REG - Gattaca PLC - Interim Results
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RNS Number : 7768X Gattaca PLC 24 March 2026
24 March 2026
Gattaca plc
("Gattaca" or "the Group")
Interim Results for the six months ended 31 January 2026
"Strong H1 performance driven by NFI growth"
Gattaca plc, the specialist staffing business, announces its financial results
for the six months ended 31 January 2026 ("2026 H1").
Financial Highlights
Continuing operations 2026 H1 2025 H1 Variance
Revenue (£m) 212.4 193.5 +10%
Net Fee Income (NFI)(1) (£m) 21.4 18.9 +13%
Operating profit (£m) 2.6 0.5 +431%
Underlying profit before tax(2) (£m) 3.0 1.0 +187%
Profit before tax (£m) 2.6 0.8 +226%
Profit after tax (£m) 1.8 0.5 +268
(Loss)/profit after tax from discontinued operations (0.1) 0.1 -
Group profit after tax 1.8 0.6 +174%
Basic earnings per ordinary share from continuing underlying operations 6.9 2.2 +215%
(pence)
Basic earnings per share (pence) 5.6 2.0 +174%
Net cash (£m) 13.0 16.8 -19%
Interim dividend (pence) 1.33 1.0 +33%
Highlights
· Group NFI of £21.4 million, an increase of 13% year-on-year ("YoY")
- Group like-for-like3 ("LFL") NFI of £20.4 million up 8% (2025 H1: £18.9
million).
- Infrastructure sector, the largest contributor to Group NFI (34%),
pleasingly showed 6% growth with particularly strong growth within Water
sector.
- Defence sector returned to YoY growth with a strong H1, delivering 29% YoY
growth and reversing the decline 2025 H1 to exceed the performance achieved in
2024 H1.
- Energy sector performed strongly with 13% YoY growth as our strategic
investment continues to mature.
- Contract vs Statement of Work ("SoW") vs Permanent split 77% / 4% / 19% of
Group NFI (2025 H1: 74% / 6% / 20%).
- LFL Contract NFI up 15% YoY, with the positive momentum achieved in 2025 H2
continued in H1 2026.
- LFL Permanent NFI down 4% YoY, management are cognisant that market
conditions remain subdued.
- All segments, excepting Gattaca Projects SoW, progressed against prior year
comparators. Gattaca Projects SoW revenue down 8% YoY, due to timing delays on
major client programmes, with activity expected to remain subdued into the
second half of the year.
· Group continuing underlying profit before tax rose to £3.0 million (2025 H1:
£1.0 million) reflecting stronger trading performance and margin focus.
· Total Group sales headcount at 31 January 2026 reduced by 7% YoY. The Group
continued to focus on operational efficiency and disciplined resource
allocation, while maintaining investment in target sectors.
· Net cash of £13.0 million (31 January 2025: £16.8 million) due to:
- Working capital absorption as contractor numbers have increased;
- Cash paid for the InfoSec People acquisition; and
- Final dividend payment in respect of FY25.
· Interim dividend of 1.33 pence per share (2025 H1: £1.0 pence).
Strategic update
Continued emphasis on developing the four identified strategic priorities for
sustainable profitable growth:
External Focus
· Consolidated our recruitment brands into one powerhouse brand in Matchtech,
operating across all our sectors, services and skills, boosting client
awareness, strengthening candidate engagement, and enhancing our employer
value proposition. Placements generated through our website increased by 30%,
and registrations also rose by 3%, reflecting continued positive momentum.
· Completed the acquisition of InfoSec People to expand our Cyber & Security
offering, increasing capability, market reach, and our ability to support
clients in critical environments.
· Deployed our enhanced sales plan, increasing focus and setting our roadmap to
becoming a market leader in our chosen sectors. Elevated sales engagement
through more in‑person client activity, stronger social media outreach, and
effective use of our rebrand to drive leads, deepen awareness and build new
relationships.
· Improving client feedback rating of 8.9 in 2026 H1, increased from 8.8 in FY25
and 8.8 in FY24.
Culture
· People engagement remains stable at 8.4 for 2026 H1 (FY25: 8.4) and attrition
improved to 27% at 31 January 2026 (31 January 2025: 30%), demonstrating our
focus on culture is fully embedded in the business.
· Winner of The Inclusive Culture Initiative Award at the Inclusive Awards 2025
and Highly Commended for the Diversity Initiative of the Year award at the
Recruitment and Employment Confederation Awards.
· Prioritised improving peer relationships as a key focus for 2026 and created
more opportunities for internal interaction and engagement professionally,
socially, and through volunteering.
· Continued to support the future of STEM skills through provision of financial
bursaries to students studying Engineering at Portsmouth University and
providing employability skills guidance to STEM students from underrepresented
groups through partnering with both charities and educational establishments.
Operational Performance
· Average NFI per sales head, and per total heads, have both increased by 21%
YoY
· Achieved ISO27001 certification, strengthening our information security
standards and reinforcing client trust.
· Created Matchtech AI and automations programme (MAIA) across front line sales
and back-office customer experience and efficiency
Cost Rebalancing
· Maintained our ratio of sales to support at 31 January 2026, 71:29 (2025 H1:
71:29).
· Further progress with our corporate entity simplification resulted in the
removal of one entity from the Group structure, with a further three legacy
entities currently in the process of being eliminated.
Outlook
The persistent macroeconomic headwinds impacting the broader recruitment
sector affected both client demand and candidate sentiment, reducing volume
and extending recruitment timelines. Specifically, permanent recruitment
remains subdued, and we anticipate this trend to continue in the medium term.
Despite this backdrop, our strategic focus remains on the sectors where we
believe we have the capability to become the dominant provider, expanding our
service offering to support our customers further, and continue to take market
share as we have in 2026 H1. We will continue to invest organically, with the
aim of 10% sales headcount growth this year in our core markets, and to screen
for further bolt-on acquisitions across all our service lines, all supported
by rigorous, proactive cost management.
Group guidance for FY26 continuing underlying profit before tax remains at
£4.5 million.
Commenting, Matthew Wragg, Chief Executive Officer of Gattaca said:
"I am pleased to announce a strong H1 performance as we see our positive
momentum continue to build and to report that the Group is trading in line
with upgraded expectations. Our strategic investments in growth opportunities
are delivering and we have the majority of our sectors experiencing year on
year growth.
The InfoSec team has performed well, enhancing the Group's cyber capability
and contributing positively to our momentum during the period. This has now
been integrated into our systems and we can now begin to bring this enhanced
capability to Group clients.
With a strengthened technology platform, a growing customer base and continued
improvements in operational efficiency, the Group is well positioned for
further growth. However, given the volatility of the external environment, we
remain measured in our outlook as we focus on delivering sustainable,
long-term growth."
The following footnotes apply, unless where otherwise indicated, throughout
these Interim Results:
1. NFI is calculated as revenue less contractor payroll costs.
2. Continuing underlying results exclude the NFI and (loss)/profit before
taxation of discontinued operations (2026 H1: £(0.1)m, 2025 H1: £0.1m),
non-underlying items within administrative expenses primarily related to
restructuring costs (2026 H1: £0.3m, 2025 H1: £0.3m), amortisation of
acquired intangibles (2026 H1: £0.0m, 2025 H1: £0.0m), and net finance
income excluding foreign exchange gains and losses(2026 H1: £0.1m, 2025 H1:
£0.2m).
3. Like‑for‑like results exclude the contribution from the recently
acquired InfoSec People business, which was not part of the Group in the prior
comparative period.
4. In FY25, as a result of changes in the Group's operational structure and
strategic focus, certain smaller divisions that were previously reported
within the Other aggregated segment were absorbed into the Energy, Defence and
Digital Technology sectors. In addition, a small team previously within
Infrastructure moved over to the Energy sector. As a result, the Group's
reported segmental analysis for HY25 has been restated to ensure comparability
with this.
