Gattaca’s results for the six months to January were encouraging on several levels: productivity improved, costs fell, and the conversion ratio rose. The investment in strategic growth sectors was rewarded, with improving NFI within energy and infrastructure. Despite challenging markets, NFI declined just 3%, outperforming much of the staffing sector as the Group benefitted from the change in strategy and a 71% exposure to contract fees. Growth in adj. EBIT and the conversion rate reflected a strong focus on costs, with headcount declining in low-double digits yoy and notwithstanding the investment in core growth areas. Sales now accounts for 71% of headcount, up from 69% a year ago. The medium-term target is a three-to-one ratio, favouring sales versus support staff. The lower cost base augurs well for the remainder of the year, with the guidance of adj. PBT of £3m unchanged for the full year. In view of the continuation of the challenging staffing markets, with low candidate and client confidence, we have reduced next year’s growth expectations. Nevertheless, we still expect profitability to improve by a third on NFI rising 5%, emphasising the operationally geared model and a return of perm volumes at some point during FY26. The lower FY26 estimates leads us to reduce our fair value/share estimation to 120p, still well above current levels. Gattaca continues to be backed by a robust balance sheet with cash equivalent to 52p/share, suggesting an unreasonably modest value and rating for the operating business.