Gattaca PLC Trading Update (8021I)
17 August 2021 - 4:00PM
UK Regulatory
TIDMGATC
RNS Number : 8021I
Gattaca PLC
17 August 2021
17 August 2021
Gattaca plc
("Gattaca", "the Group" or "the Company")
Trading Update for 12 months ended 31 July 2021
Performance ahead of expectations
Gattaca plc (LSE-AIM: GATC), the UK's leading specialist
Engineering and Technology staffing business, today provides the
following trading update for the 12 months ended 31 July 2021.
Following our trading update announcement on 21 May 2021, we
expect continuing underlying PBT(1) and adjusted net cash
(excluding IFRS16 lease liabilities) to be above market
expectations for FY 2021.
H2 2021 continuing Net Fee Income ("NFI") was 7% higher than H1
2021, with the full year NFI at GBP42.5m (FY 2020: GBP52.8m),
reflecting the market impact of the COVID-19 pandemic over the
entire reporting period.
We continue to add sales and delivery resource across the
business, increasing front line headcount by 13% since January
whilst tightly managing the overall cost base.
Consequently, subject to final adjustments and audit, we expect
our continuing underlying PBT for the full year to be in excess of
GBP3m (market consensus GBP2.7m).
Adjusted Net Cash (excluding IFRS16 lease liabilities) is
expected to be GBP20m(2) (31 July 2020: GBP27m) largely driven by
repayment of deferred VAT (GBP4.7m)
All of our businesses successfully transferred to our global
technology platform in Q4 enabling the business to have a
consistent view of activity and performance across all of our
operating units.
We have seen increased activity from our "RPO" (Permanent
Recruitment Process Outsourcing solutions) clients as the market
recovery has been led by permanent recruitment both in contingent
and solutions products. There is further improvement to come on the
contract front including in our core infrastructure unit, which
will benefit from strong demand driven by major initiatives such as
UK Fibre investment, HS2 and Offshore 2025, which we are seeing
already positively impacting hiring. Our defence business continues
to perform strongly. We also anticipate continuing high demand for
technology skills as the pace of digitisation continues to
accelerate.
We have determined that our sales operations in Mexico and South
Africa are sub-scale and we exited both at the end of July and
these businesses will be treated as discontinued in our FY 2021
results.
In light of the improved performance and assuming a continuation
of the current positive trends, the Board anticipates the
recommendation of a modest dividend when the full year results are
announced.
The Group expects to announce its full year results for the 12
months to 31 July 2021 on Thursday 4 November 2021.
Kevin Freeguard, Chief Executive Officer said:
"Following our upgrade in May, I am pleased that our profit
results will again be ahead of expectations. Whilst the pandemic
continues to impact activity across our markets, it is clear that
we have now entered the next phase of recovery. Our new global
technology platform will increase our ability to collaborate and
drive performance across the business. At the same time, our
continued investment in sales and delivery resources will enable us
to capitalise on the continuing opportunities as our markets,
including Infrastructure and Defence, emerge from the
pandemic."
(1) Continuing underlying results exclude the NFI and (losses) /
profits before taxation of discontinued operations. The combined
NFI of Mexico and South Africa in the year was GBP1.0m and losses
before tax were GBP(0.2)m (2020: NFI GBP1.5m and profit before tax
GBP0.2m
(2) VAT deferrals at 31 July 2021 were GBP5.6m (31 July 2020:
GBP10.3m)
The information contained within this announcement is deemed by
the Company 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.
For further information please contact:
Gattaca plc +44 (0) 1489 898989
Kevin Freeguard, Chief Executive Officer
Salar Farzad, Chief Financial Officer
Liberum Capital Limited (Nomad and
Broker) +44 (0) 20 3100 2000
Lauren Kettle
Robert Morton
Euan Brown
Citigate Dewe Rogerson +44 (0) 20 7638 9571
Jos Bieneman
Elizabeth Kittle
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END
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