FINANCIALS: Gattaca reveals overall decline in group profits

Declining employee headcount: Shutterstock

Gattaca has attributed a 4% annual decline in group net fee income to deteriorating client confidence caused by Brexit negotiations, IR35 tax changes and this year’s UK general election.

In a pre-close trading update for the 12 months ended 31 July 2017, released this morning, the specialist engineering and technology recruiter revealed overall NFI declined in the year by 4%, with Q1 to Q3 NFI down between 4% and 5%, though the rate of decline improved with Q4 2.4% lower than the previous year. H2 and Q4 benefited from an improvement for the group’s international businesses, particularly its US operation.

Across the group’s disciplines, engineering NFI fell 3% year-on-year, with double digit percentage growth for the group’s aerospace and engineering technology business offset by challenging conditions for its infrastructure, maritime, energy, automotive and professional staffing business Barclay Meade.

The group’s technology business also witnessed a decline of in NFI of 6% year-on-year, with NFI for its telco business down 10% on the previous year.

Net debt as of 31 July 2017 was £41m, up from £28m on 31 January 2017 and £25m on 31 July 2016.

Commenting on the group update Gattaca CEO Brian Wilkinson said: “Gattaca's exposure to skill-short STEM (Science, Technology, Engineering and Mathematics) markets should mitigate to an extent the effects of the business uncertainty that we are seeing in the UK economy relative to less specialist players. 

“As government-sponsored infrastructure and defence programmes roll out we expect to see a positive impact on our business which should offset any weakness in the overall economy. This strong position in engineering and technology markets, particularly where they converge, allied to our rapidly growing international business puts us in a robust position for the future.”

• Want to comment on this story? Email us at recruiter.editorial@redactive.co.uk or tweet us below to tell us your thoughts. We will run comments online in a round-up at the end of the week.

Email story to a friend

NEW TO THE MARKET: 25-29 JUNE 2018

This week’s launches include: Cathcart Energy, Encore Personnel, Highfield Professional Solutions, Work180

New to Market 26 June 2018

Marx takes over from Searle at Airswift

Janette Marx is to take over the reins from Peter Searle as group chief executive at Airswift.

20 June 2018

FINANCIALS: Hydrogen Group performs in line with expectations

Hydrogen Group is performing in line with current market expectations, according to a statement released ahead of the global recruiter’s annual general meeting today.

Financials 25 May 2018

APPOINTMENTS: 8-11 MAY 2018

This week’s appointments include: Mercer, Pedersen & Partners, PK Education, The RSA Group

People 8 May 2018
Top