5. The Group reassessed its operating segment disclosures following changes in
internal management reporting. As a result, certain segments that no longer
met the quantitative thresholds in IFRS 8 for separate disclosure, have been
aggregated and reported within the "Other" segment. Prior‑period
comparatives have been restated accordingly to ensure comparability.
6. During FY25, Technology, Media & Telecoms segment was renamed Digital
Technology.
For further information, please contact:
Gattaca plc +44 (0) 1489 898989
Matthew Wragg, Chief Executive Officer
Oliver Whittaker, Chief Financial Officer
Panmure Liberum Limited (Nomad and Broker) +44 (0) 20 3100 2000
Edward Mansfield
Will King
IFC Advisory (Financial PR and IR) +44 (0) 203 934 6632
Tim Metcalfe
Graham Herring
Operational Performance
Net Fee Income (NFI) £m 2026 H1 2025 H1 Change
Infrastructure(4) 7.2 6.8 +6%
Defence 4.1 3.2 +29%
Mobility 1.9 1.8 +6%
Energy(4) 3.3 2.9 +13%
Digital Technology(6) 1.8 1.6 +13%
Gattaca Projects 0.6 1.1 -45%
Other(5) 1.5 1.5 0%
Continuing Group NFI ("LFL(3)") 20.4 18.9 +8%
Acquired business: InfoSec People 1.0 - -
Continuing Total Group NFI 21.4 18.9 +13%
Infrastructure
Infrastructure which represents 34% of Group NFI grew by 6% year-on-year, with
growth in our Water and Highways subsectors, offsetting a more challenging
Rail subsector. The Infrastructure sector is vital for both the economy and
people's quality of life and continue to require substantial long-term
investment to improve their assets underpinned by a government focus on
investment in infrastructure.
Defence
Defence NFI increased by 29% year-on-year, coming off a weak 2025 H1,
recovering to exceed the performance achieved in 2024 H1. With the Strategic
Defence Review having completed in mid-2025, but commitment to spend is still
slow as such we are focussed on growing our market share with key clients.
Our strong position in the UK defence market, serving over half of the MoD's
top 100 suppliers places us well to support rising demand driven by increased
geopolitical uncertainty and sustained government investment, in a market
where skill shortages are common. This will lead to long term growth
opportunity.
Mobility
Mobility NFI increased by 6% year-on-year in 2026 H1, after a difficult 2025
H1. It has large clients across the Automotive, Aerospace and Maritime
subsectors. In Aerospace, has a large global airframe order book, but
deliveries are delayed but the market offers long term design and build
opportunity. In the meantime, existing aircraft are being used for longer and
we have invested to service the growing market for maintenance, repairs and
operations. The European Automotive market continues to face considerable
headwinds. Our focus remains on highly technical, SME's and larger specialist
providers offering enhanced capability
Energy
Energy NFI was up 13% for 2026 H1, year-on-year. Our focus is on the nuclear,
renewables, and transmission and distribution, data centres as well as Oil
& Gas. Continued focus on investment in sales headcount in this sector is
building a cohort of strong recruiters who have started to deliver consistent
results in a strong market.
Ongoing demand in Energy production and distribution offers long term growth
opportunity and continues to drive positive results for us, as we saw
throughout FY25. The sector is experiencing substantial growth in investment
and workforce, to keep up with the rising demand for electricity. We expect
further strong growth in the year ahead, as our investments in our sales force
enable us to target a greater share of a growing market.
Digital Technology
Digital Technology (previously TMT) NFI has increased by 13% year-on-year,
despite ongoing tough conditions for technology skills globally. As clients
seek flexibility in their workforce, we have continued to see success on
contracts in our core skill sets, including Project Management and PMO, as
well as data and AI.
We continue to run a range of successful events through our Limitless in Tech
programme for women in the industry, continuing to work in partnership with
technology firms in this space.
Gattaca Projects
Gattaca Projects SoW revenue decreased -8% YoY, reflecting timing delays on
major client programmes following a strong comparative period in 2025 H1.
Recent delivery has shifted towards shorter‑term, lower‑margin
time‑based work, in contrast to the higher‑margin fixed‑price projects
delivered in the prior year. We continue to build our brand within core
sectors and attract highly skilled candidates to deliver specialist
engineering project services.
Other
Our 'Other' category includes our UK-based smaller divisions of Commercial
& Professional Skills and InfoSec People, and our International business,
which together represents 12% of Group NFI in 2026 H1. Our International
business was 1% of Group NFI in the same period. Taking our Commercial &
Professional skills capability to our Group sector focus is working well and
we look forward to seeing similar success with Cyber following our acquisition
of Infosec.
On 4 August 2025, the Group acquired the entire issued share capital of HC
1344 Limited, the 100% holding company of InfoSec People Limited, a specialist
cyber security recruitment consultancy company based in the UK. Since the
acquisition date, InfoSec People has contributed £5.7m to Group revenue and
£1m to Group total NFI from continuing operations.
Group contractor and permanent fee mix
Contract fees accounted for 77% of the continuing underlying NFI in 2026 H1
(2025 H1: 74%, FY25: 76%). During the period our contractor base was broadly
flat. Permanent fees accounted for 19% of continuing underlying NFI in 2026 H1
(2025 H1: 20%, FY25: 19%). Demand within the permanent market remained weak,
as weaker client confidence around the economic outlook and rising payroll
costs had led firms to pause or cut back on hiring demand, compounded by an
increase in available candidates.
Statement of Work NFI ("SoW"), , was 4% of continuing underlying NFI in 2026
H1 (2025 H1: 6%. FY25: 5%). Gattaca Projects related to 3% of SoW; trading was
down in 2026 H1 YoY due to timing delays on major client programmes, with
activity expected to remain subdued in the second half of the year.
People
As at 31 January 2026 Gattaca's headcount was 360, marking a reduction of 26
employees (-7%) compared to 31 January 2025. This decrease was due to ongoing
plans to shift headcount from ancillary sales functions towards front-line
sales teams, and investment in embedded back-office systems enabling a leaner
support function. The ratio of sales to support staff remained at 71:29 at 31
January 2026 (31 January 2025: 71:29). The Group is committed to growing sales
staff above 75% of overall employees longer term.
Financial Overview
Revenue for the period was £212.4 million (2025 H1: £193.5 million, FY25:
£398.9 million), up 10% year-on-year. NFI of £21.4 million (2025 H1: £18.9
million, FY25: £38.8 million) represented a 13% year-on-year increase.
Contract NFI margin of 8.2% (2025 H1: 7.6%, FY25: 8.0%) was largely stable on
a year-on-year basis. Gattaca Projects SoW margin was 11.9% (2025 H1: 19.9%,
FY25: 18%), down against the same period in the prior year due to a shift in
the mix of projects to lower margin time-based work vs higher margin fixed
price contracts in the prior year.
Continuing underlying profit before tax for the period amounted to £3.0
million (2025 H1: £1.0 million, FY25: £3.3 million). On a continuing
underlying basis, the effective tax rate was 28% (2025 H1: 34%). The Group's
continuing underlying effective tax rate reported at 31 July 2025 was 25%.
Basic and diluted earnings per share were 5.6 pence and 5.4 pence (2025 H1:
basic 2 pence and diluted 2 pence) and underlying basic and diluted earnings
per share from continuing operations were 6.9 pence and 6.7 pence (2025 H1:
basic 2.2 pence, diluted 2.1 pence).
Administrative costs
Underlying administrative costs increased by 1.6% to £18.4 million (2025 H1:
£18.1 million, FY25: £36 million) primarily reflecting the addition of
InfoSec costs, offset by lower sales staff costs.
