Market's view on Gattaca
Published on April 2024
- A new research report has been released stating the company’s half-year results were as expected despite a drop of 12.8% year-on-year in Net Fee Income (NFI), attributed mainly to weaker permanent recruitment activity, while contract activity remained stable.
- The report indicates that despite a decline in economic confidence, the operating business, valued at £10.5 million excluding net cash, seems undervalued with a fair value set at 140p per share.
- Some stock watchers express concerns about the company’s revenue downturn impacting earnings, with predictions of disappointing future results and potential share price declines.
- There are observations about the company’s focus on contract over permanent recruitment, with a shift in income ratio from 68%/32% to 76%/24% in contract to permanent respectively.
- Discussions centre on the stability of share prices despite bad news and a cautious approach by some who opted to sell shares in anticipation of unfavourable outcomes.
- Despite some negative sentiment, there are mentions of maintained profit expectations and a focus on cost reduction which could improve profit conversion rates and stabilise the financial situation in the upcoming quarters.