TIDMGATC
RNS Number : 6906U
Gattaca PLC
30 March 2023
30 March 2023
Gattaca plc
("Gattaca" or "the Group")
Interim Results for the six months ended 31 January 2023
Evolution of strategy
Gattaca plc ("Gattaca" or the "Group"), the specialist STEM
staffing business, today announces its financial results for the
six months ended 31 January 2023.
Financial Highlights
2023 H1 2022 H1
=========================
Continuing Continuing Continuing Continuing Continuing Continuing
reported underlying(2) reported underlying reported underlying
=========== =============== =========== ============ =========== ============
GBPm GBPm GBPm GBPm % %
=========== =============== =========== ============ =========== ============
Revenue 194.7 194.7 202.2 202.2 -4% -4%
=========== =============== =========== ============ =========== ============
Net Fee Income (NFI)(1) 22.7 22.7 21.6 21.6 5% 5%
=========== =============== =========== ============ =========== ============
EBITDA 1.4 1.7 (1.2) 0.9 n/a 91%
=========== =============== =========== ============ =========== ============
Profit / (Loss) before
tax 0.8 0.9 (2.5) (0.3) n/a n/a
=========== =============== =========== ============ =========== ============
Profit / (Loss) after
tax 0.6 0.7 (2.4) (0.2) n/a n/a
=========== =============== =========== ============ =========== ============
Discontinued operations (0.2) n/a (0.6) n/a n/a n/a
=========== =============== =========== ============ =========== ============
Reported profit /
(loss) after tax 0.4 n/a (3.1) n/a n/a n/a
=========== =============== =========== ============ =========== ============
Basic earnings per
share 1.7p 2.1p (7.5)p (0.8)p
=========== =============== =========== ============ =========== ============
Diluted earnings
per share 1.7p 2.0p (7.5)p (0.8)p
=========== =============== =========== ============ =========== ============
Interim dividend 0p n/a 0p n/a
=========== =============== =========== ============ =========== ============
Net cash / (debt) 20.9 n/a (0.1) n/a
=========== =============== =========== ============ =========== ============
Highlights
-- Group NFI of GBP22.7 million, up 5% year-on-year
o UK NFI up 6% at GBP21.4 million (2022 H1: GBP20.3 million)
o Energy, Defence and Infrastructure, representing 59% of Group
NFI, delivered strong growth
o Contract NFI, which grew by 2% year-on-year, represents 67% of
Group NFI (2022 H1: 70%, FY22: 71%)
o Contract vs Perm split in 2023 H1 was as expected with
changing client mix; ratio will rebalance towards Contract as
contract market recovers
o Permanent NFI up 13% year-on-year, representing 33% of Group
NFI (2022 H1: 30%)
-- Early results from our increased external focus with two
major client account wins in 2023 H1
-- Group underlying profit before tax of GBP0.9m (2022 H1: loss
before tax GBP(0.3)m), reflecting focus on productivity
improvements and cost management
-- NFI productivity per sales head improved by 20%, with
enhanced performance management, total sales headcount in period
down 11% versus 31 July 2022.
-- Group net cash of GBP20.9 million (31 July 2022: GBP12.3 million)
-- No interim dividend (2022 H1: nil pence); the Board remains
committed to reviewing dividends at the year end
Strategic update
Continued focus on developing the four identified strategic
priorities:
-- External focus
o Implemented client and candidate service feedback surveys,
with average NPS of 8.5 and 8.9 respectively
o Improved yield by increasing average contingent perm fee by
6%, and average contract timesheet value by 9%
o Implemented two major client accounts in 2023 H1
o Reduced fulfilment headcount, increased sales effort, linked
to major account service changes and market dynamics
o Launched plans to simplify Brand Architecture, due to Go Live
in Q4
-- Culture
o Completed two quarters of our new Performance Scorecard
process
o Integrated attrition reduction targets into our FY23 LTIP
share option grant
o Engagement score improved to 8.1 at 2023 H1, up from 7.6 at
FY22
o Attrition at 31 January 2023 of 40% and improving into H2;
many regretted leavers returned to the business since new
management appointed
-- Operational performance
o Successfully implemented nine automations, positively
impacting customer experience, engagement, operational efficiency
and data quality
o Exited low margin work, resulting in an increase in +0.7 pp in
Contract margin
o Increased sales productivity due to enhanced group wide
management information, growing average NFI per sales head 20%, and
14% per total head
o Appointed a Head of Business Improvement leading a team
driving positive change in how we operate
-- Cost rebalancing
o Continued focus on reducing third party costs, UK footprint
from six buildings down to four, increasing collaboration and
reducing cost
o Implemented new automation and sales enablement
technologies
o Began the move toward a 'single pay' arrangement, with the
majority of our contractor base expected to have migrated in 2023
H2, the first step to simplifying the corporate structure to drive
down costs
o Moved almost 70% of our manual time sheeting contractors to
online timesheet submission, reducing administrative burden and
increasing accuracy
Work on these strategic priorities will continue through 2023 H2
and onwards into FY24 as we focus on building back to sustained
growth.
Outlook
Looking forward there remains a high level of macro-economic
uncertainty; however, we continue to see good levels of vacancies
in the STEM markets that we support, which, when combined with
talent shortages, drives demand. The shift in demand towards
contract labour is in line with our focus and traditional strength
of providing contract resource.
The development of our strategic priorities will continue to
strengthen the platform from which we grow in the future.
Matthew Wragg, Chief Executive Officer said:
"I am pleased that we have continued to progress during the
first half of the year. As we continue to build to our full
potential, the improvements in culture, staff retention and
productivity are signs that we are on the right track to be a
stronger business.
We continue to remain conscious of the macro-economic
environment, which will have naturally slowed our speed of
recovery, the markets that we operate in and the skillsets that we
provide demonstrate the right long-term fundamentals."
The information contained within this announcement is deemed by
the Group to constitute inside information as stipulated under the
Market Abuse Regulations (EU) No. 596/2014. Upon the publication of
this announcement via a Regulatory Information Service, this inside
information is now considered to be in the public domain.
The following footnotes apply, unless where otherwise indicated,
throughout these Interim Results:
1. NFI is calculated as revenue less contractor payroll
costs
2. Continuing underlying results exclude the NFI and (losses)
before taxation of discontinued operations (2023 H1: GBP(0.2)m,
2022 H1: GBP(0.7)m), non-underlying items within administrative
expenses primarily related to restructuring costs (2023 H1:
GBP0.2m, 2022 H1: nil), amortisation of acquired intangibles (2023
H1: GBP0.0m, 2022 H1: GBP0.3m), impairment of acquired intangibles
(2023 H1: nil, 2022 H1: GBP2.0m), and exchange gains from
revaluation of foreign assets and liabilities (2023 H1: GBP0.2m,
2022 H1: GBP0.1m).
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
Operational Performance
Net Fee Income (NFI) GBPm 2023 H1 Restated(1) Change
2022 H1
Infrastructure 7.2 6.7 7%
========= ============= ===============
Defence 4.2 3.2 31%
========= ============= ===============
Mobility 2.2 2.2 n/a
========= ============= ===============
Energy 2.1 1.8 17%
========= ============= ===============
Technology, Media & Telecoms 1.2 2.2 -45%
========= ============= ===============
Gattaca Projects(1) 1.0 0.6 67%
========= ============= ===============
Other(1) 3.5 3.6 -3%
========= ============= ===============
Total UK 21.4 20.3 5%
========= ============= ===============
International 1.3 1.3 n/a
========= ============= ===============
Continuing Total Group
NFI 22.7 21.6 5%
========= ============= ===============
1. The Gattaca Projects operating segment meets the quantitative
thresholds to be reported separately for the first time in the
6-month period to 31 January 2023. In line with the requirements of
IFRS 8, comparative periods have been restated to present the
Gattaca Projects segment separately from the "Other" segment in
which it had previously been presented.
Infrastructure
Infrastructure NFI grew by 7% year-on-year, with robust growth
in the Transportation and Water and Utilities sub-divisions,
despite significant underperformance in the Rail site sub-division
and one major permanent recruitment program. The demand for
permanent candidates seen in FY22 has lessened slightly in 2023 H1
in line with wider market trends, and contractor demand has started
to increase towards the end of 2023 H1. Trends in skills that are
highest in-demand are for Project Managers, Highways and
Infrastructure Engineers and Transport Planners, aligning to the
current phase of public sector works ongoing in the UK. Within the
water market AMP7 spend has moved into its delivery phase,
delivering an increase of on-site work and contractor requirements;
AMP8 awards are starting to be announced. The Government commitment
to infrastructure programs is welcomed and Gattaca continues to be
well-placed, delivering resource into the private sector companies
who are actively working on the large regional and national
projects such as HS2, highway schemes and the SDF framework, all of
which have a healthy demand for talent.
Defence
Defence NFI grew by 31% year-on-year, pushed up by continuing
high demand for permanent talent, with contract labour needs also
robust. Resource demand in the UK Defence sector has increased by
15% over 2023 H1, on top of the increases seen in salaries and pay
rates. Recent Budget announcements from the UK Government show
commitment to GBP11bn of Defence spend over the next five years, an
increase in previous levels of investment. The market is well
recognised for stability during economic fluctuations and Gattaca's
access to the major UK market is strong, serving over half of the
UK MoD top 100 suppliers, across engineering, technology,
manufacturing, and IT skills, with demand specifically for systems,
software, and cyber security talent.
Mobility
NFI in our Mobility market for 2023 H1 was flat against last
half-year, despite a strong 2022 H2. As the Aerospace sub-division
continues to recover and sees significantly increased build demand
from the major OEMS, the demand for quality, manufacturing and
production skills remains high. We are also seeing the need for
software, power electronics and systems engineering skills
remaining high across the Automotive sub-division as clients in the
sector continue to catch up on post-pandemic production backlogs.