A breakdown of the increase in administrative costs is shown below:
£m
2025 H1 continuing underlying administrative costs 18.1
Sales staff costs (0.5)
Support & management staff costs 0.2
Commissions, bonuses, and incentives 0.4
Trade receivables and accrued income: expected credit loss provision release (0.1)
Legal and professional fees (0.3)
Other costs (0.1)
2026 H1 continuing underlying administrative costs ("LFL(3)") 17.7
Infosec People Limited administrative costs 0.7
2026 H1 continuing underlying administrative costs 18.4
Non-underlying costs and discontinued operations
The continuing non-underlying costs of £0.3 million (2025 H1: £0.3 million,
FY25: £0.6 million), relates predominantly to Group restructuring costs and
ongoing closures costs of Group operations.
Underlying net financing costs
Underlying net finance income of £0.1 million (2025 H1: £0.2 million, FY25:
£0.4 million) reflected ongoing low utilisation of the Group's working
capital facility.
Debtors, cash flow, net cash and financing
Net cash at 31 January 2026 was £13.0 million (31 July 2025: £15.7 million;
31 January 2025: £16.8 million). The average daily net cash balance
throughout the period was £9.5 million (2025 H1: 13.2 million), with the
reduction YoY driven by increased working capital needs from a larger
contractor base.
The Group's trade and other receivables balance was £56.3 million at 31
January 2026 (31 July 2025: £59.7 million), of which debtor and accrued
income balances were £54.6 million (31 July 2025: £46.7 million), a £3.5
million reduction over the 6-month period from 31 July 2025. The Group's days
sales outstanding ("DSO") over this period (on a weekly based countback
method) increased by 4 days to 47 days at 31 January 2026 (31 January 2025: 45
days, 31 July 2025: 43 days), in line with cyclical increases seen annually
over the Christmas period.
Capital expenditure in the period amounted to £0.2 million (2025 H1: £0.0
million, FY25: £0.0 million).
At 31 January 2026, the Group had agreed invoice financing working capital
facilities with HSBC totaling £50 million (31 January 2025: £50 million).
The Group's working capital facilities are secured by way of an all assets
debenture, which contains fixed and floating charges over the assets of the
Group. This facility allows certain companies within the Group to borrow up to
90% of invoiced or accrued income up to a maximum of £50 million (31 January
2025: £50m). Interest is charged on the recourse borrowings at a rate of
1.67% (2025: 1.67%) over the Bank of England base rate of 3.75% (31 January
2025: 4.25%).
Capital Allocation Policy
The Group maintains a capital allocation approach that prioritises investment
in organic growth investing to strengthen core capabilities and support
sustainable long‑term performance. We will continue to evaluate selective
M&A opportunities that enhance our strategic position by adding
complementary and in-demand capabilities whilst maintaining financial
discipline to deliver attractive returns. We remain committed to delivering
shareholder returns through value appreciation coupled with shareholder
distributions. The Board intends to maintain a dividend equivalent to 50% of
post‑tax profit through the medium term, while retaining ability to flex to
support M&A activity. The Board will continue to consider alternative
methods to return capital where market conditions and the Group's balance
sheet allow.
Dividend
The Board has today declared an interim dividend of 1.33 pence per share (2025
H1: 1 pence per share) to be paid on 15 May 2026 to shareholders on the
register at 7 April 2026.
Risks
The Board considers strategic, financial, and operational risks and identifies
actions to mitigate those risks. Key risks and their mitigations were
disclosed on pages 29 to 32 of the Annual Report for the year ended 31 July
2025.
We continue to manage several potential risks and uncertainties including
contingent liabilities as noted in the interim accounts - many of which are
common to other similar businesses - which could have a material impact on our
longer-term performance.
Condensed Consolidated Income Statement
For the period ended 31 January 2026
6 months to 31/01/2026 12 months to 31/07/2025
unaudited 6 months
to 31/01/2025
unaudited
Note £'000 £'000 £'000
Continuing operations
Revenue 2 212,429 193,466 398,900
Cost of sales (191,078) (174,545) (360,100)
Gross profit 2 21,351 18,921 38,800
Administrative expenses (18,755) (18,427) (36,614)
Operating profit from continuing operations 4 2,596 494 2,186
Finance income 167 366 526
Finance cost (124) (51) (111)
Profit before taxation 2,639 809 2,601
Taxation 5 (793) (307) (742)
Profit after taxation from continuing operations 1,846 502 1,859
Discontinued operations
(Loss)/profit for the period from discontinued operations (attributable to (95) 137 341
equity holders of the Company)
Profit for the period 1,751 639 2,200
( )
Profits for the periods to 31 January 2026, 31 January 2025 and the year to 31
July 2025 are wholly attributable to equity holders of the parent.
6 months 12 months
to 31/01/2026 6 months to 31/07/2025
unaudited to 31/01/2025
unaudited
Earnings per ordinary share Note pence pence pence
Basic earnings per share 6 5.6 2.0 7.0
Diluted earnings per share 6 5.4 2.0 6.8
Reconciliation to adjusted profit measure
Underlying profit is the Group's key adjusted profit measure; profit from
continuing operations is adjusted to exclude non-underlying income and
expenditure as defined in the Group's accounting policy, amortisation and
impairment of goodwill and acquired intangibles, impairment of leased
right-of-use assets and net foreign exchange gains or losses.
6 months 6 months
to 31/01/2026 to 31/01/2025 12 months
unaudited unaudited to 31/07/2025
Note £'000 £'000 £'000
Operating profit from continuing operations 2,596 494 2,186
Add:
Non-underlying items included within administrative expenses 4 322 280 617
Amortisation of acquired intangibles 4 1 31 46
Depreciation of property, plant and equipment, leased right-of-use assets and 4 695 674 1,365
amortisation of software and software licences
Underlying EBITDA 3,614 1,479 4,214
Less:
Depreciation of property, plant and equipment, leased right-of-use assets and (695) (674) (1,365)
amortisation of software and software licences
Net finance income excluding foreign exchange gains and losses 76 238 430
Underlying profit before taxation from continuing operations 2,995 1,043 3,279
Underlying taxation (831) (355) (815)
Underlying profit after taxation from continuing operations 2,164 688 2,464
Condensed Consolidated Statement of Comprehensive Income
For the period ended 31 January 2026
6 months 6 months 12 months
to 31/01/2026 to 31/01/2025 to 31/07/2025
unaudited unaudited
£'000 £'000 £'000
Profit for the period 1,751 639 2,200
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations 127 (119) 500
Reclassification adjustment on disposal of foreign operations (16) - (533)
Other comprehensive profit/(loss) for the period 111 (119) (33)
Total comprehensive income for the period attributable to equity holders of 1,862 520 2,167
the parent
6 months 6 months 12 months
to 31/01/2026 to 31/01/2025 to 31/07/2025
unaudited unaudited
£'000 £'000 £'000
Attributable to:
Continuing operations 1,853 480 2,277
Discontinued operations 9 40 (110)
Total comprehensive income for the period attributable to equity holders of 1,862 520 2,167
the parent
Condensed Consolidated Statement of Financial Position
As at 31 January 2026
31/01/2026 31/01/2025 31/07/2025
unaudited unaudited
Note £'000 £'000 £'000
Non-current assets
Goodwill 8 3,289 1,712 1,712
Intangible assets 9 64 70 35
Property, plant and equipment 440 575 451
Right-of-use assets 2,299 1,832 1,480
Deferred tax assets 418 305 477
Total non-current assets 6,510 4,494 4,155
Current assets
Trade and other receivables 10 56,300 48,924 59,742
Corporation tax receivables 524 346 372
Cash and cash equivalents 15,265 18,573 17,137
Total current assets 72,089 67,843 77,251
Total assets 78,599 72,337 81,406
Non-current liabilities
Trade and other payables 11 (353) - -
Provisions (347) (338) (354)
Lease liabilities (1,310) (842) (552)
Deferred tax liabilities (12) (4) -
Total non-current liabilities (2,022) (1,184) (906)
Current liabilities
Trade and other payables 11 (43,845) (40,952) (48,689)
Provisions (538) (491) (610)
Current tax liabilities (759) (719) (970)
Lease liabilities (943) (946) (864)
Total current liabilities (46,085) (43,108) (51,133)
Total liabilities (48,107) (44,292) (52,039)
Net assets 30,492 28,045 29,367
Equity
Share capital 315 315 315
Share premium 8,706 8,706 8,706
Capital redemption reserve 8 8 8
Merger reserve 224 224 224
Share-based payment reserve 529 388 511
Translation reserve 235 56 124
Treasury shares reserve (1,344) (724) (1,279)
Retained earnings 21,819 19,072 20,758
Total equity 30,492 28,045 29,367
The accompanying notes form part of these interim financial statements.
