TIDMGATC
RNS Number : 7834V
Gattaca PLC
02 February 2017
2 February 2017
Gattaca plc
("Gattaca" or, "the Group")
Trading Update for 6 months ended 31 January 2017
Gattaca plc (LSE-AIM: GATC), the UK's leading specialist
Engineering and Technology recruitment business, today provides the
following pre-close Trading Update for the six months to 31 January
2017.
Overview
The Group delivered solid results during a period of some
instability in the UK, following the EU referendum on 23 June
2016.
The Group continues to position itself for maximising growth
opportunities both in the UK and internationally. Accordingly,
whilst the Board continues to monitor uncertainty in the wider
economy, we continue to invest selectively in strengthening the
business to support its medium and longer term performance.
Having made these investments over the last 12 months, the
phasing of planned client projects in the second half of the year
and, encouragingly, the improving performance of our IT Division,
the Board has confidence that profit for the full year will be in
line with its previous expectations.
The Group is now strategically well-placed to take advantage of
the convergence between Engineering, IT and Telecoms skill sets and
of the opportunities presented by infrastructure investment
commitments by the UK and US governments in particular.
Operational Performance
Net Fee 2017 H1 2016 H1 Change Constant
Income GBPm GBPm currency
----------- -------- -------- ------- ----------
Contract 25.9 26.5 -2% -4%
----------- -------- -------- ------- ----------
Permanent 9.2 9.4 -2% -6%
----------- -------- -------- ------- ----------
Total 35.1 35.9 -2% -5%
----------- -------- -------- ------- ----------
Net Fee 2017 H1 2016 H1 Change Constant
Income GBPm GBPm currency
------------- -------- -------- ------- ----------
Engineering 21.1 21.7 -3% -4%
------------- -------- -------- ------- ----------
Technology 14.0 14.2 -1% -6%
------------- -------- -------- ------- ----------
Total 35.1 35.9 -2% -5%
------------- -------- -------- ------- ----------
Performance
NFI in the period was GBP35.1m, down 2% (2016 H1: GBP35.9m).
Both Contract NFI and Permanent Fees declined by 2%.
In constant currency terms, NFI was down 5%, with Contract down
4% and Permanent down 6%.
Engineering's NFI was down 4% to GBP21.1m (2016 H1: GBP21.7m).
Growth in the Engineering Technology and Aerospace sectors were
offset by weakness in most other sectors as the time to hire
lengthened following the outcome of the EU referendum. Pleasingly
however, vacancy flow continues to be strong.
Technology's NFI was down 6% to GBP14.0m (2016 H1: GBP14.2m).
Within Technology, IT saw a welcome return to growth, up 1%
following a year of decline (2016 H1: down 21%, 2016 H2: down 14%).
However, Telecoms declined 14%, with a flat year-on-year
performance in the UK offset by delays in a number of client
projects internationally.
Acquisition of RSL Limited
Today the Group also announces, in a separate release, the
acquisition of Resourcing Solutions Limited (RSL). RSL operates
from three UK offices in Reading, Uxbridge and Derby, providing
specialist contract and permanent candidates to clients operating
in the Rail, Power and Built Environment sectors.
Interim Results
The Group expects to announce its interim results for the 6
months to 31 January 2017 on Thursday 20 April 2017.
Brian Wilkinson, Chief Executive Officer, said:
"This is a solid set of results, achieved during a period of
economic uncertainty in the UK and the US. We are pleased that
demand in the UK for skilled Engineers remains robust and vacancy
flow is increasing, however uncertainty has led to elongated hiring
decisions.
"We continue to strengthen the Group, with the aim to become the
leading specialist Engineering and Technology recruiter, and we are
pleased to have completed the acquisition of Resourcing Solutions
Limited, broadening our capability in the UK's Rail, Power and
Built Environment markets where we are seeing continued
investment."
- ENDS -
For further information please contact:
Gattaca plc +44 (0) 1489 898989
Brian Wilkinson, Chief
Executive Officer
Tony Dyer, Chief Financial
Officer
Citigate Dewe Rogerson +44 (0) 20 7638 9571
Rob Newman / Nick Hayns
Numis Securities Limited +44 (0) 20 7260 1000
Michael Meade / Tom Ballard
About Gattaca
Gattaca plc (LSE-AIM: GATC), is the UK's leading specialist
Engineering and Technology (IT & Telecoms) recruitment agency,
providing contract, temporary and permanent staff. Established in
1984 and AIM-listed in 2006, the Group is one of the fastest
growing staffing organisations listed in the UK, with a
well-balanced business model; approximately 74% contract and 26%
permanent.
In April 2015, Gattaca plc announced the completion of the
acquisition of Networkers International, a global recruitment
company specialising in the delivery of recruitment services
focusing on Telecoms and Technology.
Recruiting in 100 countries across the world from 18 offices in
12 countries, the Group has over 500 sales staff, 9,000 contractors
on assignment and places 4,000 candidates into permanent positions
each year.
This information is provided by RNS
The company news service from the London Stock Exchange
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