Gattaca on song after American operations excell

2nd Aug 2018 10:25

(Sharecast News) - Recruitment services firm Gattaca saw its share price jump on Thursday after reporting that profits are in line with expectations following strong growth in the Americas.In a trading update the company said net fee income increased by 7% across its international activities, driven by 33% growth in the Americas, as Gattaca's total like for like net fee income rose by 1% to £78.8m for the year ended 31 July.In the UK, engineering NFI grew by 1% over the year after "strong performances" by the firm's Engineering Technology, Auto, Infrastructure, Maritime, Barclay Meade and Alderwood business units.Total net debt was reported at £46m, an increase of 14% over 31 July 2017.Patrick Shanley, chairman of Gattaca, said: "The second half of the year has been one of steady progress for Gattaca as we have worked to stabilise and simplify the business. We are pleased with the performance of UK Engineering and encouraged by the improving trend we saw across Q4 in the majority of our business units."Cost containment initiatives remain on track having achieved their target for the year and the AIM traded company said it is continuing to seek further cost reduction opportunities."We are currently reviewing our international footprint and expect to update the market in the coming months, and our cost containment measures are on track. We are also pleased to report that our chief executive recruitment process is at an advanced stage," said Shanley.Gattaca's shares were up 9.97% at 137.74p at 1107 BST.