Shares in Gattaca (LON:GATC) gained ground after the recruitment firm focused on the technology and engineering markets announced forecast-beating FY26 profits.
Despite prevailing macroeconomic uncertainties, Gattaca insisted it is ‘well positioned with the demand for specialist skills and services remaining resilient’.
As a result, the Fareham-based firm is confident it can deliver ‘further improvement in pre-tax profits in FY27’.
Profits ahead of previous guidance
Gattaca is an AIM-listed business whose brands include STEM skills expert Matchtech, cybersecurity recruiter Infosec People and Gattaca Projects.
For the year to July 2026, Gattaca now expects to deliver underlying pre-tax profits of roughly £6.1 million. That is ahead of previous guidance of £6 million, which was increased in May from £4.5 million, and represents impressive 85% year-on-year growth.
Gattaca attributed the improvement to growth in net fee income, improved sales productivity per head and a focus on costs which is enhancing margins.
Strong contract growth
For FY26, net fee income is expected to be 11% higher year-on-year at a better-than-expected £43.2 million, driven by strong contract growth. On a like-for-like basis, stripping out the recently-acquired Infosec, net fee income increased by 7%.
Contract net fee income grew 16% year-on-year, reflecting increased activity levels in Gattaca’s core sectors of infrastructure, defence, energy, mobility and digital technology.
| FY27E | FY28E | |
| Net fee income (£m) | 45.3 | 47.8 |
| Pre-tax profit (£m) | 6.5 | 7.5 |
| EPS (p) | 14.4 | 16.5 |
Source: Panmure Liberum
Permanent fees were stable with like-for-like net fee income down 3%. However, group permanent fees grew 5% after including the contribution of Infosec.
Renewed optimism
CEO Matthew Wragg said: ‘Through a clear focus on our markets, consultant performance and operational efficiency, we have grown market share, delivered strong growth in net fee income and achieved a significant increase in profitability.’
Wragg added: ‘Through our focus on the elements within our control, we enter FY27 with good momentum. The group is developing strong market positions and is seeing the increased benefit of our tech stack, excellent staff engagement, healthy opportunity pipeline and robust balance sheet. As a result, we enter the new financial year with renewed optimism.’
Recruitment has been one of the worst-performing areas of the UK market for the past decade. However, share prices have jumped sharply in the last month on the hope/belief the hiring market has bottomed.
Recent trading updates from Hays (LON:HAS), Michael Page (LON:PAGE) and Robert Walters (LON:RWA) suggest hiring trends aren’t quite as negative as they were previously.
Shares in Gattaca have gained 75% over the past year amid positive earnings revisions. And the company is showing plenty of resilience thanks to its focus on booming sectors such as infrastructure, defence, energy and digital technology.
As such, we think there is scope for further upgrades as FY27 progresses, notwithstanding ongoing macro and political uncertainties.
Panmure Liberum’s Sanjay Vidyarthi forecasts pre-tax profits of £6.5 million for FY27, rising to £7.5 million in FY28. The analyst believes Gattaca has ‘plenty more to go for’ and as a result, has raised his target price from 185p to 200p.
‘Gattaca’s positive estimate momentum continues to stand it apart from the rest of the sector, which has at least reached a point of stabilisation, if not upgrades yet’, said Vidyarthi.
