Gattaca FY26 Trading Update: Profit Beats Guidance as Contract NFI Rises 16%

Gattaca PLC has closed its 2026 financial year with stronger fee income, a substantial improvement in underlying profit and a positive outlook for FY27.

The specialist workforce solutions business expects group net fee income to rise by 11% to £43.2 million, driven by strong contract recruitment activity. Underlying profit before tax is expected to reach approximately £6.1 million, slightly ahead of the company's previous £6.0 million guidance and up from £3.3 million last year.

That combination matters. Gattaca is not just reporting higher activity - it is converting more of its fee income into profit, helped by better sales productivity and continued cost discipline.

Gattaca's FY26 figures at a glance

Metric	FY26	FY25	Change
Group net fee income	£43.2 million	£38.8 million	Up 11%
Like-for-like net fee income	Not disclosed	Not disclosed	Up 7%
Contract net fee income	Not disclosed	Not disclosed	Up 16%
Like-for-like contract net fee income	Not disclosed	Not disclosed	Up 14%
Underlying profit before tax	Approximately £6.1 million	£3.3 million	Up £2.8 million
Statutory net cash	£15.0 million	£15.7 million	Down £0.7 million

Net fee income, or NFI, is revenue after deducting contractor payroll costs. For a recruitment business, it provides a clearer indication of the fees retained from placing permanent employees and contractors than headline revenue alone.

Like-for-like figures exclude InfoSec People Limited, which Gattaca acquired on 5 August 2025. That distinction is important because it separates growth from the acquired contribution.

Investors can read the original company announcement for the full regulatory wording.

Contract recruitment was the main growth engine

Contract NFI increased by 16% year on year, or 14% on a like-for-like basis. Gattaca attributed this performance to increased activity across its core sectors of Infrastructure, Defence, Energy, Mobility and Digital Technology.

Contract recruitment can offer a more recurring stream of fees than permanent hiring because contractors remain on assignment for a period of time. A broader contractor base may therefore improve revenue visibility, although the announcement does not disclose contractor numbers or average assignment lengths.

The 14% like-for-like increase shows that most of the contract growth was generated without relying on the contribution from InfoSec. This is one of the clearest positives in the update.

It also builds on the operational progress described in Gattaca's earlier FY26 guidance upgrade, when strong contract trading was already supporting improved expectations.

Permanent hiring was more subdued

The permanent recruitment picture was less impressive.

Group permanent fees increased by 5%, but this included InfoSec. On a like-for-like basis, permanent NFI declined by 3%.

That suggests the underlying permanent hiring market remained difficult, consistent with the board's comments about macroeconomic uncertainty and cautious customer decision-making. Employers can delay permanent appointments when confidence is limited, even where demand for specialist skills remains intact.

Statement of Work activity was another weak spot. Statement of Work, or SoW, arrangements involve delivering an agreed project or outcome rather than simply supplying an individual worker. Gattaca said SoW NFI remained subdued during the second half because major client programmes continued to be delayed.

No expected timing for those programmes was disclosed, so investors do not yet have clarity on when this activity might recover.

Profit growth is the standout result

Gattaca expects underlying profit before tax of approximately £6.1 million, compared with £3.3 million in FY25. The result is also £0.1 million ahead of the company's previous guidance.

Management credited improved sales productivity per head and its focus on costs for stronger margin conversion. In plain English, Gattaca generated considerably more profit from the fee income it earned.

The improvement is particularly notable because year-end sales headcount was 4% lower than a year earlier. However, targeted recruitment during the fourth quarter increased sales headcount by 3% within the quarter as the company prepared to pursue further growth in FY27.

This creates an important balancing act. Adding productive consultants could help Gattaca win market share and expand fee income, but the additional investment will also increase costs before the full revenue benefit necessarily appears.

Cash remains healthy, although slightly lower year on year

Gattaca ended July 2026 with statutory net cash of £15.0 million. This compares with £15.7 million at the end of FY25 and £13.0 million at the January 2026 half year.

The year-on-year cash position was therefore slightly lower, despite the improvement in profit. The announcement does not provide a detailed cash flow breakdown, so the reasons for that movement are not disclosed here.

Even so, the board described the balance sheet, profitability and cash generation as robust. It expects these factors to support continued distributions under Gattaca's dividend policy.

A final dividend is due to be declared alongside the forthcoming results, although its size was not disclosed in this update.

What could drive FY27 performance?

The board expects another improvement in profit before tax during FY27. No specific profit figure or range was provided.

Management highlighted several factors supporting its confidence:

• Improving operational momentum
• A growing customer base
• A broader contractor base
• A healthy opportunity pipeline
• Benefits from the group's technology platform
• Strong staff engagement
• A robust balance sheet

Gattaca plans targeted investment in sales consultants to support market share gains and future growth. It will also continue looking for complementary acquisitions in key areas, although no potential targets, spending limits or timetable were disclosed.

The acquisition element deserves attention. InfoSec contributed to reported permanent fee growth in FY26, while the like-for-like number declined. Future deals could strengthen Gattaca's specialist capabilities, but investors will need to assess their price, strategic fit and underlying performance if any transactions are announced.

For additional company coverage, see the main Gattaca PLC share page and the previous analysis of Gattaca's H1 2026 trading update.

What investors should watch next

This is a strong trading update overall. Contract NFI grew at a double-digit rate, underlying profit before tax increased from £3.3 million to approximately £6.1 million, and management expects further profit improvement in FY27.

The less favourable points are concentrated in permanent recruitment and SoW activity. Like-for-like permanent NFI declined by 3%, while delayed client programmes continued to restrict SoW fees. Broader economic uncertainty and cautious hiring decisions also remain outside management's direct control.

The forthcoming full-year results should add important detail on profit margins, cash conversion, the final dividend and the pace of planned investment in sales consultants. Investors will also want to see whether contract momentum can continue strongly enough to offset the weaker areas of the recruitment market.