Gattaca update drives shares higher

The price of shares in AIM-listed specialist recruitment firm Gattaca (LON:GATC) shot upwards by 17.24% to 51p (as of 15:35 BST) despite reporting a 41% drop in trading for the three months ended 30th June. Overall net fee income from continuing operations, for the year ended 31st July were roughly 22% below the prior period, primarily due to the UK side of the business. International operations performed better than expected following cost reductions and the closure of the Chinese business.

CEO Kevin Freeguard commented: “The COVID-19 pandemic has created unprecedented challenges for Gattaca and for UK industry in general. However, I am pleased with the way the business has responded and the resilience we have shown. During the period, we have taken a number of measures to strengthen the business, including the acceleration of the Group-wide Improvement Plan, and the outstanding response from our staff to the challenges arising from COVID-19 has enabled Gattaca to perform ahead of our expectations in these difficult circumstances. On behalf of the Board, I would like to express my thanks to the staff for their dedication through these extraordinarily difficult national times.

“The balance sheet has continued to improve beyond our normal cycles, increasing our financial stability, and the significant liquidity will allow us to aggressively pursue growth opportunities to take advantage of the inevitable recovery in our markets. In particular, we are well aligned with the anticipated UK Government investment targets such as Infrastructure and other STEM-driven sectors where Gattaca has a significant track record and capability“.