building on our strengths - gattaca plc repo¢ providing outsourced staffing solutions and...
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Building on our strengths
Annual Report and Accounts 2018
A nnual R
rt and A
cco unts 20
Who we are
Gattaca is a leading provider of engineering and technology
Founded in 1984, we have over 30 years’ experience in successfully matching talented people with employers’ requirements, often in areas where there is a scarcity of skills. We
are a highly focused business, operating exclusively in the two complementary recruitment sectors of engineering and technology. We have a resilient business model and have
recently reorganised our business to establish a foundation for further profitable growth.
Our vision We aim to be the leading provider of outsourced solutions
and specialist recruitment in our chosen markets.
Our people Our key asset is our people. They are at the heart of our business and you will see many
of our employees proudly featured in the imagery throughout this Annual Report.
Our Strategic Priorities
We focus on engineering, technology, recruitment solutions and Gattaca Projects. This clear focus on sectors and skill sets differentiates us from our competitors. Within each of our brands, our consultants are specialists in their markets and can consult and advise with ultimate confidence. This knowledge and expertise, combined with efficient and simplified processes, makes them valuable to both clients and candidates in understanding their challenges.
Our clients draw on our experience for attracting the resources they have difficulty finding; niche, scarce and skilled professional candidates who are strategically important to their business. Around 58% of our business comes from clients opting for framework or preferred supplier agreements. Moving up the value chain is also about fewer transactional relationships and more advisory ones, where we complement rather than compete with a client’s own functions. We look to build more valued relationships and become a trusted long term partner.
Our international footprint supports client requirements, especially global businesses looking for specialist help on a broader scale. We also help a growing number of professionals who are seeking engineering and technology opportunities abroad. We focus our resources on growing in regions which offer significant, scalable and sustainable profit potential in the near term, and areas where we can replicate our regional hub and spoke model.
1. Sharpen our focus
2. Move up the value chain
3. Think global
Gattaca Annual Report and Accounts 2018
Key Financial Highlights
£667.5m 2017: £642.4m
• Kevin Freeguard appointed Chief Executive Officer and joined on 1 October 2018.
• International operations restructured to focus on markets and territories where we see significant, scalable and sustainable opportunities for our business.
• Continued strong focus on our core and growing businesses, in particular UK Engineering (including Resourcing Solutions Limited “RSL”), UK IT, and North America.
• Ongoing cost reduction programme progressing to plan.
• Post year end consolidation of our London and Bromley offices almost complete with associated cost reductions delivered to plan.
Net fee income1
£78.9m 2017: £74.7m
Strategic Report 1 Highlights
2 At a Glance
4 Chairman’s Statement
6 Chief Executive Officer’s Review
12 Market Overview
13 Our Business Model
14 Key Performance Indicators
16 Chief Financial Officer’s Report
20 Risk Management
21 Our Principal Risks and Uncertainties
24 Our People
27 Responsible Employer
Corporate Governance 29 Chairman’s Introduction to Governance
30 Board of Directors
32 Directors’ Report
36 Corporate Governance Statement
42 Audit Committee Report
46 Nominations Committee Report
48 Remuneration Committee Report
Financial Statements 54 Independent Auditors’ Report
63 Consolidated Income Statement
64 Consolidated Statement of
65 Statements of Changes in Equity
67 Consolidated and Parent
of Financial Position
68 Consolidated and Parent
Company Cash Flow Statements
69 Notes Forming Part of the
(Loss)/profit from operations
(£23.4m) 2017: £12.7m
(Loss)/profit before taxation
(£24.9m) 2017: £11.5m
Dividend per share
3.0p 2017: 23.0p
Underlying profit from operations2,3
£14.3m 2017: £17.4m
Underlying profit before taxation2,3
£12.7m 2017: £16.2m
Notes 1 Net Fee Income (NFI) is calculated as revenue less contractor payroll costs. 2 Underlying results exclude amortisation of acquired intangibles of £2.7m (2017: £3.1m),
impairment of acquired intangibles of £33.3m (2017: £nil), non-underlying costs of £1.7m (2017: £1.6m) and excluding exchange gains/(losses) charged to the profit and loss. Profit from operations is underlying EBITDA less depreciation.
3 The Annual Report includes both statutory and alternative performance measures (APMs), the latter of which, in management’s view, reflects the underlying performance of the business and provides a more meaningful comparison of how the business is managed and measured on a day- to-day basis. Our APMs and KPIs are aligned to our strategy and together are used to measure the performance of our business and form the basis of the performance measures for remuneration. The underlying result excludes certain items because if included, these items could distort the understanding of our performance for the year and the comparability between periods.
At a Glance
Market-leading specialist recruitment solutions
Founded in 1984, Gattaca has grown into an international business, with more than 800 staff around the world, and the ability to support client requirements in over 100 countries. The Gattaca Group comprises a number of specialist recruitment brands. These include the engineering recruitment specialist, Matchtech; technology recruitment specialist, Networkers; professional staffing consultancy, Barclay Meade; and skills and employability specialist, Alderwood.
Where we operate
UK LONDON BROMLEY* DERBY READING UXBRIDGE WHITELEY
* We are withdrawing from the territories and markets marked in Coral We currently operate in all countries shaded in green
10% of Group NFI
81% of Group NFI
5% of Group NFI
4% of Group NFI
We help companies realise their full people potential, by providing outsourced staffing solutions and recruitment services to those operating in the engineering and technology markets. We offer a personal service to each company we work with – from international engineering consultancies with thousands of employees to niche SMEs operating in emerging technology fields such as artificial intelligence (AI). We help them overcome their recruitment challenges and achieve their business goals.
2Gattaca Annual Report and Accounts 2018
Our business at a glance
Our solutions & services
Our engineering business Matchtech specialises in eight key sectors:
• Aerospace • Automotive • Energy • Engineering Technology • General Engineering • Infrastructure • Maritime • Professional
Read more on page 8
Core recruitment Solutions
• Permanent, fixed term, temporary, contractor and interim recruitment
• Contingent recruitment • Preferred Supplier Lists (PSLs) & frameworks • Exclusive vacancy and campaign recruitment
• Flexible workforce solutions • Permanent workforce solutions (RPO) • Total workforce solutions (total talent management) • Statement of Work services and fully managed projects • Seconded professionals • Fully managed projects
Our specialist recruitment brands provide a range of services across the Engineering & Technology sectors, with the most advanced being our Exclusive Campaign service, whereby a dedicated consultant manages recruitment campaigns on behalf of our clients. This is our core business which we have delivered since 1984.
Gattaca Solutions is a leading provider of flexible, permanent & total workforce solutions. Using our own specialist brands and an external supply chain, we create innovative solutions to enhance our clients’ workforce strategies, covering compliance, visibility, cost savings, quality and process eff