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Share Name Share Symbol Market Type Share ISIN Share Description
Gattaca Plc 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
  -0.50 -0.34% 148.50 147.00 150.00 149.00 148.50 149.00 88,590 09:16:20
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Support Services 538.7 1.4 -5.5 - 48

Gattaca Share Discussion Threads

Showing 376 to 400 of 425 messages
Chat Pages: 17  16  15  14  13  12  11  10  9  8  7  6  Older
DateSubjectAuthorDiscuss
09/11/2020
11:19
Looks like the market has woken up to GATC. Tried to get some more at 60p but couldn't deal. Easy to sell though...
stemis
06/11/2020
15:15
Mentioned on today's vox markets stock-picking video hxxps://www.linkedin.com/posts/paul-hill-a5994116_justin-waite-paul-hill-talk-about-7-stocks-activity-6730489344181768192-vA_g
brummy_git
05/11/2020
10:01
Or that trough EBITDA would cause them issues with their covenants, which again has been put to bed with confirmation that the RCF has been paid and no covenants are in place on the business. I don't see why this should trade at a discount to TBV when most recruiters trade at a premium at the moment, and GATC is in the right area (STEM) with significant cash resources. A modest 1.2 x TBV would be 100p per share. This still looks significantly undervalued just comparing to other small cap recruiters, let alone if the employment cycle turns.
dangersimpson2
04/11/2020
17:51
The worry about GATC was that it would have to raise funds to support the working capital needed to support a recovery in trading. That seems increasingly unlikely.
stemis
04/11/2020
12:15
Excellent operational gearing - as revenue grows, fixed costs stay stable, flowing directly to bottom line.
checkers2
04/11/2020
11:58
This once sizeable business is being ignored by the stock market and has all the makings of a 'Bonkers Bargain' according to Investor's Champion's updated research.
energeticbacker
04/11/2020
09:14
I'd be surprised if HRNet didn't top up while it's still cheap given their strategic aim of building a foothold in UK / Europe. This may be an easier one for them to swallow than Staffline given the debt issues over there.
1nf3rn0
04/11/2020
09:10
Yes, pretty stunning results under the circumstances.
stemis
04/11/2020
08:52
Looks like it was simply the wrong price at yesterday´s close. I was always wary of the debt build up after acquisitions, but net cash today (albeit flattered for now by gov schemes. But the statement "We expect a very substantial element of the overall working capital improvement to be permanent" is key for me here (extending payment terms to contractors by the looks). Pretty clean TNAV looks to be c. 70p/share. You´d think it should be valued somewhere north of that....
eezymunny
04/11/2020
07:50
Full detailed note from Equity Development on this link: https://research.equitydevelopment.co.uk/research/tag/gattaca
edmonda
04/11/2020
07:47
This precis from Equity Development: "Today the company has posted better than expected FY20 results, with net cash closing July at a robust £27.3m (pre IFRS16 lease liabilities & including the benefit of £13.8m non-recourse off balance sheet financing) compared to -£24.8m LY (ED Est £20m). Driven by £10.3m of deferred VAT payments (payable Apr’22), improved contractor terms (£8.5m - permanent), a working capital unwind (£16.3m) & lower debtor days (41 vs 45 LY). This leaves the business ‘covenant free’ & ideally placed to increase profits as the recovery gains traction. With a high proportion of incremental NFI falling straight to the bottom line, due to continued tight cost control (£4m annualised savings), more efficient processes (Improvement Plan) and positive operating leverage. FY20 NFI & adjusted PBT both declined -21.4% and -60.7% respectively to £54.3m (£69.1m LY) and £4.6m (£11.6m). Reflecting uncertainties created by the General Election, Brexit, proposed new IRS35 rules and latterly the pandemic (including a prudent £2.3m bad debt provision). Partly offset by a 13% contraction in overheads, thanks to restructuring (£1.7m), lower headcount (665 vs 739), furlough assistance (£1.5m) and a temporary group-wide 20% salary cut (£1.1m). We have held our FY21 numbers - corresponding to trough adjusted EBIT and EPS estimates of £1.25m and 1.1p. With most of the heavy lifting already completed, and assuming things go to plan, we raise our valuation from 130p to 140p/share."
value hound
04/11/2020
07:20
1st views wrt Gattaca's positive FY20 & outlook here. hxxps://www.linkedin.com/posts/paul-hill-a5994116_gatc-activity-6729650112756285440-Kvny
brummy_git
11/9/2020
09:35
Bonkers Bargain: recent deal highlights the appeal. This once sizeable business is being ignored by the market – time to buy? More on the Investor's Champion website.
energeticbacker
08/9/2020
13:54
SCSW comment -Gattaca remains well positioned to benefit in the UK from Government investment in infrastructure, as well as its exposure to STEM markets. Liberum forecasts £3.9m pretax profit (eps 9.2p) for the year just ended and £0.5m (eps 1.1p) this year, ballooning to £5.8m (13.7p) next
davebowler
17/7/2020
17:30
Won't IHT exemption effectively rule that out anyway? Can't imagine he's strapped for cash.
value hound
17/7/2020
17:11
Possibly but I can't imagine he'd want to cash in at anything like these levels.
