Trading Update for 6 months ended 31 January 2017

Released : 02/02/17 07:00

RNS Number : 7834V
Gattaca PLC
02 February 2017
 

2 February 2017

 

Gattaca plc

("Gattaca" or, "the Group")

 

Trading Update for 6 months ended 31 January 2017

 

Gattaca plc (LSE-AIM: GATC), the UK's leading specialist Engineering and Technology recruitment business, today provides the following pre-close Trading Update for the six months to 31 January 2017.

 

Overview

The Group delivered solid results during a period of some instability in the UK, following the EU referendum on 23 June 2016.

 

The Group continues to position itself for maximising growth opportunities both in the UK and internationally. Accordingly, whilst the Board continues to monitor uncertainty in the wider economy, we continue to invest selectively in strengthening the business to support its medium and longer term performance.

 

Having made these investments over the last 12 months, the phasing of planned client projects in the second half of the year and, encouragingly, the improving performance of our IT Division, the Board has confidence that profit for the full year will be in line with its previous expectations.

 

The Group is now strategically well-placed to take advantage of the convergence between Engineering, IT and Telecoms skill sets and of the opportunities presented by infrastructure investment commitments by the UK and US governments in particular.

 

Operational Performance

 

Net Fee Income

2017 H1
£m

2016 H1
£m

Change

Constant currency

Contract

25.9

26.5

-2%

-4%

Permanent

9.2

9.4

-2%

-6%

Total

35.1

35.9

-2%

-5%

 

 

 

Net Fee Income

2017 H1
£m

2016 H1
£m

Change

Constant currency

Engineering

21.1

21.7

-3%

-4%

Technology

14.0

14.2

-1%

-6%

Total

35.1

35.9

-2%

-5%

 

 

Performance

NFI in the period was £35.1m, down 2% (2016 H1: £35.9m). Both Contract NFI and Permanent Fees declined by 2%.

 

In constant currency terms, NFI was down 5%, with Contract down 4% and Permanent down 6%.

 

Engineering's NFI was down 4% to £21.1m (2016 H1: £21.7m). Growth in the Engineering Technology and Aerospace sectors were offset by weakness in most other sectors as the time to hire lengthened following the outcome of the EU referendum. Pleasingly however, vacancy flow continues to be strong.

Technology's NFI was down 6% to £14.0m (2016 H1: £14.2m). Within Technology, IT saw a welcome return to growth, up 1% following a year of decline (2016 H1: down 21%, 2016 H2: down 14%). However, Telecoms declined 14%, with a flat year-on-year performance in the UK offset by delays in a number of client projects internationally.

 

 

Acquisition of RSL Limited

Today the Group also announces, in a separate release, the acquisition of Resourcing Solutions Limited (RSL). RSL operates from three UK offices in Reading, Uxbridge and Derby, providing specialist contract and permanent candidates to clients operating in the Rail, Power and Built Environment sectors.

 

 

Interim Results

The Group expects to announce its interim results for the 6 months to 31 January 2017 on Thursday 20 April 2017.

 

 

Brian Wilkinson, Chief Executive Officer, said:

"This is a solid set of results, achieved during a period of economic uncertainty in the UK and the US. We are pleased that demand in the UK for skilled Engineers remains robust and vacancy flow is increasing, however uncertainty has led to elongated hiring decisions.

 

"We continue to strengthen the Group, with the aim to become the leading specialist Engineering and Technology recruiter, and we are pleased to have completed the acquisition of Resourcing Solutions Limited, broadening our capability in the UK's Rail, Power and Built Environment markets where we are seeing continued investment."

 

 

 

- ENDS -

 

For further information please contact:

 

Gattaca plc                             

+44 (0) 1489 898989

Brian Wilkinson, Chief Executive Officer    

Tony Dyer, Chief Financial Officer        


Citigate Dewe Rogerson

+44 (0) 20 7638 9571

Rob Newman / Nick Hayns

 


Numis Securities Limited

+44 (0) 20 7260 1000

Michael Meade / Tom Ballard


 

 

 

About Gattaca

 

Gattaca plc (LSE-AIM: GATC), is the UK's leading specialist Engineering and Technology (IT & Telecoms) recruitment agency, providing contract, temporary and permanent staff. Established in 1984 and AIM-listed in 2006, the Group is one of the fastest growing staffing organisations listed in the UK, with a well-balanced business model; approximately 74% contract and 26% permanent.

 

In April 2015, Gattaca plc announced the completion of the acquisition of Networkers International, a global recruitment company specialising in the delivery of recruitment services focusing on Telecoms and Technology.

 

Recruiting in 100 countries across the world from 18 offices in 12 countries, the Group has over 500 sales staff, 9,000 contractors on assignment and places 4,000 candidates into permanent positions each year.

 


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