Gattaca Dividends - GATC

Gattaca Dividends - GATC

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Gattaca Plc GATC London Ordinary Share GB00B1FMDQ43 ORD 1P
  Price Change Price Change % Stock Price Low Price High Price Open Price Close Price Last Trade
-1.90 -2.48% 74.60 75.00 75.00 75.00 76.50 16:35:23
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Industry Sector

Gattaca GATC Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

stemis: Well, at least we seemed to have talked the share price
stemis: Wow. Decent set of results, with sizeable debt reduction and confirmation of on track for a P/E rating of 5 and share price drops...
quepassa: No Final Dividend for second half. Total dividend for year of 3p (first half) versus a total of 23p last year. Dire results. A massive Loss of £25 million with EPS at a whopping minus 83.5pence. Not a confident sounding outlook, beset with Brexit concerns. Debt. Read and assimilate. They have negotiated a "more generous" covenant package. They obviously once thought that the original covenant package was generous enough. But no longer. Caveat: "Given the headwinds around Brexit and its potential impact on the economy, we have renegotiated our facilities with HSBC, removing excess facilities and agreeing a more generous covenant profile." A share price of 50p on the cards?? This is looking very uncomfortable in my view. 1. Massive loss 2. Final divi stopped 3. Significant increase in admin costs 4. Renegotiating banking covenants. Good Luck All. But watch out below. These are worrying results in my view ALL IMO. DYOR. QP
quepassa: De la Rue....... share price performance absolutely woeful in recent years. First job for Kevin, change the corporate name from Gattaca which was/is bad kharma. ALL IMO. DYOR. QP
stemis: New CEO - ex Verifone (US technology company providing point of sale of sale systems). Here is his CV - hxxps:// Not massively overwhelmed by the appointment. No direct recruitment industry experience and no experience heading up a plc. No doubt he'll now be given a big salary and bonus/option package that'll make him a wealthy man just for getting the share price back to the 300p mark it was 12 months ago...
quepassa: Investors Chronicle. Edition 27th April - 3rd May. Column on Page 40 headed "Gattaca lowers expectations again" The IC put a SELL on Gattaca. Closing summary paragraph: " With cuts to the EPS forecast, and a 20% drop in share price on the results day, the shares now trade at eight times forward earnings, a steep discount to the peer group average - the result of both management missteps and mounting external challenges. We move rudderless Gattaca to sell" See IC for full column. ALL IMO. DYOR. QP
stemis: No, I mean't a potential write off of under £100k and a loss of net revenue of a maximum £500k was hard to reconcile with a loss in market value, due to the share price fall, of £9.5m...
stemis: So no real impact. All the work that Carillion did will need to continue, either in the JVs or by the counterparty and I'd have thought there was actually a greater need for contractor staff whilst the mess is sorted out. The statement also does confirm, in a roundabout sort of way (by the absence), that there are no other reasons for the share price movement i.e. trading... That's my take.
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.
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P: V: D:20200228 19:09:45