Share Name Share Symbol Market Type Share ISIN Share Description
Gattaca LSE:GATC London Ordinary Share GB00B1FMDQ43 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -25.00p -9.26% 245.00p 241.00p 248.00p 267.00p 236.00p 267.00p 152,909 16:35:10
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Support Services 642.4 11.5 23.4 10.5 74.44

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Date Time Title Posts
16/1/201817:05Gattaca - new name for Matchtech parent company190

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Gattaca (GATC) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2018-01-16 16:53:17250.001,2003,000.00O
2018-01-16 16:35:17245.005921,450.40O
2018-01-16 16:35:10245.0013,70533,577.25UT
2018-01-16 16:26:50247.654501,114.43O
2018-01-16 16:24:21243.774851,182.29O
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Gattaca (GATC) Top Chat Posts

Gattaca Daily Update: Gattaca is listed in the Support Services sector of the London Stock Exchange with ticker GATC. The last closing price for Gattaca was 270p.
Gattaca has a 4 week average price of 236p and a 12 week average price of 236p.
The 1 year high share price is 339p while the 1 year low share price is currently 236p.
There are currently 30,384,204 shares in issue and the average daily traded volume is 22,147 shares. The market capitalisation of Gattaca is £74,441,299.80.
quepassa: Since name change from Matchtech to Gattaca the share price has plummeted from 390p to 330p. The performance of Gattaca is pretty dismal. A few years ago when the Company was still called MatchTech, the share price was circa 550p. Given the roaring employment market, there is no real excuse why this share has back-tracked so badly and performed so appallingly. Something needs to change - because the current strategy and management have presided over a 40% destruction of shareholder value and market cap. PBT was DOWN a massive 24% yesterday and that is an testament to just how poorly the Company is performing. ALL IMO. DYOR. QP
quepassa: The Brexit challenges facing Gattaca are what I have been forecasting for a long time. This has now come home to roost and will haunt them for some time to come in my opinion. Share price performance has been dire. This RNS is bad news. When any management of any company starts saying that things are turning out different and BELOW their previous expectations, this is in my experience a bad turn of events and shows that management forecasts were not on the ball in the first place. Sorry to say it guys but in my opinion only I see this going sub 200p in the not too distant future. The snap election will undermine confidence further. Don't they say that profit warnings come in three's? Good Luck All. ALL IMO. DYOR. QP
penpont: ED ups estimates and puts share price target at 475p:
amencorner: Well TU gives in line and figures still show slight declining LFL sales. Just wonder how much of this is built into the share price. Yield should be fine @ 8.5% and they demonstrated confidence in yield at last results. Interesting to see if the market likes the TU.
glasshalfull: In the last 10 weeks GATCs share price has declined (-22%) from the 342p level it sat on release of 2016 results. Indeed, they've actually fallen over (-50%) since mid Jan 2016. While they cautioned over a slow start - in the UK - in the current financial year, they also indicated International growth offsetting this. Therefore I'm surprised that the shares languish in the mid 260's given their No 1 UK position in specialist engineering recruitment & the emphasis in capital projects & infrastructure spending that the Chancellor highlighted via November's Autumn statement. Following release of the 2016 results in November, with share price at 342p, Numis said; "The shares have performed in-line with the market over the past three months and on our revised estimates trade on a calendar 2017E PE of 9x. Our EV / Net Fees based target price of 395p is unchanged and we believe a forward dividend yield of 7% remains attractive." At the current mid price GATC is valued at £83.3m with an EV of £108m. Forecasts for 2017 suggest c.39p Adj Dil EPS achievable, with strong cash generation the net debt is also forecast to fall to c. £20m while the company has banking facilities of £105m committed to 2020. So, with the share price fall this places GATC on a prospective PER of 6.8 offering a 9% dividend yield at the current share price of 267p. The dividend is covered 2 x times. I'm a buyer given Matchtech's track record & believe the combination of Matchtech & Networkers offers a decent risk/reward investment proposition at this lowly share price. They expect to benefit from £3.1m synergies this year following the Networkers acquisition although I acknowledge that much of this will be reinvested into the combined business. Hopefully the forthcoming trading update will confirm further positive momentum in overseas operations & perhaps paint a better picture on UK trading. Well that's the hope.... Then again, I could have just sliced off my fingers with a falling knife! Kind regards, GHF
