Gattaca Share Discussion Threads

[jonny_wright] 05/5/2022 18:27

I sold on the last update, nothing about that update made me want to own this

[davidro77] 03/5/2022 16:09

Now back to the price the day of the covid crash. What a dog of a share this is all the way down from 250p

[davidro77] 25/4/2022 11:09

Another new low :(

[davidro77] 07/4/2022 18:59

A green day woohoo. Up a stonking 1.4%

[casholaa] 06/4/2022 17:34

...more like lovid cows, wtf are they doing over at gatc....???

[jonny_wright] 06/4/2022 17:28

Heading towards covid lows

[davidro77] 31/3/2022 20:33

Since when are liberum TPs ever hit? They always seem to be way way above market and based somewhat on hopium.Should've exited this dog on the warning. But as you say can it go any lower. Today the answer was yes

[dougmachin] 31/3/2022 08:18

Liberium has TP of 100p from 190p though...

My view is Liberium was too high with 190p and is now too low with 100p.

EquityDevelopment seems to have a better idea IMO. 145p not so high and not so low.

[stemis] 31/3/2022 08:17

Pretty dismal set of results. The worst part is how they've managed to turn £22.7m of net cash into £4.8m (even allowing for the £5.6m of VAT repayment). No indication that there has been any real upturn in trading. Can't see any immediate catalyst for a re-rating of the shares...

[edmonda] 31/3/2022 07:47

Gattaca is the UK's largest specialist engineering/tech recruitment agency. Its shares have fallen >70% (vs c. -25% sector) from their 52 week high of 285p - principally due to January’s profit warning. There is work to be done, but even so we believe the scale of the sell-off looks totally disproportionate to the issues involved (Re temporary disruption from a major IT system implementation, staff turnover/culture, etc).

Following the recent appointment of Matthew Wragg as CEO - a highly capable & experienced industry professional with ‘sales’ running through his veins - the early signs of a successful turnaround are tentatively taking shape, with productivity levels inching up anecdotally MoM since January. Furthermore the company is “seeing encouraging trends across many of its sectors”.

We have pencilled in FY23 PBT of £2.5m on NFI of £49.1m with a 145p/share fair value, albeit these estimates are prudent, and we would ultimately hope to upgrade as key milestones are met. Similarly, we assume the FY22 dividend will be temporarily suspended, leaving net funds (pre IFRS16) of £5.0m as at Jul’22 (excluding £10.4m of non-recourse finance).

[pinemartin9] 31/3/2022 07:39

Going to be interesting to see how the market responds. Results seem OK. A shame they can't turn a profit on their revenues but markets seem buoyant. No dividend. Surely can't go lower. I'm hoping we have a base to build on from here.

[dougmachin] 31/3/2022 07:25

"The shares appear oversold...

Gattaca is the UK's largest specialist engineering/tech recruitment agency. Its shares have fallen >70% (vs c. -25% sector) from their 52 week high of 285p - principally due to January’s profit warning. There is work to be done, but even so we believe the scale of the sell-off looks totally disproportionate to the issues involved (Re temporary disruption from a major IT system implementation, staff turnover/culture, etc).

Following the recent appointment of Matthew Wragg as CEO - a highly capable & experienced industry professional with ‘sales’ running through his veins - the early signs of a successful turnaround are tentatively taking shape, with productivity levels inching up anecdotally MoM since January. Furthermore the company is “seeing encouraging trends across many of its sectors”.

We have pencilled in FY23 PBT of £2.5m on NFI of £49.1m with a 145p/share fair value, albeit these estimates are prudent, and we would ultimately hope to upgrade as key milestones are met. Similarly, we assume the FY22 dividend will be temporarily suspended, leaving net funds (pre IFRS16) of £5.0m as at Jul’22 (excluding £10.4m of non-recourse finance)."

[doobz] 24/3/2022 17:14

Holding through results next week is going to be tough, cant help but feel even reiteration of 'below expectations' etc could send us down. Despite this already being firmly in the news now. Tricky spot for holders right now

[davidro77] 21/3/2022 14:38

That's what I said below. 'the scale of further improvement' required for me is another veiled profit warning or reiteration that they have continued to underperform. They acted before results to attempt a reset. But will the new top team be ambitious or cautious in forecasting any turnaround

[napoleon 14th] 18/3/2022 13:51

From Small Caps Live Weekly

Gattaca (GATC.L) - Board Succession
This is perhaps a tame title for a company that has just lost its CEO and CFO!

Having joined the Group in October 2018, it was Kevin's original intention to leave at the end of this year but he felt, and the Board agreed, that given the scale of further improvement required in the business, an earlier change of leadership was in the Group's interest.
"the scale of further improvement" does not sound good and suggests he was pushed. It is an internal replacement, which has pros and cons:
In line with the Group's succession plan, Matt Wragg, currently Chief Customer Officer, is appointed to succeed Kevin as Chief Executive Officer.

Who perhaps didn't rate the current CFO?
"the Board believe that the business will be best served by a CFO who can partner with the new CEO for the long term."
It may, of course, be that the CFO was planning to go soon anyway, but boards often value continuity to a clean sweep, unless things have gone wrong significantly.

In light of this, look out for the kitchen-sinking to come soon, and then perhaps a gradual recovery under the new management.

[forethought] 15/3/2022 14:22

This stock has been in the duldrums since the last update. The so called bad news is already in the price. Today's news is however positive and what many holders hoped for. New captain at the wheel. One that actually knows the business. They say the business is growing but not reaching its full potential. They are rectifying this issue. "Whilst Gattaca has been growing, we recognise that this growth is not in line with that of our market. Matt and Oliver have a thorough understanding of the business and have worked together for several years. They are well-positioned to deliver the necessary short-term improvement and develop the business over the long term."

[doobz] 15/3/2022 13:25

While I agree a lot of caution is needed here especially as we approach results. I'm happy that they at least don't appear complacent and are willing to make adjustments on the board to get things moving. Gla

[davidro77] 15/3/2022 13:14

Surprised it took them so long to fall on their swords. The worrying thing for me is the sentiment expressed in the release is very negative in tone. When they talk about delivering the short term improvement needed it reads as present tense ie they have decided to go because trading has not in fact picked up. So maybe prepare for another bad update with no tangible change in the picture from the warning? Perhaps a preemptive move to head off the backlash when the next update is delivered

[gattacawatch1] 15/3/2022 08:48

Clearly this company has had some poor leaders in recent years. Matt Wragg, however, has an in-depth knowledge of the business, a strong track record, and most importantly, he is imbued in the previous culture of success at Matchtech.

[gattacawatch1] 15/3/2022 08:29

Clearly this company has had some poor leaders in recent years. Matt Wragg, however, has an in-depth knowledge of the business, a strong track record, and most importantly, he is imbued in the previous culture of success at Matchtech.

[stemis] 15/3/2022 08:27

Or

"Kevin Freeguard was going to retire at the end of the year, but having run the business into the ground, decided he'd like a pay off instead. Salar Farzad, seeing the chance for one himself, has decided to join Kevin at the trough. They'll be replaced by two more whose turn it is now to enrich themselves for doing nothing for shareholders..."

I wonder how much today's announcement is going to cost the company?

[forethought] 15/3/2022 07:57

Yep! A change was definitely required. The only way is upward from here.

[mboy010] 15/3/2022 07:19

Finally, some good news…

[davidro77] 04/3/2022 13:43

That's sounds quite desperate, I also hope for something but the last update was so poor I'm not holding out much hope. And the market is selling off across the board so not a good environment for a rally