Gattaca – already up 42% in last three months, these shares, now 147.50p, could soon be heading to 175p then 200p

Mark Watson-Mitchell - 08.06.2026

There are not many quoted companies that expect to almost double profits in the current year, but Gattaca (LON:GATC) is certainly expecting to do so in its year to the end of next month.

Four weeks ago, the specialist staffing solutions business issued another material upgrade to investors.

The £47m-capitalised group helps science, technology, engineering, and mathematics (STEM) employers solve their workforce challenges through tailored solutions, strategic consultancy, and technology-enabled services.

Its approach combines deep market knowledge, skills expertise, and robust governance to deliver not just hires, but sustainable workforce outcomes.

Mid-May saw the company issue an unscheduled, positive Trading Update reflecting continued strong trading momentum in contracts alongside lower-than-expected costs.

On Tuesday 17^th March I featured the company in anticipation of some good Interim Results, with its shares then at 104p – noting that despite very challenging employment markets the group’s shares looked to be well worth tucking a few away.

Last Tuesday, 2^nd June, the shares touched 155p, before drifting back to end the week at 147.50p – a healthy 42% price gain in less than three months.

Although we will have to wait until Wednesday, 5th August, for the group’s Full Year Trading Update, covering the year to end-July, I believe that there is still upside potential for its shares.

The Business

With its headquarters in Fareham, Hampshire, Gattaca is a human capital resources business providing contract and permanent recruitment services in the private and public sectors across the UK, Europe and North America regions.

Its segments include Mobility, Energy, Defence, Digital Technology, Infrastructure, Commercial & Professional, Gattaca Projects and International.

The group offers a range of recruitment solutions, such as workforce solutions, technical recruitment solutions, engineering and technology solutions, workforce insights, events, and resources, and others.

It also provides a range of engineering and technology services to support clients’ needs, from engineering design services to analysis.

The business serves various markets, such as aerospace, automotive, defence, and banking and financial services.

Gattaca Projects solves complex technical and operational challenges through tangible outcome-based services.

The company’s brands include Gattaca Solutions, Gattaca Projects, Matchtech, and Barclay Meade.

Net Fee Income remains its primary measure of financial performance, representing the gross margin earned across all of its revenue streams.

This includes:

Contract income: The margin generated on time worked by Independent and Employed Contractors over the duration of their assignments.

Permanent placement fees: One-time charges calculated as a percentage of a candidate’s starting salary.

Statement of Work outsourcing: Margins earned from managing defined projects or deliverables where it takes responsibility for outcomes, timelines, and quality standards.

The group’s strategic weighting towards contract and SOW engagements provides resilience and strong forward visibility, as these arrangements typically generate repeatable, predictable fees and foster long-term client relationships.

Latest Trading Update

On Thursday, 14^th May, the group upgraded its full-year guidance for the year to the end of next month.

The group is now expecting continuing underlying profit before tax to be not less than £6.0m, an increase from its previous guidance of £4.0m.

That positive revision was driven by strong performance in contract recruitment, which exceeded market expectations, with growth observed across most of the company's core sectors.

The company attributed that success to strategic investments and continued operational discipline, maintaining confidence in its strategy despite challenging market conditions.

The Equity

There are 31.53m shares in issue.

Mutual Funds and ETF’s hold 5.18%, other Institutional Investors hold 57.27%, while Public Companies and Retail Investors hold 37.56% of the equity.

The larger holders include GGM Holdings (23.75%), Hargreaves Lansdown Asset Management (5.30%), Aberdeen Group (5.11%), Chelverton Asset Management (4.95%), Matchtech Group shareholders (4.07%), Raymond James Wealth (3.72%), Interactive Investor Services (3.65%), Nucleus Financial Services (2.86%), Panmure Liberum Capital (2.45), HBOS Investment Fund Managers (2.34%), Hargreaves Lansdown Fund Managers (1.89%), and Canaccord Genuity Wealth Intl (1.64%).

Management Comment

At the time of the latest Update, CEO Matthew Wragg stated that:

"The Group has continued to make good progress through the second half, with strong contract growth across our core sectors and continued operational discipline supporting performance ahead of previous market expectations.

Our strategic investments are delivering, and the majority of our sectors are showing year-on-year growth.

The Board remains confident in the Group's strategy and is focused on building momentum in the challenging market conditions."

Brokers View

Analysts Sanjay Vidyarthi and Joe Brent, at Panmure Liberum, on the Update news, reiterated their Buy rating for the group’s shares, whilst raising their Target Price to 185p (160p).

They stated that:

“We increase our FY26E adj. PBT estimate by 33% to £6.0m to reflect management’s upgraded guidance.

Our outer year forecasts remain cautiously set, with risks to the upside.

Management is reaping the benefits of the self-help initiatives undertaken in recent years.

The business is materially outperforming peers in the UK and there is plenty more to go for.”

Their estimates for the year to end-July are for net fee income of £43.0m (£38.8m), with pre-tax profits of £6.0m (£3.3m), lifting earnings to 13.3p (7.6p) and doubling its dividend to 6.0p (3.0p) per share.

For the coming 2027 year, they see £44.8m NFI, £6.5m profit, 14.4p earnings and 6.9p per share in dividend.

Looking further ahead into 2028, they see £47.4m NFI, £7.5m profit, 16.5p earnings and a dividend raised to 8.0p per share.

My View

This group’s shares, now 147.50p, are still cheap, despite the recent rise.

I see them moving to trade the 155p/175p levels before attempting to scale the 200p barrier, last seen in November 2021.

(Profile 16.03.26 @ 104p set a Target Price of 125p*

Just watch them go!

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