Gattaca PLC (AIM:GATC) shares were under pressure on Thursday after the specialist recruitment group announced a sharp drop in profits.
The company said the pandemic had hit its business hard, and even though it saw signs of improvement in the second half, full-year revenues fell 22% to £415.7mln and profits dropped 32% to £2.2mln.
Its engineering business saw net fee income fall 17% while the decline was 25% in its technology division,
Internationally, fee income fell 30% and it has closed its Mexican business and is in the process of selling the South African division.
Chairman Patrick Shanley said the company was still cautious about recovery but hoped the worst was over.
He said: "The fundamentals of our business model position us well for the upswing in the economy. It is well recognised that the demand for STEM skills will only increase and we are well balanced to fulfil our role with our clients in finding the talent that they require. Last year we were cautious regarding the timing and whilst we feel more confident today we are also aware that this pandemic may well be wounded but is not yet finished. There may well be twists and turns over the coming months.
"What we do know is that our business is in the best possible position to exploit any market growth having been focused on our core markets for over 37 years. We have left behind us Brexit, IR35, new systems implementation and hopefully the worst of COVID-19.
"What lies ahead is a period where the expectation for major infrastructure projects in the UK is unprecedented and an optimism amongst our client base that we are entering a growth phase for STEM skills with a shortage of candidates. We are therefore hopeful that as the markets return we will see a significant recovery in the medium-term to our level of profitability."
Some investors clearly do not want to wait, with its shares down 15.85% to 174.19p.