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(Sharecast News) - Gattaca reported a steady financial performance for the six months ended 31 January on Wednesday, with the group confirming it remained on track to meet full-year market expectations despite macroeconomic pressures continuing to weigh on the recruitment sector.
The AIM-traded firm said revenue rose 3% year-on-year to 193.5m, while net fee income declined 3% to 18.9m.
Underlying profit before tax fell 15% to 1m, and statutory profit before tax declined 22% to 0.8m.
Profit after tax from continuing operations was 0.5m, while total group profit after tax, including discontinued operations, rose 181% year on year to 0.6m.
The company also reinstated its interim dividend, at 1p per share.
It said it saw a mixed performance across segments.
Contract net fee income grew 1% and accounted for 74% of group net fee income, reflecting the resilience of the contractor market.
Permanent and other fee income declined 14% but was up 6% compared to the prior half year, indicating sequential improvement.
The energy division delivered 17% year-on-year growth following strategic headcount investment, while infrastructure grew 8%, driven by demand in the water sector.
Gattaca said its statement of work offering remained flat, as new wins offset public sector project delays.
The group ended the period with 16.8m in net cash, down from 22.3m a year earlier, primarily due to the timing of contractor payroll and dividend payments.
Sales headcount fell 11% year-on-year, but average net fee income per head rose 13%, highlighting improved productivity.
Management reiterated a strategic focus on expanding the contractor base, digital transformation, and investment in core growth sectors.
While permanent recruitment activity remained subdued, Gattaca said it expected 2025 underlying profit before tax to meet market expectations at 3m.
"We are pleased to report a robust 2025 first half performance, achieved through proactive management of the market challenges, with a great team who are starting to see the tangible results of our strategic investments," said chief executive officer Matthew Wragg.
"We have retained our customer base, further improved our performance per head, continued to grow our contractor book, are seeing the results of our strategic investments and are confident in achieving our full year profit before tax expectations."
Wragg said the company would drive continued growth in its core markets throughout the second half, aiming for a strong year-end.
"We are confident in our ability to navigate market conditions through operational efficiency, cost discipline, and a focus on productivity whilst maintaining high engagement."
At 1321 GMT, shares in Gattaca were down 5.99% at 78.5p.
Reporting by Josh White for Sharecast.com.