Condensed Consolidated Statement of Changes in Equity
For the period ended 31 January 2026
Share capital Share premium Capital redemption reserve Merger reserve Share-based payment reserve Translation reserve Treasury shares reserve
Retained earnings Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 August 2024 315 8,706 8 224 265 157 (601) 19,230 28,304
Profit for the period - - - - - - - 639 639
Other comprehensive loss - - - - - (119) - - (119)
Total comprehensive income - - - - - (119) - 639 520
Share-based payments charge - - - - 130 - - - 130
Share-based payments reserve transfer (net basis) - - - - (7) - - 7 -
Deferred tax movement in respect of share options - - - - - - - (27) (27)
Purchase of treasury shares - - - - - - (123) - (123)
Translation reserve movements on disposal of foreign operations - - - - - 18 - - 18
Dividends paid - - - - - - - (777) (777)
Transactions with owners - - - - 123 18 (123) (797) (779)
Total equity at 31 January 2025 (unaudited) 315 8,706 8 224 388 56 (724) 19,072 28,045
At 1 August 2024 315 8,706 8 224 265 157 (601) 19,230 28,304
Profit for the year - - - - - - - 2,200 2,200
Other comprehensive loss - - - - - (33) - - (33)
Total comprehensive loss - - - - - (33) - 2,200 2,167
Share-based payments charge - - - - 293 - - - 293
Share-based payments reserve transfer (net basis) - - - - (47) - - 30 (17)
Deferred tax movement in respect of share options - - - - - - - 21 21
Treasury shares issued to employees on exercise of LTIP share options - - - - - - 17 - 17
Purchase of treasury shares - - - - - - (331) - (331)
Reclassification of SIP shares - - - - - - (364) 364 -
Dividends paid - - - - - - - (1,087) (1,087)
Transactions with owners - - - - 246 - (678) (672) (1,104)
Total equity at 31 July 2025 315 8,706 8 224 511 124 (1,279) 20,758 29,367
Total equity at 1 August 2025 315 8,706 8 224 511 124 (1,279) 20,758 29,367
Profit for the period - - - - - - - 1,751 1,751
Other comprehensive income - - - - - 111 - - 111
Total comprehensive income - - - - - 111 - 1,751 1,862
Share-based payments charge - - - - 174 - - - 174
Share-based payments transfer (net basis) - - - - (156) - - (99) (255)
Deferred tax movement in respect of share options - - - - - - - 23 23
Treasury shares issued to employees on exercise of LTIP share options - - - - - - 255 - 255
Purchase of treasury shares - - - - - - (320) - (320)
Dividends paid - - - - - - - (614) (614)
Transactions with owners - - - - 18 - (65) (690) (737)
Total equity at 31 January 2026 (unaudited) 315 8,706 8 224 529 235 (1,344) 21,819 30,492
Condensed Consolidated Cash Flow Statement
For the period ended 31 January 2026
6 months 6 months 12 months
to 31/01/2026 to 31/01/2025 to 31/07/2025
unaudited unaudited
Note £'000 £'000 £'000
Cash flows from operating activities
Profit after taxation 1,751 639 2,200
Adjustments for:
Depreciation of property, plant and equipment and amortisation 4 174 206 382
of
intangible assets, software and software
licences
Depreciation of leased right-of-use assets 4 522 499 1,029
Loss on disposal of property, plant and equipment 4 24 - -
Profit on reassessment of dilapidation asset - 18 -
Interest income (167) (290) (526)
Interest costs 124 51 120
Taxation expense recognised in the Income Statement 794 311 863
Increase/(decrease) in trade and other receivables 3,437 4,068 (6,769)
(Decrease) in trade and other payables (4,385) (8,371) (634)
(Decrease)/increase in provisions (65) 7 159
Share-based payment charge 174 130 293
Foreign exchange (gains)/losses (32) (96) 91
Cash generated/(used in) from operations 2,351 (2,828) (2,792)
Interest paid (63) (2) (28)
Interest on lease liabilities (61) (48) (92)
Interest received 167 290 526
Income taxes received 18 11 10
Income taxes paid (1,385) (240) (737)
Cash generated/(used in) from operating activities 1,027 (2,817) (3,113)
Cash flows from investing activities
Purchase of property, plant and equipment (163) (28) (46)
Sublease rent receipts 6 23 63
Acquisition of subsidiary, net of cash acquired 7 (1,177) - -
Cash (used in)/generated from investing activities (1,334) (5) 17
Cash flows from financing activities
Lease liability principal repayment (608) (553) (1,146)
Purchase of treasury shares (320) (123) (331)
Dividends paid (614) (777) (1,087)
Cash used in financing activities (1,542) (1,453) (2,564)
Non-cash movements
Effects of exchange rates on cash and cash equivalents (23) 31 (20)
Total non-cash movements (23) 31 (20)
(Decrease) in cash and cash equivalents (1,872) (4,244) (5,680)
Cash and cash equivalents at beginning of the period 17,137 22,817 22,817
Cash and cash equivalents at end of the 13 15,265 18,573 17,137
period
NOTES
Forming part of the condensed consolidated interim financial statements
1 Basis of preparation and significant accounting policies
1.1 General information
Gattaca plc ('the Company') and its subsidiaries (together 'the Group') is a
human capital resources business providing contract and permanent recruitment
services in the private and public sectors across the UK, Europe and North
America regions. The Company is a public limited company, which is listed on
the Alternative Investment Market (AIM) and is incorporated and domiciled in
England, United Kingdom. The Company's registered office address is 1450
Parkway, Solent Business Park Whiteley, Fareham, Hampshire, PO15 7AF. The
Company's registration number is 04426322.
1.2 Basis of preparation
These unaudited condensed consolidated interim financial statements are for
the six months ended 31 January 2026 and do not constitute statutory accounts
as defined by section 435 of the Companies Act 2006. The interim financial
statements have been prepared in accordance with the AIM rules and IAS 34,
'Interim Financial Reporting'. Whilst the financial information included in
the interim financial statements has been prepared in accordance with
UK-adopted International Accounting Standards, the interim financial
statements do not include all of the information required for full annual
financial statements, and should be read in conjunction with the consolidated
financial statements for the year ended 31 July 2025 which have been filed
with the Registrar of Companies and are available from the Group's website,
www.gattacaplc.com/investors. The statutory financial statements for the year
ended 31 July 2025 received an unqualified report from the auditors and did
not contain a statement under section 498 of the Companies Act 2006.
The accounting policies applied in the interim financial statements are
consistent with those used in the preparation of the Group's consolidated
financial statements for the year ended 31 July 2025, as described in the
latest Annual Report and Accounts. No alterations have been made to the
Group's accounting policies as a result of adopting new standards, amendments
and interpretations which became effective in the period, as these were either
not material or not relevant to the Group.
