Gattaca plc, the specialist Engineering and Technology recruitment solutions business, provides the following trading update for the six months ended 31 January 2021.
The Company expects to report Net Fee Income ("NFI") of £21.1m (H1 20 restated: £31.8m), primarily reflecting the market impact of the COVID-19 pandemic over the entire reporting period. The Company expects to report net cash before IFRS16 adjustments of £22.9m (July 2020: £27.3m)¹.
Improving activity levels in our core markets continued through Q1 and we were pleased to deliver quarter-on-quarter UK NFI growth of 9% versus Q4. UK NFI in Q2 was 2% higher than Q1, partly impacted by the return of tiered COVID-19 restrictions and extended national lockdowns, coupled with the seasonal impact of the lower number of days worked by contractors over the Christmas period.
Given the ongoing effects of the COVID-19 pandemic and the market impact of further national lockdowns, NFI recovery for FY21 is likely to be at a slower rate than previously forecast. However, as a result of appropriate management of the cost base and the underlying improvements in the business we are seeing through the acceleration of our Group-wide Improvement Plan, we currently expect full year underlying PBT to be in line with market expectations.
Kevin Freeguard, CEO commented:
"Whilst we remain cautious as to the timing of the recovery in our core markets, we have been encouraged by the resilience the business has shown over the first half. I would like to thank our colleagues in the business for their continued hard work and commitment during these challenging times.
"Our strong cash position underpins our resilience and, together with the benefits from our ongoing Group-wide Improvement Plan and our core focus on STEM skills which will remain in short supply, positions us well for growth when market conditions inevitably improve. I remain confident of our success over the medium and long term."
Gattaca will announce its interim results for the six months ended 31 January 2021 on 31 March 2021.