We have been successful with several permanent RPO programs in this
market, which means our permanent demand has outweighed that of
contract. Investment into the market remains strong, reflective of
the elevated level of project work across the market; we are
confident Gattaca's presence in this sector will continue to
rebuild alongside.
Energy
Energy NFI was up 17% year-on-year, primarily driven by
pressures on global energy production creating opportunity in the
UK market, sector investment focus is increasing on green energy
and the use of technology. Gattaca is well positioned to capture
market opportunities in renewables, transmission and distribution,
nuclear and oil and gas markets. In particular, demand continues to
be focused on skills in project management, controls and design
engineers driven by the investment in programs.
Technology, Media & Telecoms (TMT)
TMT NFI has decreased by 45% year-on-year, against a strong 2022
H1; this decline was largely driven by reduced demand across a
large European RPO and MSP contract. The demand for experienced
labour remains competitive; the much-publicised news of major
technology companies reducing their workforces has not impacted
this need in the UK but has brought more candidates to the market
where there were previously shortages. Contract demand has
increased, and market focus remains around skills in digital
transformation, development, cloud, and security.
Gattaca Projects
Gattaca Projects NFI has grown by 67% year-on-year, although a
large portion of this is in relation to contract accounting on a
long-term project which is nearing the end of its delivery phase.
Gattaca continues to invest in the subcontracting market as we see
solid opportunity growth for us. We will continue to commit
additional resource in this team as the pipeline of work grows, and
our capability increases.
UK Other
NFI across the aggregation of our other smaller markets was down
3% year-on-year. Barclay Meade, our professional services brand,
was up 5% year-on-year driven by continued strong permanent market
conditions and sustained increases in salaries for head office
skills in STEM companies. Demand for professional skill sets across
accounting and finance, procurement, HR, and sales continues to be
high in the permanent recruitment market with candidate shortages
still a challenge. Trading in our Consumer, Manufacturing &
Retail (CMR) was behind due to sharp downturns in production at
some large blue-collar contract clients. Within the general
training and education market we have actively taken the decision
to reduce focus on the low margin skills that Alderwood has been
providing, to focus more effort on our core markets and skills.
Internationa l
International NFI was down 3% year-on-year, primarily driven by
the end of a large RPO permanent deal in the US technology sector.
In the wider market, demand in North America is outstripping that
in the UK and Europe, with Gattaca putting an increased focus on
growing its contracting workforce across STEM skills. Skill trends
in technology include cyber security, technology sales, software
development and 'big data', alongside more traditional engineering
skills across energy transmission and distribution, infrastructure,
and EPC. Gattaca has now aligned the cost base in North America to
focus on business development in technology skills and the Energy
market.
Group contractor and permanent fee mix
Contract fees accounted for 67% of continuing underlying NFI in
2023 H1 (2022 H1: 70%, FY22: 71%). During the period, the contract
base was flat with approximately 5,150 contractors.
Permanent fees accounted for 33% of continuing underlying NFI in
2023 H1 (2022 H1: 30%, FY22: 29%). In 2023 H1, we saw a sustained
demand for permanent hires in our contingent and solutions business
across almost all our sectors, a trend which has continued from
FY22, with an increase of 11% across our contingent placement fee.
Aligned to the wider recruitment sector, we have observed marginal
lengthening of lead times and some hesitation on offers as clients
and candidates became nervous of a potential UK recession in early
2023.
People
Gattaca's headcount at 31 January 2023 was 497, a decrease of
43, or 8%, from 31 January 2022. This decrease was partly due to
the loss of two large resource intensive clients and performance
management actions undertaken in the sales and fulfilment
divisions. The ratio of sales to support staff was 69:31 at 31
January 2023, compared to a ratio of 73:27 at 31 January 2022. The
Group are committed to grow sales staff above 75%.
Financial Overview
Revenue for the period was GBP194.7 million (2022 H1: GBP202.2
million, FY22: GBP403.3 million), down 4% year-on-year. NFI of
GBP22.7 million (2022 H1: GBP21.6 million, FY22: GBP44.1 million)
represented a 5% year-on-year increase. Contract NFI margin of 8.1%
(2022 H1: 7.7%, FY22: 7.8%) was up 0.4 percentage points compared
with the same period in the prior year; this was driven by a
reduction in low-margin business, strategic pricing initiatives and
achievement of certain milestones on long-term contracts within
Gattaca Projects.
Continuing underlying profit before tax for the period amounted
to GBP0.9 million (2022 H1: loss before tax GBP(0.3) million, FY22:
profit before tax GBP0.3 million). On a continuing underlying
basis, the effective tax rate was 29% (2022 H1: 5%). The Group's
continuing underlying effective tax rate reported at 31 July 2022
was 60%.
Basic underlying earnings per share from continuing operations
were 2.1 pence (2022 H1: (0.8) pence) and adjusted underlying
diluted earnings per share from continuing operations were 2.0
pence (2022 H1: (0.8) pence).
Administrative costs
Underlying administrative costs of GBP21.8 million (2022 H1:
GBP21.7 million, FY22: GBP43.6 million) increased by 0.3% during
the period, as the 5% wages increase implemented on 1 August 2022
was offset by other third-party cost savings, such as reductions in
property leases, insurances and advisor fees.
A breakdown of the increase in administrative costs is shown
below:
GBPm
2022 H1 continuing underlying administrative costs 21.7
=========
Sales staff costs 0.4
=========
Commissions, bonuses and incentives 0.2
=========
Group Support staff costs 0.1
=========
Travel and entertaining 0.2
=========
Online advertising 0.2
=========
Trade receivables and accrued income expected credit
loss allowance credit (0.5)
=========
Sales ledger credits (0.4)
=========
Dilapidations provisions 0.4
=========
Depreciation charges (0.3)
=========
Other admin costs (including Legal & Professional Fees
and other provisions) (0.2)
=========
2023 H1 continuing underlying administrative costs 21.8
=========
Non-underlying costs and discontinued operations
The continuing non-underlying costs in 2023 H1 of GBP0.3 million
(2022 H1: GBP2.4 million, FY22: GBP5.6 million), relate
predominantly to employee restructuring costs. In the comparative
6-month period to 31 January 2022, costs of GBP2.0 million arose
from impairment of goodwill held in relating to the 'Infrastructure
- RSL Rail' CGU (Cash Generating Unit); no impairment of goodwill
and intangible assets was recorded in 2023 H1.
The loss from discontinued operations for the period arises from
ongoing closure costs in connection with the Group's recruitment
operations in South Africa, Mexico and Asia which were either sold
or closed in prior periods. Loss before tax in 2023 H1 for all
discontinued operations was GBP0.2 million (2022 H1: loss of GBP0.7
million, FY22: loss of GBP0.4 million).
Financing costs
Net finance income of GBP0.2 million (2022 H1: net finance costs
of GBP0.1 million, FY22: net finance income of GBP0.3 million)
reflected lower utilisation of the working capital facility and
favourable foreign exchange gains (treated as non-underlying)
compared to prior period.
Debtors, cash flow, net cash / (debt) and financing
Net cash at 31 January 2023 was GBP20.9 million (31 July 2022:
GBP12.3 million; 31 January 2022: net debt of GBP(0.1)
million).
The Group's trade and other receivables balance was GBP47.7
million at 31 January 2023 (31 July 2022: GBP54.8 million), of
which debtor and accrued income balances were GBP44.0 million, a
GBP7.7 million reduction over the 6-month period from 31 July 2022.
The Group's days sales outstanding ('DSO') over this period (on a
weekly based countback method) increased by 7 days from 51 to 58
days at 31 January 2023, although still 4 days lower than the DSO
position at 31 January 2022. The DSO position at 31 July 22 is
considered to have been near optimal levels; there is consistently
a seasonal increase in DSO following the Christmas and New Year
period.
Capital expenditure in the period amounted to GBP0.1 million
(2022 H1: GBP0.1 million, FY22: GBP0.4 million).
As at 31 January 2023, the Group had a working capital facility
of GBP60 million (31 July 2022: GBP60m, 31 January 2022: GBP75m).
This facility includes both recourse and non-recourse elements.
Under the terms of the non-recourse facility, the trade receivables
are assigned to and owned by HSBC and so have been derecognised
from the Group's statement of financial position. In addition, the
non-recourse working capital facility does not meet the definition
of loans and borrowings under IFRS. The utilisation of this
facility at 31 January 2023 was GBP0.3 million in credit on
recourse and GBP(7.0) million borrowing on non-recourse.
Dividend
The Board is mindful of the importance of dividends to
shareholders. The Board has not proposed an interim dividend for
2023. The Board remains committed to reviewing dividends at the
year end.
Risks
The Board considers strategic, financial, and operational risks
and identifies actions to mitigate those risks. Key risks and their
mitigations were disclosed on pages 51 to 54 of the Annual Report
for the year ended 31 July 2022.
We continue to manage several potential risks and uncertainties
including contingent liabilities as noted in the interim accounts -
many of which are common to other similar businesses - which could
have a material impact on our longer-term performance.
Outlook
Looking forward there remains a high level of macro-economic
uncertainty, however we continue to see talent shortages and good
levels of vacancies in the STEM markets that we support. The shift
in demand towards contract labour is in line with our traditional
strength of providing contract resource.
The development of our strategic priorities will continue to
strengthen the platform from which we grow in the future.
