6th Nov 2019 09:54
(Alliance News) - Gattaca PLC on Wednesday said it will not be paying dividend for its 2019 financial year despite a swing to profit, as it remains cautious about economic conditions in the UK.
In addition, the outsourcing company said Chief Operating Officer Keith Lewis has decided to stand down from the board after 26 years of service and will leave with immediate effect.
As part of its on-going cost-cutting programme, Gattaca does not intend to seek a replacement as COO.
Turning back to annual earnings, Gattaca said it swung to profit of GBP3.1 million in the 12-months to the end of July compared to the GBP26.7 million loss reported the year prior, as revenue rose by 1% to GBP635.8 million from GBP631.3 million. In addition, administrative expenses were chopped to GBP65.8 million from GBP96.7 million.
The company said it is not paying a final dividend, given the economic headwinds in the UK, the "significant" non-underlying costs incurred this year and the continuing investment in its primary business systems. In its financial 2018, Gattaca distributed GBP3.0 million in dividends.
"We remain cautious about the development of our markets in 2020, although we believe that operationally, we have made significant progress with our ongoing improvement plan, which is now translating into tangible change in the way we operate and will put the group firmly on the path for sustainable, long-term growth," said Chief Executive Kevin Freeguard.
Gattaca shares were trading 3.0% lower in London on Wednesday at 114.50 pence each.
By Evelina Grecenko; [email protected]
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