REG - Gattaca PLC - Trading Update

GattacaAnnouncement

13/02/2025 07:00

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RNS Number : 9162W  Gattaca PLC  13 February 2025

13 February 2025

 

Gattaca plc

 

("Gattaca" or the "Group")

 

Trading Update

 

Robust performance in line with expectations

 

Gattaca plc, the specialist staffing solutions business, is pleased to provide
the following trading update for the six months ended 31 January 2025 ("H1
25").

 

·      Group Net Fee Income1 ("NFI") expected to be £18.8m (H1 242
£19.4m), a decrease of 3% year-on-year ("YoY").

 

·      Contract NFI was down 1% year on year, driven by growth in
contractors out and timesheet value, offset by increased contractor holiday
during the summer and new year periods.

 

·      Permanent NFI down 10% YoY, H1 25 was up 3% on H2 24, reflecting
sequential growth.

 

·      Statement of Work ("SoW") NFI was down 3% YoY, as new client
acquisitions partially offset delays linked to the public sector spend review.

 

·      Total Group headcount reduced by 12% YoY, with sales headcount
reduced by 10% as the Group focused on operational efficiency and resource
allocation with headcount investment targeted at sectors showing growth
opportunities. Sales to Support mix improved to 71:29 (31 January 2024:
69:31).

 

·      The Group expects to report statutory net cash as at 31 January
2025 of £16.7m (31 January 2024: net cash of £22.3m). Days sales outstanding
(DSO) remains in line with recent reported trends, the decrease in net cash is
primarily a reduction in trade creditors.

 

 

Outlook

 

·      Group guidance for FY25 adjusted profit before tax remains at
£3m.

 

·      The Group expects to announce an interim dividend at its Interim
Results.

 

 

Notice of Interim Results

The Group will announce its results for the six months to 31 January 2025 on
Wednesday 2 April 2025.

 

 

Matthew Wragg, Chief Executive Officer said:

"I am pleased to report that the Group is trading in line with expectations.
Our strategic investments in growth opportunities are delivering positive
momentum and our other sectors are proving resilient. The Group continues to
operate in a tough market environment, however with targeted investments in
core sectors we remain focused on delivering long-term growth. We are
confident that we will navigate the current conditions through strong
engagement, high productivity, operational efficiency and active management of
the Group's cost base."

 

1. NFI is calculated as revenue less contractor payroll costs

2. H1 24 results have been restated for the discontinuing of our US-based
operations which were exited in H2 2024 and are treated as discontinued
operations. The aggregated impact of these items on H1 24 reported NFI is
£0.2m reduction.

 

 

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
 Richard Lindley

 Edward Mansfield

 Will King

 IFC Advisory (Financial PR and IR)              +44 (0) 203 934 6630
 Tim Metcalfe

 Graham Herring

 Florence Chandler

 

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