Gattaca PLC H1 2026 Trading Update: Net Fee Income Up 7%, Beating Expectations

Gattaca H1 2026: NFI up 7% like-for-like and trading ahead of expectations

Gattaca has dropped a tidy H1 2026 trading update and it’s a positive read. Net fee income (NFI) rose on a like-for-like basis and the Group says it is trading ahead of expectations, with contract hiring the standout. Cash has stepped down, but for clear reasons. Guidance lands with an adjusted profit before tax target of £4.5 million for FY26 and the Board expects to announce an interim dividend at the results in March.

Key numbers from Gattaca’s H1 2026 trading update

What’s driving the outperformance

Contract engine firing; perm steady; SoW a drag

NFI – net fee income – is revenue less contractor payroll costs. It’s the best indicator of a recruiter’s underlying earnings power. Gattaca’s like-for-like NFI rose 7% to £20.2 million, with contract placing doing the heavy lifting: contract NFI grew 13% year-on-year on a like-for-like basis, signalling healthier client demand across core sectors.

Permanent recruitment was stable, up 2% year-on-year on a like-for-like basis. That’s fine in the current market – it keeps the base warm without being the growth driver. Statement of Work (SoW) – fixed-scope project delivery – was weaker due to timing delays on major programmes, and the Group guides that SoW activity will likely remain subdued in H2. That mix shift towards contract over SoW should support resilience but may limit higher-margin project upside near term.

Productivity up while headcount trimmed

Total Group sales headcount fell 6% year-on-year, yet NFI rose. That speaks to better productivity and more disciplined resource allocation. The Sales-to-Support mix held steady at 71:29, suggesting no deterioration in front-line capacity. Management still plans to invest where it counts, aiming to grow sales headcount by 10% over FY26 in identified markets.

Cash position: lower, but for sensible reasons

Statutory net cash at 31 January 2026 was £13.0 million, down from £16.8 million a year earlier. The drivers are all sensible for a growing contractor book: working capital absorption as contractor numbers increased; consideration paid for the InfoSec acquisition; and the FY25 final dividend.

• Working capital absorption – cash tied up as you add more contractors before invoices are fully collected – is classic for contract-led growth.
• InfoSec People Limited was acquired on 4 August 2025 for total consideration of £2.1 million (initial £1.5 million, up to £0.6 million deferred, performance-linked). Integration completed in H1.
• The final dividend for FY25 is also a clear outflow.

In short, cash is lower, but the business remains in net cash, retaining flexibility. The key watchpoint is cash conversion over H2 as the contractor base scales.

Guidance, dividend and sector momentum

Gattaca pegs FY26 adjusted profit before tax at £4.5 million and expects to announce an interim dividend at the Interim Results. That dividend language is shareholder-friendly and signals confidence in earnings visibility.

The CEO highlights that the InfoSec team has performed well, is fully integrated, and has enhanced the Group’s cyber capability – contributing to contract momentum. With a strengthened technology platform, a growing customer base and improving operational efficiency, management is sounding constructive about sustainable growth.

Quality of growth: my read

• Positive – Contract-led growth: Contract NFI up 13% like-for-like is the headline. It’s recurring, sticky and typically more resilient than permanent hiring in choppier macro conditions.
• Neutral-to-positive – Perm stability: Up 2% is solid, if unspectacular. It provides upside if client confidence improves later in the year.
• Negative – SoW softness: Delays on big programmes and guidance for subdued H2 limit project-driven margin potential.
• Positive – Productivity and focus: Higher NFI with 6% fewer sales heads points to efficiency gains. The plan to add 10% sales headcount in FY26, targeted at growth areas, is sensible given the current momentum.
• Mixed – Cash: Net cash of £13.0 million remains a strength, but the step-down means investors should monitor debtor days and cash conversion as contractor volumes rise.

What to watch into the Interim Results (24 March 2026)

• SoW pipeline timing – Any signs of delayed programmes restarting would be upside to H2.
• Contractor numbers – Not disclosed today; a key driver of NFI and working capital. Trend direction will matter for cash conversion.
• Sales headcount trend – Execution against the 10% growth ambition, and whether productivity holds as hiring resumes.
• Adjusted margin detail – Not disclosed here; the Interim Results should bridge NFI to adjusted PBT (£4.5 million FY26 guidance).
• Dividend specifics – Quantum and policy commentary when the interim dividend is announced.

Jargon buster

• NFI (Net Fee Income): Revenue less contractor payroll costs – the recruiter’s “gross profit”.
• Like-for-like (LFL): Adjusts for acquisitions and disposals to show organic performance; InfoSec was acquired on 4 August 2025.
• Statement of Work (SoW): Fixed-scope project delivery, typically higher margin but lumpier and timing-sensitive.
• Adjusted PBT: Profit before tax excluding certain items (not itemised here), used as the earnings guidance metric.

Bottom line: a cleaner, contract-led beat with sensible investment

This is a tidy update. Like-for-like NFI up 7% and ahead-of-expectations trading, powered by a 13% surge in contract NFI, is what you want to see. Integration of InfoSec looks accretive to capability and momentum in cyber. Cash is lower for understandable reasons and the Group remains in net cash at £13.0 million.

Negatives are manageable: SoW weakness will likely cap H2 project upside and investors should keep an eye on cash conversion as contractor volumes rise. Overall, guidance of £4.5 million adjusted PBT and an expected interim dividend point to a business leaning into growth with discipline. One to watch closely on 24 March for detail on margins, cash and the SoW pipeline.