masurenguy: Paul Scott thinks GATC is good value at the current shareprice. Gattaca is the new name for MatchTech and Networkers - brands which are still used, but under the new corporate name. Equity Development ran an excellent webinar yesterday, which I participated in. Management said they had "completely repositioned" the group as a specialist in engineering & technology staffing. About three quarters of revenues come from providing contractors, typically on about a one year contract. The business is also expanding internationally, and they see this rising from about 30% of revenues, to c.50%, over time. Cost synergies of about £3m have been achieved from combining MatchTech and Networkers, although this has mainly been reinvested in growth. Profitability - was roughly flat against prior year, on an underlying basis. People often say that staffing companies are low margin, but that's because most revenue is "pass through" - i.e. the contractors' salaries. Therefore reported underlying turnover of £616.9m sounds a lot, but Net Fee Income is much lower at £72.4m underlying. This latter figure is what I personally see as the real revenues, excluding pass through salaries. Underlying operating profit was £21.4m, so actually quite a good profit margin if you compare it with NFI. The prior year comparison number is £21.2m. In terms of EPS, I think the company has caused some confusion by only highlighting basic EPS, of 31.0p (diluted). Someone asked about this in the webinar yesterday, wondering if the share price fell because the company failed to highlight adjusted EPS, which was 44.3p. That makes quite a big difference to valuation of course - the PER is 9.5 using basic EPS, but drops to only 6.6 if you use the adjusted EPS - a big difference. I'm happy with these adjustments, so to my mind this stock looks dirt cheap, on a PER of only 6.6. Of course, a PER is only cheap if earnings are sustainable. What the stock market is probably doing, is discounting a fall in future profitability. I think this is due to heightened worries about a possible recession in 2017 - not an unreasonable position, since I think the economic outlook is very uncertain at the moment. Outlook - there are various outlook comments scattered throughout the results narrative. I've collated them below; "Since entering the new financial year we have a seen a slowdown in trading in the UK with Group NFI in 2017 Q1 forecast to be down 3% on 2016 Q1 (Contract down 2%; Permanent down 7%). We are continuing to Invest in our overseas operations which continue to enjoy growth and which will to some extent mitigate the uncertainty around UK economy in the medium term. Full year effects of Networkers acquisition to come through in FY17, with first concrete sales synergies now being realised. However, the outcome of the vote continues to make the economic outlook uncertain, yet it is still too early to say what its near-term impact will be for Gattaca. Whilst the amount of business we conduct in Europe is not significant, the same cannot be said for many of our clients and any uncertainty can have a knock-on effect in the investment decisions our clients make. In the longer term, our strength within the Engineering and Technology sectors transcends international boundaries, and as the trend towards globalisation continues, we are in a good position to respond to any EU exit settlement eventually reached. The medium term outlook for Gattaca is positive, despite some weakening in demand in the UK. The Board will continue to assess UK trading over the coming months as clearly there is uncertainty over how the EU referendum result will affect UK investment. We are, however, well placed to increase our market share in the UK, while pursing strong international growth through our regional hubs." The overall tone of the webinar was completely different to the above, I thought. Talking about the business, management sounded far more upbeat than the RNS indicates. So some mixed messages, which probably explains why some shareholders exited yesterday, pushing down the share price. Obviously the slowdown in Q1, and cautious comments about Brexit, haven't helped sentiment. In the webinar though, management sounded enthusiastic about the potential for improving UK business due to Heathrow expansion, Hinkley Point, and other big infrastructure projects - which will need large numbers of engineers, from the design stage onwards. Divdends - brokers seemed to be assuming a cut in divis, but the full year divi has actually been increased by 5% to 23p, with management saying this reflects their confidence in the future. Again, that doesn't really tally with the cautious outlook comments