Final results for the year ended 31 July 2025

About this update from Gattaca Plc

[{"type":"text","content":"\n \n 23 October 2025 \n   \n Gattaca plc \n (\"Gattaca\" or the \" Group\") \n Final results for the year ended 31 July 2025 \n \"Solid performance with underlying PBT at the upper end of guidance\" \n Gattaca plc, the specialist staffing business, announces its audited financial results for the year ended 31 July 2025. \n   \n Financial Highlights \n   \n \n \n \n \n \n \n \n 2025 \n £m \n \n \n 2024 \n £m \n \n \n Variance \n \n \n \n \n Continuing operations \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Revenue \n \n \n 398.9 \n \n \n 389.5 \n \n \n 2% \n \n \n \n \n Net Fee Income (NFI) 1 \n \n \n 38.8 \n \n \n 40.1 \n \n \n -3% \n \n \n \n \n EBITDA \n \n \n 3.6 \n \n \n 2.6 \n \n \n 38% \n \n \n \n \n Profit before tax - reported \n \n \n 2.6 \n \n \n 1.7 \n \n \n 53% \n \n \n \n \n Profit before tax - underlying 2 \n \n \n 3.3 \n \n \n 2.9 \n \n \n 14% \n \n \n \n \n Profit after tax \n \n \n 1.9 \n \n \n 0.8 \n \n \n 138% \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Profit/ (Loss) from discontinued operations after tax \n \n \n 0.3 \n \n \n (0.6) \n \n \n n/a \n \n \n \n \n Group reported profit after tax \n \n \n 2.2 \n \n \n 0.2 \n \n \n 1, 000% \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Basic and diluted earnings per share \n \n \n 7.0p \n \n \n 0.6p \n \n \n 1, 067% \n \n \n \n \n Diluted earnings per share \n \n \n 6.8p \n \n \n 0.6p \n \n \n 1, 033% \n \n \n \n \n Basic underlying continuing earnings per share \n \n \n 7.8p \n \n \n 6.0p \n \n \n 30% \n \n \n \n \n Ordinary dividend per share \n \n \n 3.0p \n \n \n 2.5p \n \n \n 20% \n \n \n \n \n Net cash \n \n \n 15.7 \n \n \n 20.7 \n \n \n -24% \n \n \n \n \n   \n ·      Group NFI of £38.8m, down 3 % year on year (\"YoY\"). \n o  Infrastructure, our largest contributor to Group NFI (36%) grew by 5% with particularly strong growth within Water sector. \n o  Defence sector, 19% of Group NFI, reduced slightly by 1%, exiting the year well with H2 up 14% YoY. \n o  Energy sector, 16% of Group NFI, up 17% YoY reflecting strategic investment into headcount. \n o  Contract NFI down 2% YoY, pleasingly the Group saw a 3% increase in contractors over the last six months to 31 July 2025 (\"H2\"). \n o  Permanent business remained subdued with NFI down 4% YoY reflecting the ongoing challenging market. \n o  Gattaca Projects Statement of Work (\"SoW\") business NFI contracted by 24% YoY, due to anticipated key programme delays having grown 35% in FY24. \n o  Contract vs SoW vs Perm split 75% / 6% / 19% of Group NFI (FY24: 74% / 7% / 19%). \n ·      Group continuing underlying profit before tax of £3.3m (FY24: £2.9m ) up 12% year on year, reflecting focus on costs and productivity while top line growth is subdued. \n ·      Group net cash of £15.7m as at 31 July 2025 (31 July 2024: £20.7m, 31 January 2025: £16.8m) reflecting a slight extension of the working capital cycle coupled with cessation of the Group's non-recourse invoice discounting facility. \n ·      Final dividend of 2.0 pence per share, increasing the full year dividend by 20% to 3.0 pence per share (FY24: 2.5 pence per share). \n   \n   \n Operational Highlights \n   \n Continued delivery and emphasis on developing the four Strategic Priorities as the Group's focus remains on achieving sustained growth: \n   \n External Focus \n ·    Increased our scale and focus on key sectors. \n ·    New Matchtech brand and sales and marketing capability enabling us to improve efficiency and effectiveness of go to market in our chosen sectors. \n ·    Delivered landmark Voice of the Workforce survey, gathering feedback from over 3,000 contractors, to support clients understanding their temporary workforce needs. \n   \n Culture \n ·      Winner of awards for culture and sustainability. \n ·      People engagement score remains solid at 8.4 in FY24 (FY24: 8.1) and attrition has improved to 28% (FY24: 31%, and FY23: 33%). \n   \n Operational Performance \n ·    Direct actions resulted in increase in NFI per sales head by 7%, and by 13% per total head YoY. \n ·    Further improving sales productivity through the use of AI, automations and further leveraging our technology capability. \n ·    Integration of InfoSec acquisition progressing well with plan on track to have migrated operations to Group platforms by the end of FY26 H1. \n   \n Cost Rebalancing \n ·     Aligned sector profitability to leadership reward \n ·     Continue to invest in our people and tools, including brand and scaling Group capability in front line sales, whilst maintaining cost control. \n   \n   \n Outlook \n   \n Market conditions remain challenging, with permanent hiring remaining subdued, Gattaca sees growth potential in its chosen sectors having spent time rationalising and strengthening the Group. \n   \n The Group strategy remains consistent, with emphasis on having the right people and culture, complemented by bolt on acquisitions. Ongoing productivity improvements and robust cost control will support growth, whilst providing us the headroom to add further experienced people to the Group's sales teams. \n   \n The Board is optimistic about the prospects of the Group with an expectation for the FY26 year ahead to achieve further growth in continuing underlying profit before tax, in line with the current market consensus of £4m. \n   \n   \n Matt Wragg, Chief Executive Officer of Gattaca, commented: \n   \n \"We are pleased to report solid performance for FY25 with PBT reported at upper end of guidance in a tough macroeconomic backdrop, delivered through proactive management of market challenges whilst continuing to invest in capability and people for sustainable growth. \n   \n We are now seeing tangible results from our strategy concentrating on markets with strong potential, retaining and deepening customer relationships, strengthening our capabilities, improving productivity, expanding our contractor base, and realising the benefits of our strategic investments. \n   \n We are pleased with the start to FY26 and speed with which we are integrating Infosec People into the Group.\" \n   \n   \n   \n   \n The following footnotes apply, unless where otherwise indicated, throughout these Final Results: \n   \n 1.     NFI is equivalent to gross profit, being revenue less direct costs. \n 2.     Continuing underlying results exclude profit / (loss) before taxation of discontinued operations (2025: £0.5m, 2024: £(0.6)m, non-underlying items within administrative expenses relating to restructuring costs (2025: £(0.3)m, 2024: £(0.5)m), and other items (2025: £(0.3)m, 2024: £(0.6)m), amortisation of acquired intangibles (2025: £(0.0)m, 2024: £(0.1)m, and net foreign exchange losses (2025: £(0.0)m, 2024: £(0.1)m loss). \n   \n The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain. \n   \n For further information, please contact: \n   \n \n \n \n \n Gattaca plc \n \n \n +44 (0) 1489 898989 \n \n \n \n \n Matthew Wragg, Chief Executive Officer \n Oliver Whittaker, Chief Financial Officer \n \n \n \n \n \n \n \n Panmure Liberum (Nomad and Broker) \n \n \n +44 (0) 20 3100 2000 \n \n \n \n \n Edward Mansfield \n Will King \n \n \n \n \n \n \n \n IFC Advisory (Financial PR and IR) \n Tim Metcalfe \n Graham Herring \n Florence Chandler \n \n \n +44 (0) 203 934 6630 \n \n \n \n \n   \n \n \n \n \n \n \n \n   \n   \n \n \n   \n Chair's Statement \n   \n A year of progress for the Group \n Overview \n FY25 was a year of progress for the Group, as our leadership team successfully managed the challenges of a difficult external environment. \n In any business, financial performance is the outcome of selecting the right markets, having the right people and culture, and putting processes in place that allow people to perform at the highest level. Our strategy has given us a clear focus on sectors with positive dynamics. As we move deeper into those sectors, we create the conditions for further success by increasing our understanding of each market and getting closer to the clients and individuals who work in them. The Group's culture is also moving in the right direction. In addition to high levels of engagement and retention, I am starting to see a real sense of excitement and entrepreneurship among our teams. Meanwhile, the ongoing simplification of the business and the investment in technology and tools have contributed to our productivity and efficiency. \n   \n Performance and Returns to Shareholders \n The Group's robust performance in FY25 means that we modestly exceeded our expectations for continuing underlying profit before tax, which was up 12% year on year. Most of our key metrics are improving, although there is still further work to do to increase NFI per total head, the ratio of sales to support staff and our conversion of fee income into profit, among others. As Matt Wragg explains in his statement on the following pages, we are now particularly focused on returning the Group to top line growth. This will give us the broadest range of choices into the future, whether that is investing in organic or inorganic growth or rewarding shareholders through dividends. \n   \n We were pleased to reintroduce the interim dividend this year, paying 1.0 pence per share in May 2025 (FY24: nil). The Board has proposed a final dividend of 2.0 pence per share (FY24: 2.5 pence), to give a total in respect of the year of 3.0 pence. This is consistent with our objective for the total dividend to be approximately 50% of profits after tax. Subject to shareholder approval, the final dividend will be paid on 12 December 2025 to shareholder on the register at 31 October 2025. \n   \n The Board \n Having refreshed and slimmed down the Board in FY24, there were no changes to its composition in FY25. The Board has five members, with me as Independent Non-Executive Chair, two Independent Non-Executive Directors and two Executive Directors. This is an appropriate size and gives us a good mix of knowledge and experience, so we can provide effective challenge and oversight. \n   \n Looking Ahead \n The world of work is changing and Gattaca is well placed to benefit. While people remain committed to doing a good job, they increasingly want to do so on their own terms, both financially and through a work pattern that suits them, their family and their employer. Increased employment costs also make it inevitable that businesses will weigh up whether to recruit permanent employees or utilise contractors, self-employed people or other models such as statement of work. \n Our markets give us good exposure to these dynamics and our growing contractor base, statement of work offering and permanent recruitment capabilities mean we can support clients and candidates with their chosen way of working. \n With our leadership team having shown its ability to execute, the Group is now firmly on the front foot. The strategy to date has delivered tangible results and I am looking forward to further progress in the year ahead. \n   \n Richard Bradford Independent Non-Executive Chair \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n \n \n   \n Chief Executive Officer's Statement \n   \n Positive momentum, a great team and a simpler business \n   \n Overview \n Gattaca had a solid year in FY25, as we outperformed our peers in challenging markets and continued to successfully