Gattaca – impressive Interims show 431% increase in profits, shares 105p, brokers TP 160p

Mark Watson-Mitchell – 24.03.2026  

This morning’s Interim Results from Gattaca (LON:GATC) showed a massive advance.

The specialist staffing business reported a strong first half for the six months to end- January, with revenue increasing by 10% to £212.4m and Net Fee Income (NFI) rising by 13% to £21.4m, driven by growth in sectors like Defence and Energy.

The group’s operating profit saw a significant increase of 431% to £2.6m, while its underlying pre-tax profit grew 187% to £3.0m.

Basic earnings were 215% higher at 6.9p per share.

The company also declared an interim dividend of 1.33p, up 33% increase year-on-year, while the group’s net cash position was £13.0m.

The acquisition last August of InfoSec People has been integrated.

Encouragingly, the company has reiterated its recent guidance for full-year underlying profit before tax at £4.5m.

Management Comment

CEO Matthew Wragg stated that:

"I am pleased to announce a strong H1 performance as we see our positive momentum continue to build and to report that the Group is trading in line with upgraded expectations.

Our strategic investments in growth opportunities are delivering and we have the majority of our sectors experiencing year on year growth.

The InfoSec team has performed well, enhancing the Group's cyber capability and contributing positively to our momentum during the period.

This has now been integrated into our systems and we can now begin to bring this enhanced capability to Group clients.

With a strengthened technology platform, a growing customer base and continued improvements in operational efficiency, the Group is well positioned for further growth.

However, given the volatility of the external environment, we remain measured in our outlook as we focus on delivering sustainable, long-term growth."

Broker’s View

Analysts Sanjay Vidyarthi and Joe Brent, at Panmure Liberum, have a Buy note out on the company, with a 160p Target Price.

They consider that Gattaca continues to outperform peers with its H1 Net Fee Income in line with expectations and a stronger-than-expected margin performance, driven by tight cost control.

For the current year to end July they are expecting Net Fee Income to grow to £42.3m (£38.8m), while pre-tax profits could increase to £4.5m (£3.3m), lifting earnings to 9.3p (7.6p), with a healthier dividend of 4.0p (3.0p) per share.

For the coming year, they go for NFI of £44.7m, PBT of £6.0m, EPS of 12.4p and a 6.0p dividend per share.

The analysts estimate that in the 2028 year, NFI will be £47.4m, PBT £7.0m, 14.4p EPS and a DPS of 7.0p.

My View

After speaking with the group’s CEO and its CO this morning, I am impressed with this £33m-capitalised company and its potential, as well as its strong £13m cash position.

It has upside prospects which should appeal to patient investors.

I am confident in the shares, now 105p, soon achieving my Target Price of 125p (wars permitting).

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