1.3 Business Combinations
The acquisition method of accounting is used to account for all business
combinations in accordance with IFRS 3. The cost of an acquisition is measured
as the total fair value of the consideration transferred in exchange for
control of the acquired business. Consideration transferred may include cash,
equity instruments or contingent consideration. Contingent consideration is
measured at fair value at the acquisition date and remeasured subsequently
through profit or loss.
Acquisition‑related costs are expensed as incurred and recognised within
administrative expenses.
At the acquisition date, identifiable assets acquired and liabilities assumed
are recognised at their fair values.
Any excess of the consideration transferred over the Group's share of the net
fair value of identifiable assets and liabilities is recognised as goodwill.
If the fair value of net assets acquired exceeds the consideration
transferred, the resulting bargain purchase gain is recognised immediately in
the income statement.
1.4 Going concern
The Group's business activities, together with the factors likely to affect
its future development, performance and position are set out in the Strategic
Report of the Group's Annual Report and Accounts for the year ended 31 July
2025. The financial position of the Group, its cash flows and liquidity are
described in the Chief Financial Officer's Report of the 2025 Annual Report.
At the half year the Group reported a strong balance sheet with statutory net
cash of £13.0m. The Group ensures the availability of working capital through
close management of customer payment terms. There is sufficient headroom on
our working capital facilities to absorb a level of customer payment term
extensions, but we would also manage supply to the customer if payment within
an appropriate period was not being made. Whilst there is no evidence that it
would occur, a significant deterioration in average payment terms has the
potential to impact the Group's liquidity.
The Directors have prepared detailed cash flow forecasts, covering a period of
at least 12 months from the date of approval of these interim financial
statements. These base case forecasts are prepared with appropriate regard for
the current macroeconomic headwinds and particular circumstances in which the
Group operates, including demand and candidate sentiment across the
recruitment sector and the economic outlook for STEM markets in the UK in
which our customers operate. The base case forecasts assume sustained
inflationary growth in NFI and cost rebalancing aligned with the Group's
strategic priorities.
We continue to see permanent recruitment remaining subdued, in line with our
peers, and our focus remains on contractor growth, which takes longer to
reflect in NFI. Strong contract pipelines in Energy, Defence, Infrastructure
and InfoSec People sectors, combined with increasing customer demand for
Statement of Works contracts, underpin the Group's Net Fee Income expectations
for the second half of FY26 and beyond.
The output of the base case forecasting process has been used to perform
sensitivity analysis on the Group's cash flows to the potential effects should
principal risks actually occur. The sensitivity analysis modelled a severe but
plausible scenario including:
- Nil UK NFI growth from February 2026 onwards;
- Operating cost inflation of 1% per annum; and
- Customer payment terms extended by five days.
The effects of commercial mitigating actions that the Directors would
implement in response to adverse changes in the Group's profitability and
liquidity were excluded.
Given the nature of the temporary and contract recruitment business,
significant working capital inflows typically arise in periods of severe
downturn, thus protecting short-term liquidity. The sensitised forecasts
illustrate that the Group's liquidity is resilient to adverse changes in
profitability and customer payment terms. The sensitised forecasts show
reduction in forecast net cash of £8.2m at 31 July 2026, and a 41% reduction
in forecast net cash at 31 July 2027, to £11.0m.
A key assumption in preparing the cash flow forecasts is the continued
availability of the Group's invoice financing facility from HSBC throughout
the forecast period. The unutilised facility headroom at 31 January 2026 was
£24.8m (31 January 2025: £25.3m). The current £50m facility has no
contractual renewal date; the Directors remain confident that the facility
will remain available.
After making appropriate enquiries and considering key judgements and
assumptions described above, the Directors have a reasonable expectation at
the time of approving these financial statements that the Group and the
Company have adequate resources to continue in operational existence for the
foreseeable future. Following careful consideration, the Directors do not
consider there to be a material uncertainty with regards to going concern and
consider it is appropriate to adopt the going concern basis in preparing these
financial statements.
1.5 Accounting estimates and judgements
Preparation of the interim financial statements requires the Directors to make
assumptions and estimates that affect the application of accounting policies.
The critical accounting judgements and key assumptions and sources of
estimation uncertainty identified by the Directors were consistent with those
identified in the Group's Annual Report and Accounts for the year ended 31
July 2025.
2 Segmental Information
An operating segment, as defined by IFRS 8 'Operating segments', is a
component of the Group that engages in business activities from which it may
earn revenues and incur expenses. The Gattaca plc group defines its operating
segments by reference to the sectors in which it operates. Segmentation of the
Group's activities by sector is consistent with the segmentation of
information provided internally to the chief operating decision maker, being
the Board of Directors of Gattaca plc. Reportable segments are identified by
reference to quantitative and qualitative thresholds prescribed in IFRS 8.
There were no operating segments that met the criteria for aggregation with
other operating segments.
6 months to 31 January 2026 unaudited
All amounts in £'000 Mobility Energy Defence Digital Technology Infra- structure Gattaca Other(1) Continuing underlying operations
Projects
Revenue (Note 3) 13,146 30,628 57,139 20,520 72,113 5,386 13,497 212,429
Gross profit 1,870 3,252 4,075 1,711 7,178 641 2,624 21,351
Operating contribution 859 1,588 2,446 566 3,953 117 723 10,252
Depreciation and amortisation (43) (100) (187) (67) (236) (18) (44) (695)
Central overheads (699) (864) (1,119) (750) (1,723) (345) (1,138) (6,638)
Operating profit/(loss) 117 624 1,140 (251) 1,994 (246) (459) 2,919
Finance income, net 76
Profit before tax 2,995
All amounts in £'000 Continuing underlying operations Non-recurring items, amortisation of acquired intangibles Discontinued Total Group
Revenue (Note 3) 212,429 - - 212,429
Gross profit 21,351 - - 21,351
Operating contribution 10,252 - - 10,252
Depreciation and amortisation (695) (1) - (696)
Central overheads (6,638) (322) - (6,960)
Operating profit/(loss) 2,919 (323) - 2,596
Finance income/(costs), net 76 (33) (95) (52)
Profit/(loss) before tax 2,995 (356) (95) 2,544
6 months to 31 January 2025 unaudited restated(2)
All amounts in £'000 Mobility Energy(2) Defence(2) Digital Technology(2,3) Infra- structure(2) Gattaca Other(1) Continuing underlying operations
Projects
Revenue (Note 3) 11,694 27,026 47,265 20,268 73,850 5,852 7,511 193,466
Gross profit 1,799 2,876 3,166 1,591 6,840 1,165 1,484 18,921
Operating contribution 636 1,234 1,660 413 3,275 641 5 7,864
Depreciation and amortisation (41) (94) (165) (71) (257) (20) (26) (674)
Central overheads (816) (675) (1,046) (717) (1,955) (292) (884) (6,385)
Operating profit/(loss) (221) 465 449 (375) 1,063 329 (905) 805
Finance income, net 238
Profit before tax 1,043
All amounts in £'000 Continuing underlying operations Non-recurring items, amortisation of acquired intangibles Discontinued Total Group
Revenue (Note 3) 193,466 - 16 193,482
Gross profit 18,921 - 15 18,936
Operating contribution 7,864 - 31 7,895
Depreciation and amortisation (674) (31) - (705)
Central overheads (6,385) (280) - (6,665)
Operating profit/(loss) 805 (311) 31 525
Finance income, net 238 77 110 425
Profit/(loss) before tax 1,043 (234) 141 950
12 months to 31 July 2025
All amounts in £'000 Mobility Energy Defence Digital Technology Infra- structure Continuing underlying operations
Gattaca Other(1)
Projects
Revenue (Note 3) 22,639 58,978 101,975 41,451 147,628 11,861 14,368 398,900
Gross profit 3,392 6,205 7,323 3,105 13,968 2,136 2,671 38,800
Operating contribution 1,185 3,158 4,341 840 7,115 1,143 128 17,910
Depreciation and amortisation (77) (202) (349) (142) (505) (41) (49) (1,365)
Central overheads (1,631) (1,568) (2,229) (1,580) (4,101) (745) (1,842) (13,696)
Operating profit/(loss) (523) 1,388 1,763 (882) 2,509 357 (1,763) 2,849
Finance income, net 430
Profit before tax 3,279
All amounts in £'000 Continuing underlying operations Non-recurring items, amortisation of acquired intangibles Discontinued Total Group
Revenue (Note 3) 398,900 - 16 398,916
Gross profit 38,800 - 15 38,815
Operating contribution 17,910 - 471 18,381
Depreciation and amortisation (1,365) (46) - (1,411)
Central overheads (13,696) (617) 97 (14,216)
Operating profit/(loss) 2,849 (663) 568 2,754
Finance income/(costs), net 430 (15) (106) 309
Profit/(loss) before tax 3,279 (678) 462 3,063
A segmental analysis of total assets has not been included as this information
is not used by the Board; the majority of assets are centrally held and are
not allocated across the reportable segments.
