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 Shares Traded Last Trade
  0.00 0.0% 80.00 6,994 08:00:16
Bid Price Offer Price High Price Low Price Open Price
78.00 82.00 80.50 80.00 80.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Support Services 538.65 1.44 -5.50 26
Last Trade Time Trade Type Trade Size Trade Price Currency
15:04:31 O 12 78.20 GBX

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Date Time Title Posts
30/12/202018:35Gattaca - new name for Matchtech parent company399
02/8/201814:51AIM:GATC - Base camp reached and business stable-

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Gattaca Daily Update: Gattaca Plc is listed in the Support Services sector of the London Stock Exchange with ticker GATC. The last closing price for Gattaca was 80p.
Gattaca Plc has a 4 week average price of 68.25p and a 12 week average price of 44p.
The 1 year high share price is 115.50p while the 1 year low share price is currently 28.90p.
There are currently 32,138,214 shares in issue and the average daily traded volume is 61,435 shares. The market capitalisation of Gattaca Plc is £25,710,571.20.
gaiusgracchus: Learning a bit more about the company's history and yeah the Networkers acquisition in 2015 was a complete disaster. That year's AR was a PR document explaining why it was such a great match. Then 2016 AR told us how the acquisition had been successfully integrated. Then 2017 started talking about "challenges". Then the big impairment in 2018. I'm sure this would make for a great case study for a failed acquisition. I have my suspicions on some of the reasons why it failed but I'm sure other people on here know far better.But on the positive side of things, this year's AR was all about the "Improvement Plan". Hopefully this will continue to keep them busy grinding out marginal gains and they won't take their eye off the ball looking for "transformational" deals. At least for another few years...I expect the share price will be quite a bit higher in a year's time. But it's pretty disappointing to see that only one director has a sizeable shareholding, and he's the founder, with the only other director to hold shares only having a paltry 15k. The CEO has been there for over 2 years now. Has he never seen the shares as being good value?
dangersimpson2: They had £34.8m in cash 31st July, and have since used that to repay all of their recourse debt, leaving them debt-free and holding £27.5m cash. If you think all of that is going to be sucked into working capital hence them needing more capital then that is a more bullish case than any of the brokers are forecasting. If they trade so well that they need more capital the share price will be £2+ on earnings.
quepassa: ......or maybe just the old trick of walking+talking the share price up prior to an expensive/over-priced rights issue or share placement. if you see a raft of further news releases combined with sudden share price movements, you'll know the answer. let's face it, the current UK unemployment situation and outlook appear very bleak and there will likely be many more firings than hirings over the coming next twelve months. all imo. dyor. qp
stemis: Looks like the market has woken up to GATC. Tried to get some more at 60p but couldn't deal. Easy to sell though...
dangersimpson2: 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.
stemis: 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.
eezymunny: 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....
value hound: 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."
stemis: 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...
value hound: 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.
Gattaca share price data is direct from the London Stock Exchange
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