16th Aug 2023 10:16
(Alliance News) - Gattaca PLC on Wednesday gave an update for the financial year that ended on July 31, eyeing a surge in underlying pretax profit.
The Whiteley, England-based recruitment services provider expects continuing underlying pretax profit to surge to GBP2.5 million in its financial 2023 from GBP256,000 a year before. The company cited its cost rebalancing programme and exit from low margin contracts.
Continuing net fee income is expected to fall 1.1% to GBP43.6 million from GBP44.1 million.
Chief Executive Officer Matthew Wragg said: "The continued improvements in culture, staff retention and productivity are good signs that we are becoming a stronger business. Our progress has been impacted by the decline in the wider market, and although that is frustrating, I am pleased that we were able to continue to simplify and improve the business throughout the year and manage our cost base so as to report an improvement in profitability in the second half of the year."
Gattaca said: "In light of the ongoing macroeconomic headwinds, particularly the uncertainty over the timing of any recovery in the wider economy and the group's focus on sustainable contract growth, the board currently expects profit before tax for [financial] 2024 to show marginal growth on [financial] 2023".
The firm aims to release its annual results on October 24.
Gattaca shares rose 9.8% to 106.00 pence each on Wednesday morning in London.
By Tom Budszus, Alliance News reporter
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