FINANCIALS: Gattaca reports tough market but remains positive
Specialist STEM recruiter Gattaca is entering financial year 2025 with “momentum” in its contractor base.
However, the company expects the permanent market will “remain tough” in the coming year, it announced today in its audited FY24 results.
Reported group net fee income (NFI) of £40.1m was down 5% year-on-year, however contract NFI increased by 3% with an 8% increase in contractors over six months to 31 July 2024. The company’s Gattaca Projects Statement of Work business accounted for 35% of year-on-year NFI growth. Permanent NFI tumbled by 33% year-on-year.
The company is “continuing its focus on contractor growth, which takes longer to reflect in NFI. For FY25, it is expected that profitability will be weighted to the second half of the year”, a Gattaca statement said.
The FY24 report also reflected the company’s exit from US-based operations as well as a 60% reduction in its UK property footprint across two UK locations. Other cost rebalancing measures undertaken in FY24 by Gattaca included implementation of a single billing entity arrangement, consolidating client billing from nine to two entities.
Productivity rose at Gattaca in FY24, with 11% growth in average NFI per headcount and 13% growth in average NFI per sales head, the report said. In other positive people news at the company, attrition has fallen to 31% per annum from 33% in FY23 and 40% in FY22. A new business development team was created and deployed as part of the group’s investment in front-line sales capability. Also, the company’s energy sales team was doubled, with a focus on renewables, increasing efforts in the core markets of infrastructure, defence, mobility, energy and the technology, media and telecommunications (TMT) sector.
“We are improving as a business week-on-week and expect to continue to grow market share as we make further progress next year,” said CEO Matthew Wragg. “I am very excited about the direction we are going and what that means for all our stakeholders for the years to come.”
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