(1) The Group reassessed its operating segment disclosures following changes
in internal management reporting. As a result, certain segments that no longer
met the quantitative thresholds in IFRS 8 for separate disclosure, have been
aggregated and reported within the "Other" segment. Prior‑period
comparatives have been restated accordingly to ensure comparability.
(2) In FY25, as a result of changes in the Group's operational structure and
strategic focus, certain smaller divisions that were previously reported
within the Other aggregated segment were absorbed into the Energy, Defence and
Digital Technology sectors. In addition, a small team previously within
Infrastructure moved over to the Energy sector. As a result, the Group's
reported segmental analysis for HY25 has been restated to ensure comparability
with this.
(3) During FY25, Technology, Media & Telecoms segment was renamed Digital
Technology. Our HY25 disclosure has been updated to reflect this.
Geographical information
Total Group revenue Non-current assets
All amounts in £'000 6 months to 31/01/2026 12 months to 31/07/2025 6 months to 31/01/2026
unaudited 6 months to 31/01/2025 unaudited 6 months to 31/01/2025 12 months to 31/07/2025
Unaudited Unaudited
UK 210,794 191,820 395,423 6,510 4,484 4,151
Rest of Europe 263 346 633 - 1 -
Middle East and Africa - - - - 2 -
Americas 1,372 1,316 2,860 - 7 4
Total 212,429 193,482 398,916 6,510 4,494 4,155
Revenue and non-current assets are allocated to the geographic market based on
the domicile of the respective subsidiary.
3 Revenue from Contracts with Customers
Revenue from contracts with customers is disaggregated by major service line
and operating segment, as well as timing of revenue recognition as follows:
Major service lines - continuing underlying operations
6 months to Mobility Energy Defence Digital Technology £'000 Infra- structure Other(1) Continuing underlying operations
31 January 2026 unaudited £'000 £'000 £'000 £'000 Gattaca £'000 £'000
Projects
£'000
Temporary placements 12,417 29,907 56,780 20,198 71,376 - 9,920 200,598
Permanent placements 590 618 339 322 669 - 1,570 4,108
Statement of work - - - - - 5,386 2,003 7,389
Other 139 103 20 - 68 - 4 334
Total 13,146 30,628 57,139 20,520 72,113 5,386 13,497 212,429
6 months to Mobility Energy Defence Digital Technology(3,4) Infra- structure Other(1) Continuing underlying operations
31 January 2025 unaudited £'000 £'000 £'000 £'000 £'000 Gattaca £'000 £'000
Projects
£'000
Temporary placements (as restated(2)) 10,977 26,519 46,825 19,880 73,035 - 6,518 183,754
Permanent placements (as restated(2)) 717 507 440 388 815 - 993 3,860
Statement of work(3) - - - - - 5,852 - 5,852
Other - - - - - - - -
Total 11,694 27,026 47,265 20,268 73,850 5,852 7,511 193,466
Year to 31 July 2025 Mobility Energy Defence Digital Technology £'000 Infra- structure Other(1) Continuing underlying operations
£'000 £'000 £'000 £'000 Gattaca £'000 £'000
Projects
£'000
Temporary placements 21,037 57,763 100,921 40,858 146,001 - 12,696 379,276
Permanent placements 1,346 1,110 1,048 593 1,618 - 1,663 7,378
Statement of work - - - - - 11,861 - 11,861
Other 256 105 6 - 9 - 9 385
Total 22,639 58,978 101,975 41,451 147,628 11,861 14,368 398,900
Timing of revenue recognition - continuing underlying operations
6 months to 31 January 2026 unaudited Mobility Energy Defence Digital Technology £'000 Infra- structure Other(1) Continuing underlying operations
£'000 £'000 £'000 £'000 Gattaca £'000 £'000
Projects
£'000
Point in time 590 618 339 322 669 - 1,570 4,108
Over time 12,556 30,010 56,800 20,198 71,444 5,386 11,927 208,321
Total 13,146 30,628 57,139 20,520 72,113 5,386 13,497 212,429
6 months to 31 January 2025 unaudited Mobility Energy Defence Digital Technology(3,4) Infra- structure Other(1) Continuing underlying operations
£'000 £'000 £'000 £'000 £'000 Gattaca £'000 £'000
Projects
£'000
Point in time 717 507 440 388 815 - 993 3,860
(as restated(2))
Over time (as restated(2)) 10,977 26,519 46,825 19,880 73,035 5,852 6,518 189,606
Total 11,694 27,026 47,265 20,268 73,850 5,852 7,511 193,466
Year to 31 July 2025 Mobility Energy Defence Digital Technology £'000 Infra- structure Other(1) Continuing underlying operations
£'000 £'000 £'000 £'000 Gattaca £'000 £'000
Projects
£'000
Point in time 1,346 1,110 1,048 593 1,618 - 1,663 7,378
Over time 21,293 57,868 100,927 40,858 146,010 11,861 12,705 391,522
Total 22,639 58,978 101,975 41,451 147,628 11,861 14,368 398,900
In accordance with IFRS8, the Group is required to disclose information about
major customers. During the period ended 31 January 2026, revenues of £23.7
million (period ended 31 January 2025: £13.3 million; year ended 31 July
2025: £50.6 million) were derived from a single customer, representing
approximately 11.1% (period ended 31 January 2025: 6.9%; year ended 31 July
2025: 12.7%) of the Group's total revenue. These revenues were reported within
the Defence segment.
The Group had no other customers from whom revenues exceeded 10% of total
revenue during the year.
(1) The Group reassessed its operating segment disclosures following changes
in internal management reporting. As a result, certain segments that no longer
met the quantitative thresholds in IFRS 8 for separate disclosure, have been
aggregated and reported within the "Other" segment. Prior‑period
comparatives have been restated accordingly to ensure comparability.
(2) In FY25, as a result of changes in the Group's operational structure and
strategic focus, certain smaller divisions that were previously reported
within the Other aggregated segment were absorbed into the Energy, Defence and
Digital Technology sectors. In addition, a small team previously within
Infrastructure moved over to the Energy sector. As a result, the Group's
reported segmental analysis for HY25 has been restated to ensure comparability
with this.
(3) During the previous reporting period, the Group reassessed the
classification of certain revenue streams. As a result, a segment previously
reported under 'Other' revenue has been reclassified to Statement of Work
revenue to better reflect the nature of the underlying activities. The
comparative figures for HY25 have been restated accordingly to ensure
consistency and comparability across periods.
(4) During FY25, Technology, Media & Telecoms segment was renamed Digital
Technology. Our HY25 disclosure has been updated to reflect this.
