The recruiter said that the coronavirus (COVID-19) pandemic and the lockdown in the UK had certainly hit the business but not as hard as had been feared.
Trading during the second quarter of 2020 was 41% below the same period of last year, with net fee income from temporary staff placements down 36% while revenue from permanent placements was 52% lower.
With just a couple of weeks of the group’s fiscal year left, Gattaca said it expects net fee income (NFI) for the year from its continuing operations to clock in at around £54mln, down about 22% from £69mln the year before and some £10mln shy of the market consensus forecast, with most of the shortfall being accounted for by the UK business. The international operations have performed better than expected.
“As we see some encouraging signs of increased activity, we are beginning to bring staff back from furlough and have reopened our offices following staff engagement and reconfiguration of spaces to be COVID-compliant,” the recruiter said.
Gattaca said it is now cash positive with net cash at the end of June of £23mln, versus net debt at the end of January of £3mln.
The group said it is targeting annualised cost savings of more than £3mln from about the beginning of 2021; accordingly, a consultation process with Gattaca’s staff has now commenced.
“The balance sheet has continued to improve beyond our normal cycles, increasing our financial stability, and the significant liquidity will allow us to aggressively pursue growth opportunities to take advantage of the inevitable recovery in our markets. In particular, we are well aligned with the anticipated UK Government investment targets such as Infrastructure and other STEM-driven sectors where Gattaca has a significant track record and capability,” said Kevin Freeguard, the chief executive officer of Gattaca.
Shares in Gattaca were up 10.3% at 48p in early deals.
Published at Fri, 17 Jul 2020 07:05:00 +0000-Gattaca rises after it weathers the lockdown storm