implement our strategy. We have positive momentum, a great team and a simpler business, which is making it easier for us to succeed in the markets we are targeting. This gives us a strong platform on which to build. \n   \n Performance \n Our markets were generally very tough during the year, with high candidate supply, low demand and a lack of client confidence, exacerbated by the increase in employer National Insurance in the UK, our largest market. Clients have therefore invested in technology rather than people, which has particularly affected entry level roles. \n   \n Group underlying profit before tax increased by 12% to £3.3m (FY24: £2.9m), which was above our expectations. This reflects our rigorous focus on costs and productivity. Group continuing NFI was modestly lower at £38.8m (FY24: £40.1m). We successfully grew the volume of our contractor book, although lower utilisation during holiday periods reduced contract NFI by 2%. Permanent NFI was 4% down, as the market stabilised at lower levels of demand. \n   \n We have invested significantly in our Energy team and we are reaping the rewards, with 17% NFI growth this year and buoyant demand in our core subsectors of nuclear, renewables and transmission and distribution. Defence NFI was 1.5% lower due to a market slowdown whilst awaiting the outcome of the UK's Strategic Defence Review; we have a strong position and good prospects, as the UK and other European governments ramp up defence spending. Water was the most active subsector in Infrastructure, with Rail and Highways both subdued, while Mobility and Digital Technology were held back by the difficult market environment. \n   \n Gattaca Projects' statement of work NFI was 24% lower against a very strong FY24 comparative, as the Strategic Defence Review led to programme delays. The business is in good shape and has a broader portfolio than 12 months ago, including a new contract with a major Energy company. We are being proactive to grow this service line, both organically and through bolt-on acquisitions. \n   \n The Group has a robust balance sheet, with net cash of £15.7m (31 July 2024: £20.7m) after returning £1.1m of cash to shareholders through dividends in the year. This will allow us to continue to grow our contractor book, complement organic growth with carefully selected acquisitions, and reward shareholders through dividends. \n   \n Strategy \n Our results this year show the benefits of our previous strategic investments. We made further strong progress with each element of our strategy during FY25. \n   \n External Focus \n The simplification of our business has continued to bear fruit, as we focus on providing a multi-service offering in markets where we are, or can become, a leading player. This focus is allowing us to do more with the same customers. We have really stepped up our engagement, building customer relationships at strategic levels, and created highly professional marketing and business development functions, which we expect to deliver tangible results in the years ahead. \n   \n Since the end of the financial year, we have relaunched our branding to make our business easier to talk about and understand. We know that Matchtech is a formidable brand and that we have not maximised its value. Aggregating our previously fragmented skills brands of Barclay Meade and Gattaca Solutions into Matchtech will strengthen our market leadership, enable us to stand out and increase trust and loyalty among clients and candidates, driving repeat business. It will also help us to attract and retain the talented colleagues we need and support scalable growth, by further simplifying our operations, marketing and technology platforms. Ultimately, almost everything we do is about skills - whether it is recruitment, providing solutions staff or advisory services. Matchtech gives us a single skills brand that can be famous for being great in these skills, in our chosen sectors. This also removes any confusion with the SOW services of Gattaca Projects, allowing Gattaca Projects to focus on outcome based services and our new skills acquisition InfoSec People to bed in. \n   \n With the Group in good shape and having demonstrated that we can execute well, we are confident that we can successfully integrate bolt-on acquisitions without distracting from our organic growth. We will only buy businesses that add to our service capability in the sectors we are already targeting, and that share and reinforce our culture. In August 2025, we were delighted to welcome our new colleagues from InfoSec People Limited, which provides cyber and information security specialists to clients across a variety of sectors. This capability has never been more relevant and the early signs are promising. We expect the business to be fully integrated into our global systems by H1 2026. \n   \n Culture \n Our focus on developing a great culture is now well-embedded in the business, as shown by our record people engagement score of 8.4 (FY24: 8.1) and our strong retention, with attrition falling to 28% (FY24: 31%). \n   \n We have continued to recruit experienced consultants with deep market knowledge in our sectors. Our aim is for people to join us for a career rather than a job and we will remain highly selective as we add to our teams. Equally importantly, our ongoing performance management has raised standards in our sales teams and created space for people who are hungry and capable. \n   \n Operational Performance \n Our operational performance continues to improve, with average NFI increasing by 7% per sales head and by 13% per total head during the year. Over the last three years, our NFI per head has risen by around 21%, and there is still further to go. \n   \n The Group has great tooling and we added a series of AI products this year, to improve both efficiency and the customer experience. There is more to come, as we see opportunities to achieve material productivity shifts through small amendments to our tech stack, helping us to be even more competitive. \n   \n Cost Rebalancing \n Investment in our back-office systems has enabled a leaner support function, contributing to the ratio of sales to support staff improving to 72:28 (FY24: 68:32). Our goal is for sales staff to make up more than 75% of our employees. Underlying administrative costs reduced by 5% year on year as a result of ongoing focus on cost discipline and consultant productivity. \n   \n Environmental, Social and Governance \n Sustainability is hugely important and we are proudly committed to it. As a people business we want to represent all people, while also doing our part for the environment. Our approach has continued to mature and sustainability is now thoroughly integrated into the business, with many ongoing activities. Our Limitless in Tech programme for women is just one example. It has been shortlisted for an industry award, recognising that it genuinely adds value for the communities we serve, as well as for our business. \n   \n Outlook \n Market conditions remain challenging, with permanent hiring remaining subdued. Gattaca sees growth potential in its chosen sectors having spent time rationalising and strengthening the Group. The Group strategy remains consistent, with emphasis on having the right people and culture, complemented by bolt on acquisitions. Ongoing productivity improvements and robust cost control will support growth, whilst providing us the headroom to add further experienced people to the Group's sales teams. The Board is optimistic about the prospects of the Group with an expectation for the FY26 year ahead to achieve further growth in continuing underlying profit before tax, in line with the current market consensus of £4m. \n   \n   \n Matt Wragg Chief Executive Officer \n   \n   \n   \n   \n \n \n   \n Chief Financial Officer's Report \n Delivering a stable performance \n Highlights \n ·    Delivered continuing underlying profit before tax of £3.3m, up 12% year on year \n ·    Improved operational productivity, average NFI per total head grew 13% year on year \n ·    Net cash of £15.7m (2024: £20.7m) \n ·    Ordinary final dividend of 2.0 pence proposed, bringing full year dividend to 3.0 pence \n ·    Strategic acquisition completed in August 2025 \n   \n Financial Performance \n On a continuing basis, revenue of £398.9m (2024: £389.5m) generated NFI of £38.8m (2024: £40.1m). We achieved contract and other NFI of £29.3m (2024: £29.6m) at a margin of 7.7% (2024: 8.0%), and permanent recruitment fees of £7.4m (2024: £7.7m). Statement of Work NFI of £2.1m (2024: £2.8m) is all delivered though contract labour provision on long term projects where the Group takes responsibility for assignment deliverables. In the year contract NFI reflected 75% (2024: 74%) of Group NFI in the year as we consciously shifted our focus to contract. \n The greatest impact of the market conditions on NFI was seen in permanent recruitment, which was down 4% on the prior year, driven by continuing industry-wide client and candidate challenges. \n Whilst total NFI reduced, our key performance metrics of NFI per total head and NFI per sales head both increased, by 13% and 7% respectively, a result of our efforts to improve productivity through our sales force, even in a challenging labour market. \n Underlying profit before tax from continuing operations was £3.3m (2024: £2.9m). Statutory profit after tax for the total Group was £2.2m (2024: £0.2m). \n Net cash at 31 July 2025 was £15.7m (31 July 2024: £20.7m), a decrease of £5.0m in net cash year-on-year. The Group terminated its non-recourse invoice financing facility in February 2025, resulting in a financing outflow of £2.1m; this change in financing structure, combined with dividend payments and an increased employment tax burden, resulted in a reduction in operating cash in the year. The optimisation of our working capital remains a key focus. \n Administration expenses \n Administration expenses for 2025 are £36.0m (2024: £37.9m), a reduction of £1.9m. Total staff costs reduced by £1.1m, being a 3.8% fall year on year, driven by a 14% drop in total average headcount offset by the rise in UK employers NIC tax from April 2025. Establishment costs (excluding leasehold depreciation) fell by £0.4m, as we saw the benefit of a full year of cost reduction from the changes to our UK property portfolio. Net increase of £0.7m in bad debt provisions year on year, offset £0.4m of savings on non-recourse bank charges and £0.7m of other savings from careful cost management across marketing, IT and administration expenditure. \n Non-underlying costs and discontinued operations and non-underlying costs \n Non-underlying costs from continuing business are presented in line with the Group's accounting policy. \n The below table reconciles continuing underlying profit before tax to reported statutory profit before tax for the total Group: \n \n \n \n \n £'000 \n \n \n Profit before tax \n \n \n \n \n Continuing underlying profit before tax \n \n \n 3,279 \n \n \n \n \n Restructuring costs in continuing business 1 \n \n \n (313) \n \n \n \n \n Cost relating to ongoing closure of group undertakings 2 \n \n \n (211) \n \n \n \n \n Costs relating to FY26 acquisition \n \n \n (93) \n \n \n \n \n Operating profit relating to discontinued operations \n \n \n 568 \n \n \n \n \n Amortisation of acquired intangibles \n \n \n (46) \n \n \n \n \n Net foreign exchange losses \n \n \n (121) \n \n \n \n \n Profit before tax for the total Group \n \n \n 3,063 \n \n \n \n \n 1 Restructuring costs arose primarily from employee exit costs arising as a result of targeted, small scale, team rationalisations. \n 2 Costs associated with the ongoing closure of subsidiaries whose operations were discontinued in prior periods, primarily Mexico, Malaysia, Singapore, Qatar, Russia and Germany, are classified as continuing operations in the current year and are reported within non-underlying items in line with the Group's accounting policy. We will continue to incur costs associated with discontinued legacy operations as the legal wind down of those entities is conclud ed. \n   \n We continue to co-operate with the US Department of Justice and there have been no matters in this regard during the year. Legal fees on this matter were nil in the year (2024: nil). As shown in Note 28 to the Financial Statements, the Group is not currently in a position to know what the outcome of these enquiries may be and we are therefore unable to quantify the potential financial impact, if any. \n During the prior year the Group withdrew from its operations in the USA. The operating profit from discontinued operations includes £0.1m of non-underlying restructuring costs relating to the closed US operations, as well as a £0.5m credit as a result of recovered trade receivables from a customer in Africa that were written off between 2018 and 2020 through discontinued operations. \n Taxation \n The Group's reported effective tax rate was 28.0% (2024: 82.6%), driven by a reduction year on year in non-deductible expenses and non-taxable income. Further detail is set out in Note 9 of the Financial Statements. The continuing underlying effective tax rate 24.9% (2024: 35.2%), with the reduction on the prior year due to the exit of loss making international operations in the US. \n Earnings per share \n Basic earnings per share was 7.0 pence (2024: 0.6 pence), and on a fully diluted basis was 6.8 pence (2024: 0.6 pence). Continuing underlying basic earnings per share was 7.8 pence (2024: 6.0 pence). \n Dividends \n Our long-standing objective has been to achieve a through-the-cycle dividend payout of approximately 50% of profits after tax. After paying an interim dividend of 1.0 pence per share, the Board has proposed to pay a final ordinary dividend of 2.0 pence per share (2024: 2.5 pence) taking the total dividend paid to 3.0 pence per share (2024: 2.5 pence). The final dividend, which amounts to approximately £0.6m, will be subject to shareholder approval at the 2025 Annual General Meeting. It will be paid on 12 December 2025 to shareholders on the register on 31October 2025. \n Given the Groups sustained liquidity and recognising shareholder returns in previous year, the Board remain committed to returning capital to shareholders. \n Net assets and shares in issue at 31 July 2025 \n The Group had net assets of £29.4m (2024: £28.3m) and had 31.5m (2024: 31.5m) fully paid ordinary shares in issue. \n Group net cash at 31 July 2025 was £15.7m (31 July 2024: £20.7m), a decrease of £5.0m in a year where the Group returned cash to shareholders of £1.1m via dividends and used £0.3 for the purchase of shares for its Employee Benefit Trusts. The average Group net cash balance throughout the year was £12.8m (2024: £17.5m); excluding the non-recourse facility impact from both period ends, the average Group net cash balance would have been £11.4m (2024 pro-forma: £11.1m). \n We saw a marginal decrease in the Group's days sales outstanding (DSO) at 31 July 2025 to 42.5 days, 0.5 days below the prior year (31 July 2024: 43.0 days). Managing aged debt continues to be a focus area and debt aged over 30 days was kept low at only 3.3% (2024: 3.6%) of total trade receivables. However, an increased demand from clients for longer payment terms combined with the accounting impact of terminating the non-recourse invoice financing facility, has increased DSO.  Trade receivables and accrued income balances, net of expected credit loss allowances, have increased to £58.0m (31 July 2024: £51.1m) due to the effect of our annual pricing uplift and the return of £2.1m of trade debtors to the balance sheet that were previously declassified into our non-recourse invoice financing facility \n As at 31 July 2025, the Group had an invoice financing working capital facility of £50m. \n In February 2025, the Group terminated the non-recourse element of its invoice financing facility, moving to a full recourse facility. Under the terms of the non-recourse facility, the trade receivables were assigned to and owned by HSBC and so were derecognised from the Group's Statement of Financial Position. In addition, the non-recourse working capital facility did not meet the definition of loans and borrowings under IFRS. Once that facility was terminated, any unpaid trade receivables held by HSBC were returned to Gattaca and re-recognised in the Statement of Financial Position, and Gattaca returned the cash loaned by HSBC in respect of those receivables, thus reducing the Group net cash position and increasing the trade receivables balance. The termination of the non-recourse element of the  invoice financing facility generates process efficiencies and marginal cost savings, with reduced bank charges offset by reduced investment interest income on the excess cash balances it provided \n At 31 July 2025, utilisation of the recourse facility was nil (31 July 2024: nil), with unutilised facility headroom after restrictions of £33.8m (31 July 2024: £29.9m). Net bank interest received was £0.4m (2024: £0.7m) as a result of the positive net cash balance maintained throughout the year. \n Critical accounting policies \n The statement of significant accounting policies is set out in Note 1 to the Financial Statements. \n Group financial risk management \n The Board reviews and agrees policies for managing financial risks. The Group's finance function is responsible for managing investment and funding requirements including banking and cash flow monitoring. It seeks to ensure that adequate liquidity exists at all times, to meet its cash requirements. The Group's financial instruments comprise cash, borrowings and various items, such as trade receivables and trade payables that arise from its operations. The Group does not trade in financial instruments. The main risks arising from the Group's financial instruments are described below. \n Credit risk \n The Group seeks to trade only with recognised, creditworthy third parties. In the year, our loss allowance decreased by £0.2m to £1.4m, as a result of a reduction in specific debt provisioning. There were no changes to the rate used for general provisioning. \n There are no significant concentrations of credit risk within the Group, with no single debtor accounting for more than 6% (2024: 9%) of total receivables balances at 31 July 2025. \n Foreign currency risk \n The Group generates 1.3% of its annualised NFI from continuing business in international markets. The Group does face risks to both its reported performance and cash position arising from the effects of exchange rate fluctuations. The Group manages these risks by matching sales and direct costs in the same currency and where appropriate entering into forward exchange contracts to effect the same where sales and costs are not in the same currency. \n Acquisition \n On 4 August 2025, the Group acquired the entire issued share capital of InfoSec People Limited and its parent holding company. InfoSec People is a specialist cyber security recruitment consultancy based in the UK. The total consideration was £2.1 million, comprising an initial cash payment of £1.5 million and deferred consideration of up to £0.6 million, payable over the next four years, subject to performance criteria being met by InfoSec. This bolt-on complimentary acquisition significantly expands our capability in cyber security and is an integral part of our inorganic growth plan over the coming years. \n Outlook \n The Group delivered a robust performance in FY25 despite ongoing challenges in the UK economy, wider macroeconomic headwinds and a challenging UK labour market. Looking forward our focus is on generating NFI growth, and there are early signs of positive momentum in the contractor base at the start of FY26. Successfully integrating the acquisition of InfoSec People and strengthening our experienced sales workforce will be key to increasing market share in our core markets over the year ahead. \n   \n Oliver Whittaker \n Chief Financial Officer \n   \n   \n \n \n   \n Consolidated Income Statement \n For the year ended 31 July 2025 \n \n \n \n \n \n \n \n Note \n \n \n 2025 \n £'000 \n \n \n   \n 2024 \n £'000 \n \n \n \n \n Continuing operations \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Revenue \n \n \n 2 \n \n \n 398,900 \n \n \n 389,533 \n \n \n \n \n Cost of sales \n \n \n \n \n \n (360,100) \n \n \n (349,454) \n \n \n \n \n Gross profit \n \n \n 2 \n \n \n 38,800 \n \n \n 40,079 \n \n \n \n \n Administrative expenses \n \n \n \n \n \n (36.614) \n \n \n (38,999) \n \n \n \n \n Operating profit from continuing operations \n \n \n 4 \n \n \n 2,186 \n \n \n 1,080 \n \n \n \n \n Finance income \n \n \n 6 \n \n \n 526 \n \n \n 784 \n \n \n \n \n Finance cost \n \n \n 7 \n \n \n (111) \n \n \n (180) \n \n \n \n \n Profit before taxation \n \n \n \n \n \n 2,601 \n \n \n 1,684 \n \n \n \n \n Taxation \n \n \n 9 \n \n \n (742) \n \n \n (916) \n \n \n \n \n Profit for the year after taxation from continuing operations \n \n \n \n \n \n 1,859 \n \n \n 768 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Discontinued operations \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Profit/(loss) for the year from discontinued operations (attributable to equity holders of the Company) \n \n \n 10 \n \n \n 341 \n \n \n (582) \n \n \n \n \n Profit for the year \n \n \n \n \n \n 2,200 \n \n \n 186 \n \n \n \n \n   \n Profit for the year is wholly attributable to equity holders of the Company. The Company has elected to take the exemption under section 408 of the Companies Act 2006 from presenting the parent company Income Statement. \n   \n   \n   \n \n \n \n \n Total earnings per ordinary share \n \n \n Note \n \n \n 2025 \n Pence \n \n \n 2024 \n pence \n \n \n \n \n Basic earnings per share \n \n \n 11 \n \n \n 7.0 \n \n \n 0.6 \n \n \n \n \n Diluted earnings per share \n \n \n 11 \n \n \n 6.8 \n \n \n 0.6 \n \n \n \n \n   \n \n \n \n \n Earnings per share from continuing operations \n \n \n Note \n \n \n 2025 \n Pence \n \n \n   \n 2024 \n pence \n \n \n \n \n Basic earnings per share \n \n \n 11 \n \n \n 5.9 \n \n \n 2.4 \n \n \n \n \n Diluted earnings per share \n \n \n 11 \n \n \n 5.7 \n \n \n 2.4 \n \n \n \n \n   \n   \n   \n   \n Reconciliation to adjusted profit measure \n Underlying profit is the Group's key adjusted profit measure; profit from continuing operations is adjusted to exclude non-underlying income and expenditure as defined in the Group's accounting policy, amortisation and impairment of goodwill and acquired intangibles, impairment of leased right-of-use assets and net foreign exchange gains or losses. \n \n \n \n \n \n \n \n Note \n \n \n 2025 \n £'000 \n \n \n 2024 \n £'000 \n \n \n \n \n Operating profit from continuing operations \n \n \n \n \n \n 2,186 \n \n \n 1,080 \n \n \n \n \n Add: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Non-underlying items included within administrative expenses \n \n \n 4 \n \n \n 617 \n \n \n 1,092 \n \n \n \n \n Reversal of impairment of leased right-of-use assets \n \n \n 4 \n \n \n - \n \n \n (42) \n \n \n \n \n Amortisation of acquired intangible assets \n \n \n 4 \n \n \n 46 \n \n \n 69 \n \n \n \n \n Depreciation of property, plant and equipment, leased right-of-use assets and amortisation of software and software licences \n \n \n 2 \n \n \n 1,365 \n \n \n 1,533 \n \n \n \n \n Underlying EBITDA \n \n \n \n \n \n 4,214 \n \n \n 3,732 \n \n \n \n \n Less: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Depreciation of property, plant and equipment, leased right-of-use assets and amortisation of software and software licences \n \n \n 2 \n \n \n (1,365) \n \n \n (1,533) \n \n \n \n \n Net finance income excluding foreign exchange gains and losses \n \n \n 2 \n \n \n 430 \n \n \n 719 \n \n \n \n \n Underlying profit before taxation from continuing operations \n \n \n \n \n \n 3,279 \n \n \n 2,918 \n \n \n \n \n Underlying taxation \n \n \n \n \n \n (815) \n \n \n (1,026) \n \n \n \n \n Underlying profit after taxation from continuing operations \n \n \n \n \n \n 2,464 \n \n \n 1,892 \n \n \n \n \n   \n \n \n \n \n Earnings per share from continuing underlying operations \n \n \n Note \n \n \n 2025 \n Pence \n \n \n 2024 \n pence \n \n \n \n \n Basic earnings per share \n \n \n 11 \n \n \n 7.8 \n \n \n 6.0 \n \n \n \n \n Diluted earnings per share \n \n \n 11 \n \n \n 7.6 \n \n \n 5.9 \n \n \n \n \n   \n   \n Consolidated Statement of Comprehensive Income \n For the year ended 31 July 2025 \n \n \n \n \n \n \n \n 2024 \n £'000 \n \n \n 2023 \n £'000 \n \n \n \n \n Profit for the year \n \n \n 2,200 \n \n \n 186 \n \n \n \n \n Other comprehensive loss \n \n \n \n \n \n \n \n \n \n \n Items that may be reclassified subsequently to profit or loss: \n \n \n \n \n \n \n \n \n \n \n Exchange differences on translation of foreign operations \n \n \n 500 \n \n \n 174 \n \n \n \n \n Reclassification adjustment on disposal of foreign operations \n \n \n (533) \n \n \n (713) \n \n \n \n \n Other comprehensive loss for the year \n \n \n (33) \n \n \n (539) \n \n \n \n \n Total comprehensive income/(loss) for the year attributable to equity holders of the parent \n \n \n 2,167 \n \n \n (353) \n \n \n \n \n   \n \n \n \n \n \n \n \n 2025 \n £'000 \n \n \n 2024 \n £'000 \n \n \n \n \n Attributable to: \n \n \n \n \n \n \n \n \n \n \n Continuing operations \n \n \n 2,277 \n \n \n 925 \n \n \n \n \n Discontinued operations \n \n \n (110) \n \n \n (1,278) \n \n \n \n \n \n \n \n 2,167 \n \n \n (353) \n \n \n \n \n   \n   \n   \n Consolidated and Company Statements of Financial Position \n As at 31 July 2025 \n \n \n \n \n \n \n \n \n \n \n Group \n \n \n Company \n \n \n \n \n \n \n \n Note \n \n \n 31 July 2025 \n £'000 \n \n \n 31 July 2024 \n £'000 \n \n \n 31 July 2025 \n £'000 \n \n \n Restated 1 \n 31 July 2024 \n £'000 \n \n \n \n \n Non-current assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Goodwill \n \n \n 12 \n \n \n 1,712 \n \n \n 1,712 \n \n \n - \n \n \n - \n \n \n \n \n Intangible assets \n \n \n 13 \n \n \n 35 \n \n \n 120 \n \n \n - \n \n \n - \n \n \n \n \n Property, plant and equipment \n \n \n 14 \n \n \n 451 \n \n \n 702 \n \n \n - \n \n \n - \n \n \n \n \n Right-of-use assets \n \n \n 22 \n \n \n 1,480 \n \n \n 2.128 \n \n \n - \n \n \n - \n \n \n \n \n Investments \n \n \n 15 \n \n \n - \n \n \n - \n \n \n 29,863 \n \n \n 31,668 \n \n \n \n \n Deferred tax assets \n \n \n 16 \n \n \n 477 \n \n \n 342 \n \n \n - \n \n \n - \n \n \n \n \n Total non-current assets \n \n \n \n \n \n 4,155 \n \n \n 5,004 \n \n \n 29,863 \n \n \n 31,668 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Current assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Trade and other receivables \n \n \n 17 \n \n \n 59,742 \n \n \n 53,016 \n \n \n 215 \n \n \n - \n \n \n \n \n Corporation tax receivables \n \n \n \n \n \n 372 \n \n \n 379 \n \n \n 181 \n \n \n 322 \n \n \n \n \n Cash and cash equivalents \n \n \n \n \n \n 17,137 \n \n \n 22,817 \n \n \n 55 \n \n \n 64 \n \n \n \n \n Total current assets \n \n \n \n \n \n 77,251 \n \n \n 76,212 \n \n \n 451 \n \n \n 386 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total assets \n \n \n \n \n \n 81,406 \n \n \n 81,216 \n \n \n 30,314 \n \n \n 32,054 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Non-current liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Deferred tax liabilities \n \n \n 16 \n \n \n - \n \n \n (12) \n \n \n - \n \n \n - \n \n \n \n \n Provisions \n \n \n 18 \n \n \n (354) \n \n \n (396) \n \n \n - \n \n \n - \n \n \n \n \n Lease liabilities \n \n \n 22 \n \n \n (552) \n \n \n (1,217) \n \n \n - \n \n \n - \n \n \n \n \n Total non-current liabilities \n \n \n \n \n \n (906) \n \n \n (1,625) \n \n \n - \n \n \n - \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Current liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Trade and other payables \n \n \n 19 \n \n \n (48,689) \n \n \n (49,323) \n \n \n (1,073) \n \n \n (26) \n \n \n \n \n Provisions \n \n \n 18 \n \n \n (610) \n \n \n (425) \n \n \n - \n \n \n - \n \n \n \n \n Current tax liabilities \n \n \n \n \n \n (970) \n \n \n (686) \n \n \n - \n \n \n - \n \n \n \n \n Lease liabilities \n \n \n 22 \n \n \n (864) \n \n \n (853) \n \n \n - \n \n \n - \n \n \n \n \n Total current liabilities \n \n \n \n \n \n (51,133) \n \n \n (51,287) \n \n \n (1,073) \n \n \n (26) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total liabilities \n \n \n \n \n \n (52,039) \n \n \n (52,912) \n \n \n (1,073) \n \n \n (26) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Net assets \n \n \n \n \n \n 29,367 \n \n \n 28,304 \n \n \n 29,241 \n \n \n 32,028 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Equity \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Share capital \n \n \n 23 \n \n \n 315 \n \n \n 315 \n \n \n 315 \n \n \n 315 \n \n \n \n \n Share premium \n \n \n \n \n \n 8,706 \n \n \n 8,706 \n \n \n 8,706 \n \n \n 8,706 \n \n \n \n \n Capital redemption reserve \n \n \n \n \n \n 8 \n \n \n 8 \n \n \n 8 \n \n \n 8 \n \n \n \n \n Merger reserve \n \n \n \n \n \n 224 \n \n \n 224 \n \n \n - \n \n \n - \n \n \n \n \n Share-based payment reserve \n \n \n \n \n \n 511 \n \n \n 265 \n \n \n 511 \n \n \n 265 \n \n \n \n \n Translation reserve \n \n \n \n \n \n 124 \n \n \n 157 \n \n \n - \n \n \n - \n \n \n \n \n Treasury shares reserve \n \n \n 23 \n \n \n (1,279) \n \n \n (601) \n \n \n (1,279) \n \n \n (965) \n \n \n \n \n Retained earnings \n \n \n \n \n \n 20,758 \n \n \n 19,230 \n \n \n 20,980 \n \n \n 23,699 \n \n \n \n \n Total equity \n \n \n \n \n \n 29,367 \n \n \n 28,304 \n \n \n 29,241 \n \n \n 32,028 \n \n \n \n \n   \n The amount of loss generated by the Parent Company was £1,662,000 for the year ended 31 July 2025 (2024 restated 1 : £2,989,000).                  \n   \n The accompanying notes form part of these Financial Statements. \n   \n The Financial Statements were approved by the Board of Directors on 22 October 2025 and signed on its behalf by                             \n   \n Oliver Whittaker \n Chief Financial Officer \n   \n 1     The FY2024 comparative figures have been restated to include the Share Incentive Plan (SIP), following a reassessment of the accounting treatment. Gattaca Plc is the sponsoring entity of the SIP, and the associated Employee Benefit Trust (EBT) is considered an extension of the Company. As such, the results and financial position of the SIP EBT have been consolidated into the Company's Financial Statements. \n   \n         This treatment is consistent with the requirements of applicable accounting standards and aligns with the approach taken for the APEX EBT. The restatement ensures comparability and provides a more accurate reflection of the Company's financial position. \n   \n   \n   \n Consolidated and Company Statements of Changes in Equity \n For the year ended 31 July 2025 \n   \n A)   Consolidated \n \n \n \n \n \n \n \n Share \n capital \n £'000 \n \n \n Share \n premium \n £'000 \n \n \n Capital \n redemption \n reserve \n £'000 \n \n \n Merger \n reserve \n £'000 \n \n \n Share-based \n payment \n reserve \n £'000 \n \n \n Translation \n reserve \n £'000 \n \n \n Treasury \n shares \n reserve \n £'000 \n \n \n Retained \n earnings \n £'000 \n \n \n Total \n £'000 \n \n \n \n \n At 1 August 2023 \n \n \n 319 \n \n \n 8,706 \n \n \n 4 \n \n \n 224 \n \n \n 334 \n \n \n 696 \n \n \n (331) \n \n \n 20,865 \n \n \n 30,817 \n \n \n \n \n Profit for the year \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 186 \n \n \n 186 \n \n \n \n \n Other comprehensive loss \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (539) \n \n \n - \n \n \n - \n \n \n (539) \n \n \n \n \n Total comprehensive (loss)/income \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (539) \n \n \n - \n \n \n 186 \n \n \n (353) \n \n \n \n \n Share-based payments credit (Note 23) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 201 \n \n \n - \n \n \n - \n \n \n - \n \n \n 201 \n \n \n \n \n Share-based payments reserves transfer \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (270) \n \n \n - \n \n \n - \n \n \n 201 \n \n \n (69) \n \n \n \n \n Deferred tax movement in respect of share options \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 46 \n \n \n 46 \n \n \n \n \n Treasury shares issued to employees on exercise of LTIP share options (Note 23) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 69 \n \n \n - \n \n \n 69 \n \n \n \n \n Purchase of treasury shares \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (339) \n \n \n - \n \n \n (339) \n \n \n \n \n Purchase and cancellation of own shares 1 (Note 23) \n \n \n (4) \n \n \n - \n \n \n 4 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (502) \n \n \n (502) \n \n \n \n \n Dividends paid (Note 29) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (1,566) \n \n \n (1,566) \n \n \n \n \n Transactions with owners \n \n \n (4) \n \n \n - \n \n \n 4 \n \n \n - \n \n \n (69) \n \n \n - \n \n \n (270) \n \n \n (1,821) \n \n \n (2,160) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n At 31 July 2024 \n \n \n 315 \n \n \n 8,706 \n \n \n 8 \n \n \n 224 \n \n \n 265 \n \n \n 157 \n \n \n (601) \n \n \n 19,230 \n \n \n 28,304 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n At 1 August 2024 \n \n \n 315 \n \n \n 8,706 \n \n \n 8 \n \n \n 224 \n \n \n 265 \n \n \n 157 \n \n \n (601) \n \n \n 19,230 \n \n \n 28,304 \n \n \n \n \n Profit for the year \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 2,200 \n \n \n 2,200 \n \n \n \n \n Other comprehensive loss \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (33) \n \n \n - \n \n \n - \n \n \n (33) \n \n \n \n \n Total comprehensive (loss)/income \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (33) \n \n \n - \n \n \n 2,200 \n \n \n 2,167 \n \n \n \n \n Share-based payments charge (Note 23) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 293 \n \n \n - \n \n \n - \n \n \n - \n \n \n 293 \n \n \n \n \n Share-based payments reserves transfer \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (47) \n \n \n - \n \n \n - \n \n \n 30 \n \n \n (17) \n \n \n \n \n Deferred tax movement in respect of share options \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 21 \n \n \n 21 \n \n \n \n \n Treasury shares issued to employees on exercise of LTIP share options (Note 23) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 17 \n \n \n - \n \n \n 17 \n \n \n \n \n Purchase of treasury shares \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (331) \n \n \n - \n \n \n (331) \n \n \n \n \n Reclassification of SIP shares (Note 23) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (364) \n \n \n 364 \n \n \n - \n \n \n \n \n Dividends paid in the year (Note 29) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (1,087) \n \n \n (1,087) \n \n \n \n \n Transactions with owners \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 246 \n \n \n - \n \n \n (678) \n \n \n (672) \n \n \n (1,104) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n At 31 July 2025 \n \n \n 315 \n \n \n 8,706 \n \n \n 8 \n \n \n 224 \n \n \n 511 \n \n \n 124 \n \n \n (1,279) \n \n \n 20,758 \n \n \n 29,367 \n \n \n \n \n   \n 1      Gattaca plc undertook a public share buyback in the prior year, and a capital redemption reserve was created as a result of the subsequent cancellation of these shares, as discussed in Note 23. \n       \n B) Company (Restated 2 )            \n \n \n \n \n                 \n \n \n Share \n capital \n £'000 \n \n \n Share premium \n £'000 \n \n \n Capital redemption reserve \n £'000 \n \n \n Share-based payment reserve \n £'000 \n \n \n Treasury shares reserve \n £'000 \n \n \n Retained earnings \n £'000 \n \n \n Total \n £'000 \n \n \n \n \n At 1 August 2023 - as previously reported \n \n \n 319 \n \n \n 8,706 \n \n \n 4 \n \n \n 334 \n \n \n (244) \n \n \n 28,207 \n \n \n 37,326 \n \n \n \n \n Correction of prior period error 2 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (451) \n \n \n 348 \n \n \n (103) \n \n \n \n \n At 1 August 2023 - as restated \n \n \n 319 \n \n \n 8,706 \n \n \n 4 \n \n \n 334 \n \n \n (695) \n \n \n 28,555 \n \n \n 37,223 \n \n \n \n \n Loss and total comprehensive loss for the year 2 (Note 8) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (2,989) \n \n \n (2,989) \n \n \n \n \n Share-based payments charge (Note 23) \n \n \n - \n \n \n - \n \n \n - \n \n \n 201 \n \n \n - \n \n \n - \n \n \n 201 \n \n \n \n \n Share-based payments reserves transfer \n \n \n - \n \n \n - \n \n \n - \n \n \n (270) \n \n \n - \n \n \n 201 \n \n \n (69) \n \n \n \n \n Treasury shares issued to employees on exercise of LTIP share options (Note 23) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 69 \n \n \n - \n \n \n 69 \n \n \n \n \n Purchase of treasury shares \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (339) \n \n \n - \n \n \n (339) \n \n \n \n \n Purchase and cancellation of own shares 1 (Note 23) \n \n \n (4) \n \n \n - \n \n \n 4 \n \n \n - \n \n \n - \n \n \n (502) \n \n \n (502) \n \n \n \n \n Dividends paid in the year (Note 29) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (1,566) \n \n \n (1,566) \n \n \n \n \n Transactions with owners \n \n \n (4) \n \n \n - \n \n \n 4 \n \n \n (69) \n \n \n (270) \n \n \n (1,867) \n \n \n (2,206) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n At 31 July 2024 \n \n \n 315 \n \n \n 8,706 \n \n \n 8 \n \n \n 265 \n \n \n (965) \n \n \n 23,699 \n \n \n 32,028 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n At 1 August 2024 \n \n \n 315 \n \n \n 8,706 \n \n \n 8 \n \n \n 265 \n \n \n (965) \n \n \n 23,699 \n \n \n 32,028 \n \n \n \n \n Loss and total comprehensive loss for the year (Note 8) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (1,662) \n \n \n (1,662) \n \n \n \n \n Share-based payments charge (Note 23) \n \n \n - \n \n \n - \n \n \n - \n \n \n 293 \n \n \n - \n \n \n - \n \n \n 293 \n \n \n \n \n Share-based payments reserves transfer (net basis) \n \n \n - \n \n \n - \n \n \n - \n \n \n (47) \n \n \n - \n \n \n 30 \n \n \n (17) \n \n \n \n \n Treasury shares issued to employees on exercise of LTIP share options (Note 23) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 17 \n \n \n - \n \n \n 17 \n \n \n \n \n Purchase of treasury shares \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (331) \n \n \n - \n \n \n (331) \n \n \n \n \n Dividends paid in the year (Note 29) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (1,087) \n \n \n (1,087) \n \n \n \n \n Transactions with owners \n \n \n - \n \n \n - \n \n \n - \n \n \n 246 \n \n \n (314) \n \n \n (1,057) \n \n \n (1,125) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n At 31 July 2025 \n \n \n 315 \n \n \n 8,706 \n \n \n 8 \n \n \n 511 \n \n \n (1,279) \n \n \n 20,980 \n \n \n 29,241 \n \n \n \n \n   \n 1      Gattaca plc undertook a public share buyback in the prior year, and a capital redemption reserve was created as a result of the subsequent cancellation of these shares, as discussed in Note 23. \n 2      The FY2024 comparative figures have been restated to include the Share Incentive Plan (SIP), following a reassessment of the accounting treatment. Gattaca Plc is the sponsoring entity of the SIP, and the associated Employee Benefit Trust (EBT) is considered an extension of the Company. As such, the results and financial position of the SIP EBT have been consolidated into the Company's Financial Statements. \n This treatment is consistent with the requirements of applicable accounting standards and aligns with the approach taken for the APEX EBT. The restatement ensures comparability and provides a more accurate reflection of the Company's financial position. \n   \n Consolidated Cash Flow Statement \n For the year ended 31 July 2025 \n \n \n \n \n \n \n \n \n \n \n Group \n \n \n \n \n \n \n \n Note \n \n \n 2025 \n £'000 \n \n \n 2024 \n £'000 \n \n \n   \n \n \n \n \n Cash flows from operating activities \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Profit for the year \n \n \n \n \n \n 2,200 \n \n \n 186 \n \n \n   \n \n \n \n \n Adjustments for: \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Depreciation of property, plant and equipment and amortisation of intangible assets, software and software licences \n \n \n 4 \n \n \n 382 \n \n \n 588 \n \n \n   \n \n \n \n \n Depreciation of leased right-of-use assets \n \n \n 4 \n \n \n 1,029 \n \n \n 1,030 \n \n \n   \n \n \n \n \n Loss on disposal of property, plant and equipment \n \n \n 4 \n \n \n - \n \n \n 24 \n \n \n   \n \n \n \n \n Reversal of impairment of right-of-use assets \n \n \n 4 \n \n \n - \n \n \n (42) \n \n \n   \n \n \n \n \n Impairment of cash and cash equivalents \n \n \n 4 \n \n \n - \n \n \n 408 \n \n \n   \n \n \n \n \n Interest income \n \n \n 6 \n \n \n (526) \n \n \n (784) \n \n \n   \n \n \n \n \n Interest costs \n \n \n \n \n \n 120 \n \n \n 65 \n \n \n   \n \n \n \n \n Taxation expense recognised in the Income Statement \n \n \n 9 \n \n \n 863 \n \n \n 880 \n \n \n   \n \n \n \n \n Increase in trade and other receivables \n \n \n \n \n \n (6,769) \n \n \n (940) \n \n \n   \n \n \n \n \n (Decrease)/increase in trade and other payables \n \n \n \n \n \n (634) \n \n \n 2,428 \n \n \n   \n \n \n \n \n Increase/(decrease) in provisions \n \n \n 18 \n \n \n 159 \n \n \n (616) \n \n \n   \n \n \n \n \n Share-based payment charge \n \n \n 23 \n \n \n 293 \n \n \n 201 \n \n \n   \n \n \n \n \n Foreign exchange losses/(gains) \n \n \n \n \n \n 91 \n \n \n (420) \n \n \n   \n \n \n \n \n Cash (used in)/generated from operations \n \n \n \n \n \n (2,792) \n \n \n 3,008 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Interest paid \n \n \n \n \n \n (28) \n \n \n (2) \n \n \n   \n \n \n \n \n Interest paid on lease liabilities \n \n \n 7 \n \n \n (92) \n \n \n (63) \n \n \n   \n \n \n \n \n Interest received \n \n \n 6 \n \n \n 526 \n \n \n 784 \n \n \n   \n \n \n \n \n Income taxes received \n \n \n \n \n \n 10 \n \n \n 789 \n \n \n   \n \n \n \n \n Income taxes paid \n \n \n \n \n \n (737) \n \n \n (1,117) \n \n \n   \n \n \n \n \n Cash (used in)/generated from operating activities \n \n \n \n \n \n (3,113) \n \n \n 3,399 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Cash flows from investing activities \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Purchase of property, plant and equipment \n \n \n 14 \n \n \n (46) \n \n \n (162) \n \n \n   \n \n \n \n \n Sublease rent receipts \n \n \n \n \n \n 63 \n \n \n 131 \n \n \n   \n \n \n \n \n Cash generated from/(used in) investing activities \n \n \n \n \n \n 17 \n \n \n (31) \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Cash flows from financing activities \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Lease liability principal repayments \n \n \n 22 \n \n \n (1,146) \n \n \n (1,084) \n \n \n   \n \n \n \n \n Purchase of treasury shares \n \n \n \n \n \n (331) \n \n \n (339) \n \n \n   \n \n \n \n \n Purchase of own shares for cancellation \n \n \n \n \n \n - \n \n \n (502) \n \n \n   \n \n \n \n \n Dividends paid \n \n \n 29 \n \n \n (1,087) \n \n \n (1,566) \n \n \n   \n \n \n \n \n Cash used in financing activities \n \n \n \n \n \n (2,564) \n \n \n (3,491) \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Non-cash movements \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Effects of exchange rates on cash and cash equivalents \n \n \n \n \n \n (20) \n \n \n (27) \n \n \n   \n \n \n \n \n Impairment of cash and cash equivalents \n \n \n 4 \n \n \n - \n \n \n (408) \n \n \n   \n \n \n \n \n Total non-cash movements \n \n \n 27 \n \n \n (20) \n \n \n (435) \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Decrease in cash and cash equivalents \n \n \n \n \n \n (5,680) \n \n \n (558) \n \n \n   \n \n \n \n \n Cash and cash equivalents at the beginning of the year \n \n \n \n \n \n 22,817 \n \n \n 23,375 \n \n \n   \n \n \n \n \n Cash and cash equivalents at end of year 1 \n \n \n 27 \n \n \n 17,137 \n \n \n 22,817 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n                 \n 1      Cash and cash equivalents as at 31 July 2025 and 31 July 2024 includes restricted cash balances, for further details please refer to Note 27.    \n   \n   \n Net decrease in cash and cash equivalents from discontinued operations was £373,000 (2024: £849,000). \n   \n   \n   \n Notes Forming Part of the Financial Statements \n   \n 1      The Group and Company Material Accounting Policies \n 1.1     The Business of the Group \n Gattaca plc (the Company) and its subsidiaries (together the Group) is a human capital resources business providing contract and permanent recruitment services in the private and public sectors across the UK, Europe and North America regions. The Company is a public limited company, which is listed on the Alternative Investment Market (AIM) and is incorporated and domiciled in England, United Kingdom. The Company's address is 1450 Parkway, Solent Business Park, Whiteley, Fareham, Hampshire, PO15 7AF. The registration number is 04426322. \n   \n 1.2     Basis of preparation of the Financial Statements \n The consolidated Financial Statements of Gattaca plc have been prepared in accordance with UK-adopted International Accounting Standards and with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards. The Company's Financial Statements have been prepared in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework' and the Companies Act 2006. \n   \n As permitted by Section 408 of the Companies Act 2006, the Company's Income Statement has not been presented. The Company, as permitted by FRS 101, has taken advantage of the disclosure exemptions available under that standard in relation to: \n   \n •    Cash Flow Statement and related notes; \n •    Financial instruments; \n •    Disclosures in respect of transactions with wholly owned subsidiaries; \n •    The effects of new but not yet effective IFRSs; \n •    Disclosures in respect of the compensation of Key Management Personnel; and \n •    Disclosures of transactions with a management entity that provides key management personnel services to the Company. \n   \n As the consolidated Financial Statements of Gattaca plc include the equivalent disclosures, the Company has also taken the exemptions under FRS 101 available in respect of the following disclosures: \n   \n •    IFRS 2 Share-Based Payments in respect of group settled share-based payments; and \n •    Certain disclosures required by IAS 36 Impairment of assets in respect of the impairment of goodwill and indefinite life intangible assets. \n   \n These Financial Statements have been prepared under the historical cost convention. The accounting policies have been applied consistently to all years throughout both the Group and the Company for the purposes of preparation of these Financial Statements. A summary of the principal accounting policies of the Group is set out below. \n   \n The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated Financial Statements, are disclosed in Note 1.22. \n   \n 1.3     Going concern \n The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Strategic Report. The financial position of the Group, its cash flows and liquidity are described in the Chief Financial Officer's Report. \n   \n At the year-end the Group reported a strong balance sheet with statutory net cash of £15.7m (2024: £20.7m). The Group ensures the availability of working capital through close management of customer payment terms. There is sufficient headroom on our working capital facilities to absorb a level of customer payment term extensions, but we would also manage supply to the customer if payment within an appropriate period was not being made. Whilst there is no evidence that it would occur, a significant deterioration in average payment terms has the potential to impact the Group's liquidity. \n   \n The Directors have prepared detailed cash flow forecasts, covering a period of at least 12 months from the date of approval of these Financial Statements. The forecasts are prepared with appropriate regard for the current macroeconomic headwinds and particular circumstances in which the Group operates, including demand and candidate sentiment across the UK recruitment sector and the economic outlook for STEM markets in the UK in which our customers operate. The forecasts assume sustained growth in NFI and cost rebalancing aligned with the Group's strategic priorities. \n   \n We continue to see permanent recruitment remaining subdued, in line with our peers, and our focus remains on contractor growth, which takes longer to reflect in NFI. As such we expect profitability will continue to be weighted to second half of the year for FY26. Strong contract pipelines in our largest five sectors underpin the Group's Net Fee Income expectations for FY26 and beyond. \n   \n The output of the forecasting process has been used to perform sensitivity analysis on the Group's cash flows to the potential effects should principal risks actually occur. The sensitivity analysis modelled a severe but plausible scenario including: \n   \n •    Reduced NFI growth of 2% per annum; \n •    Increased operating costs by 1% per annum; and \n •    Customer payment terms extended by five days. \n   \n The effects of commercial mitigating actions that the Directors would implement in response to adverse changes in the Group's profitability and liquidity were excluded. \n   \n Given the nature of the temporary and contract recruitment business, significant working capital inflows typically arise in periods of severe downturn, thus protecting short-term liquidity, as was the case during the COVID-19 pandemic. The sensitised forecasts illustrate that the Group's liquidity is resilient to adverse changes in profitability and customer payment terms. The sensitised forecasts show a 64% reduction in net cash at 31 July 2026, to £5.6m. \n   \n A key assumption in preparing the cash flow forecasts is the continued availability of the Group's invoice financing facility from HSBC throughout the forecast period. The unutilised facility headroom at 31 July 2025 was £33.8m (2024: £29.9m). The current £50m facility has no contractual renewal date; the Directors remain confident that the facility will remain available. \n   \n After making appropriate enquiries and considering key judgements and assumptions described above, the Directors have a reasonable expectation at the time of approving these Financial Statements that the Group and the Company have adequate resources to continue in operational existence for the foreseeable future. Following careful consideration the Directors do not consider there to be a material uncertainty with regards to going concern and consider it is appropriate to adopt the going concern basis in preparing these financial statements. \n   \n 1.4     New standards and interpretations \n The following are new standards or improvements to existing standards that are mandatory for the first time in the Group's accounting period beginning on 1 August 2024 and no new standards have been early adopted. The Group's July 2025 consolidated Financial Statements have adopted these amendments to IFRS: \n   \n •    Amendments to IFRS 16 - Lease Liability in a Sale and Leaseback (effective 1 January 2024) \n •    Amendments to IAS 1 - Non-current Liabilities with Covenants (effective 1 January 2024) \n •    Amendments to IAS 1 - Classification of Liabilities as Current or Non-current (effective 1 January 2024) \n •    Amendments to IAS 7 and IFRS 7 - Supplier Finance (effective 1 January 2024) \n There have been no alterations made to the accounting policies as a result of considering all of the amendments above that became effective in the year, as these were either not material or were not relevant to the Group or Company. \n   \n New standards in issue, not yet adopted \n The Group has not yet adopted certain new standards, amendments and interpretations to existing standards, which have been published but which are effective for the Group accounting periods beginning on or after 1 August 2025. These new pronouncements are listed as follows: \n   \n •    IAS 21 - Amendments to IAS 21 : The Effects of Changes in Foreign Exchange Rates (effective 1 January 2025) \n •    Amendments to IFRS 9 and IFRS 7: Classification and Measurement of Financial Instruments (effective 1 January 2026) \n •    Annual Improvements to IFRS Accounting Standards - Volume 11 (effective 1 January 2026) \n •    IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures (Amendment): Contracts Referencing Nature-dependent Electricity (effective 1January 2026) \n   \n The Directors are currently evaluating the impact of the adoption of all other standards, amendments and interpretations but do not expect them to have a material impact on the Group's operations or results. \n   \n 1.5     Basis of consolidation \n Subsidiaries are entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date on which that control ceases. The results of all subsidiaries, including those with non-coterminous reporting dates, are consolidated in line with the Group's financial reporting period. \n   \n The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred to the former owners of the acquiree, and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangements. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair value at the acquisition date. The Group recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest's proportionate share of the recognised amounts of the acquiree's identifiable net assets. Acquisition-related costs are expensed as incurred. \n   \n Intercompany transactions, balances and unrealised gains and losses on transactions between Group companies are eliminated. Where necessary, amounts reported by subsidiaries have been adjusted to conform to the Group's accounting policies. \n   \n 1.6     Revenue \n Revenue is measured by reference to the fair value of consideration received or receivable by the Group for services provided, excluding VAT and trade discounts. \n   \n The Group is the principal for both its temporary and permanent placements and as such presents its revenue gross, being the whole amount collected from its customers, and then presents Net Fee Income as gross profit. \n   \n Contractual rebate arrangements in respect of volume and value of sales are variable consideration reducing revenue and are estimated at the most likely amount of consideration based on forecasts of customer activity informed by historical experience. \n   \n Temporary placements \n Revenue from temporary (contract) placements, which represents amounts billed for the services of temporary workers including the salary costs of those workers, is recognised over time in line with when the temporary worker provides services, typically over a weekly or monthly timesheet period. Customers are invoiced in arrears following receipt of an approved timesheet; timing differences between the provision of services and invoicing are recognised as accrued income. Customer credit terms are between 30 and 60 days. \n   \n The Group has assessed its use of third party providers to supply temporary workers under the agent or principal criteria and has determined that it is the principal because it retains primary responsibility for provision of the services. \n   \n Permanent placements \n Revenue from permanent placements on non-retained assignments, which is typically based on a percentage of the candidate's remuneration package, is recognised at a point in time when the candidate commences employment. For retained assignments, revenue is recognised in line with completion of defined stages of work. Customers are invoiced in arrears following commencement of the candidate's employment; timing differences between the provision of services and invoicing are recognised as accrued income. Customer credit terms are between 30 and 60 days. \n   \n Some permanent placements are subject to a claw-back period whereby if a candidate leaves within a defined period of starting employment, the customer is entitled to a rebate subject to the Group's terms and conditions. Provisions as a reduction to revenue are recognised for such arrangements if considered probable. \n   \n Revenue cut-off: temporary and permanent placements \n Revenue is recognised in the financial year to which it relates, to the extent that the Group has, within two months of the year-end date, received confirmation that the contractual performance obligation has been satisfied; either through receipt of a client-approved timesheet or confirmation of commencement of employment (for permanent placements). \n   \n Statement of work \n Revenue from statement of work packages includes the provision of engineering management services, where the customer benefits from the services provided as the Group performs those services, is recognised over time. Progress against long-term contractual performance obligations is estimated using