4 Profit from Total Operations
6 months to 31/01/2026 6 months to 31/01/2025 12 months to 31/07/2025
unaudited unaudited
£'000 £'000 £'000
Profit from total operations is stated after charging/(crediting):
Depreciation of property, plant and equipment 153 156 297
Depreciation of right-of-use leased assets 522 499 1,029
Amortisation of acquired intangibles 1 31 46
Amortisation of software and software licences 19 19 39
Loss on disposal of property, plant and equipment 24 - -
Plant and machinery rental expenses for low value leases 66 19 73
Non-recourse working capital bank facility charges - 85 86
Share-based payment charges 174 130 293
Gain on release of provisions (55) (32) (31)
Income recovered on debts previously written off(1) - - (474)
(1)During FY25, the Group recognised income relating to the recovery of
previously written-off receivables from Huawei Technologies Zimbabwe for debts
written off between 2018 and 2020.
Non-underlying items included within administrative expenses were as follows:
6 months to 31/01/2026 12 months to 31/07/2025
unaudited 6 months to 31/01/2025
unaudited
Continuing operations £'000 £'000 £'000
Restructuring costs(1) 203 152 313
Cost relating to ongoing closure of group undertakings(2) 19 128 211
Cost relating to acquisition (3) 100 - 93
Non-underlying items included in profit from continuing operations 322 280 617
Discontinuing operations £'000 £'000 £'000
Release of provision for foreign employment taxes - (31) -
Income relating to ongoing closure of group undertakings - - (96)
Non-underlying items included in loss from discontinued operations - (31) (96)
Total non-underlying items 322 249 521
(1) Restructuring costs of £203,000 (31 January 2025: £152,000; 31 July
2025: £313,000) were recognised for employee exit costs arising as a result
of targeted, small scale, team rationalisations.
(2) Ongoing costs relating to closure of entities and operations closed more
than two years ago. Given that these operations have been closed for more than
two years and no further trading activities or associated costs remain, the
Group accordingly presents the ongoing corporate closure costs as continuing.
(3) On 4 August 2025, the Group acquired the entire issued share capital of
HC1344 Limited and its subsidiary, InfoSec People Limited. For HY26,
acquisition-related costs, including legal and advisory fees, were expensed
and totalled £87,000. In addition, £13,000 of post-acquisition integration
costs were incurred.
5 Taxation
6 months 6 months 12 months
to 31/01/2026 to 31/01/2025 to 31/07/2025
unaudited unaudited
Analysis of tax charge in the period £'000 £'000 £'000
Profit before tax from continuing operations 2,639 809 2,601
Profit before tax multiplied by the standard rate of corporation tax in the UK 660 202 650
of 25.0% (31 January 2025 and 31 July 2025: 25.0%)
Expenses not deductible for tax purposes 158 97 105
Income not taxable - (16) -
Effect of share-based payments (26) - 7
Irrecoverable withholding tax 23 - 2
Overseas losses not recognised as deferred tax assets 24 175 200
Difference between UK and overseas tax rates 14 (10) 1
Adjustment to tax charge in respect of prior periods (60) (157) (223)
Overseas losses utilised - 16 -
Total taxation charge for the period for continuing operations 793 307 742
Total taxation charge for the period for discontinued operations - 4 121
The forecast average annual tax rate for continuing operations for the year to
31 July 2026 used to estimate the tax charge for the period to 31 January 2026
is 30.1% (period to 31 January 2025: forecast average annual tax rate of
36.3%, year to 31 July 2025: actual tax rate of 28.6%). The decrease in the
effective tax rate between the prior period to 31 January 2025 to the period
to 31 January 2026, is primarily driven by the decrease in overseas losses not
provided for and a decrease in the proportion of non-deductible expenses
incurred.
6 Earnings Per Share
The earnings per share information has been calculated as follows:
6 months to 31/01/2026
unaudited 12 months to 31/07/2025
6 months to 31/01/2025
unaudited
Total earnings £'000 £'000 £'000
Total profit attributable to ordinary shareholders 1,751 639 2,200
Number of shares 000's 000's 000's
Basic weighted average number of ordinary shares in issue 31,533 31,533 31,533
Dilutive potential ordinary shares 924 850 1,032
Diluted weighted average number of shares 32,457 32,383 32,565
Total earnings per share Pence Pence Pence
Earnings per ordinary share - Basic 5.6 2.0 7.0
20.22.
- Diluted 5.4 2.0 6.8
Earnings from continuing underlying operations £'000 £'000 £'000
Total profit for the period from continuing underlying operations 2,164 688 2,464
Total earnings per share from continuing underlying operations Pence Pence Pence
Earnings per ordinary share from continuing underlying operations - Basic 6.9 2.2 7.8
- Diluted 6.7 2.1 7.6
7 Business Combinations
On 4 August 2025, the Group acquired 100% of the share capital of HC 1344
Limited, the 100% holding company of InfoSec People Limited, a UK‑based,
specialist cybersecurity recruitment consultancy business. The acquisition
strengthens the Group's capability in high‑growth cyber and information
security markets across the Group's core STEM client base.
Details of the fair value of identifiable assets and liabilities acquired,
purchase consideration and goodwill are as follows:
Book value Adjustments 31/01/2025
£'000 £'000 £'000
Intangible assets - 49 49
Property, plant and equipment 7 - 7
Trade and other receivables 939 - 939
Cash and cash equivalents 475 - 475
Deferred tax liabilities (2) (12) (14)
Current tax liabilities (169) - (169)
Trade and other payables (789) - (789)
Total net assets 461 37 498
Fair value of consideration transferred:
£'000
Cash 1,652
Contingent consideration at fair value (payable over four years) 423
Total consideration 2,075
Goodwill (Note 8) 1,577
Analysis of net cashflows:
£'000
Cash consideration paid 1,652
Less Cash and cash equivalents acquired (475)
Net cash outflow from investing activities 1,177
An intangible asset has been identified relating to the InfoSec People brand.
This intangible asset has been recognised at fair value. Goodwill represents
expected synergies arising from combining the operations of the acquiree and
the acquirer, the assembled workforce of InfoSec People Limited, and other
intangible elements that do not qualify for separate recognition. Fair value
adjustments have been made to reflect the identified intangible asset arising
on acquisition and the deferred tax liability recognised on that asset.
Amortisation of intangible assets is recognised on a straight‑line basis
over the following estimated useful economic lives:
Brand - 20 years
Acquisition costs of £180,000 totalled to date, with £87,000 incurred in
HY26 and £93,000 incurred in FY25. These have been recognised as part of
administrative expenses in the Statement of Comprehensive Income.
Consideration transferred totalled £2,075,000, comprising cash payments on
acquisition date of £1,652,000, and contingent consideration of up to
£423,000 payable over the next four years, recognised at fair value on
acquisition date. The contingent consideration will subsequently be remeasured
to fair value at each reporting date, with changes in fair value recognised in
the Statement of Comprehensive Income.
Since the acquisition date, InfoSec has contributed £5,700,000 to Group
revenue and £169,000 to Group profit after taxation from continuing
operations. As the acquisition took place four days after the start of the
financial year, the revenue and profit after taxation from continuing
operations recognised from the acquisition date to the period end are not
materially different from the amounts that would have been reported had the
acquisition occurred on 1 August 2025. InfoSec People is included in the Other
operating segment disclosed in Note 2.
8 Goodwill
Goodwill Total
£'000 £'000
Cost At 1 August 2024 28,739 28,739
At 31 July 2025 28,739 2
8
,
7
3
9
Additions 1,577 1
,
5
7
7
At 31 January 2026 30,316 3
0
,
3
1
6
Impairment At 1 August 2024 27,027 27,027
At 31 July 2025 27,027 2
7
,
0
2
7
At 31 January 2026 27,027 2
7
,
0
2
7
Net book value At 31 July 2025 1,712 1,712
At 31 January 2026 3,289 3
,
2
8
9
Goodwill on business combination
During the period, the Group recognised goodwill arising on the acquisition of
HC 1344 Limited and its subsidiary, InfoSec People Limited. This goodwill
represents the excess of the fair value of the consideration transferred over
the fair value of the identifiable assets and liabilities acquired, including
expected future synergies and workforce‑related value. Refer to Note 7 for
further details.
