Upgrading FY21 forecasts & valuation to 280p/share
A ‘V-shaped’ recovery, together with a shortage of qualified staff, is providing a favourable backdrop for Gattaca, which helps organisations recruit hard-to-find STEM personnel. Additionally, after skilfully navigating the pandemic the group has emerged far fitter (less cost), healthier (stronger balance sheet) and better placed to benefit from these near buoyant conditions.Today it updated that FY21 PBT would be “significantly ahead of expectations”, thanks to strong Q3 NFI growth (+13%) as more perms/contractors were placed, augmented by tight cost control (whilst still investing in headcount) and less disruption caused by the IR35 tax introduction in April.
Meaning that H2 NFI is also anticipated to be 10% higher sequentially vs H1, coupled with the reinstatement of a “modest” dividend (ED est. of 0.5p, equivalent to a 0.3% yield, rising to 1.0% in FY22).
Similarly, our NFI and adjusted PBT forecasts have been upgraded to £44.3m (from £43.0m) and £2.7m (£750k) respectively - with net cash (excluding £12.2m of off B/S non-recourse finance) closing July ’21 at £18m. Providing plenty of fire power for the group to increase resource further in sales and service delivery.
Accordingly, we have raised our valuation from 225p to 280p per share.
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.
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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