Condensed Consolidated Income Statement
For the period ended 31 January 2023
6 months 6 months
to 31/01/2023 to 31/01/2022 12 months
unaudited unaudited to 31/07/2022
Note GBP'000 GBP'000 GBP'000
============================================== ===== =============== =============== ===============
Continuing operations
Revenue 2 194,742 202,199 403,346
Cost of sales (172,009) (180,593) (359,206)
---------------------------------------------- ----- --------------- --------------- ---------------
Gross profit 2 22,733 21,606 44,140
Administrative expenses (22,122) (24,068) (49,244)
---------------------------------------------- ----- --------------- --------------- ---------------
Profit/(loss) from continuing operations 2 611 (2,462) (5,104)
Finance income 242 73 570
Finance cost (61) (153) (253)
---------------------------------------------- ----- --------------- --------------- ---------------
Profit/(loss) before taxation 792 (2,542) (4,787)
Taxation 5 (242) 120 460
---------------------------------------------- ----- --------------- --------------- ---------------
Profit/(loss) after taxation from continuing
operations 550 (2,422) (4,327)
---------------------------------------------- ----- --------------- --------------- ---------------
Discontinued operations
Loss for the period from discontinued
operations (attributable to equity holders
of the Company) 6 (199) (643) (346)
---------------------------------------------- ----- --------------- --------------- ---------------
Profit/(loss) for the period 351 (3,065) (4,673)
---------------------------------------------- ----- --------------- --------------- ---------------
Profits/(losses) for the periods to 31 January 2023, 31 January
2022 and the year for 31 July 2022 are wholly attributable to
equity holders of the parent.
6 months 6 months
to 31/01/2023 to 31/01/2022 12 months
unaudited unaudited to 31/07/2022
Total earnings per ordinary share Note pence pence pence
=================================== ===== =============== ================ ================
Basic earnings/(loss) per share 7 1.1 (9.5) (14.5)
Diluted earnings/(loss) per share 7 1.1 (9.5) (14.5)
=================================== ===== =============== ================ ================
Reconciliation to adjusted profit measure
Underlying profit is the Group's key adjusted profit measure;
profit from continuing operations is adjusted to exclude
non-underlying income and expenditure as defined in the Group's
accounting policy, amortisation and impairment of goodwill and
acquired intangibles, impairment of leased right-of-use assets and
net foreign exchange gains or losses.
6 months 6 months
to 31/01/2023 to 31/01/2022 12 months
unaudited unaudited to 31/07/2022
Note GBP'000 GBP'000 GBP'000
================================================ ===== =============== ================ ================
Profit/(loss) from continuing operations 611 (2,462) (5,104)
Add
Depreciation of property, plant and equipment,
depreciation of leased right-of-use assets
and amortisation of software and software
licences 4 734 995 2,210
Non-underlying items included within
administrative expenses 4 300 90 558
Amortisation and impairment of goodwill
and acquired intangibles and impairment
of leased right-of-use assets 4 35 2,264 5,051
================================================ ===== =============== ================ ================
Underlying EBITDA 1,680 887 2,715
================================================ ===== =============== ================ ================
Less
Depreciation of property, plant and equipment,
leased right-of-use assets and amortisation
of software and software licenses (734) (995) (2,210)
Net finance costs excluding foreign exchange
gains and losses (10) (153) (249)
================================================ ===== =============== ================ ================
Underlying profit/(loss) before taxation 936 (261) 256
================================================ ===== =============== ================ ================
Underlying taxation (271) 14 (154)
================================================ ===== =============== ================ ================
Underlying profit/(loss) after taxation
from continuing operations 665 (247) 102
================================================ ===== =============== ================ ================
Condensed Consolidated Statement of Comprehensive Income
For the period ended 31 January 2023
6 months 6 months
to 31/01/2023 to 31/01/2022 12 months
unaudited unaudited to 31/07/2022
GBP'000 GBP'000 GBP'000
=================================================== ================= ================= =================
Profit/(loss) for the period 351 (3,065) (4,673)
Other comprehensive income
Items that may be reclassified subsequently
to profit or loss
Exchange differences on translation of foreign
operations (285) (85) 72
=================================================== ================= ================= =================
Other comprehensive (loss)/income for the
period (285) (85) 72
=================================================== ================= ================= =================
Total comprehensive income/(loss) for the
period attributable to equity holders of the
parent 66 (3,150) (4,601)
=================================================== ================= ================= =================
6 months 6 months
to 31/01/23 to 31/01/22 12 months
unaudited unaudited to 31/07/22
GBP'000 GBP'000 GBP'000
=================================================== ================= ================= =================
Attributable to:
Continuing operations 250 (2,391) (4,024)
Discontinued operations (184) (759) (577)
=================================================== ================= ================= =================
Total comprehensive income/(loss) for the
period attributable to equity holders of the
parent 66 (3,150) (4,601)
=================================================== ================= ================= =================
Condensed Consolidated Statement of Financial Position
As at 31 January 2023
31/01/2023 31/01/2022
unaudited unaudited 31/07/2022
Note GBP'000 GBP'000 GBP'000
================================ ===== ============ =========== =============
Non-current assets
Goodwill and intangible assets 2,007 3,980 2,072
Property, plant and equipment 1,243 1,465 1,359
Right-of-use assets 2,391 5,069 3,065
Investments - - -
Deferred tax assets 474 470 604
Total non-current assets 6,115 10,984 7,100
================================ ===== ============ =========== =============
Current assets
Trade and other receivables 8 47,721 63,652 54,767
Corporation tax receivables 1,133 1,226 1,263
Cash and cash equivalents 24,304 13,731 17,768
Total current assets 73,158 78,609 73,798
================================ ===== ============ =========== =============
Total assets 79,273 89,593 80,898
================================ ===== ============ =========== =============
Non-current liabilities
Deferred tax liabilities (9) (21) (25)
Provisions 9 (661) (1,248) (517)
Lease liabilities (1,886) (3,421) (2,490)
Total non-current liabilities (2,556) (4,690) (3,032)
================================ ===== ============ =========== =============
Current liabilities
Trade and other payables (43,843) (42,115) (43,406)
Provisions 9 (951) (900) (1,187)
Current tax liabilities (336) (169) (340)
Lease liabilities (1,175) (1,477) (1,135)
Bank loans and borrowings (342) (8,890) (1,801)
Total current liabilities (46,647) (53,551) (47,869)
================================ ===== ============ =========== =============
Total liabilities (49,203) (58,241) (50,901)
================================ ===== ============ =========== =============
Net assets 30,070 31,352 29,997
================================ ===== ============ =========== =============
Equity
Share capital 10 323 323 323
Share premium 8,706 8,706 8,706
Merger reserve 224 28,750 224
Share-based payment reserve 348 389 350
Translation reserve 852 930 1,137
Treasury shares reserve (214) (105) (147)
Retained earnings 19,831 (7,641) 19,404
================================ ===== ============ =========== =============
Total equity 30,070 31,352 29,997
================================ ===== ============ =========== =============
The accompanying notes form part of these interim financial
statements.
Condensed Consolidated Statement of Changes in Equity
For the period ended 31 January 2023
Share-based Treasury
Share Share Merger payment Translation shares Retained
capital premium reserve reserve reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
========================= ======== ======== ========= ============== ============ =========== =========== ==========
Total equity at 1 August
2021 323 8,706 28,750 454 134 (37) (3,223) 35,107
========================= ======== ======== ========= ============== ============ =========== =========== ==========
Loss for the period - - - - - - (3,065) (3,065)
Other comprehensive loss - - - - (85) - - (85)
========================= ======== ======== ========= ============== ============ =========== =========== ==========
Total comprehensive
loss - - - - (85) - (3,065) (3,150)
========================= ======== ======== ========= ============== ============ =========== =========== ==========
Dividends paid in the
period - - - - - - (484) (484)
Deferred tax movement
in respect of share
options - - - - - - (66) (66)
Share-based payments
charge - - - 13 - - - 13
Share-based payments
reserve transfer - - - (78) - - 78 -
Translation reserves
movements on disposal
of foreign operations - - - - 881 - (881) -
Purchase of treasury
shares - - - - - (68) - (68)
========================= ======== ======== ========= ============== ============ =========== =========== ==========
Transactions with owners - - - (65) 881 (68) (1,353) (605)
========================= ======== ======== ========= ============== ============ =========== =========== ==========
Total equity at 31
January
2022 unaudited 323 8,706 28,750 389 930 (105) (7,641) 31,352
========================= ======== ======== ========= ============== ============ =========== =========== ==========
Total equity at 1 August
2021 323 8,706 28,750 454 134 (37) (3,223) 35,107
========================= ======== ======== ========= ============== ============ =========== =========== ==========
Loss for the year - - - - - - (4,673) (4,673)
Other comprehensive
income - - - - 72 - - 72
========================= ======== ======== ========= ============== ============ =========== =========== ==========
Total comprehensive
loss - - - - 72 - (4,673) (4,601)
========================= ======== ======== ========= ============== ============ =========== =========== ==========
Dividends paid in the
year - - - - - - (484) (484)
Deferred tax movement
in respect of share
options - - - - - - (60) (60)
Share-based payments
charge - - - 145 - - - 145
Share-based payments
reserve transfer - - - (249) - - 249 -
Purchase of treasury
shares - - - - - (110) - (110)
Translation reserve
movements
on disposal of foreign
operations - - - - 931 - (931) -
Transfer of merger
reserve(1) - - (28,526) - - - 28,526 -
========================= ======== ======== ========= ============== ============ =========== =========== ==========
Transactions with owners - - (28,526) (104) 931 (110) 27,300 (509)
========================= ======== ======== ========= ============== ============ =========== =========== ==========
Total equity at 31 July
2022 323 8,706 224 350 1,137 (147) 19,404 29,997
========================= ======== ======== ========= ============== ============ =========== =========== ==========
Total equity at 1 August
2022 323 8,706 224 350 1,137 (147) 19,404 29,997
========================= ======== ======== ========= ============== ============ =========== =========== ==========
Profit for the period - - - - - - 351 351
Other comprehensive
income - - - - (285) - - (285)
========================= ======== ======== ========= ============== ============ =========== =========== ==========
Total comprehensive
income - - - - (285) - 351 66
========================= ======== ======== ========= ============== ============ =========== =========== ==========
Deferred tax movement
in respect of share
options - - - - - - (1) (1)
Share-based payments
charge - - - 75 - - - 75
Share-based payments
reserve transfer - - - (77) - - 77 -
Purchase of treasury
shares - - - - - (67) - (67)
========================= ======== ======== ========= ============== ============ =========== =========== ==========
Transactions with owners - - - (2) - (67) 76 7
========================= ======== ======== ========= ============== ============ =========== =========== ==========
Total equity at 31
January
2023 unaudited 323 8,706 224 348 852 (214) 19,831 30,070
========================= ======== ======== ========= ============== ============ =========== =========== ==========
(1) A merger reserve was created in 2015 in Gattaca plc under
section 612 of the Companies Act 2006, relating to the acquisition
of Networkers International plc. Gattaca plc's investment in
Networkers International plc was subsequently transferred to a
subsidiary undertaking in exchange for consideration of an
intercompany receivable. The asset to which the merger reserve
relates, being the goodwill and acquired intangible assets
recognised on consolidation as part of the acquisition, was
impaired in 2018, 2019 and 2021. Additionally, the intercompany
receivable was settled in 2020 in exchange for qualifying
consideration of offset with an intercompany payable. As a result,
the full merger reserve of GBP28,526,000 became realised across
these years. A choice has now been made to transfer the realised
merger reserve to retained earnings in the year ended 31 July 2022
to present all distributable reserves in one place.
