17th Jul 2020 10:16
(Alliance News) - Gattaca PLC on Friday said it expects its income for financial 2020 to be significantly lower year-on-year due to the UK-wide lockdown.
The technology and engineering recruiter said trading in April, May and June was 41% below the year prior, reflecting the negative impact of the UK government's Covid-19 lockdown measures.
Despite this, shares in Gattaca were trading 14% higher at 49.45 pence each on Friday morning in London.
As a result, overall continuing operations net fee income for its financial year ending July 31 is expected to be around GBP54 million, down 22% year-on-year from GBP69 million with the majority of the shortfall in UK NFI. Previous forecasts guided for NFI of GBP64 million.
Gattaca highlighted that its international operations performed better than expected due to the implementation of cost reduction measures, but noted that its China business is now operationally closed. Cost reduction measures are expected to result in annualised cost savings of over GBP3 million starting around the end of the first half of 2021.
"The Covid-19 pandemic has created unprecedented challenges for Gattaca and for UK industry in general. The balance sheet has continued to improve beyond our normal cycles, increasing our financial stability, and the significant liquidity will allow us to aggressively pursue growth opportunities to take advantage of the inevitable recovery in our markets. Gattaca is a resilient business and I am confident that our performance through this crisis,will enable Gattaca to emerge stronger as the recovery takes shape." said Chief Executive Kevin Freeguard.
As at the end of June, the Fareham-based company had available liquidity of GBP59 million.
Full unaudited results for financial 2020 will be published on November 4.
By Ife Taiwo; [email protected]
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