Continued strong execution and positive outlook
Given the tightening UK jobs market with vacancies back to pre-Covid levels, it’s no wonder businesses are struggling to find technical/skilled staff. Turning instead to specialist STEM recruiters like Gattaca, particularly within ‘hot’ areas such as software, digitisation, renewables, electrification, defence (cyber & marine), engineering and infrastructure (eg HS2, fibre-to-the-home, Lower Thames Crossing, etc).Gattaca has updated today that in the 12 months to end July continuing H2’21 NFI was 7% higher than H1. Delivering FY21 adjusted PBT of at least £3m (vs ED est. £2.9m) on NFI down 20% to £42.5m vs £53.1m. Cashflow was also better than expected, with net funds (ie cash less non-recourse factoring less VAT deferrals) ending July at c. £2.4m vs ED est. £0.65m.
We think the group is in fine fettle and fully primed for the next stage in the economic recovery, emerging from the pandemic with a much leaner cost base after significant corporate ‘pruning’. Plus the total £20m reported net cash balance (excl. IFRS16) provides ample room to pay a “modest” dividend.
At this stage, we have conservatively held our FY22 forecasts, but nudged up our fair value to 285p/share from 280p thanks to the favourable outlook & July cash out-turn.
Adecco Group provides human resource services, including temporary staffing, permanent placement, outsourcing, consulting and outplacement. Co. has more than 5,500 branches in over 60 countries and territories. Co.'s Office and Industrial businesses offer a range of general staffing services, including temporary staffing, permanent placement, assessment, training and integrated human resources applications. In addition, Co. operates professional business lines, which include Adecco Finance & Legal, Adecco Engineering & Technical, Adecco Information Technology, Adecco Medical & Science, Adecco Sales, Marketing & Events and Adecco Human Capital Solutions.
Empresaria Group is an international specialist staffing group. As of Dec 31 2016, Co. operated in 19 countries across four geographic regions and across seven primary sectors. Co.'s business is segmented into four regions, U.K., Continental Europe, Asia Pacific and the Americas. Co.'s primary sectors include technical and industrial, information technology, digital and design, professional services, retail, executive search, healthcare, aviation services, and other. Co. has three main service lines, temporary and contract recruitment, permanent recruitment and offshore recruitment services.
Gattaca is an engineering and technology recruitment solutions company. Co. operates in the STEM markets (science, technology, engineering and maths), all sectors with skills shortages. Co. has three reporting segments, Engineering, Technology and International. Co.'s brands are Matchtech, an engineering recruitment specialist; Networkers, a technology recruitment specialist; Cappo, Provanis, Barclay Meade, a professional services brand, recruiting finance, procurement, sales and HR professionals., and Alderwood, which is involved in placing trainers and assessors with training providers throughout the U.K. and the Middle East.
Randstad is a global staffing and recruitment company, providing various solutions in the human resources (HR) services space. Co.'s services include regular temporary staffing and permanent placement of candidates. In addition, Co. provides several other HR solutions, such as Recruitment Process Outsourcing (RPO), Managed Services Programs (MSP), payroll services, and outplacement. Co. provides four distinct service concepts: Staffing, Inhouse Services, Professionals and HR Solutions.
Robert Half International provides staffing and risk consulting services. The company, through its Accountemps, Robert Half Finance & Accounting, and Robert Half Management Resources divisions, is a provider of temporary, full-time, and project personnel in accounting and finance fields. The company's OfficeTeam division places office and administrative personnel, ranging from executive and administrative assistants to receptionists and customer service representatives. The Robert Half Technology division provides information technology contract consultants, places employees, and provides managed services in areas ranging from multiple platform systems integration to end-user technical and desktop support.
Staffline Group is a holding company. Through its subsidiaries, Co. is engaged in the provision of recruitment and outsourced human resource services to industry and services in the welfare to work arena. Co. has two operating segments: Staffing Services and PeoplePlus. The Staffing Services segment provides labour solutions in agriculture, food processing, manufacturing, e-retail, driving and the logistics sectors in the U.K., Eire and Poland. The PeoplePlus segment is a provider to both Central and Local Government, providing a range of services to help and support in the Employability (Welfare to Work), Communities and Skills arenas.
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