With only 9 days to go before possibly ‘crashing out the EU’, it is no wonder many investors have donned ‘tin hats’, and are temporarily sheltering in low risk assets. Nobody knows how this will play out. Albeit as is often the case, an environment of ‘unadulterated fear’ is often the best recipe for future equity returns. Particularly in ‘perceived’ cyclical areas like staffing. The fundamentals here though are still in decent shape. UK unemployment (at 3.9% - see below) remains at levels not seen since 1975, while consumers continue to spend thanks to record low interest rates, rising wages and modest inflation.
In fact this morning, STEM recruitment specialist Gattaca reported another positive set of numbers (see below), delivering H1’19 NFI up 1.5% to £36.5m, a 14% jump in EBITDA to £8.4m, diluted adjusted EPS up 13% to 15.8p and a spectacular reduction in net debt to £27.8m vs £40.9m in Jul’18 & £36.2m 12 months’ ago.