Due to the latest Omicron outbreak, the pace of economic recovery has temporarily hit a soft patch. But growth should pick-up soon, particularly as Omicron burns itself out, whilst unemployment further declines amidst record numbers of vacancies and acute job shortages.
Given the uncertainty, Gattaca said today that it was seeing a “delayed recovery in its contract business (c. 75% NFI) where demand has been slower than expected.” Albeit, greater resource has already been invested in UK sales headcount (+24% vs Jan’21) in anticipation of a rebound.
So, despite a 46% jump in Permanent placements (re RPO activity), overall group NFI is now predicted to climb +7.2% to £22m in H1 (£20.5m LY), +6.7% for H2 (£23m vs £21.6m) and +6.9% in FY22 (£45m vs £42.1m LY & ED est £50.5m before), and adjusted PBT falling to “breakeven.”
Longer term fundamentals look positive, especially in Gattaca’s sweetspots of software, digitisation, renewables (eg off-shore wind & hydrogen), electrification, defence (cyber & marine), engineering and infrastructure (eg HS2, fibre-to-the-home, Lower Thames Crossing, etc).
We reduce our forecasts for this year & next with our valuation falling from 285p to 165p/share.
18 Jan 2022
FY’22 NFI set to climb 7% as investment kicks in
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FY’22 NFI set to climb 7% as investment kicks in
Gattaca plc (GATC:LON) | 99.5 0 0.0% | Mkt Cap: 31.4m
- Published:
18 Jan 2022 -
Author:
Paul Hill -
Pages:
8
Due to the latest Omicron outbreak, the pace of economic recovery has temporarily hit a soft patch. But growth should pick-up soon, particularly as Omicron burns itself out, whilst unemployment further declines amidst record numbers of vacancies and acute job shortages.
Given the uncertainty, Gattaca said today that it was seeing a “delayed recovery in its contract business (c. 75% NFI) where demand has been slower than expected.” Albeit, greater resource has already been invested in UK sales headcount (+24% vs Jan’21) in anticipation of a rebound.
So, despite a 46% jump in Permanent placements (re RPO activity), overall group NFI is now predicted to climb +7.2% to £22m in H1 (£20.5m LY), +6.7% for H2 (£23m vs £21.6m) and +6.9% in FY22 (£45m vs £42.1m LY & ED est £50.5m before), and adjusted PBT falling to “breakeven.”
Longer term fundamentals look positive, especially in Gattaca’s sweetspots of software, digitisation, renewables (eg off-shore wind & hydrogen), electrification, defence (cyber & marine), engineering and infrastructure (eg HS2, fibre-to-the-home, Lower Thames Crossing, etc).
We reduce our forecasts for this year & next with our valuation falling from 285p to 165p/share.