Gattaca FY pre-tax profits seen ahead of expectations

Engineering and technology staffing business Gattaca said on Tuesday that full-year continuing underlying pre-tax profits and its adjusted net cash balance were now both forecast to be above market expectations.

Gattaca stated second-half continuing net fee income was 7% higher than in the first half, with its full-year NFI coming in at £42.5m, down from £52.8m a year earlier and reflecting the market impact of the Covid-19 pandemic over the entire reporting period.

However, subject to final adjustments and audit, Gattaca expects its continuing underlying pre-tax profit for the twelve months ended 31 July to be "in excess of £3.0m" - ahead of market consensus estimates of £2.7m.

Adjusted net cash, excluding IFRS16 lease liabilities, was expected to be £20.0m.

In light of the improved performance and assuming a continuation of the current positive trends, the AIM-listed group also highlighted that it anticipates the recommendation of "a modest dividend" when its full-year results are announced.

Chief executive Kevin Freeguard said: "Following our upgrade in May, I am pleased that our profit results will again be ahead of expectations. Whilst the pandemic continues to impact activity across our markets, it is clear that we have now entered the next phase of recovery."

As of 0925 BST, Gattaca shares were up 8.30% at 226.50p.