Condensed Consolidated Cash Flow Statement
For the period ended 31 January 2023
Restated Restated
6 months 6 months 12 months
to (1) (2) (1)
31/01/23 to 31/01/22 to 31/07/22
unaudited unaudited
6 months 6 months
to to
31/01/2023 31/01/2022 12 months
unaudited unaudited to 31/07/2022
Note GBP'000 GBP'000 GBP'000
============================================================================================================================= =========== ============ ====================
Cash flows from operating activities
Profit/(loss) after taxation 351 (3,065) (4,673)
Adjustments for:
Depreciation of property, plant and equipment
and amortisation of
intangible assets 284 563 1,078
Depreciation of leased right-of-use assets 485 728 1,552
Loss from sale of subsidiary, associate
or investment - 55 82
Loss on disposal of property, plant and
equipment 14 12 33
Loss on disposal of software and software
licences 8 - 12
Impairment of goodwill and acquired intangibles - 2,000 3,780
Impairment of right-of-use assets - - 852
Profit on reassessment of lease term - - (27)
Interest income (52) (132) (4)
Interest costs 61 160 253
Taxation expense/(credit) recognised in
the income statement 237 (153) (467)
Decrease in trade and other receivables 7,268 617 9,368
Increase/(decrease) in trade and other
payables 434 (14,005) (12,715)
(Decrease)/increase in provisions (88) 408 (54)
Share-based payment charge 75 13 145
Foreign exchange (losses)/gains (200) - 31
=============================================================================================================================
Cash generated by/(used in) operations 8,877 (12,799) (754)
Interest paid (23) (96) (138)
Interest on lease liabilities (38) (64) (115)
Interest received 52 - 4
Income taxes repaid/(paid) 5 (493) (200)
=============================================================================================================================
Cash generated by/(used in) operating
activities 8,873 (13,452) (1,203)
============================================================================================================================= =========== ============ ====================
Cash flows from investing activities
Purchase of property, plant and equipment (129) (102) (370)
Purchase of intangible assets - - (29)
Cash used in investing activities (129) (102) (399)
============================================================================================================================= =========== ============ ====================
Cash flows from financing activities
Lease liability principal repayment (614) (970) (1,924)
Purchase of treasury shares (67) (68) (110)
Working capital facility repaid (1,459) (458) (7,547)
Dividends paid - (484) (484)
Cash used in financing activities (2,140) (1,980) (10,065)
============================================================================================================================= =========== ============ ====================
Effects of exchange rates on cash and cash
equivalents (68) 27 197
Increase/(decrease) in cash and cash equivalents 6,536 (15,507) (11,470)
Cash and cash equivalents at beginning
of period 17,768 29,238 29,238
=============================================================================================================================
Cash and cash equivalents at end of period
11 24,304 13,731 17,768
============================================================================================================================= =========== ============ ====================
Net decrease in cash and cash equivalents for discontinued
operations was GBP253,000 (6 months to 31 January 2022: decrease of
GBP1,156,000, year to 31 July 2022: decrease of GBP742,000).
NOTES
Forming part of the condensed consolidated interim financial
statements
1 Basis of preparation and significant accounting policies
1.1 General information
Gattaca plc ('the Company') and its subsidiaries (together 'the
Group') is a human capital resources business providing contract
and permanent recruitment services in the private and public
sectors. The Company is a public limited company, which is listed
on the Alternative Investment Market (AIM) and is incorporated and
domiciled in England, United Kingdom. The Company's address is:
1450 Parkway, Solent Business Park Whiteley, Fareham, Hampshire,
PO15 7AF. The registration number is 04426322.
1.2 Basis of preparation
These unaudited condensed consolidated interim financial
statements are for the six months ended 31 January 2023 and do not
constitute statutory accounts as defined by section 435 of the
Companies Act 2006. The interim financial statements have been
prepared in accordance with the AIM rules and IAS 34, 'Interim
Financial Reporting'. Whilst the financial information included in
the interim financial statements has been prepared in accordance
with UK-adopted International Accounting Standards, the interim
financial statements do not include all of the information required
for full annual financial statements, and should be read in
conjunction with the consolidated financial statements for the year
ended 31 July 2022 which have been filed with the Registrar of
Companies. The statutory financial statements for the year ended 31
July 2022 received an unqualified report from the auditors and did
not contain a statement under section 498 of the Companies Act
2006.
The accounting policies applied in the interim financial
statements are consistent with those used in the preparation of the
Group's consolidated financial statements for the year ended 31
July 2022, as described in the latest Annual Report and Accounts.
No alterations have been made to the Group's accounting policies as
a result of adopting new standards, amendments and interpretations
which became effective in the period, as these were either not
material or not relevant to the Group.
1.3 Going concern
The Group's business activities, together with the factors
likely to affect its future development, performance and position
are set out in the Strategic Report of the Group's Annual Report
and Accounts for the year ended 31 July 2022. The financial
position of the Group, its cash flows and liquidity position mirror
those of our ultimate parent company and can be found in the Chief
Financial Officer's Report of the 2022 Annual Report for Gattaca
plc.
The Group has maintained mitigating actions to enhance working
capital availability, including increases to the payment terms of
certain types of contractors. These actions have created a
permanent working capital benefit and reduce our working capital
requirements during growth. There is sufficient headroom on our
working capital facilities to absorb a level of customer payment
term extensions, but we would also manage supply to the customer if
payment within an appropriate period was not being made. Whilst
there is no evidence that it would occur, a significant
deterioration in average payment terms has the potential to impact
the Group's liquidity.
The Directors have prepared detailed cash flow forecasts to July
2025, covering a period of 29 months from the date of approval of
these interim financial statements. This base case is drawn up with
appropriate regard for the current macroeconomic environment and
the particular circumstances in which the Group operates. This
conservative base case assumes a steady growth in the Group's
contract and permanent NFI year-on-year.
A key assumption in preparing the cash flow forecasts is the
continued availability of Group's invoice financing facility
throughout the forecast period. The current GBP60m facility has no
contractual renewal date; the Directors remain confident that the
facility will remain available.
The output of the base case forecasting process has been used to
perform sensitivity analysis on the Group's cash flows to model the
potential effects should principal risks actually occur either
individually or in unison. The sensitivity analysis modelled
scenarios with significantly lower NFI growth rates and
significantly increased operating cost inflation. The Group has
modelled the impact of a severe but plausible scenario including
nil growth in contract and permanent NFI across FY23 to FY25 and
operating cost inflation of 5%-10%.
After making appropriate enquiries and considering the
uncertainties described above, the Directors have a reasonable
expectation at the time of approving these interim financial
statements that the Group has adequate resources to continue in
operational existence for the foreseeable future. Following careful
consideration the Directors do not consider there to be a material
uncertainty with regard to going concern and consider it is
appropriate to adopt the going concern basis in preparing these
interim financial statements.
1.4 Accounting estimates and judgements
Preparation of the interim financial statements requires the
Directors to make assumptions and estimates that affect the
application of accounting policies. The key assumptions and sources
of estimation uncertainty identified by the Directors were
consistent with those identified in the Group's Annual Report and
Accounts for the year ended 31 July 2022. The Directors are of the
opinion that there are no critical accounting judgements.
2 Segmental Information
An operating segment, as defined by IFRS 8 'Operating segments',
is a component of the Group that engages in business activities
from which it may earn revenues and incur expenses. The Group
determines and presents operating segments based on the information
that is provided internally to the chief operating decision maker,
which has been identified as the Board of Directors of Gattaca
plc.
