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
  0.00 0.0% 109.00 106.00 112.00 0.00 0.00 - 1,418 16:28:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Support Services 667.5 -24.9 -85.3 - 35

Gattaca Share Discussion Threads

Showing 26 to 47 of 350 messages
Chat Pages: Latest  2  1
DateSubjectAuthorDiscuss
23/11/2016
13:57
There you go, £23Billion on infrastructure (and thats before some of the bigger projects kick off). GATC should take a slice of that imo. Wait for the herd after this order has been filled.
kmann
23/11/2016
09:35
Maiden purchase for me here today.
aishah
23/11/2016
09:17
Price being manipulated before the budget statement imo. Infrastructure high on the agenda.
kmann
22/11/2016
17:23
Yeah, you should be able to do much better than the spread quoted
salpara111
22/11/2016
14:25
Spread's off putting, as always, but can buy well beneath offer.
spectoacc
22/11/2016
14:07
Seems to have formed a bottom here. May dip my toes in the water for a few.
salpara111
21/11/2016
16:30
Bought a few.
che7win
17/11/2016
09:57
ExDiv. Offering longterm value imo
kmann
16/11/2016
21:37
@Sky - welcome aboard! It's one of about 5 stocks I hold, mainly AIM-listed IHT punts for LTBH, but never in large size. Otherwise try to be all Investment Trust (or equivalent, eg REITS or pseudo-REITS). GATC can be very illiquid and swing around a bit, but as a (theoretical) long term holder can't say it bothers me. What did annoy me is the name change from Matchtech - smacked of money needlessly spent. And recruiters invariably suffer when the next downturn comes along. But I think both UK & US move towards infrastructure spending is going to supply a decent tailwind.
spectoacc
16/11/2016
19:07
May well do tomorrow with that 17p dividend in the bag.
grahamburn
14/11/2016
09:41
Had a reasonable write-up in the Reports section in the IC on Friday - is what's stimulated today's buying I reckon. Can also imagine them tipping it at some point, with the whole infrastructure angle.
spectoacc
10/11/2016
09:25
See what the autum statement has to say. Look out for anything infrastructure related, as hinted by Gatc, they should benifit strongly imo. Also relevant "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" Looks like a decade of infrastructure for UK, US, and India. Should keep Gattaca busy!
kmann
09/11/2016
13:20
@kMann - if you think funds are buying, someone has to be selling, natch?
spectoacc
09/11/2016
13:03
SpectoAcc, why would funds sell a stable, high yield stock? Have you sold/shoerted? If so why?
kmann
08/11/2016
15:16
Or selling? ;)
spectoacc
08/11/2016
15:12
Large volume past few days. Funds buying?
kmann
04/11/2016
16:58
PS is correct about NFI being the true top line. I'm surprised he hasn't mentioned the cash flow statement. This is the real clincher... DYOR and you will see that they have generated so much cash that they have afforded to pay the fantastic dividend and reduce debt. Capex requirements are low relative to cash flow and finance costs will fall so even if NFI is down 3% this financial year the company will still have ample cash flow for the dividend and debt repayment.
jombaston
04/11/2016
16:22
Thanks @Masurenguy, a good read.
spectoacc
04/11/2016
16:17
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. http://www.stockopedia.com/content/small-cap-value-report-4-nov-2016-botb-gatc-hfg-dia-qrt-svca-156934/
masurenguy
04/11/2016
14:45
If you would like to view yesterday's webinar please go to: https://www.equitydevelopment.co.uk/webinars/?d=%3D%3DwMyIjM Kind regards, The Equity Development team
hannahh
04/11/2016
13:53
I think the extended fall had more to do with a shareprofits hatchette job (for value creation purposes). A Solid company delivering strong earnings a healthy dividend year after year. Oversold imo. But will be buying on any weakness or director buys.
kmann
04/11/2016
13:05
Bought more here. p/e less than 10, yield 7.5%, find them hard to resist. But no question a single bad t/s and they'd halve, so can't blame anyone for wanting to sell out instead.
spectoacc
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