9 Intangible Assets
Group Customer relationships Software and software licences Brands(1) Total
£'000 £'000 £'000 £'000
Cost At 1 August 2024 13,025 313 - 13,338
At 31 July 2025 13,025 313 - 13,338
Acquired through business combinations - - 49 49
At 31 January 2026 13,025 313 49 13,387
Amortisation and impairment At 1 August 2024 12,979 239 - 13,218
Amortisation for the period 46 39 - 85
At 31 July 2025 13,025 278 - 13,303
Amortisation for the period - 19 1 20
At 31 January 2026 13,025 297 1 13,323
Net book value At 31 July 2025 - 35 - 35
At 31 January 2026 - 16 48 64
(1)During the period, the Group recognised an addition of £49,000 to
intangible assets in respect of the InfoSec People brand acquired through a
business combination (see note 7). The brand was identified as a separable
intangible asset in accordance with IFRS 3. It has been recognised at its
fair value at the acquisition date and is being amortised over its estimated
useful life of 20 years.
10 Trade and Other Receivables
31/07/2025
31/01/2026 31/01/2025
unaudited unaudited
£'000 £'000 £'000
Trade receivables from contracts with customers, net of loss allowance 35,250 31,049 41,355
Other receivables 429 1,004 700
Prepayments 1,283 1,238 995
Accrued income, net of loss allowance 19,338 15,633 16,692
Total 56,300 48,924 59,742
Trade receivables from contracts, net of loss allowance
The loss allowance for trade receivables at the period end reconciles to the
opening loss allowance as follows:
31/01/2026 31/01/2025 31/07/2025
unaudited unaudited
£'000 £'000 £'000
Trade receivables from contracts with customers, gross amounts 36,212 32,389 42,410
Loss allowance (962) (1,340) (1,055)
Trade receivables from contracts with customers, net of loss allowance 35,250 31,049 41,355
Accrued income, net of loss allowance
31/01/2026 31/01/2025 31/07/2025
unaudited unaudited
£'000 £'000 £'000
Gross accrued income 19,716 15,941 17,032
Loss allowance (378) (308) (340)
Accrued income, net of loss allowance 19,338 15,633 16,692
11 Trade and Other Payables
31/07/2025
31/01/2026 31/01/2025
unaudited unaudited
£'000 £'000 £'000
Trade payables 4,262 3,662 3,268
Taxation and social security 7,152 5,955 7,494
Contractor wages payable 26,623 23,899 30,474
Accruals and deferred income 4,283 4,406 5,063
Other payables(1) 1,877 3,030 2,390
Total 44,197 40,952 48,689
(1) Contingent consideration of £423,000 has been recognised within other
payables in relation to the acquisition of HC 1344 Limited, the 100% holding
company of InfoSec People Limited. The amount is payable over a four‑year
period and is contingent on the future performance of the acquired business.
The liability was initially recognised at fair value at the acquisition date
and is subsequently remeasured in accordance with IFRS 3. Since the date of
acquisition, in the 6 month period to 31 January 2026, fair value movements of
£nil have been recorded and a charge of £25,000 has been recognised within
finance costs relating to the unwind of the discounting on the liability.
12 Share Options
During the period the Group granted share options under the Long-Term
Incentive Plan ("LTIP") for Executive Directors and senior management. 873,061
share options with an exercise price of £0.01 each were granted on 10
December 2025 to members of staff to be held over a three-year vesting period
and are subject to various performance conditions. All share options have a
life of 10 years from grant date and are equity settled on exercise.
13 Net Cash
Net cash is the total amount of cash and cash equivalents less
interest-bearing loans and borrowings, including lease liabilities.
Net cash flows include the net drawdown of loans and borrowings and cash
interest paid relating to loans and borrowings.
1 August Net cash flows Non-cash movements 31 January
2025 2026
31 January 2026 unaudited £'000 £'000 £'000 £'000
Cash and cash equivalents 17,137 (1,849) (23) 15,265
Lease liabilities (1,416) 608 (1,445) (2,253)
Total net cash 15,721 (1,241) (1,468) 13,012
1 August Net cash flows Non-cash movements 31 January
2024 2025
31 January 2025 unaudited £'000 £'000 £'000 £'000
Cash and cash equivalents 22,817 (4,275) 31 18,573
Lease liabilities (2,070) 553 (270) (1,787)
Total net cash 20,747 (3,722) (239) 16,786
1 August Net cash flows Non-cash movements 31 July
2024 2025
31 July 2025 £'000 £'000 £'000 £'000
Cash and cash equivalents 22,817 (5,660) (20) 17,137
Lease liabilities (2,070) 1,146 (492) (1,416)
Total net cash 20,747 (4,514) (512) 15,721
Restricted cash
Total restricted cash for the 6 months to 31 January 2026 amounted to
£679,000 (6 months to 31 January 2025: £733,000; and year to 31 July 2025:
£682,000). Included within restricted cash is cash on deposit in accounts
controlled by the Group but not available for immediate drawdown. In January
2025 this balance also included £13,000 arising from the Group's non-recourse
working capital arrangements; this facility ended at the end of February 2025.
14 Transactions with Related Parties
There were no related party transactions during the period with entities
outside of the Group (6 months to 31 January 2025: none and year ended 31 July
2025: the Group purchased services amounting to £11,900 from Preventicum UK
Limited, a related entity by virtue of common Directorship) and no related
party balances at 31 January 2026 (31 January 2025 and 31 July 2025: none).
15 Contingent Liabilities
We continue our cooperation with the United States Department of Justice and
in the 6 month period to 31 January 2026 have incurred £nil (6 months to 31
January 2025: £nil, and year to 31 July 2025: £nil) in advisory fees on this
matter. The Group is not currently in a position to know what the outcome of
these enquiries may be and therefore we are unable to quantify the likely
outcome for the Group.
While the Group has taken all reasonable steps to comply with applicable tax
laws, certain non-UK filings remain outstanding and there remains a risk that
penalties and interest for late filings may be imposed by local tax
authorities. Due to the uncertainty surrounding the interpretation of local
tax laws and the absence of formal assessments, it is not possible to reliably
estimate the financial impact of all potential liabilities that may arise.
16 Dividends
12 months to
6 months to 6 months to 31/07/2025
31/01/2026 31/01/2025
unaudited unaudited
£'000 £'000 £'000
Equity dividends proposed at 1.33 pence per share (6 months to 31 January 410 315 932
2025: 1.0 pence per share, 12 months to 31 July 2025: 3.0 pence per share)
Dividends paid during HY26 period totalled £614,000, consisting of the final
2.0 pence per share dividends for FY25 announced in October 2025. The Board
announced its intentions to recommend an interim dividend of 1.33 pence per
share which is expected to be paid on 15 May 2026.
17 Statement of Directors' Responsibilities
The Directors confirm that these condensed interim financial statements have
been prepared in accordance with UK-adopted International Accounting Standard
34, 'Interim Financial Reporting' and that the interim management report
includes a fair view of the information required by DTR 4.2.7 and DTR 4.2.8,
namely:
- an indication of important events that have occurred during the first six
months and their impact on the condensed set of financial statements, and a
description of the principal risks and uncertainties for the remaining six
months of the financial year; and
- material related-party transactions in the first six months and any material
changes in the related-party transactions described in the last Annual Report
On behalf of the Board:
M Wragg O Whittaker
Chief Executive Officer Chief Financial Officer
Date: 23 March 2026 Date: 23 March 2026
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