Specialist engineering and professional services staffing firm Gattaca (GATC:LSE), formerly known as Matchtech Group, yesterday reported revenue for the six months ending 31 January 2017 of £304.2 million, an increase of 1% in constant currency compared with £297.9 million during the same period last year.

Underlying results exclude the trading and net proceeds of divested businesses (2017: £nil; 2016: £0.3m loss) amortisation of acquired intangibles (2017: £1.4m; 2016: £1.8m) and integration and restructuring costs relating to the Networkers and Resourcing Solutions acquisitions (2017: £1.1m; 2016: £0.9m) and exchange gains from balance sheet conversion (2017: £0.3m; 2016: £0.6m).

Earlier in the week, Gattaca had issued a profit warning. “As previously announced, performance in the first half of the financial year reflects the tougher UK trading conditions post the EU Referendum in June 2016,” said Chief Executive Brian Wilkinson. “The softening in NFI in the first half was driven by near term uncertainty which led to elongated hiring decisions and some projects being delayed; however, the medium-term outlook in our sectors remains positive with some signs of a return of confidence in recent weeks.”

Net Fee Income (NFI) declined by 4% in constant currency with contract NFI declining 3% and permanent fee NFI down by 7%. Permanent fee NFI in Engineering, Gattaca’s largest sector, declined by 12% in constant currency.

Wilkinson continued, “The reduction in NFI has coincided with investments made in growing our international headcount and ensuring that the Group has the infrastructure to build a truly scalable business. Unanticipated one-time cost overruns and delays in realisation of back office cost savings have also impacted profitability in the period.

Aside from delays in the realisation of back office cost savings, costs were also hit by one-time overruns related to the setting up of international entities to support a pan-European contract win. The company expects that central overheads will also exceed expectations for the second half of the year.

Gattaca has invested in overseas sales headcount, up 26 since 31 July 2016, and expects to see a return on these investments during the second half and beyond.

The firm acquired Resourcing Solutions Limited in February, strengthening its capability in the UK rail market, an area of high investment by the government. It has completed the integration of staffing firm Networkers, which it acquired in April 2015, and now intends to consolidate its central cost base —whilst maintaining the existing structure and support — and convert sales opportunities into growth over the short and medium term.

The company cited “some recent signs of improving confidence” in the UK following a challenging period following the EU Referendum but acknowledged that the upcoming UK General Election creates more uncertainty.

Gattaca shares rose/fell 0.96% to £279.65 this morning which means the company has a market cap of £86.33 million.