6 months to 31 January
2023 unaudited
Technology, Continuing
All amounts in Media Infra- Gattaca Inter- underlying
GBP'000 Mobility Energy Defence & Telecoms structure Projects national(1) Other operations
================ ========= ======= ======== ============ ========== ========= ============ ======== ===========
Revenue (Note
3) 21,295 20,978 38,921 13,983 74,668 2,564 3,839 18,494 194,742
Gross profit 2,230 2,123 4,186 1,249 7,205 1,029 1,290 3,421 22,733
Operating
contribution 1,077 1,440 2,372 189 2,906 648 (473) 937 9,096
Depreciation,
impairment
and
amortisation (80) (79) (147) (53) (281) (10) (14) (70) (734)
Central
overheads (768) (355) (1,097) (629) (2,350) (185) (744) (1,288) (7,416)
================
Profit/(loss)
from
operations 229 1,006 1,128 (493) 275 453 (1,231) (421) 946
Finance
(cost)/income,
net (10)
================ ========= ======= ======== ============ ========== ========= ============ ======== ===========
Profit/(loss)
before
tax 936
================ ========= ======= ======== ============ ========== ========= ============ ======== ===========
Non-recurring
items
Continuing and amortisation
underlying of acquired Total
All amounts in GBP'000 operations intangibles Discontinued Group
=========================================== ============ ================== ============= =========
Revenue (Note 3) 194,742 - - 194,742
Gross profit 22,733 - - 22,733
Operating contribution 9,096 - - 9,096
Depreciation, impairment and amortisation (734) (35) - (769)
Central overheads (7,416) (300) (208) (7,924)
=========================================== ============ ================== ============= =========
Profit/(loss) from operations 946 (335) (208) 403
Finance (cost)/income, net (10) 191 4 185
=========================================== ============ ================== ============= =========
Profit/(loss) before tax 936 (144) (204) 588
=========================================== ============ ================== ============= =========
6 months to 31
January
2022 unaudited
Technology, Restated(2) Continuing
All amounts in Media Infra- Gattaca Inter- Restated(2) underlying
GBP'000 Mobility Energy Defence & Telecoms structure Projects national(1) Other operations
================ ========= ======= ======== ============ ========== ============ ============ ============ ===========
Revenue (Note
3) 24,095 19,152 32,325 21,951 72,011 1,972 3,896 26,797 202,199
Gross profit 2,231 1,777 3,179 2,211 6,743 622 1,335 3,508 21,606
Operating
contribution 1,163 953 1,478 1,290 1,974 174 (246) 1,429 8,215
Depreciation,
impairment
and
amortisation (118) (94) (159) (108) (355) (10) (19) (132) (995)
Central
overheads (600) (410) (1,349) (490) (2,361) (169) (803) (1,146) (7,328)
================ --------- ------- -------- ------------ ---------- ------------ ------------ ------------ -----------
Profit/(loss)
from
operations 445 449 (30) 692 (742) (5) (1,068) 151 (108)
Finance
(cost)/income,
net (153)
================ ========= ======= ======== ============ ========== ============ ============ ============ ===========
Loss before tax (261)
================ ========= ======= ======== ============ ========== ============ ============ ============ ===========
Non-recurring
items
and
amortisation
Continuing of
underlying acquired Restated(3) Total
All amounts in GBP'000 operations intangibles Discontinued Group
=========================================== ============ ================ ============== ========
Revenue (Note 3) 202,199 - 763 202,962
Gross profit 21,606 - 238 21,844
Operating contribution 8,215 - (569) 7,646
Depreciation, impairment and amortisation (995) (2,264) (32) (3,291)
Central overheads (7,328) (90) (127) (7,545)
=========================================== ------------ ---------------- -------------- --------
Profit/(loss) from operations (108) (2,354) (728) (3,190)
Finance (cost)/income, net (153) 73 52 (28)
=========================================== ============ ================ ============== ========
Loss before tax (261) (2,281) (676) (3,218)
=========================================== ============ ================ ============== ========
12 months to 31
July
2022
Technology, Restated(2) Continuing
All amounts in Media Infra- Gattaca Inter- Restated(2) underlying
GBP'000 Mobility Energy Defence & Telecoms structure Projects national(1) Other operations
================ ========= ======= ======== ============ ========== ============ ============ ============ ===========
Revenue (Note
3) 47,766 40,779 69,811 41,660 140,422 5,317 7,969 49,622 403,346
Gross profit 4,571 3,884 6,720 4,246 13,561 1,313 2,779 7,066 44,140
Operating
contribution
restated(4) 2,151 2,175 3,278 1,838 5,634 725 (581) 1,828 17,048
Depreciation,
impairment
and
amortisation
restated(4) (262) (223) (383) (228) (769) (29) (44) (272) (2,210)
Central
overheads (1,128) (774) (2,753) (992) (4,418) (329) (1,609) (2,330) (14,333)
================
Profit/(loss)
from
operations 761 1,178 142 618 447 367 (2,234) (774) 505
Finance
(cost)/income,
net (249)
================ ========= ======= ======== ============ ========== ============ ============ ============ ===========
Profit/(loss)
before
tax 256
================ ========= ======= ======== ============ ========== ============ ============ ============ ===========
Non-recurring
items
Continuing and amortisation
underlying of acquired Total
All amounts in GBP'000 operations intangibles Discontinued Group
======================================================= ============ ================== ============= =========
Revenue (Note 3) 403,346 - 781 404,127
Gross profit 44,140 - 238 44,378
Operating contribution restated(4) 17,048 - (440) 16,608
Depreciation, impairment and amortisation restated(4) (2,210) (5,051) (31) (7,292)
Central overheads (14,333) (558) (100) (14,991)
=======================================================
Profit/(loss) from operations 505 (5,609) (571) (5,675)
Finance (cost)/income, net (249) 566 218 535
======================================================= ============ ================== ============= =========
Profit/(loss) before tax 256 (5,043) (353) (5,140)
======================================================= ============ ================== ============= =========
A segmental analysis of total assets has not been included as
this information is not available to the Board; the majority of
assets are centrally held and are not allocated across the
reportable segments.
(1) International revenue and gross profit is generated from the
location of the commission earning sales consultant, opposed to the
domicile of the respective subsidiary by which they are
employed.
(2) The Gattaca Projects operating segment meets the
quantitative thresholds to be reported separately for the first
time in the 6-month period to 31 January 2023. In line with the
requirements of IFRS 8, comparative periods have been restated to
present the Gattaca Projects segment separately from the "Other"
segment in which it had previously been presented.
(3) Discontinued operations for the 6 months ended 31 January
2022 have been restated to include the results of the Group's South
African recruitment operations, sold on 14 December 2021 as part of
the management buy-out agreement announced in July 2021.
(4) Operating contribution and depreciation, impairment and
amortisation has been restated for the year ended 31 July 2022 to
present depreciation on right-of-use assets in the depreciation
line.
Geographical information
Total Group revenue Non-current assets
Restated(5)
6 months 6 months 6 months 6 months
to 31/01/2023 to 31/01/2022 to 31/01/2023 to 31/01/2022
12 months 12 months
All amounts in GBP'000 unaudited unaudited to 31/07/2022 unaudited unaudited to 31/07/2022
========================= ============== =============== ============== ============== ============== ===============
UK 189,401 196,434 390,861 5,856 10,592 6,726
Rest of Europe 404 274 662 1 1 1
Middle East and Africa - 763 781 34 16 59
Americas 4,937 5,491 11,823 224 375 314
Total 194,742 202,962 404,127 6,115 10,984 7,100
========================= ============== =============== ============== ============== ============== ===============
Revenue and non-current assets are allocated to the geographic
market based on the domicile of the respective subsidiary.
(5) Geographical information for the 6-month period to 31
January 2022 is restated to report total group revenue, where
previously revenue from continuing operations was presented.
