LONDON (ShareCast) - (ShareCast News) - AMI-listed Gattaca warned on Thursday that profits for the year to 31 July 2017 will be around 10-15% below its previous expectations.


The group said its performance in the first half of the year reflects tougher UK trading conditions following the Brexit vote. Net fee income in the first half softened due to near-term uncertainty, which led to elongated hiring decisions and some projects being delayed.

However, the company said the medium-term outlook in its sectors remains positive with some signs of a return of confidence in recent weeks.

"Unanticipated one time cost overruns relating to the setting up of international entities to support a pan-European contract win and delays in realisation of back office cost savings will result in our central overheads exceeding our expectations for the second half.

"Alongside this we have been making the appropriate investments to ensure that the group has the infrastructure to build a truly scalable business. Given the opportunities we see, the group has continued to strategically invest in sales headcount, up 24 since 31 July 2016 and we expect to see a return on these investments during the second half and beyond. We are particularly confident that the headcount investments which we have made in our overseas businesses will lead to accelerated growth next year."

Gattaca said the acquisition of Resourcing Solutions Limited in February has significantly strengthened its capability in the UK Rail market, an area of high investment by the government.

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