Gattaca plc (LON:GATC) Chief Executive Officer Matthew Wragg caught up with DirectorsTalk to discuss H1 2026 financial results, sector performance, acquisition progress, and the long-term investment case for the business.
Q1: Interim results for the six months ended 31st January 2026 just out. Could you just talk us through the highlights of the first half?
A1: It’s been a solid first half as we continue to build the momentum that we’ve been building over the last few years.
So, Group NFI, just over £21 million, that’s 13% up year on year. Good to see that across nearly all sectors actually showing year on year growth, in particular, defence, energy and infrastructure.
We also completed the acquisition of InfoSec People, cyber security specialists as well, which has contributed a bit as well. Underlying profit, £3 million, so up 187%, again, stronger trading, good margin discipline, good focus, which is pleasing to see.
Cash is down slightly, but for all the reasons we want. It will be paying out dividends, funding partly acquisition, and also, obviously, as we grow our contractor base, we need more of our capital to be able to fund that. So, cash is down to £13 million, but as I say, for all the reasons we want it to. Obviously, confirmed the half year dividend up 33% at 1.33p.
So, a good solid first half of the year.
Q2: It’s been a really positive first half performance. You’ve delivered good Net Fee Income growth alongside significant increase in profitability. What do you put all this down to?
A2: It’s lots and lots and lots of things but fundamentally, it’s about the focus on our strategy, which is really creating a fantastic environment for people to go and be successful. So, we’ve got a wicked culture, a great team, really clear on what markets we want to focus on, really clear on what services we want to focus on, and being really externally orientated. So, this is four years done now, and we’re very much now into seeing the results of the work that’s been put in and starting to build that momentum, which is great.
I think we really do generally spend a lot of time looking at how do we help everyone be super successful. So, the technology we put in, the ability for consultants to get off and running quicker, the way the whole team is collaborating positively, and all of that is producing some good positive results in the NFI per sales headcount, which is great, which ultimately has fed into a positive PBT performance.
We didn’t get any real admin headwinds at all in the first half of the year, so that slightly inflated the performance we were expecting from a PBT, but up from £1 million last year to £3 million for this year.
So, clear strategy, good people, lots of momentum is what it’s all about.
Q3: Which sectors have performed particularly well during the period, and why do you think?
A3: I think we’ve decided to focus on sectors where we see long-term sustainable need. So, as I said, nearly every part of our business is showing some year-on-year growth. The one major exception to that is very client-specific, and we’re in full control over that, and that will return.
Infrastructure, which is our biggest area, has grown by 6%, and that’s good to see. If your biggest part of the business is growing, it obviously helps a whole lot. Within that, our water sector, which clearly is huge around investments and plays a massive investment cycle in the UK market, has seen really continued positive growth. I think defence, we had a pretty tough H1 last year in defence, which rallied well into H2 and has maintained that momentum into H1, so that’s good to see.
Unfortunately, the world is full of some significant global events at the moment, but that, as yet, isn’t really actually driving increased demand. The UK government is still yet to really commit to major projects and spend. So, this is more about recovering and grabbing market share, and our big investments over the last 2/3 years have been about scaling energy, and we continue to see solid percentage growth, 13% year-on-year growth in that marketplace.
So, nice to be in a position where the business is just feeling confident and feeling positive.
Q4: You mentioned earlier the acquisition of InfoSec. How is that performing now, and what does it bring to the group?
A4: When we started looking at M&A, I promised myself and the business, actually, we would only look at businesses which would be a real capability and a cultural add, and I think it brings both of that.
So it’s a very, very specialist, very capable cyber security business. Great team, great credibility. It’s performed well. I think that performing well has been a lot of its own momentum. We’ve managed to fully integrate it from a systems point of view and from a people point of view in the first six months. So, it’s now fully on all the same tech stacks, fully integrated into the rest of the business, but we’re as yet to actually get this fully integrated with our Matchtech customer base. So, a long way to go with that.
We’re pleased with the progress. The team have gone through complete technology change as well as starting to work with a different group and doing so whilst our NFI has continued to improve as well. So, a really great performance by them.
Q5: Just to finish, for investors building a portfolio, why would they invest in Gattaca ahead of other listed recruitment companies?
A5: I think it’s a difficult place for all of us now. I think if you listen to all of the press on the world of work, then it doesn’t sound particularly rosy, but the reality is there’s always a good business in every market. I think we’re demonstrating that with good resilience, a really clear plan, delivering on what we say every six months.
I think we are in sectors and services and skills which have to happen. The amount of energy, demand, provision, and resilience is going to have to happen. I think defence is a huge market. The construction programmes have to happen. Cyber security is something on the front of all of our minds. So, all of these marketplaces have long-term sustainable need. A lot of the skills required are not susceptible to the introduction of AI.
I think it gives a really good focused long-term growth potential. I think we’ve got a great history. We’ve got lots of heritage. I think we’ve got a really wicked and well engaged workforce, and any business is about momentum, and we definitely have momentum at the moment.
So, if there’s investors looking within the market as to who to invest with, good cash position, growing on its service lines, growing on its sectors, really engaged team and really clear focus and hopefully it’s pretty apparent we’re quite a passionate and ambitious bunch. So, it’s certainly where I’d be putting my money.
