15 February 2024
Gattaca plc
("Gattaca" or the
"Group")
Trading
Update
Robust performance in line
with market expectations
Gattaca plc, the specialist staffing
solutions business, today provides the following trading update for
the six months ended 31 January 2024 ("H1 24").
|
·
|
Group Net
Fee Income1 ("NFI") expected to
be £18.9m (H1 232 £22.5m), a decrease of 16%
year-on-year ("YoY")
|
|
|
|
|
·
|
NFI shows anticipated shift towards
Contract 76% / Permanent 24% (H1 232: 68% / 32%),
reflecting increased focus on contract market and maintaining
contractor volumes which ended the period flat with the prior
year
|
|
|
|
|
·
|
Permanent NFI down 38% YoY as a
result of market weakness, with placements continuing to show
weakness since the turn of the year, and the exit of a large
permanent Recruitment Process Outsourcing ("RPO") client in prior
year as referenced at year end
|
|
|
|
|
·
|
Significant progress in business
development, with two large client extensions and two more Managed
Service Provider wins
|
|
|
|
|
·
|
Defence continues to be the Group's
strongest performing sector with 9% YoY growth excluding the RPO
account exit as above
|
|
|
|
|
·
|
Marginal reduction in sales
headcount during H1 24 to 312 from 315 at the year-end, focused UK
headcount investment in specific sectors showing growth
opportunities, these being Energy, Defence and Gattaca
Projects
|
|
|
|
|
·
|
The Group expects to report
statutory net cash at 31 January 2024 of £22.1m (31 July 2023: net
cash of £21.6m)
|
Notice of Interim Results
The Group will announce its results
for the six months to 31 January 2024 on Tuesday 16 April
2024.
Matthew Wragg, Chief Executive Officer said:
"Despite the tough market conditions, I am pleased to report
the Group is trading in line with current market expectations. I am
also pleased to see our strategy to invest in business development
is starting to bear fruit, with two large client extensions and two
more Managed Service Provider (MSP) wins for the Group in H1 and a
growing pipeline. We continue to see high engagement, staff
attrition below long-term targets and productivity levels beginning
to improve. In H1 we have continued to focus the business more on
specific markets and geographies. We have reduced our workforce in
North America.
However, the
economic
conditions have led to a challenging market in H1 and we have not
been immune to this. Permanant fee income is down 38% due to much
lower than anticipated volumes at the back end of 2023 and
compounded by reduced NFI from the exiting of a major programme
last year. We anticipate that Permanant fees will pick up gradually
as we go through 2024. Contract income has remained stable, and we
are starting to see growth from our investment and focus into this
area.
Recognising that trading conditions are expected to remain
challenging, we plan to keep tight control on operating costs
including headcount during H2, whilst we are mindful to ensure we
are well placed to build market share in our chosen sectors as the
economy recovers.
I
would like to add my personal thanks to everyone in and from the
business, our special community, customers and partners for their
support in what has been an extremely tough week for the Group
following the sudden passing of our very good friend and Chief
Sales Officer Grahame Carter. The way everyone has united is
testament to the strength we have as a team. Our love and
condolences go to his family, friends and everyone who had the
pleasure to know him."
1. NFI is calculated as revenue less
contractor payroll costs
2. H1
23 results have been restated for the
correction of a FY22 revenue cut-off error, and the FY23
reassessment of the Group's accounting policy over how accrued
revenue and accrued cost balances have been calculated at the
period end. The aggregated impact of these items on H1 23 reported
NFI is £0.2m reduction. Further details on this error and policy
change were provided in the Group's FY23 Annual Report &
Accounts.
For
further information please contact:
|
Gattaca plc
|
+44
(0) 1489 898989
|
|
Matthew Wragg, Chief Executive
Officer
Oliver Whittaker, Chief Financial
Officer
|
|
|
|
|
|
Liberum Capital Limited (Nomad and Broker)
|
+44
(0) 20 3100 2000
|
|
Lauren Kettle
Richard Lindley
|
|
|
|
|
|
IFC
Advisory (Financial PR and IR)
|
+44
(0) 203 934 6630
|
|
Tim Metcalfe
Graham Herring
Florence Chandler
|
|