18th Jan 2022 12:00
(Alliance News) - Shares in Gattaca PLC dived on Tuesday as it said full-year profit will be "significantly below market expectations".
The Hampshire, England-based recruitment firm focused on engineering and technology jobs expects net fee income of GBP22 million in half year ending January 31, up 7.3% from GBP20.5 million a year before. Permanent net fees are up 46% year-on-year, Gattaca said.
Net fee income for all of financial 2022 is expected to be GBP45 million, up 6.9% from GBP42.1 million the previous year. Gattaca expects to be around breakeven in financial 2022 at the underlying pretax profit level.
Gattaca's shares were down 37% to 88.00 pence each in London on Tuesday at midday.
The lowered outlook is due to a delayed recovery of Gattaca's contract business, it said, as customer demand has not improved as expected. This will slow growth in the second half of the year ending July 31, the company said. The contract business has historically brought in 75% of net fee income.
"Gattaca is well equipped to meet future requirements as the contract market recovers," the company said, having invested in technology, and boosted UK sales headcount by 24% since January 2021.
Interim results will be released on March 31.
By Elizabeth Winter; [email protected]
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