29th Jan 2020 11:21
(Alliance News) - Technology and engineering recruiter Gattaca PLC on Wednesday warned its full-year profit could decline by nearly half.
Gattaca shares were 14% lower at 90.51 pence each in London on Wednesday morning.
For the financial year ending July 31, the company expects underlying pretax profit of roughly GBP6.0 million. This would be 40% below market forecasts of GBP10.0 million, and a 47% year-on-year decline from GBP11.4 million.
"Gattaca experienced a challenging environment across the staffing market, driven by the economic and political climate in the UK for the first five months of financial 2020 which has resulted in net fee income 11% lower than the same period last year," the company said. "The market has not recovered as quickly as expected and short-term growth remains uncertain, despite the decisive result in December's general election."
The company added that the timing of infrastructure projects in the UK is also uncertain, with the manufacturing, automotive and rail sectors all hurt by a "lack of confidence".
The company will report its interim results on March 31.
By Eric Cunha; [email protected]
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