Gattaca: Ongoing industry troubles hit recruitment specialist
affing specialist Gattaca has reported a slowdown in profit due to persistent difficulties in the recruitment market.
The firm told markets this morning that profit after tax fell 34 per cent to £0.5m in the six months ended January 31.
Net fee income, a key performance metric in the recruitment industry, fell three per cent to £18.9m.
Revenue rose three per cent to £193.5m, from £187.6m last year.
“Permanent recruitment remains subdued, and we anticipate this trend to continue in the medium term,” Gattaca said.
“The persistent macroeconomic headwinds impacting the broader recruitment sector have demonstrably affected both client demand and candidate sentiment, reducing volume and extending recruitment timelines.
“This has acted as a headwind on our recent performance,” the company added.
The sector boomed in 2020 after the tech sector led to a surge in hiring, but the industry has struggled since the end of the pandemic.
Job cuts and hiring freezes have hit demand for recruitment services, and potential candidates have been reluctant to move jobs.
Chief executive Matthew Wragg said Gattaca was dealing with the protracted downturn by “operational efficiency, cost discipline, and a focus on productivity”.
Last year, Gattaca restructured its US operations and moved support operations entirely to the UK, letting go of all US-based sales and support staff.
“We will drive continued growth in our core markets throughout the second half, aiming for a strong year-end.
“[During the first half] 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 PBT expectations,” Wragg added.
The company expects underlying profit before tax for the full 2025 financial year to be £3m.