Company DescriptionGattaca PLC provides specialist recruitment solutions to companies in the engineering and technology sector. Its offerings revolve around three services: contingent workforce solutions which include temporary, contract and project bases workforce; permanent recruitment process outsourcing providing full as well as partial outsource of the permanent workforce to clients; and total workforce solutions. The company's operating segments are classified into UK Engineering, UK Technology, and International. It generates most of the revenue from the UK Engineering segment. Geographically, it derives a majority of revenue from the United Kingdom and also has a presence in the Rest of Europe; Middle East and Africa; Americas, and Asia Pacific.

How the Company Makes Money

Gattaca Financial Statement Overview

Summary

Gattaca exhibits modest revenue growth but faces challenges in profitability and operational efficiency. The balance sheet shows stability with low leverage, yet cash flow management is concerning due to significant declines, impacting liquidity. Improvement in margins and cash flow generation is needed.

Income Statement

Positive

Gattaca's income statement reveals modest revenue growth of 1.13% in the most recent annual period. The gross profit margin stands at 10.29%, indicating some pressure on cost management. The net profit margin is low at 0.05%, reflecting challenges in translating revenue to net income. EBIT and EBITDA margins are also low at 0.28% and 0.86%, respectively, suggesting limited operational efficiency and profitability.

Balance Sheet

Positive

The balance sheet shows a solid equity base with a debt-to-equity ratio of 0.07, highlighting low leverage and financial stability. The return on equity (ROE) is weak at 0.66%, indicating limited earnings relative to shareholder investment. The equity ratio is 34.83%, reflecting a balanced approach to financing between equity and liabilities.

Cash Flow

Neutral

Gattaca's cash flow statement reveals a significant decline in operating cash flow, with a 64.41% drop from the previous year. The free cash flow has also decreased by 65.45%, suggesting potential challenges in liquidity management. The operating cash flow to net income ratio is 18.26, indicating reliance on cash flow for profitability. The free cash flow to net income ratio is 17.40, further emphasizing this dependency.

Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Breakdown
Income Statement		Total Revenue
389.53M	385.17M	403.87M	415.73M	534.71M
	Gross Profit
40.08M	43.40M	44.20M	42.08M	51.87M
	EBIT
1.08M	2.09M	192.00K	1.41M	5.60M
	EBITDA
3.37M	6.03M	-2.26M	3.46M	6.60M
	Net Income Common Stockholders
186.00K	1.23M	-4.62M	-437.00K	-1.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.82M	23.38M	17.77M	29.24M	34.80M
	Total Assets
81.22M	81.38M	84.37M	109.10M	105.41M
	Total Debt
2.07M	1.82M	5.43M	15.11M	15.19M
	Net Debt
-20.75M	-21.55M	-12.34M	-14.13M	-19.61M
	Total Liabilities
52.91M	50.56M	53.91M	74.00M	65.64M
	Stockholders Equity
28.30M	30.82M	30.45M	35.11M	39.77M
Cash Flow		Free Cash Flow
3.24M	9.36M	-1.60M	-4.62M	54.88M
	Operating Cash Flow
3.40M	9.54M	-1.20M	-4.20M	57.41M
	Investing Cash Flow
-31.00K	-48.00K	-399.00K	-415.00K	-2.25M
	Financing Cash Flow
-3.49M	-3.69M	-10.06M	-598.00K	-38.52M

Gattaca Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$8.11B	13.34	1.17%	3.02%	4.16%	-15.14%
GATC	57 Neutral	£26.32M	141.53	0.66%	2.92%	1.13%	-84.64%

* Industrials Sector Average

Performance Comparison

GB:GATC

Gattaca

83.50

-25.90

-23.67%

GB:FRAN

Franchise Brands

142.00

-32.69

-18.71%

GB:PAGE

PageGroup

325.40

-108.43

-24.99%

GB:RWA

Robert Walters

255.00

-133.33

-34.33%

GB:STAF

Staffline

33.00

6.75

25.71%

GB:SFOR

S4 Capital Plc

28.32

-10.84

-27.68%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

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