During a year of leadership changes, flattened contract fees brought on by lost contracts and the embedding of new technology systems, Gattaca earned £44.1m in net fee income in 2022, compared to £42.1m in 2021, reflecting a 5% increase. 

CEO Matthew Wragg said: “Although the performance of the business during the year is not acceptable for a business with our capability, I am pleased with the progress that we have made during the second half of the year.”

Contract NFI represents 71% of the group’s NFI on a continuing basis. While the company reported that contract NFI was flat year-on-year “driven by contract losses primarily within contract in H1 [the first half of the financial year]”, it went on to say that “benefit was expected to come in… FY23”, it said. “Demand for contractors is shifting to outweigh permanent [recruitment] combined with increased project demand” in the company’s core sectors, it said.

Permanent recruitment, representing 29% of group NFI, recorded an 18% growth year-on-year, driven by recovery in the post-pandemic period, the company said.

The group’s underlying profit before tax was £0.3m, “reflecting investment in headcount”, the company said.

Other highlights of Gattaca’s preliminary FY22 year-end results included:

• A further impairment charge of £4.6m, writing off all remaining goodwill, intangible assets and right-of-use leased asset values relating to a Resourcing Solutions acquired in 2017, due to an expected sustained reduction in future profitability of the division.
• No final dividend.
• Appointed new CEO, COO, CFO, chief sales officer, head of engagement – ED&I & Talent.
• Funded 5% cost of living increase for all staff across the group.
• Contracts lost were Transport for London, UK Power Network and BMW UK. There were also losses associated with the collapse of construction and engineering firm NMCN, the company said.

Chairman Patrick Shanley said: “The financial year certainly did not turn out as we expected… Our expected growth within the contract placement market failed to materialise. Whilst the market demand was there, the combination of major client losses, increased focus on permanent recruitment and the business adapting to new systems and operating model meant we didn’t capture the market opportunity.”

Gattaca’s CEO Wragg concluded: “We have worked hard to transform the business through the building of our culture and once again becoming a winning team. Today, with a new leadership structure, a more engaged workforce and early signs of more consistent and improved performance, we are on track to be a stronger business… We are far better set up for success than we were 12 months ago and have a roadmap for further improvements.”

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