‘New’ Gattaca on track and well positioned

For Gattaca FY24 was predominantly about self-help, ensuring that the business was in good shape to take maximum advantage once the market turns and to improve market share in the short term. The good news is that the FY24 results were in-line with revised expectations and there are positive signs in terms of initial recovery in fee income. 

Progress was made during what was a challenging year to meet many of the Board’s strategic goals. Progress was made in focusing staff numbers to align with the greatest opportunities, not least in Energy (renewables / transmission / distribution).

As regards to improving NFI, good momentum was witnessed during H2 whereby fee income rose 3.8% on a half-yearly sequential basis and was at the highest level in three half-yearly periods. In our note we cite examples to confirm our view that the UK and contract markets are in the process of bottoming out.

With no change to financial estimates and cash being 70% of market cap, we remain positive on Gattaca’s prospects and retain our 140p / share fair value.