REG - Gattaca PLC - Trading update and Acquisition

GattacaAnnouncement

Tue 07:02

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RNS Number : 9237T  Gattaca PLC  05 August 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW
BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"), AND IS
DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF
MAR.

 

 

5 August 2025

 

Gattaca plc

 

("Gattaca" or the "Group")

 

Trading update and Acquisition

 

Solid performance at upper end of market expectations

 

 

Gattaca plc, the specialist staffing solutions business, today provides the
following trading update for the year ended 31 July 2025 ("FY25").

 

FY25 Highlights

 

·      Group continuing Net Fee Income(1) ("NFI") expected to be £38.8m
(FY24: £40.1m)

·      Contract NFI declined 2% YoY with growth in contractor numbers
offset by a lower utilisation trend in holiday periods.

·      Permanent NFI declined 1% YoY as the market has stabilised at
subdued levels of demand.

·      Gattaca Projects SoW NFI was down 25% YoY as the strong H2 in
FY24 was not repeated due to the impact of programme delays, as a result of
the Strategic Defence Review.

·      Improved margin conversion, due to a focus on costs and improved
productivity, will result in FY25 Group underlying Profit before Tax in the
range of £3.1m to £3.3m (FY24: £2.9m), marginally above current guidance of
£3m.

·      Statutory net cash at 31 July 2025 of £15.7m (31 July 2024: net
cash of £20.7m, 31 January 2025: net cash of £16.8m) reflecting a slight
extension of the working capital cycle coupled with cessation of the Group's
invoice discounting facility.

·      Robust balance sheet, profitability and cash generation will
support continued distributions under the Group's dividend policy, with a
dividend to be declared at the forthcoming results.

 

 

Acquisition

 

Gattaca is also pleased to announce that it has acquired the entire issued
share capital of Infosec People Limited ("Infosec") for an aggregate cash
consideration of £2.1m, consisting of an initial payment of £1.5m with
deferred consideration of up to £0.6m ("Deferred Consideration"). The
Deferred Consideration is payable over the next four years, subject to minimum
performance criteria being achieved by Infosec within each year.

 

Infosec is a specialist cyber security recruitment consultancy, based in
Cheltenham, UK. Founded in 2009, the business works with clients across a
variety of sectors providing cyber and information security specialists.

 

In the year to 31 March 2025, Infosec had net fee income of £1.5m, generating
an adjusted operating profit of £0.4m and had net assets of £1.0m as at 31
March 2025.

 

Outlook

 

Whilst market conditions continue to be challenging, Gattaca remains focused
on its core markets, continuing to improve consultant net fee productivity and
the Group's back-office efficiency. As a result of continued demand and
enhanced operational efficiencies, the Board expects the Company to perform in
line with current market expectation of £4m underlying Profit before Tax for
FY26.

 

Commenting, Matthew Wragg, Chief Executive Officer of Gattaca, said:

"We are pleased to report a solid FY25 performance, achieved through proactive
management of the market challenges. With a great team we are starting to see
the tangible results of our strategy and focus on markets where we see
significant potential. We have retained our customer base, further
strengthened our capability, improved our performance per head, continued to
grow our contractor book and are seeing the results of our strategic
investments.

 

"I am also very pleased to be welcoming new colleagues from Infosec to the
Group. Cyber security has never been so relevant and the demand to protect
national security, businesses, customers and our data will continue to grow.
The addition of this expert capability to the Group will provide a bigger
platform for our new colleagues to positively impact the market and enable us
to further enhance our services to our extensive customer base across national
critical infrastructure, defence and beyond."

 

 

1.     NFI is calculated as revenue less contractor payroll costs

 

 

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

 Graham Herring

 Florence Staton

 

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