Gattaca plc (LSE:GATC) reported an 85% increase in underlying profit before tax to £6.1 million for the financial year ended 31 July 2026, supported by growth in net fee income, stronger contractor demand and improvements in operating productivity.
The specialist staffing group generated revenue of £443.3 million, an increase of 11% from £398.9 million in the previous financial year. Net fee income (NFI), which represents revenue after contractor payroll costs, also rose 11% to £43.2 million, with like-for-like growth of 7%.
Reported profit before tax increased by 119% to £5.7 million, while EBITDA rose 94% to £7.0 million.
Following the improvement in profitability, Gattaca doubled its annual ordinary dividend to 6.0p per share and said it expects further earnings growth in FY2027.
Contract Recruitment Drives Net Fee Income Growth
Gattaca’s contract recruitment business delivered a 16% increase in NFI, supported by higher contractor numbers across its core specialist markets.
Growth was recorded across infrastructure, defence, energy, mobility and digital technology, reflecting continued demand for technical skills and specialist workforce solutions.
Contract recruitment accounted for 78% of group NFI, compared with 75% in FY2025.
The permanent recruitment business also improved, with NFI rising 4% despite challenging hiring conditions in parts of the market.
Permanent recruitment contributed 19% of total NFI, unchanged from the previous year.
However, Gattaca Projects, the group’s Statement of Work (SoW) business, experienced a 44% decline in NFI due to the timing of major client programmes.
As a result, SoW activity represented 3% of group NFI, down from 6% in FY2025.
Pretax Profit More Than Doubles as Productivity Improves
Gattaca’s reported profit before tax increased to £5.7 million from £2.6 million, representing growth of 119%.
Underlying pretax profit from continuing operations rose to £6.1 million from £3.3 million, reflecting higher NFI and continued cost discipline.
Reported profit after tax from continuing operations increased to £4.0 million from £1.9 million.
At group level, profit after tax rose 82% to £4.0 million, compared with £2.2 million in the previous year, which included a contribution from discontinued operations.
Basic earnings per share increased by 81% to 12.7p from 7.0p, while diluted earnings per share rose to 12.2p from 6.8p.
Underlying basic earnings per share from continuing operations advanced 77% to 13.8p.
Operational improvements also contributed to profitability, with NFI per sales employee increasing by 20% and NFI per total employee rising by 19%.
The company attributed these improvements to productivity initiatives, operating efficiencies and continued attention to its cost base.
Matchtech Brand Consolidation Supports Commercial Strategy
During FY2026, Gattaca consolidated its recruitment brands under Matchtech, creating a single brand covering the group’s specialist sectors, services and skills.
The company said the restructuring had improved brand recognition among clients and candidates while supporting a more consistent commercial approach.
Gattaca also invested in client-facing sales capacity across its core markets, including the appointment of a Chief Commercial Officer who is expected to join during the new financial year.
Client satisfaction remained strong, with the group reporting a net promoter score of 8.9.
The company continues to focus on expanding its market presence and strengthening relationships with employers seeking specialist technical and engineering talent.
Automation and Cost Reduction Initiatives Advance
Gattaca introduced its Matchtech AI and Automations programme, known as MAIA, across front-line recruitment and back-office activities.
The initiative is designed to improve operational efficiency and customer experience through increased automation.
The company also achieved ISO 27001 certification, strengthening its information security framework.
Further cost savings were delivered through the realisation of planned acquisition-related synergies and the simplification of the group’s corporate structure.
Two group entities were liquidated during the year, contributing to a reduction in external advisory costs.
Employee engagement improved to 8.7 from 8.4 in FY2025, while the staff attrition rate declined to 27% from 28% a year earlier and 31% in FY2024.
Gattaca was also recognised among the top ten large companies in The Sunday Times Best Places to Work 2026.
Net Cash Remains at £15.4 Million
Gattaca ended the financial year with net cash of £15.4 million, compared with £15.7 million at 31 July 2025.
The balance was also higher than the £13.0 million reported at the end of January 2026.
Operating cash generation supported investment in the InfoSec People team and shareholder dividend payments, alongside an increase in lease liabilities.
The group’s net cash figure includes lease liabilities of £1.9 million, compared with £1.4 million a year earlier.
Gattaca’s board proposed a final dividend of 4.67p per share, bringing the total ordinary dividend for FY2026 to 6.0p.
This represents a 100% increase from the 3.0p per share distributed for FY2025.
FY2027 Underlying Pretax Profit Expected to Reach £6.5 Million
Gattaca said it entered the new financial year with improving business momentum and a focus on converting revenue and NFI growth into sustained earnings improvement.
Although macroeconomic uncertainty continues to affect some recruitment markets, the company reported resilient demand for specialist science, technology, engineering and mathematics skills.
Management highlighted its broader contractor base, increased market share and established client relationships as factors supporting its outlook.
The board expects continuing underlying profit before tax to increase further in FY2027, in line with current market expectations of £6.5 million.
Chief Executive Officer Matthew Wragg said the group was positioned to build on the progress achieved during the year.
“Our continued focus on our strategy, a healthy opportunity pipeline and a robust balance sheet, places us well to continue to build sustainable growth for FY27 and beyond,” Wragg said.
Outlook
Gattaca’s FY2026 results reflect stronger contract recruitment activity, improved operating productivity and tighter cost management, which contributed to substantial growth in underlying profitability.
The group enters FY2027 with a larger contractor base, a consolidated recruitment brand and continued investment in commercial capabilities and automation.
While uncertainty in the wider recruitment market remains a consideration, management expects further growth in underlying pretax profit from continuing operations.
The board’s current expectation of £6.5 million for FY2027 would represent an increase of approximately 6.6% from the £6.1 million achieved in FY2026.
Leave a Reply