stemis
17/7/2020
11:26
Saw Materna on TV recently- horse owner (no real surprise)Looks like he's probably got to a point in his life where he might accept an offer - suspect the company has been rewarding for him over the yearsMatchtech prior of course
value viper
17/7/2020
11:09
There's a couple of recruitment companies that hold shares here:- HRnet - 5.9% (Singapore based ) MMGG - 16.0% (bought Morson) Either could take out GATC. The only block is that founder, George Materna, holds 24.4%. Is the paid for research by Paul Hill (PMH Capital)? He has a 130p fair value. Ed: Yes, I see it is.
stemis
17/7/2020
11:02
It's the ED note below
value viper
17/7/2020
11:00
Stem - that's good stuff and analysis- above me if I'm honest !Who was that Singapore based recruitment company that have shares here ? HR Net ?This looks like a speculative buy maybe - I have a research note here - our today with a 130 p target (if it's paid for research)
value viper
17/7/2020
10:31
I think GATC are being rather misleading in the presentation of their debt figures. The Group is now in a net cash position. At 30 June 2020 we held net cash of GBP23m (31 January: net debt GBP(3)m; 31 July 2019: net debt GBP(25)m). Non-recourse invoice financing as at 30 June 2020 (not included in reported net debt) was GBP22m (31 July 2019: nil). They are comparing net cash of £23m to net debt of £3m at 31 Jan and net debt of £25m at 31 July 2019. However they then reveal that that doesn't include £22m of non recourse financing. However the comparative net debt figures include ALL financing. So really the comparison is 30 June 2020 net cash of £1m, 31 January net debt £3m and 31 July net debt of £25m. However 31 Jan figures are always better due to seasonality, so the meaningful comparison is 30 June £1m cash v 31 July 2019 £25m net debt. What does that tell us? Well the £10m VAT deferral is part. And working capital management (which will reverse) is - At 31 July 2019 working capital was £54.4m (inc £96.7m debtors). Trading in 3 months up to 30 June 2020 (which will be source of working capital) was down 41%. Broad brush, working capital will be proportional to trading, so we could expect £22.3m (41% x £54.4m) working capital to have been released. Adding these all up would suggest that there has been a £6.3m underlying adverse movement in cash. They do suggest that they've allowed a bit of an increase in debtor days to support clients so maybe somewhat less than £6.3m although the calculation is too crude for any precision. Not too disastrous though, I'd say (equates to 20p a share in valuation terms). The question, of course, is whether GATC can fund the increase in working capital that arises from a return to normal trading. Because of their invoice discounting facility, they only need to fund 10% of their debtors from cashflow. They've net cash of £23m, less VAT payable of £10m = £13m. I'm guessing they are maybe £40m (41% x £96.7m) down on normal debtor levels at this time, which would take £4m of cash. Looks easily doable...
stemis
17/7/2020
07:47
#GATC Gattaca plc updates that despite many macro challenges trading was higher than initial expectations aided by new business wins & rigorous cost control, with FY20 NFI down -25.5% to £54m. The fundamentals of STEM play to GATC’s strengths and we see a fair value of 130p/share. https://research.equitydevelopment.co.uk/hubfs/Research/Gattaca/Gattaca%20plc%20%20%20%20%2017%20July%202020.pdf
edmonda
11/6/2020
22:05
I have resumed coverage of GATC on my web site. Http://www.david-wilmshurst.co.uk/gatc/gatc_data.htm Click on the sheet tabs at bottom of screen to see bar charts. The purpose is to provide a graphic representation of the company's historic performance.
wilmdav
09/6/2020
13:36
Thank you, for that fullsome reply. I agree about their numbers; it's their client retention and competitive advantage going forward that gives me pause.Fyi, I entered these in 2017 @£2.99, took a loss on half by selling with the bad numbers in 2018, but then doubled down on "good prospects" in 2019 (ha!), so I'm quite underwater still, -80% down, too far down frankly to liquidate without a hard look or double down again, without good prospects apart from their public numbers.
uncle_sam
09/6/2020
13:12
Well even at the improved price of 54.5p, the mkt cap is only £17.6m. Like all recruiters, turnover figures are massive in relation to mkt cap (so v.low psr) but bear in mind that sales have gradually grown over the last few years, but profitability has been somewhat “patchy” :-) Nevertheless, operating profit four years ago on a lesser t/o exceeds the current mkt cap - and the share price then was 340p. It even entered this year at 124p. The balance sheet shows NTAV of £29.26m, and current assets less all liabilities of £17.56m. But as pointed out above, they may face liquidity problems as, like all recruiters, there’s a big chunk in trade and other receivables. I think it’s this that has been holding the price back in these unprecedented times etc., in addition to the obvious fears of hugely reduced business, but I also think this has been overdone. Also, the current situation could actually improve cashflow as pointed out by SteMis above. So I think we have to look out at the horizon a little and think what a reasonable valuation may be a year or more from now, and on that basis, any kind of partial return to previous profitability, with a reasonable multiple (even though PERs are always low with recruiters), reinstatement of the divi (hopefully) which was consistently over 20p until last year, and the balance sheet strength means you come out at a healthy multiple of the current share price. What’s more, the founder (and NED Deputy Chairman) holds a quarter of the stock, so hopefully has his eye on the ball.
value hound
Chat Pages: 17  16  15  14  13  12  11  10  9  8  7  6  Older
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