3 Revenue from Contracts with Customers
Revenue from contracts with customers is disaggregated by major
service line and operating segment, as well as timing of revenue
recognition as follows:
Major service lines - continuing
underlying operations
Continuing
6 months to Technology, Infra- Gattaca Inter- underlying
31 January Mobility Energy Defence Media structure Projects national Other operations
2023 GBP GBP GBP & Telecoms GBP GBP'000 GBP GBP GBP
unaudited '000 '000 '000 GBP '000 '000 '000 '000 '000
============ ========= ======= ======== ============ =========== =========== ========== ======= ===========
Temporary
placements 20,349 20,764 37,241 13,571 73,248 1,125 3,004 16,582 185,884
Permanent
placements 813 182 1,537 428 1,203 - 672 1,881 6,716
Other 133 32 143 (16) 217 1,439 163 31 2,142
============ ========= ======= ======== ============ =========== =========== ========== ======= ===========
Total 21,295 20,978 38,921 13,983 74,668 2,564 3,839 18,494 194,742
============ --------- ------- -------- ------------ ----------- ----------- ---------- ------- -----------
6 months Restated(1) Continuing
to 31 Technology, Infra- Gattaca Inter- Restated(1) underlying
January Mobility Energy Defence Media structure Projects national Other operations
2022 GBP GBP GBP & Telecoms GBP GBP'000 GBP GBP GBP
unaudited '000 '000 '000 GBP '000 '000 '000 '000 '000
============ ========= ======= ======== ============ ========== ============ ========= ============ ===========
Temporary
placements 23,423 19,034 31,236 21,475 70,848 819 2,797 24,859 194,491
Permanent
placements 672 118 1,089 476 1,163 - 1,099 1,938 6,555
Other - - - - - 1,153 - - 1,153
============ ========= ======= ======== ============ ========== ============ ========= ============ ===========
Total 24,095 19,152 32,325 21,951 72,011 1,972 3,896 26,797 202,199
============ ========= ======= ======== ============ ========== ============ ========= ============ ===========
Restated(1) Continuing
Technology, Infra- Gattaca Inter- Restated(1) underlying
12 months Mobility Energy Defence Media structure Projects national Other operations
to 31 July GBP GBP GBP & Telecoms GBP GBP'000 GBP GBP GBP
2022 '000 '000 '000 GBP '000 '000 '000 '000 '000
============ ========= ======= ======== ============ ========== ============ ========= ============ ===========
Temporary
placements 46,249 40,612 67,652 40,493 138,027 2,814 5,863 45,914 387,624
Permanent
placements 1,483 158 1,909 1,115 2,363 - 2,106 3,652 12,786
Other 34 9 250 52 32 2,503 - 56 2,936
============ ========= ======= ======== ============ ========== ============ ========= ============ ===========
Total 47,766 40,779 69,811 41,660 140,422 5,317 7,969 49,622 403,346
============ ========= ======= ======== ============ ========== ============ ========= ============ ===========
Timing of revenue recognition - continuing underlying
operations
Gattaca Continuing
6 months to Technology, Infra- Projects Inter- underlying
31 January Mobility Energy Defence Media structure GBP'000 national Other operations
2023 GBP GBP GBP & Telecoms GBP GBP GBP GBP
unaudited '000 '000 '000 GBP '000 '000 '000 '000 '000
============ ========= ======= ======== ============ =========== ========== ========== ======= ============
Point in
time 21,295 20,978 38,921 13,983 74,668 1,125 3,839 18,494 193,303
Over time - - - - - 1,439 - - 1,439
============ ========= ======= ======== ============ =========== ========== ========== ======= ============
Total 21,295 20,978 38,921 13,983 74,668 2,564 3,839 18,494 194,742
============ ========= ======= ======== ============ =========== ========== ========== ======= ============
6 months Restated(1) Continuing
to Technology, Infra- Gattaca Inter- Restated(1) underlying
31 January Mobility Energy Defence Media structure Projects national Other operations
2022 GBP GBP GBP & Telecoms GBP GBP'000 GBP GBP GBP
unaudited '000 '000 '000 GBP '000 '000 '000 '000 '000
=========== ========= ======= ======== ============ ========== ============ ========= ============ ===========
Point in
time 24,095 19,152 32,325 21,951 72,011 819 3,896 26,797 201,046
Over time - - - - - 1,153 - - 1,153
=========== ========= ======= ======== ============ ========== ============ ========= ============ ===========
Total 24,095 19,152 32,325 21,951 72,011 1,972 3,896 26,797 202,199
=========== ========= ======= ======== ============ ========== ============ ========= ============ ===========
12 Restated(1) Continuing
months Technology, Infra- Gattaca Inter- Restated(1) underlying
to 31 Mobility Energy Defence Media structure Projects national Other operations
July GBP GBP GBP & Telecoms GBP GBP'000 GBP GBP GBP
2022 '000 '000 '000 GBP '000 '000 '000 '000 '000
======== ========= ======= ======== ============ ========== ============ ========= ============ ===========
Point
in
time 47,766 40,779 69,811 41,660 140,422 2,814 7,969 49,622 400,843
Over
time - - - - - 2,503 - - 2,503
======== ========= ======= ======== ============ ========== ============ ========= ============ ===========
Total 47,766 40,779 69,811 41,660 140,422 5,317 7,969 49,622 403,346
======== ========= ======= ======== ============ ========== ============ ========= ============ ===========
No single customer contributed more than 10% of the Group's
revenues (6 months to 31 January 2022 and year ended 31 July 2022:
none).
(1) The Gattaca Projects operating segment meets the
quantitative thresholds to be reported separately for the first
time in the 6-month period to 31 January 2023. In line with the
requirements of IFRS 8, comparative periods have been restated to
present the Gattaca Projects segment separately from the "Other"
segment in which it had previously been presented.
4 Profit from Total Operations
6 months 6 months
to 31/01/2023 to 31/01/2022 12 months
unaudited unaudited to 31/07/2022
GBP'000 GBP'000 GBP'000
================================================= =============== =============== ===============
Profit from total operations is stated
after charging/(crediting):
Depreciation of property, plant and equipment 228 209 570
Depreciation of leased right-of-use assets 485 692 1,552
Amortisation of acquired intangibles 35 264 420
Amortisation of software and software
licences 21 94 88
Impairment of goodwill and acquired intangibles - 2,000 3,780
Impairment of leased right-of-use assets - - 852
Net impairment (release)/loss on trade
receivables and accrued income (228) 172 (295)
Non-recourse working capital bank facility
charges 243 149 323
Release of sales ledger credits(1) (396) - -
Share-based payment charges 75 (17) 114
================================================= =============== =============== ===============
(1) The Group holds unclaimed sales ledger credits on the
balance sheet that arise in the course of normal trading operations
due to the high volume of timesheet invoices and customer receipts.
Following a review of credit control procedures, the Group has
reinstated its policy of releasing any unclaimed sales ledger
credits to the income statement after all reasonable steps have
been taken to return funds to the customer and two years have
elapsed since receipt of the funds.
Non-underlying items included within administrative expenses
were as follows:
6 months 6 months
to 31/01/2023 to 31/01/2022 12 months
unaudited unaudited to 31/07/2022
Continuing operations GBP'000 GBP'000 GBP'000
============================================== =============== =============== ===============
Restructuring costs(2) 172 - 405
Costs associated with exiting properties(3) 128 90 153
Impairment of goodwill, acquired intangibles
and right-of-use leased assets - 2,000 4,632
============================================== =============== =============== ===============
Non-underlying items included in profit
from continuing operations 300 2,090 5,190
============================================== =============== =============== ===============
Discontinuing operations GBP'000 GBP'000 GBP'000
============================================== =============== =============== ===============
Advisory fees(4) 1 27 33
Costs relating to discontinuation of group
undertakings(5) 207 100 5
Costs associated with properties previously
exited - - 57
============================================== =============== =============== ===============
Non-underlying items included in loss
from discontinued operations 208 127 95
============================================== =============== =============== ===============
Total non-underlying items 508 2,217 5,285
============================================== =============== =============== ===============
(2) Restructuring costs of GBP154,000 (6 months to 31 January
2022: GBPnil and year ended 31 July 2022: GBPnil) were recognised
as a result of personnel re-organisations throughout the business.
Restructuring costs of GBP18,000 (6 months to 31 January 2022:
GBPnil and year ended 31 July 2022: GBP405,000) were recognised as
a result of changes in the Board.
(3) Costs have been recognised in relation to the exit of a
number of UK office buildings that are no longer in use by the
business.
(4) Legal fees incurred in each period relating to the Group's
co-operation with certain voluntary enquiries from the US
Department of Justice, as discussed in further detail in Note
13.
(5) Ongoing costs relating to closure of entities affected by
the closure of the contract Telecoms Infrastructure business in
2018 as well as the closure of the Group's operations in Mexico and
South Africa, including staff termination costs and impairment of
certain working capital balances in prior periods.
5 Taxation
22
6 months 6 months
to 31/01/2023 to 31/01/2022 12 months
unaudited unaudited to 31/07/2022
Analysis of charge in the period for GBP'000 GBP'000 GBP'000
continuing operations
================================================ =============== =============== ===============
Profit/(loss) before tax for continuing
operations 792 (2,542) (4,787)
================================================ =============== =============== ===============
Profit before tax multiplied by the standard
rate of corporate tax in the UK of 21.0%
(31 January 2022: 19.0%, 31 July 2022:
19.0%) 166 (483) (909)
Expenses not deductible for tax purposes 26 - 15
Income not taxable (28) (10) -
Effect of goodwill impairment loss - 360 502
Effect of share-based payments (1) 12 60
Irrecoverable withholding tax 1 2 3
Changes in tax rate 13 (25) (84)
Overseas losses not recognised as deferred
tax assets 97 21 156
Difference between UK and overseas tax
rates 2 3 (9)
Adjustment to tax charge in respect of
previous periods (34) - (194)
================================================ =============== =============== ===============
Total taxation charge/(credit) for the
period for continuing operations 242 (120) (460)
================================================ =============== =============== ===============
Total taxation credit for the period
for discontinued operations (5) (33) (7)
================================================ =============== =============== ===============
The forecast average annual tax rate for continuing operations
for the year to 31 July 2023 used to estimate the tax charge for
the period to 31 January 2023 is 30.8% (period to 31 January 2022:
forecast average annual tax rate of 4.7%, year to 31 July 2022:
actual tax rate of 9.6%). The increase in the effective tax rate
for the period to 31 January 2023 is primarily driven by an
increase in overseas losses not recognised as deferred tax assets.
A lower tax recovery was recognised in the period to 31 January
2022 due to the effect of the goodwill impairment in the
period.
6 Discontinued Operations
The loss from discontinued operations for the period arises from
ongoing closure costs in connection with the Group's recruitment
operations in South Africa, Mexico and Asia which were either sold
or closed in prior periods.
Financial performance
Restated(2)
6 months 6 months
to 31/01/2023 to 31/01/2022
12 months
unaudited unaudited to 31/07/22
GBP'000 GBP'000 GBP'000
============================================ ================= ================ ==============
Revenue - 763 781
Cost of sales - (525) (543)
============================================
Gross profit - 238 238
Administrative expenses(1) (208) (966) (809)
============================================
Loss from operations (208) (728) (571)
Finance income - 59 -
Finance costs - (7) -
Exchange gain 4 - 218
============================================ ================= ================ ==============
Loss before taxation (204) (676) (353)
Taxation 5 33 7
============================================ ================= ================ ==============
Loss for the period after taxation from
discontinued operations (199) (643) (346)
============================================ ================= ================ ==============
Exchange differences on translation of
discontinued operations 15 (116) (231)
============================================ ================= ================ ==============
Other comprehensive loss from discontinued
operations (184) (759) (577)
============================================ ================= ================ ==============
(1) Included in administrative expenses are GBP208,000 (6 months
to 31 January 2022: GBP127,000, year ended 31 July 2022: GBP95,000)
of non-underlying items, as detailed in Note 4.
