13th Feb 2025 12:07
(Alliance News) - Gattaca PLC on Thursday reaffirmed its profit guidance as it said it expects to report a drop in fee income in the first-half of the year.
The Whitely, England-based recruiter for companies in the technology and engineering sectors expects group net fee income in the six months to the end of January down 3.1% to GBP18.8 million from GBP19.4 million in the previous year.
The firm said its guidance for adjusted pretax profit for the 2025 financial year remains at GBP3.0 million.
Chief Executive Officer Matthew Wragg 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.
It said contract NFI was down 1% due to growth in contractors out and timesheet value. This was offset by increased contractor holiday during the summer and new year periods, the company said.
Permament NFI was down 10%, but up 3% in the first half compared to the second half of the last financial year, reflecting sequential growth.
Statement of Work NFI dropped 3% due to delays linked to the public sector spend review.
It expects to announce an interim dividend in its interim results.
Gattaca said it had reduced headcount by 12% compared to 2023, through a focus on operational efficiency and resource allocation.
CEO Wragg said: "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."
Shares in Gattaca were up 9.4% to 78.25 pence in London at midday on Thursday.
By Michael Hennessey, Alliance News reporter
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