Gattaca plc (LON:GATC), the specialist staffing solutions business, has provided the following trading update for the six months ended 31 January 2025.
· 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, Gattaca 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.
