logo-loader

Gattaca shares jump as permanent fee income rises in full year

Published: 11:37 02 Aug 2018 BST

job applicants
Pre-tax profits for the full year were expected be “broadly” in line with market expectations

Gattaca PLC (LON:GATC) shares jumped in late-morning trading Thursday after the company reported an increase in permanent net fee income (NFI) of over 20% in 2018 financial year.

In a trading update ahead of its full-year results, the AIM-listed engineering and technology recruitment firm said its NFI from permanent recruitment had climbed 22% to £22.1mln, while total NFI for the year had risen 6% to £78.8mln.

READ: Gattaca shares plunge as it cuts full-year pre-tax profits forecast

The company added that its pre-tax profits for the full year were expected be “broadly” in line with market expectations.

The results came as a relief to many investors after a disappointing set of interim results from the group in April when it saw underlying pre-tax profits decline 17% to £6.9mln compared to the same period last year, based on underlying revenues of £323.3mln, a 2% reduction on the first half of 2017.

The results, in addition to a 50% cut in the interim dividend to 3p, sent shares tumbling 13.6% to 164.1p on 19 April.

Patrick Shanley, chairman of Gattaca, said that the company had been “encouraged by the improving trend we saw across Q4 in the majority of our business units”, adding that the company was currently reviewing its international footprint and would update the market in the coming months.

In a note to clients, analysts at City broker Numis suggested that the company refrain from paying a final dividend at the end of the year due to the current restructuring which was likely to incur cash costs and a focus on debt reduction. 

Gattaca shares were up 8.5% at 136p.

Caledonia Mining tackles 2023 challenges with optimism for 2024 as it...

Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) chief executive Mark Learmonth tells Proactive's Stephen Gunnion the company faced a challenging 2023, primarily due to poor production in the first half of the year at its core asset, the Blanket Mine in Zimbabwe, and an underperformance...

8 minutes ago