above. So I'm confused! The dividend yield is excellent, at 7.8%. Therefore if you think that's sustainable, this could be an attractive time to buy. The divi cover is quite healthy too, at almost 2 times (using adjusted EPS). Interestingly, management said on the webinar that they didn't cut the divis in the last recession. Balance sheet - one of the better ones I've seen, amongst small cap staffing companies. NAV is £81.6m, then I always delete intangibles, making NTAV £33.2m. The current ratio is very healthy at 1.84, so a strong working capital position - basically a massive debtor book, partly funded by bank debt. Note that net debt of £25.0m is down £8.6m on a year earlier, and that Gattaca has tons of headroom within its total £105m of bank facilities - recently extended to Oct 2020. The £1.1m P&L finance charge is consistent with the reported net debt too. Note that forex gains boosted profit by £1.0m. Overall then, I don't have any balance sheet concerns - this is a well-financed company that could weather an economic downturn. Tax rate - is high, due to overseas operations, and not being able to reclaim some overseas tax. This is a pity, but of course is accounted for within EPS (which is post-tax profits). My opinion - it's not often you find a sustainable dividend yield that is higher than the PER, but that is the case here. It has a strong balance sheet too. Therefore I very much like the value characteristics of this share. The trouble is, the market isn't interested in value shares at the moment, it's all about growth. Having said that, I think the valuation here is so compelling, that I'm very likely to increase my existing long position here at some point - probably after the US elections are out of the way, so it's going back onto my buying list.
davebowler: Equity Development; Gattaca is the UK's number 1 specialist engineering (60% group NFI) and number 5 technology recruitment agency, providing contract, temporary and permanent staff. It derives 32% of NFI overseas (albeit mostly still invoiced from UK), and 74% from placing contractors (circa 9,000 on assignment), with 26% coming from permanents. The global engineering and technology recruitment markets are valued at circa $26bn and $57bn respectively. In terms of this morning’s “solid” FY16 numbers, adjusted NFI jumped 38% to £72.4m primarily thanks to the Networkers acquisition. Stripping out M&A, LFL growth was flat at 0% (see below), with a 6% increase in Engineering (Infrastructure up 18%, with Oil & Gas and Maritime down) being offset by a similar decline in Technology. The latter seeing a 9% rise in Telecoms reversed by a 17% fall in IT. FY16 adjusted PBT and EPS came in at £20.5m (+26%) and 44.3p (+1%) respectively, which was in line with our forecasts of £20.4m and 43.7p. The dividend was raised 5% to 23.0p, equivalent to a 6.8% historic yield. Post BREXIT, Bank of America Merrill Lynch have reported that institutional cash positions currently sit at 15 year highs: a sure-fire sign that sentiment is too bearish. Gattaca appears overly impacted by this ‘wall of worry’ trading on a prospective PER of 8.5x and offering a thumping 6.9% dividend yield (1.7x covered). FY17 has started more slowly than anticipated, with total NFI subsequently dipping to -3% in Q1’17 (Est split -5% UK and +2% overseas), due to an element of caution in client hiring plans. But we believe conditions will eventually pick-up as literally thousands of engineers will be needed to support the new £17.6bn runway at Heathrow, the £18bn nuclear power station at Hinkley Point, and the £42bn HS2 rail link between Birmingham and London. Furthermore, extra headcount is presently being deployed overseas where stronger growth is being achieved. In particular, we reckon a sea-change could be coming in the US, irrespective of which candidate wins the Presidential Election next Tuesday, since much of the country’s road, bridge, rail and transport networks are crumbling, with estimates from the American Society of Civil Engineers suggesting $3.32trillion of infrastructure spend is required between 2016 and 2025. Going forward, in light of the weaker Q1’17 our FY17 adjusted EBIT has been trimmed by 4% to £19.7m (from £20.5m), with the share price fair value being similarly eased from 460p to 450p, still materially above current levels. The CEO also stated ‘ great confidence in the Company’s future prospect
quepassa: The share price has collapsed from near 600p to near 300p since the change of guard. That is telling you something. With their recent European expansion, aren't GatMat caught in the full blast of the gathering Brexit fall-out which will likely be a real burden and downer for things like international employment law and cross-border employment? ALL IMO. DYOR. QP
Gattaca share price data is direct from the London Stock Exchange
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