17th Feb 2021 10:21
(Alliance News) - Gattaca PLC on Wednesday said it expects its income to decline in the first half of its current financial year.
The recruitment solutions company said it expects to report net fee income of GBP21.1 million for the six months to the end of December compared to GBP31.8 million posted a year earlier, primarily reflecting the market impact of the Covid-19 pandemic.
The company also said it expects to report net cash before IFRS16 adjustments of GBP22.9 million compared to GBP27.3 million in July 2020.
Gattaca said improving activity levels in its core markets continued through the first quarter of its current financial year as it delivered quarter-on-quarter UK net fee income growth of 9% versus the final quarter of its financial 2020.
UK net fee income in the three months to the end of 2020 was 2% higher than in the three months to the end of September 2020, partly hurt by the return of tiered Covid-19 restrictions and extended national lockdowns, coupled with the seasonal impact of the lower number of days worked by contractors over the Christmas period.
Looking forward, Gattaca said net fee income recovery for its current financial year is likely to be at a slower rate than previously forecast. However, as a result of appropriate management of the cost base and the underlying improvements in the business, the company said it currently expects full year underlying pretax profit to be in line with market expectations.
"Whilst we remain cautious as to the timing of the recovery in our core markets, we have been encouraged by the resilience the business has shown over the first half," said Chief Executive Kevin Freeguard.
"I remain confident of our success over the medium and long term," added Freeguard.
Gattaca shares were trading 1.0% lower in London on Wednesday at 98.00 pence each.
The company said it will report its half-year results on March 31.
By Evelina Grecenko; [email protected]
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