Gattaca plc (GATC:LSE) reported last week that it now believes profits will be approximately 10% to 15% below prior expectations.

The UK-based specialist engineering and technology recruiter had previously reported on 2 February that performance in the first half of the year reflects the tougher UK trading conditions post the Brexit vote. The softening in net fee income in the first half was driven by near term uncertainty which led to elongated hiring decisions and some projects being delayed; however, Gattaca reported the medium-term outlook in its sectors remains positive with some signs of a return of confidence.

“Unanticipated one-time cost overruns relating to the setting up of international entities to support a pan-European contract win and delays in realisation of back office cost savings will result in our central overheads exceeding our expectations for the second half,” the company stated. “Alongside this we have been making the appropriate investments to ensure that the group has the infrastructure to build a truly scalable business. The group has continued to strategically invest in sales headcount, up 24 since 31 July 2016 and we expect to see a return on these investments during the second half and beyond.”

Interim results will be released Thursday.