Gattaca PLC Trading Update (3905C)
April 13 2017 - 2:00AM
UK Regulatory
TIDMGATC
RNS Number : 3905C
Gattaca PLC
13 April 2017
13 April 2017
Gattaca plc ("Gattaca", the "Group")
Trading Update
Gattaca plc (LSE-AIM: GATC) today gives the following trading
update.
The Board has reviewed its outlook for the remainder of the year
to 31 July 2017 and now believes that profits for the year will be
approximately 10-15% below its prior expectations.
As previously announced on 2 February 2017, performance in the
first half of the year reflects the tougher UK trading conditions
post the Brexit vote. The softening in NFI in the first half was
driven by near term uncertainty which led to elongated hiring
decisions and some projects being delayed; however the medium-term
outlook in our sectors remains positive with some signs of a return
of confidence in recent weeks.
Unanticipated one time cost overruns relating to the setting up
of international entities to support a pan-European contract win
and delays in realisation of back office cost savings will result
in our central overheads exceeding our expectations for the second
half. Alongside this we have been making the appropriate
investments to ensure that the Group has the infrastructure to
build a truly scalable business. Given the opportunities we see,
the Group has continued to strategically invest in sales headcount,
up 24 since 31 July 2016 and we expect to see a return on these
investments during the second half and beyond. We are particularly
confident that the headcount investments which we have made in our
overseas businesses will lead to accelerated growth next year.
In line with our vision to become the leading specialist
Engineering and Technology recruiter, the acquisition of Resourcing
Solutions Limited on 1 February 2017 has significantly strengthened
our capability in the UK Rail market, an area of high investment by
the government.
With the integration of Networkers now complete, we intend to
consolidate our central cost base, whilst maintaining the structure
and support we have built and to convert the sales opportunities we
see into growth over the next few years.
As previously announced the interim results will be issued on 20
April 2017.
This announcement contains inside information.
- ENDS -
For further information please contact:
Gattaca plc +44 (0) 1489 898989
Brian Wilkinson, Chief Executive
Officer
Tony Dyer, Chief Financial Officer
Citigate Dewe Rogerson +44 (0) 20 7638 9571
Rob Newman / Nick Hayns
Numis Securities Limited +44 (0) 20 7260 1000
Michael Meade / Tom Ballard
This information is provided by RNS
The company news service from the London Stock Exchange
END
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