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Gattaca pre-tax profits up

By BFN News | 09:29 AM | Thursday 03 November, 2016


Gattaca reports a solid financial performance for the year to the end of July which, it says, leaves the Group in a strong financial position with substantial investment headroom to implement its growth strategy.4 Statutory pre-tax profits rose to £15.1m from £11.3m while underlying pre-tax profits of £20.4m were up from £19.7m. Revenue of £617.6m (2015: £502.3m) generated net fee income (NFI) of £73.0m (2015: £54.8m). Contract NFI of £53.9m (2015: £40.1m) was delivered at a margin of 9.0% (2015: 8.2%), and permanent recruitment fees were £19.1m (2015: £14.7m). The full year effect of Networkers higher margin business meant gross margins rose to 11.8% (2015: 10.9%). Profits from operations of £15.1m were up 22% (2015: £12.4m). The Group benefited from a £1.0m revaluation of foreign cash and assets significantly affected by the sterling devaluation post referendum leading to an increase in profits before tax of 34% to £15.1m (2015: 11.3m). On a pro-forma underlying basis, calculated as though Networkers had been owned by the Group for the entire prior period and excluding both £2.4m (2015: £2.7m) of non-recurring costs and £3.7m (2015: £1.7m) of amortisation of acquired intangibles, profits from operations were up 1% to £21.5m (2015: £21.2m). Chief executive Brian Wilkinson said: "I am pleased to report a positive year for the Group, where we delivered solid results, made significant progress on the integration of Networkers and introduced the new Group brand name, Gattaca. "The 2017 financial year has started with growth internationally offset by a weaker performance in the UK. An early success this year has been the first sales win by our Gattaca solutions service line which significantly enhances our international delivery capability. "Looking forward, uncertainty about the future of the British economy raises concerns for companies like ours, operating in what is seen as a highly cyclical sector. Nevertheless, our well established approach of partnering with our clients on long-term public and private infrastructure projects mitigates this risk to some extent, as does our increasing geographic diversification. "The strategic repositioning of the Group is now complete. We have two well regarded market facing brands -Matchtech and Networkers - which are well placed to gain share in the highly attractive Engineering and Technology markets. Our investment in business development and international operations, as well as our burgeoning solutions service line, give us great confidence in the Company's future prospects." At 9:29am: (LON:GATC) Matchtech Group Plc Ord 1p share price was -31.62p at 309.88p Story provided by StockMarketWire.com

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