an input method, by reference to the proportion of costs incurred to date compared with total expected costs for the contract. This is considered to best reflect the benefit the customer receives from the Group's performance. \n   \n Other \n Other fees mainly relate to the management of our recruitment process outsourcing services. Revenue from other fees is recognised either at a point in time if we have agreed a fee per placement or over time if we have agreed a fee for managing the recruitment process during \na certain period. \n   \n 1.7     Non-underlying items \n Non-underlying items are income or expenditure that are considered unusual or separate to underlying trading results because of their size, nature or incidence and are presented within the Consolidated Income Statement but highlighted through separate disclosure. The Directors consider that these items should be separately identified within the Income Statement to enable a proper understanding of the Group's business performance. \n   \n Items which are included within this category include but are not limited to: \n   \n •    restructuring costs, including related professional fees and staff costs, and costs relating to disposal and closure of discontinued business; \n •    costs of acquisitions; \n •    lease exit costs; and \n •    integration costs following acquisitions. \n   \n In addition, the Group also excludes from underlying results amortisation of acquired intangibles, impairments (excluding expected credit loss allowances for trade receivables and accrued income) and net foreign exchange gains or losses. \n   \n Specific adjusting items are included as non-underlying based on the following rationale: \n \n \n \n \n Item \n \n \n Distorting due to irregular nature year on year \n \n \n Distorting due to fluctuating nature (size) \n \n \n Does not reflect in-year operational performance of continuing business \n \n \n \n \n Restructuring costs \n \n \n √ \n \n \n √ \n \n \n √ \n \n \n \n \n Lease exit costs \n \n \n √ \n \n \n √ \n \n \n √ \n \n \n \n \n Amortisation of acquired intangibles \n \n \n \n \n \n \n \n \n √ \n \n \n \n \n Impairment of goodwill and acquired intangibles \n \n \n √ \n \n \n √ \n \n \n √ \n \n \n \n \n Impairment of right-of-use leased assets \n \n \n √ \n \n \n √ \n \n \n √ \n \n \n \n \n Impairment of cash and cash equivalents \n \n \n √ \n \n \n √ \n \n \n √ \n \n \n \n \n Net foreign exchange gains and losses \n \n \n \n \n \n √ \n \n \n √ \n \n \n \n \n Tax impact of the above \n \n \n √ \n \n \n √ \n \n \n √ \n \n \n \n \n   \n 1.8     Property, plant and equipment \n Property, plant and equipment is stated at cost, net of depreciation and any provision for impairment. \n   \n Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset in terms of annual depreciation as follows: \n   \n \n \n \n \n Fixtures, fittings and equipment \n \n \n 12.5% to 33.3% \n \n \n Straight-line \n \n \n \n \n Leasehold improvements \n \n \n Over the period of the lease term \n \n \n Straight-line \n \n \n \n \n   \n The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. \n   \n An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. \n   \n 1.9     Goodwill \n Goodwill arising on business combinations represents the excess of the fair value of the consideration given for a business over the Company's interest in the fair value of the net identifiable assets, liabilities and contingent liabilities of the acquiree. Goodwill is stated at cost less accumulated impairments. \n   \n Goodwill impairment reviews are undertaken annually, or more frequently if events or changes in circumstances indicate a potential impairment. Goodwill is allocated to cash-generating units (CGUs), being the lowest level at which goodwill is monitored. The carrying value of the assets of the CGU, including goodwill, intangible and tangible assets, leased right-of-use assets and working capital balances, is compared to its recoverable amount, which is the higher of value in use and fair value less costs to sell. Any excess in carrying value over recoverable amount is recognised immediately as an impairment expense and is not subsequently reversed. Gains and losses on the disposal of a business are reported net of the carrying amount of any corresponding goodwill. \n   \n 1.10   Intangible assets \n Customer relationships \n Customer relationships comprise principally of existing customer relationships which may give rise to future orders, and existing order books. They are recognised at fair value at the acquisition date and subsequently measured at cost less accumulated amortisation and impairment. Customer relationships are determined to have a useful life of ten years and are amortised on a straight-line basis. The remaining amortisation period of customer relationships is one year. \n   \n Trade names and trademarks \n Trade names and trademarks, acquired as part of a businesses or separately purchased, are initially recognised at fair value at the acquisition date and subsequently measured at cost less accumulated amortisation and impairment. Trade names and trademarks are determined to have a useful life of ten years and are amortised on a straight-line basis. Trade names and trademarks have been fully amortised in the current year. \n   \n Software and software licences \n Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring into use the specific software. Software and software licences are determined to have a useful life of between two and five years and are amortised on a straight-line basis. Subsequent licence renewals are expensed to profit or loss as incurred. \n   \n Costs incurred for the development of software code that enhances or modifies, or creates additional capability to existing on premise systems and meets the definition of and recognition criteria for an intangible asset are recognised as intangible software assets and amortised over \na useful life of between two and ten years. The remaining amortisation period of software and software licences is between one and eight years. \n   \n Software-as-a-Service arrangements \n Software-as-a-Service (SaaS) arrangements are service contracts providing the Group with the right to access the cloud provider's application software over the contract period. In most cases, these will not meet the definition of an intangible asset under IAS 38. Implementation costs relating to cloud-based software under SaaS arrangements are either recognised as an intangible asset under IAS 38 if they meet the relevant capitalisation criteria or, more likely, are expensed to the Income Statement; as incurred, where implementation services are distinct from access to the software, or otherwise recognised as an expense over the period of the service contract. \n   \n Other \n Other intangible assets acquired by the Group have a finite useful life between five and ten years and are measured at cost less accumulated amortisation and impairment losses. Other intangibles have been fully amortised. \n   \n Intangible assets are tested for impairment either as part of a goodwill-carrying cash-generated unit, or when events arise that indicate an impairment may be triggered. An impairment loss is recognised for the amount by which the carrying value of intangible assets exceeds the recoverable amount. The recoverable amount is the higher of the assets' fair value less costs of disposal and value in use. \n   \n Amortisation of intangible assets and impairment losses are recognised in the Income Statement within administrative expenses. \n   \n 1.11   Investments \n Investments in subsidiary undertakings are initially recognised at cost and subsequently carried at cost less accumulated impairment. \n   \n Investments are tested for impairment at the reporting date if events arise that indicate an impairment may be triggered. An impairment loss is recognised for the amount by which the carrying amount of the investment exceeds its recoverable amount. The recoverable amount is the higher of fair value less costs of disposal and value in use. Impairment losses on investments are recognised in the Income Statement in administrative expenses . \n   \n 1.12   Leases \n The Group leases office property, motor vehicles and equipment. Rental contracts typically range from monthly to five years. \n   \n At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. \n   \n Assets and liabilities arising from a lease are initially measured at present value at the lease commencement date. Lease liabilities include the net present value of the fixed payments less any lease incentives receivable, variable lease payments that are based on an index or a rate, amounts expected to be payable by the Group under residual value guarantees, the exercise price of any purchase option if the Group is reasonably certain to exercise that option, and payments of penalties for terminating the lease if that option is expected to be taken. Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. \n   \n Lease payments are discounted at either the interest rate implicit in the lease or when this interest rate cannot be readily determined, the Group's incremental borrowing rate is associated with a similar asset. When calculating lease liabilities, the Group uses its incremental borrowing rate, being the rate it would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic climate with similar terms, security and conditions. This is estimated using publicly available data adjusted for changes specific to the lease in financing conditions, lease term, country and currency. \n   \n The Group does not have leases with variable lease payments based on an index or rate. \n   \n Extension or termination options are included in a number of the Group's leases. In determining the lease term, the Group considers all facts and circumstances that create an economic incentive to exercise, or not to exercise, an option. Extension options are only included in the lease term if the lease is reasonably certain to be extended. The lease term is reassessed if an option is actually exercised or the Group becomes obliged to exercise (or not to exercise) it. The assessment of reasonable certainty is only revised if a significant event or a significant change in circumstances occurs that is within the control of the Group. \n   \n Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. \n   \n Right-of-use assets are measured at cost comprising the following: \n   \n •    the amount of the initial measurement of lease liability; \n •    any lease payments made at or before the commencement date less any lease incentives received; \n •    any initial direct costs; and \n •    restoration costs. \n   \n Right-of-use assets are depreciated on a straight-line basis over the term of the lease with depreciation expense recognised in the Income Statement. \n   \n Right-of-use assets are tested for impairment either as part of a goodwill-carrying cash-generated unit, or when events arise that indicate an impairment may be triggered. An impairment loss is recognised for the amount by which the carrying value of right-of-use assets exceeds the recoverable amount. The recoverable amount is the higher of the asset's fair value less costs of disposal and value in use. Impairment losses on right-of-use assets are recognised in the Income Statement in administrative expenses. \n   \n Lease modifications are a change in