Gattaca annual profits plunge but it is more confident after restructuring

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Gattaca PLC (LON:GATC) has reported a 61% crash in pre-tax profit to £1.4mln for the year to end-July 2020.

But the IT and telecoms recruiter said it has a robust balance sheet and that the effects of its recent restructuring were coming through.

The AIM-listed group said the first few months of the new financial year have shown “some encouraging indications of increased activity” in its core markets, but that it remains cautious about the timeframe of any recovery due to the potential impact of an extended second coronavirus lockdown in England.

Accelerating a group-wide ‘improvement plan’ during the past year led to restructuring of the technology business unit and a net cash position of £27.3mln at the end of July.

For the completed financial year, Gattaca generated revenue of £538.7mln, down 15% on the prior year, while net fee income of £54.3mln was down 21%.

In the results statement, Gattaca’s chief executive Kevin Freeguard said: “With further benefits from our improvement plan to come, and our robust and covenant-free balance sheet, we are confident that Gattaca is well-placed for the future.”

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