(2) The financial performance of discontinued operations for the
6 months to 31 January 2022 is restated to correctly present
results of the Group's South African recruitment operations, sold
on 14 December 2021 as part of the management buy-out agreement
announced in July 2021.
Cash flows from discontinued operations
6 months 6 months
to 31/01/2023 to 31/01/2022 12 months
unaudited unaudited to 31/07/22
GBP'000 GBP'000 GBP'000
================================================ =============== =============== =============
Net cash outflow from operating activities (116) (990) (650)
Net cash outflow from investing activities - (45) -
Net cash outflow from financing activities - (68) (92)
Effect of exchange rates on cash and cash
equivalents (137) (53) -
================================================
Net decrease in cash generated by discontinued
operations (253) (1,156) (742)
================================================ =============== =============== =============
7 Earnings Per Share
Earnings per share (EPS) has been calculated by dividing the
consolidated profit or loss after taxation attributable to ordinary
shareholders by the weighted average number of ordinary shares in
issue during the period.
Diluted earnings per share has been calculated on the same basis
as above, except that the weighted average number of ordinary
shares that would be issued on the conversion of all the dilutive
potential ordinary shares into ordinary shares has been added to
the denominator. The Group's potential ordinary shares, being the
Long Term Plan Options, are deemed outstanding and included in the
dilution assessment when, at the reporting date, they would be
issuable had the performance period ended at that date.
The effect of potential ordinary shares are reflected in diluted
EPS only when they are dilutive. Potential ordinary shares are
considered to be dilutive when the monetary value of the
subscription rights attached to the outstanding share options is
less than the average market share price of the Company's shares
during the period. Furthermore, potential ordinary shares are only
considered dilutive when their inclusion in the calculation would
decrease earnings per share, or increase loss per share, in
accordance with IAS 33. There are no changes to the profit
numerator as a result of the dilution calculation.
The earnings per share information has been calculated as
follows:
6 months 6 months
to 31/01/2023 to 31/01/2022 12 months
unaudited unaudited to 31/07/2022
Total earnings GBP'000 GBP'000 GBP'000
===================== ===================== ========================== ================ ==========================
Total profit/(loss) attributable
to ordinary share holders 351 (3,065) (4,673)
============================================ ========================== ================ ==========================
Number of shares 000's 000's 000's
===================== ===================== ========================== ================ ==========================
Basic weighted average number
of ordinary shares in issue 32,294 32,290 32,290
Dilutive potential ordinary
shares 348 - 210
============================================ ========================== ================ ==========================
Diluted weighted average number
of shares 32,642 32,290 32,500
============================================ ========================== ================ ==========================
Total earnings per
share pence Pence pence
===================== ===================== ========================== ================ ==========================
Earnings/(loss) per
ordinary
share * Basic 1.1 (9.5) (14.5)
=====================
* Diluted 1.1 (9.5) (14.5)
=========================================== ========================== ================ ==========================
Earnings for
continuing
operations GBP'000 GBP'000 GBP'000
===================== ===================== ========================== ================ ==========================
Total profit/(loss) for period 550 (2,422) (4,327)
============================================ ========================== ================ ==========================
Total earnings per
share for
continuing
operations pence pence pence
===================== ===================== ========================== ================ ==========================
Earnings/(loss) per
ordinary
share from
continuing
operations * Basic 1.7 (7.5) (13.4)
=====================
* Diluted 1.7 (7.5) (13.4)
=========================================== ========================== ================ ==========================
Earnings for
discontinuing
operations GBP'000 GBP'000 GBP'000
===================== ===================== ========================== ================ ==========================
Total loss for the period (199) (643) (346)
============================================ ========================== ================ ==========================
Total earnings per
share for
discontinuing
operations pence pence pence
===================== ===================== ========================== ================ ==========================
Loss per ordinary
share from
discontinuing
operations * Basic (0.6) (2.0) (1.1)
=====================
* Diluted (0.6) (2.0) (1.1)
=========================================== ========================== ================ ==========================
Earnings from
continuing
underlying
operations GBP'000 GBP'000 GBP'000
===================== ===================== ========================== ================ ==========================
Total profit/(loss) for the
period 665 (247) 102
============================================ ========================== ================ ==========================
Total earnings per
share for
continuing
underlying
operations pence pence pence
===================== ===================== ========================== ================ ==========================
Earnings/(loss) per
ordinary
share for
continuing
underlying
operations * Basic 2.1 (0.8) 0.3
=====================
* Diluted 2.0 (0.8) 0.3
=========================================== ========================== ================ ==========================
8 Trade and Other Receivables
23 31/01/22
31/01/2023 31/01/2022
unaudited unaudited 31/07/2022
GBP'000 GBP'000 GBP'000
=========================================== ============= ============== =============
Trade receivables from contracts with
customers, net of loss allowance 28,589 39,933 36,367
Other receivables 2,195 2,292 1,701
Finance lease receivables 160 - -
Prepayments 1,376 1,648 1,372
Accrued income 15,401 19,779 15,327
=========================================== ============= ============== =============
Total 47,721 63,652 54,767
=========================================== ============= ============== =============
The Directors consider that the carrying amount of trade and
other receivables approximates to the fair value.
Other receivables at 31 January 2023 includes GBP130,000 (31
January 2022: GBP134,000) of deferred consideration which is due
within one year (31 January 2022: due after more than one
year).
Finance lease receivables are recognised in connection with the
sublease of UK office space to a third party entered into during
the period. At 31 January 2023, GBP28,000 was due after more than
one year.
Accrued income relates to the Group's right to consideration for
temporary and permanent placement made but not billed at the year
end. These transfer to trade receivables once billing occurs.
Impairment of trade receivables from contracts with
customers
31/01/2023 31/01/2022
unaudited unaudited 31/07/2022
GBP'000 GBP'000 GBP'000
=========================================== =========== ============ ===========
Trade receivables from contracts with
customers, gross amounts 30,247 42,591 38,444
Loss allowance (1,658) (2,658) (2,077)
=========================================== =========== ============ ===========
Trade receivables from contracts with
customers, net of loss allowance 28,589 39,933 36,367
=========================================== =========== ============ ===========
Trade receivables are amounts due from customers for services
performed in the ordinary course of business. They are generally
settled within 30-60 days and are therefore all classified as
current.
The Group applies the IFRS 9 simplified approach to measuring
expected credit losses which uses a lifetime expected loss
allowance for all trade receivables. To measure the expected credit
losses, trade receivables have been grouped based on shared credit
risk characteristics by geographical region or customer
industry.
The expected loss rates are based on the payment profiles of
sales over a period of 36 months before the relevant period end and
the corresponding historical credit losses experienced within this
period. The historic loss rates are adjusted to reflect any
relevant current and forward-looking information expected to affect
the ability of customers to settle the receivables. Additionally,
external economic forecasts and scenario analysis has been taken
into account along with other macro-economic factors when assessing
the credit risk profiles for specific industries and
geographies.
