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Gattaca PLC (GATC)

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Thursday 02 August, 2018

Gattaca PLC

Trading Update for 12 months ended 31 July 2018

RNS Number : 5349W
Gattaca PLC
02 August 2018
 

2 August 2018

 

Gattaca plc

("Gattaca" or, "the Group")

 

Trading Update for 12 months ended 31 July 2018

 

 

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 12 months ended 31 July 2018.

 

 


FY 2018

FY 2017

Change

Constant Currency


£m

£m

%

%

Contract NFI

56.7

56.4

+1%

+1%

Permanent NFI

22.1

18.3

+21%

+22%

Total NFI

78.8

74.7

+6%

+6%

 

 

Like for Like1

H1


H2

 

FY


2018 H1

2017 H1

Change


2018 H2

2017 H2

Change

 

2018

2017

Change


£m

£m

%


£m

£m

%

 

£m

£m

%

Contract NFI

28.8

29.6

-3%


27.8

30.0

-7%

 

56.7

59.6

-5%

Permanent NFI

11.0

9.5

+16%


11.2

9.1

+23%

 

22.1

18.6

+19%

Total NFI

39.8

39.1

+2%


39.0

39.1

0%

 

78.8

78.1

+1%









 

 

 

 









 

 

 

 


2018 H1

2017 H1

Change


2018 H2

2017 H2

Change

 

2018

2017

Change


£m

£m

%


£m

£m

%

 

£m

£m

%

Engineering

24.2

23.5

+3%


23.2

23.4

-1%

 

47.4

46.9

+1%

Technology

8.5

8.8

-4%


8.0

8.4

-5%

 

16.5

17.2

-4%

UK

32.7

32.3

+1%


31.2

31.8

-2%

 

63.9

64.1

0%

International

7.1

6.8

+5%


7.8

7.2

+8%


14.9

14.0

+7%

Total NFI

39.8

39.1

+2%


39.0

39.0

0%


78.8

78.1

+1%

1 Like for Like (i) assumes RSL had been owned for the entire prior period, and (ii) is calculated on a constant currency basis

 

·     Group NFI expected to be £78.8m, up 6% on prior year and 1% on an underlying basis

 

 

 

·     FY18 underlying PBT expected to be broadly in line with market expectations

 

 

 

·     UK Engineering NFI grew 1%, with strong performances seen in our Engineering Technology, Auto, Infrastructure, Maritime, Barclay Meade and Alderwood business units. The division saw a slight decline of 1% in H2, with a positive performance in the majority of our business units offset by lower RSL NFI as well as ancillary Solutions income, which tend to be lumpy in nature. We are particularly encouraged by the trend in Q4, with the majority of our Engineering business units demonstrating healthy run rate growth

 

 

 

·     UK Technology NFI declined by 4%, with NFI growth in IT of 4% offset by a decline in Telco of 24%

 

 

 

·     International saw NFI growth of 7%, driven by a continued very strong performance in the Americas (+33%) but tempered by weaker markets elsewhere

 

 

 

·     The shift towards Permanent recruitment in the first half continued into the full year, partly driven by the acquisition of a number of RPO Solutions clients, which are high-quality and multi-year contracts. Permanent represented 28% of FY18 NFI compared to 24% in the prior year

 

 

 

·     Our cost containment initiatives remain on track and we have achieved our 2018 target. We continue to seek cost reduction opportunities

 

 

 

·     Group net debt at 31st July 2018 is expected to be in the order of £46m (July 2017: £40.3m); the increase comprising a final £3.6m payment for the RSL earn-out and working capital movements

 

 

 

·     The review of our international footprint, low profitability accounts and withholding tax generating activities, as announced at the time of our interim results in April, is nearing completion and we expect to update the market on this shortly

 

 

 

 

Patrick Shanley, Chairman said, "The second half of the year has been one of steady progress for Gattaca as we have worked to stabilise and simplify the business. We are pleased with the performance of UK Engineering and encouraged by the improving trend we saw across Q4 in the majority of our business units. In UK Technology we were pleased with the performance in our IT division, and Internationally our offices in the Americas, in particular, continue to grow strongly. Underlying PBT for the full year is expected to be broadly in line with market expectations.

 

"We are currently reviewing our international footprint and expect to update the market in the coming months, and our cost containment measures are on track. We are also pleased to report that our CEO recruitment process is at an advanced stage."

 

 

The Group expects to announce its full year results for the 12 months to 31 July 2018 on Thursday 8 November 2018.

 

 

For further information please contact:

 

Gattaca plc 

+44 (0) 1489 898989

Patrick Shanley, Chairman    

Salar Farzad, Chief Financial Officer 

 

 

Citigate Dewe Rogerson

+44 (0) 20 7638 9571

Louise Mason-Rutherford / Nick Hayns

 

 

Numis Securities Limited

+44 (0) 20 7260 1000

Michael Meade / Kevin Cruickshank / Tom Ballard

 

 

 

The information communicated in this announcement contains inside information for the purposes of Article. 7 of the Market Abuse Regulation (EU) No. 596/2014.


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