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Gattaca PLC (GATC)

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Thursday 07 February, 2019

Gattaca PLC

Trading Update for 6 months ended 31 January 2019

RNS Number : 3028P
Gattaca PLC
07 February 2019

7th February 2019

Gattaca plc

("Gattaca" or, "the Group")


Trading Update for 6 months ended 31 January 2019


Gattaca plc, the specialist Engineering and Technology (IT & Telecoms) recruitment solutions business, today provides the following pre-close Trading Update for the six months to 31 January 2019.




The Group delivered a 2% improvement in NFI over the period. UK Engineering continued to perform positively in H1, partially offset by UK Technology, particularly Telecoms, which was impacted by planned restructuring within the business unit in Q1. The Group's International operations continue to grow strongly, driven in particular by the Americas.




2019 H1

2018 H1


Net Fee Income1
























Total (Continuing)
















Total (Continuing)








Total Group





1   Net Fee Income ("NFI") is calculated as revenue less contractor payroll costs

2  Discontinued business (as part of previously announced Q1 2019 restructuring) includes Contract Telecoms Infrastructure markets in Africa, Asia and Latin America (some of which was UK sourced) plus our operations in Dubai, Kuala Lumpur and Qatar

3 On a continuing basis there is no material impact from constant currency adjustment






Group continuing NFI in H1 2019 +2% year-on-year at £36.6m. Total Group NFI was lower (-3%) due to the discontinuation of operations in Telecom Infrastructure contractor work in Africa, Asia and Latin America as well as the closure of offices in Dubai, Malaysia and Qatar, as previously announced as part of the Group's review of its international footprint in Q1 2019



UK Engineering NFI continued to show consistent growth, up 3% year-on-year with strong performances from Infrastructure, Maritime and Engineering Technology



UK Technology NFI declined by -10% year-on-year, driven by UK IT (down -5%) and UK Telecoms (down -35%)



UK IT was impacted by the planned closure of our Technology Sales business unit in Bromley and a temporarily reduced headcount as we sought to rebalance our consultant workforce



UK Telecoms underwent a substantial restructuring during the period and is being repositioned to address the higher growth and value-added parts of the sector



Both businesses have increased their operating contribution on prior year as a result of this repositioning



International NFI continued to grow strongly (+15%), driven the Americas and China



Our permanent revenue mix has increased to 30% in the first half, partly driven by the growth of this business in China and Mexico and the Telecom Infrastructure exit



Group full year outlook continues to be in line with the Board's expectations



Net debt


The net debt position at the end of January 2019 is estimated at £29m (31 January 2018: £36m, 31 July 2018: £41m). This positive cash flow performance reflects our focus on reducing net debt, albeit the seasonality of our business typically results in cash flow being stronger in the first half and therefore a more favourable net debt position at half year compared to year end. This half year benefited from the relative timing of receipts and contractor payrolls.


Interim Results


The Group will announce its interim results for the 6 months to 31 January 2019 on Wednesday 3 April 2019.


Kevin Freeguard, Chief Executive Officer, said:


"The first half of FY19 was a period of progress for the Group, as the restructuring we undertook in Q1 began to bear fruit. The Group has performed in line with expectations, with UK Engineering delivering solid growth and our international operations which continuing to grow strongly. UK Technology, particularly Telecoms, was impacted by the Q1 restructuring, however we are encouraged by the initial performance following steps taken to reposition the business during the half.


"The progress made on net debt is positive and our full year outlook remains in line with the Board's expectations. I look forward to updating the market further in April."


For further information please contact:


Gattaca plc 

+44 (0) 1489 898989

Kevin Freeguard, CEO    

Salar Farzad, Chief Financial Officer 



Citigate Dewe Rogerson

+44 (0) 20 7638 9571

Nick Hayns / Lucy Eyles / Claire Dansie



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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