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Gattaca lags after swinging to loss amid Brexit uncertainty

By Duncan Ferris

Date: Thursday 08 Nov 2018

Gattaca lags after swinging to loss amid Brexit uncertainty

(Sharecast News) - Gattaca dropped on Thursday after swinging to an annual statutory pretax loss and warning that Brexit concerns about the availability of skilled labour continue to create a challenging environment.
For the 12-month period ended 31 July the recruiter suffered a statutory pretax loss of £24.9m, down from a profit of £11.5m the year before, though revenue increased by 4% to £667.5m .

In a statement, the company said that "nearly all" its markets had been affected by Brexit, particularly how new customs arrangements will impact imports and exports, as well as the availability of labour.

"We are well placed to help our customers attract the key skills they need, but are reliant on the UK Government reaching agreement with the EU on customs arrangements," said Gattaca's statement.

In an extensive company reorganisation, the period saw the London-listed company exit Germany, Singapore, Dubai, Malaysia and Qatar, as well as shutting down telecoms infrastructure operations in Africa, Asia and Latin America.

Renewed focus will instead be placed on building core businesses UK engineering, UK IT and North American trio Matchtech, Networkers and Gattaca Solutions.

Chairman Patrick Shanley said: "This was a year of change for Gattaca as we decided to reset the business - reorganising it to establish stable foundations for future growth. Since the half year, we have simplified our operations, removing less stable and non-core businesses which were not expected to contribute to ongoing profits."

With no final dividend on offer, the AIM traded company's total annual payout was 3.0 pence, well down from 23.0p the year before.

Gattaca's shares were down 10.31% at 117.50p at 1640 BST.

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