The loss allowance for trade receivables was determined as
follows:
31 January More than More than More than
2023 30 days 60 days 90 days
unaudited Current past due past due due Total
============= ==================== ======================= ====================== ===================== ===============
Weighted
expected
loss
rate (%) 3.8% 5.5% 5.5% 61.2%
Gross
carrying
amount -
trade
receivables
(GBP'000) 28,283 659 457 848 30,247
Loss
allowance
(GBP'000) 1,078 36 25 519 1,658
============= -------------------- ----------------------- ---------------------- --------------------- ---------------
31 January More than More than More than
2022 30 days 60 days 90 days
unaudited Current past due past due due Total
============= ==================== ======================= ====================== ===================== ===============
Weighted
expected
loss
rate (%) 3.8% 4.7% 5.7% 53.8%
Gross
carrying
amount -
trade
receivables
(GBP'000) 37,945 2,300 351 1,995 42,591
Loss
allowance
(GBP'000) 1,456 109 20 1,073 2,658
============= -------------------- ----------------------- ---------------------- --------------------- ---------------
More than More than More than
30 days 60 days 90 days
31 July 2022 Current past due past due due Total
============= ==================== ======================= ====================== ===================== ===============
Weighted
expected
loss
rate (%) 4.0% 7.9% 15.9% 48.0%
Gross
carrying
amount -
trade
receivables
(GBP'000) 35,817 1,241 327 1,059 38,444
Loss
allowance
(GBP'000) 1,418 99 52 508 2,077
============= ==================== ======================= ====================== ===================== ===============
The loss allowance for trade receivables at the period end
reconciles to the opening loss allowance as follows:
6 months 6 months
to 31/01/2023 to 31/01/2022 12 months
unaudited unaudited to 31/07/2022
GBP'000 GBP'000 GBP'000
===================================================== ================== =============== ================
Opening loss allowance 2,077 3,449 3,449
(Decrease)/increase in loss allowance recognised
in profit and loss during the period (290) 5 136
Receivable written off during the period
as uncollectable (129) (796) (1,508)
===================================================== ------------------ --------------- ----------------
Closing loss allowance 1,658 2,658 2,077
===================================================== ------------------ --------------- ----------------
Impairment of accrued income
31/01/2023 31/01/2022
unaudited unaudited 31/07/2022
GBP'000 GBP'000 GBP'000
============================================ ================ ============== ===========
Gross accrued income 15,980 20,621 16,009
Loss allowance (579) (842) (682)
============================================ ---------------- -------------- -----------
Accrued income, net of loss allowance 15,401 19,779 15,327
============================================ ---------------- -------------- -----------
The loss allowance for accrued income was determined as
follows:
More than More than More than
31 January 2023 30 days 60 days 90 days
unaudited Current past due past due due Total
======================== ================= ================ ====================== ==================== =========
Weighted expected loss
rate
(%) 2.6% 2.5% 2.5% 33.1%
Gross carrying amount -
accrued income
(GBP'000) 14,318 867 239 556 15,980
Loss allowance
(GBP'000) 367 22 6 184 579
======================== ----------------- ---------------- ---------------------- -------------------- ---------
More than More than More than
31 January 2022 30 days 60 days 90 days
unaudited Current past due past due due Total
======================== ================= ================ ====================== ==================== =========
Weighted expected loss
rate
(%) 2.5% 2.5% 2.5% 32.1%
Gross carrying amount -
accrued income
(GBP'000) 17,932 903 690 1,096 20,621
Loss allowance
(GBP'000) 450 23 17 352 842
======================== ----------------- ---------------- ---------------------- -------------------- ---------
More than More than More than
30 days 60 days 90 days
31 July 2022 Current past due past due due Total
======================== ================= ================ ====================== ==================== =========
Weighted expected loss
rate
(%) 2.5% 2.5% 2.5% 30.6%
Gross carrying amount -
accrued income
(GBP'000) 13,269 1,090 649 1,001 16,009
Loss allowance
(GBP'000) 333 27 16 306 682
======================== ----------------- ---------------- ---------------------- -------------------- ---------
The loss allowance for accrued income at the period end
reconciles to the opening loss allowance as follows:
6 months 6 months
to 31/01/2023 to 31/01/2022 12 months
unaudited unaudited to 31/07/2022
GBP'000 GBP'000 GBP'000
===================================================== ================= =============== ===============
Opening loss allowance 682 1,065 1,065
Amounts utilised in the period - (350) -
(Decrease)/increase in loss allowance recognised
in profit and loss during the period (103) 127 (383)
----------------- --------------- ---------------
Closing loss allowance 579 842 682
===================================================== ----------------- --------------- ---------------
9 Provisions
Dilapidations Other Provisions Total
6 months to 31 January 2023 unaudited GBP'000 GBP'000 GBP'000
========================================== ============== =================== ========
Balance at 1 August 880 824 1,704
Provisions made 154 141 295
Provisions utilised (353) (30) (383)
Provisions released (1) - (1)
Effect of movements in exchange rates (1) (2) (3)
========================================== ============== =================== ========
Balance at period end 679 933 1,612
========================================== ============== =================== ========
Dilapidations Other Provisions Total
31 January 2023 unaudited GBP'000 GBP'000 GBP'000
========================================== ============== =================== ========
Non-current 661 - 661
Current 18 933 951
========================================== ============== =================== ========
Total 679 933 1,612
========================================== ============== =================== ========
Dilapidations Other Provisions Total
6 months to 31 January 2022 unaudited GBP'000 GBP'000 GBP'000
========================================== ============== =================== ========
Balance at 1 August 1,680 53 1,733
Provisions made 7 681 688
Provisions utilised - (40) (40)
Provisions released (223) (13) (236)
Effect of movements in exchange rates 3 - 3
========================================== ============== =================== ========
Balance at period end 1,467 681 2,148
========================================== ============== =================== ========
Dilapidations Other Provisions Total
31 January 2022 unaudited GBP'000 GBP'000 GBP'000
========================================== ============== =================== ========
Non-current 1,024 224 1,248
Current 443 457 900
========================================== ============== =================== ========
Total 1,467 681 2,148
========================================== ============== =================== ========
Dilapidations Other Provisions Total
12 months to 31 July 2022 GBP'000 GBP'000 GBP'000
========================================== ============== =================== ========
Balance at 1 August 1,680 53 1,733
Provisions made 18 824 842
Provisions utilised (145) (40) (185)
Provisions released (698) (13) (711)
Effect of movements in exchange rates 25 - 25
========================================== ============== =================== ========
Balance at period end 880 824 1,704
========================================== ============== =================== ========
Dilapidations Other Provisions Total
31 July 2022 GBP'000 GBP'000 GBP'000
========================================== ==============
Non-current 517 - 517
Current 363 824 1,187
========================================== ============== =================== ========
Total 880 824 1,704
========================================== ============== =================== ========
Dilapidation provisions are held in respect of the Group's
office properties where lease obligations include contractual
obligations to return the property to its original condition at the
end of the lease term, ranging between one and six years. During
the period the Group agreed dilapidations settlements over two of
its UK office properties which were exited in the previous
period.
Other provisions have been recognised in respect of
restructuring activities relating to discontinuation of overseas
operations and claims for certain legal matters. Other provisions
held as at 31 January 2023, 31 January 2022 and 31 July 2022 are
primarily in respect of claims for certain legal matters.
10 Share capital
31/01/2023 31/01/2022
unaudited unaudited 31/07/2022
Authorised share capital GBP'000 GBP'000 GBP'000
========================================== =========== ============= ===========
40,000,000 ordinary shares of GBP0.01
each 400 400 400
========================================== =========== ============= ===========
31/01/2023 31/01/2022
unaudited unaudited 31/07/2022
Allotted, called up, and fully paid GBP'000 GBP'000 GBP'000
========================================== =========== ============= ===========
32,303,612 Ordinary shares of GBP0.01
each (31 January 2022 and 31 July 2022:
32,290,400) 323 323 323
========================================== =========== ============= ===========
The movement in the number of shares in issue is shown
below:
'000
================================ =======
In issue at 1 August 2022 32,290
Exercise of LTIP share options 14
================================ =======
In issue at 31 January 2023 32,304
================================ =======
The Company has one class of ordinary shares. Each share is
entitled to one vote in the event of a poll at a general meeting of
the Company. Each share is entitled to participate in dividend
distributions.
Share options
During the period, the Group granted share options under the
Long-Term Incentive Plan ("LTIP") for Executive Directors and
senior management. 864,130 share options with an exercise price of
GBP0.01 each were granted on 6 December 2022 to members of staff to
be held over a three-year vesting period and are subject to various
performance conditions. All share options have a life of 10 years
from grant date and are equity settled on exercise.
11 Net Cash/(Debt)
Net cash/(debt) is the total amount of cash and cash equivalents
less interest-bearing loans and borrowings, including lease
liabilities.
Net cash flows include the net drawdown of loans and borrowings
and cash interest paid relating to loans and borrowings.
Net cash Non-cash
01/08/2022 flows movements 31/01/2023
31 January 2023 unaudited GBP'000 GBP'000 GBP'000 GBP'000
============================ =============== ================== ======================== =============
Cash and cash equivalents 17,768 6,604 (68) 24,304
Working capital facilities (1,801) 1,459 - (342)
Lease liabilities (3,625) 614 (50) (3,061)
============================ =============== ================== ======================== =============
Total net cash 12,342 8,677 (118) 20,901
============================ =============== ================== ======================== =============
Net cash Non-cash
01/08/2021 flows movements 31/01/2022
31 January 2022 unaudited GBP'000 GBP'000 GBP'000 GBP'000
============================ =========== ========== =========== ===========
Cash and cash equivalents 29,238 (15,507) - 13,731
Working capital facilities (9,348) 458 - (8,890)
Lease liabilities (5,761) 1,034 (171) (4,898)
============================ =========== ========== =========== ===========
Total net cash/(debt) 14,129 (14,015) (171) (57)
============================ =========== ========== =========== ===========
.
Net cash Non-cash
01/08/2021 flows movements 31/07/2022
31 July 2022 GBP'000 GBP'000 GBP'000 GBP'000
============================ =========== ========= =========== ===========
Cash and cash equivalents 29,238 (11,667) 197 17,768
Working capital facilities (9,348) 7,547 - (1,801)
Lease liabilities (5,761) 2,038 98 (3,625)
============================ =========== ========= =========== ===========
Total net cash 14,129 (2,082) 295 12,342
============================ =========== ========= =========== ===========
Restricted cash
Included in cash and cash equivalents is the following
restricted cash which meets the definition of cash and cash
equivalents but is not available for use by the Group:
31/01/2023 31/01/2022
unaudited unaudited 31/07/2022
GBP'000 GBP'000 GBP'000
================================================= ============= =========== ===========
Balances arising from the Group's non-recourse
working capital arrangements 1,173 902 615
Cash on deposit in accounts controlled by the
Group but not available for immediate drawdown 1,370 1,271 1,662
================================================= ============= =========== ===========
Total restricted cash 2,543 2,173 2,277
================================================= ============= =========== ===========
12 Transactions with Related Parties
There were no related party transactions during the period with
entities outside of the Group (6 months to 31 January 2022: none,
year ended 31 July 2022: none) and no related party balances at 31
January 2023 (31 January 2022: none, 31 July 2022: none).
13 Contingent Liabilities
We continue our cooperation with the United States Department of
Justice and in the 6 month period to 31 January 2023 have incurred
GBP1,000 (6 months to 31 January 2022: GBP27,000, and year to 31
July 2022: GBP33,000) in advisory fees on this matter. The Group is
not currently in a position to know what the outcome of these
enquiries may be and therefore we are unable to quantify the likely
outcome for the Group.
14 Statement of Directors' Responsibilities
The Directors' confirm that these condensed interim financial
statements have been prepared in accordance with UK-adopted
International Accounting Standard 34, 'Interim Financial Reporting'
and that the interim management report includes a fair view of the
information required by DTR 4.2.7 and DTR 4.2.8, namely:
-- an indication of important events that have occurred during
the first six months and their impact on the condensed set of
financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the financial year;
and
-- material related-party transactions in the first six months and any material changes in the related-party transactions described in the last annual report.
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END
IR PPUMWWUPWGRB
(END) Dow Jones Newswires
March 30, 2023 02:00 ET (06:00 GMT)
Grafico Azioni Gattaca (LSE:GATC)
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