scope of a lease that was not part of the original lease. Any change that is triggered by a clause already part of the original lease contract is a reassessment and not a modification. Changes to lease cash flows as part of a reassessment may result in a remeasurement of the lease liability using an updated discount rate where required by the standard. \n   \n Advantage has been taken of the practical expedients for exemptions provided for leases with less than 12 months to run, for leases of low value assets, and to account for leases with similar characteristics as a portfolio with a single discount rate. Payments associated with short-term leases and leases of low value are recognised on a straight-line basis as an expense in profit or loss. \n   \n Sublease of office space at certain of the Group's leased properties is accounted for in accordance with IFRS 16; the right-of-use asset relating to the head lease is derecognised to the extent that control of the asset (or a proportion thereof) is transferred to the sublessee, and the net investment in the sublease is recognised as a net finance lease receivable. The lease liability relating to the head lease, representing future lease payments due to the head lessor, is unaffected by the sublease arrangement. \n   \n 1.13   Taxation \n The tax expense for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively. \n   \n The current tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the reporting date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities. \n   \n Deferred income taxes are calculated using the liability method on temporary differences. Deferred tax is generally provided on the difference between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill, nor on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting profit. \n   \n Deferred tax liabilities are provided in full, with no discounting. Deferred tax assets are recognised to the extent that it is probable that the underlying deductible temporary differences will be able to be offset against future taxable income. Current and deferred tax assets and liabilities are calculated at tax rates that are expected to apply to their respective period of realisation, provided they are enacted or substantively enacted at the reporting date. \n   \n Deferred tax on temporary differences associated with shares in subsidiaries is not provided for if these temporary differences can be controlled by the Group and it is probable that reversal will not occur in the foreseeable future. \n   \n Deferred tax assets and liabilities are offset only where there is a legally enforceable right to the offset and there is an intention to settle balances on a net basis. \n   \n Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the Income Statement, except where they relate to items that are charged or credited directly to equity (such as share-based payments) in which case the related deferred tax is also charged or credited directly to equity. \n   \n 1.14   Pension costs \n The Group operates a number of country-specific defined contribution plans for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in other creditors in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds. \n   \n 1.15   Share-based payments \n All share-based remuneration is ultimately recognised as an expense in the Income Statement with a corresponding credit to the share-based payment reserve. All goods and services received in exchange for the grant of any share-based remuneration are measured at their fair values. Fair values of employee services are indirectly determined by reference to the fair value of the share options awarded. Their value is appraised at the grant date and excludes the impact of non-market vesting conditions (for example, profitability and sales growth targets). \n   \n If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of the number of share options expected to vest. Estimates are subsequently revised if there is any indication that the number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the current period. No adjustment is made to any expense recognised in prior periods if share options ultimately exercised are different to that estimated on vesting. Upon exercise of share options, proceeds received net of attributable transaction costs are credited to share capital and share premium. \n   \n The Company is the granting and settling entity in the Group share-based payment arrangement where share options are granted to employees of its subsidiary companies. The Company recognises the share-based payment expense as an increase in the investment in subsidiary undertakings. \n   \n The Group operates a Long-Term Incentive Plan (LTIP) share options scheme for Executive Directors and senior management. Options have exercise prices at or above £0.01. Grants have been made as part of a CSOP scheme, depending on the terms of specific grants. \n   \n The Group also operates a Share Incentive Plan (SIP), the Gattaca plc Share Incentive Plan (The Plan), which is approved by HMRC. The Plan is held by Gattaca plc UK Employee Benefit Trust (the SIP EBT), the purpose of which is to enable employees to purchase Company shares out of pre-tax salary. For each share purchased the Group grants an additional share at no cost to the employee. The expense in relation to these 'matched' shares is recorded as employee remuneration and measured at fair value of the shares issued as at the date of grant. The assets and liabilities of the SIP EBT are included in the Consolidated Statement of Financial Position. \n   \n 1.16   Financial instruments \n Financial assets \n IFRS 9 contains a classification and measurement approach for financial assets that reflects the business model in which assets are managed and their cash flow characteristics. Under IFRS 9, all financial assets are measured at either amortised cost, fair value through profit and loss (FVTPL) or fair value through other comprehensive income (FVOCI). \n   \n Financial assets: debt instruments \n The Group's debt instruments are initially recognised at fair value, including transaction costs that are directly attributable to their acquisition of issue, and are subsequently measured at amortised cost. \n   \n Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in other gains/(losses), together with foreign exchange gains and losses. \n   \n   \n Impairment of financial assets \n IFRS 9 requires the application of the Expected Credit Loss model (ECL). This applies to all financial assets except equity investments. \n   \n The Group assesses on a forward-looking basis the expected credit losses associated with its debt instruments. \n   \n The Group has reviewed each category of its financial assets to assess the level of credit risk and ECL allowance to apply: \n   \n •    Trade receivables: the Group has chosen to take advantage of the practical expedient in IFRS 9 when assessing default rates over its portfolio of trade receivables, to estimate the ECL allowance based on historical default rates specific to groups of customers by industry and geography that carry similar credit risks. \n •    Accrued income is in respect of temporary placements where a candidate has provided services or permanent placements where a candidate has commenced employment, but no invoice has been raised. Default rates have been determined by reference to historical data. \n •    Cash and cash equivalents are held with established financial institutions. The Group has determined that based on the external credit ratings of counterparties, this financial asset has a very low credit risk and that the estimated expected credit loss allowance is not material. During FY24, the Group impaired its cash on deposit in Russia due to the increased credit risk associated with the financial and regulatory sanctions imposed on and by Russia. \n   \n The Company assesses credit risk and ECL allowance over amounts due from Group undertakings in the context of subsidiary trading results and net assets. At each reporting date, the ECL allowance is reviewed to reflect changes in credit risk and historical default rates and other economic factors. A customer is considered to be in default when there is evidence of significant financial difficulty, non-payment beyond agreed terms or insolvency. Changes in the ECL allowance are recognised in the Income Statement within administrative expenses. \n Financial liabilities \n Financial liabilities are obligations to pay cash or other financial assets and are recognised when the Group becomes a party to the contractual provisions of the instrument and comprise trade and other payables and bank borrowings. Financial liabilities are recorded initially at fair value, net of direct issue costs and are subsequently measured at amortised cost using the effective interest rate method. \n   \n A financial liability is derecognised only when the obligation is extinguished, that is, when the obligation is discharged, cancelled or expires. \n   \n Non-recourse receivables factoring is not recognised as a financial liability as there is no contractual obligation to deliver cash; subsequently, the receivables are de-recognised and any difference between the receivable value and amount received through non-recourse factoring \nis recognised as a finance cost. \n   \n 1.17   Cash and cash equivalents \n In the Consolidated Cash Flow Statement, cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the Statement of Financial Position and Cash Flow Statement, bank overdrafts are netted against cash and cash equivalents where the offsetting criteria are met. \n   \n Cash in transit inbound from, or outbound to, a third party is recognised when the transaction is no longer reversible by the party making the payment. This is determined to be in respect of all electronic payments and receipt transactions that commence before or on the reporting date and complete within one business day after the reporting date. \n   \n Restricted cash and cash equivalent balances are those which meet the definition of cash and cash equivalents but are not available for wider use by the Group. These balances arise from the Group's non-recourse working capital arrangements as well as from balances for which the Group cannot access the accounts and hence cannot withdraw funds but is still the legal owner. \n   \n 1.18   Provisions \n Provisions are recognised where the Group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future operating losses. \n   \n 1.19   Dividends \n Dividend distributions payable to equity shareholders are included in 'other short term financial liabilities' when the dividends are approved in a general meeting prior to the reporting date. \n   \n 1.20   Foreign currencies \n Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which each entity operates (the functional currency). The consolidated financial statements are presented in Pounds Sterling (£GBP), which is the Group's presentation currency. \n   \n Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities in foreign currencies are translated at the rates of exchange ruling at the reporting date. Non-monetary items that are measured at historical cost in a foreign currency are translated at the exchange rate at the date of the transaction. Non-monetary items that are measured at fair...

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