 (0) 20 7638 9571 |
Jos Bieneman Nick Hayns Elizabeth Kittle | Â |
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