STAFFLINE GROUP PLC
STAFFLINE GROUP PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2009
Staffline Group plc, a leading provider of recruitment, training and outsourced HR services to industry, today announces its preliminary results for the year ended 31 December 2009.
Revenues of 115.0m (2008: 120.8m)
Operating profit of 3.6m (2008: 3.7m)
Operating margin of 3.1% (2008: 3.1%)
Profit before tax of 3.5m (2008: 3.4m)
Basic earnings per share of 11.5p (2008:11.1p ) increase of 3.6%
Final dividend of 1.7p total dividend of 3.1p (2008:2.9p) increase of 6.9%
Net debt reduced to 5.0m (2008:6.0m)
Gearing fell to 19% (2008: 24%)
Interest costs reduced by 70% to 0.1m (2008: 0.4m) covered 33 times (2008: 10 times)
Three acquisitions completed and integrated successfully in the year
Post Tax profit increased by 5%
Continued growth in OnSites:
up by 7 during the reporting period to 119
represents 86% of group sales (2008: 79%)
food processing sector continues to demonstrate relative resilience
Continued cost savings being delivered
rationalisation of the branch network
reduction in administration costs of 1.8m (13.6%) to 11.2m
People employed by the Group have increased by 12%
Trading in the first eight weeks of 2010 has been in line with managements expectations
A net increase of 5 new OnSites expected in the first quarter
Current financial year will gain the full benefit of the new OnSites opened during the second half of 2009
Commenting on the results and prospects for 2010, Andy Hogarth, Chairman and Chief Executive, said:
I am very pleased to be able to report an increase in profits, both before and after tax, following an extremely challenging year for all in the recruitment business. It is a testament to the dedication and hard work of all of the Staffline team, wherever they work in the UK, that we have been able to do this.
Trading in the first few weeks of 2010 has been in line with expectations and we are continuing to see strong demand for new OnSites, particularly in the food processing sector. We currently have a pipeline of 5 new OnSites due to open in the first quarter and the current financial year will gain the full benefit of the new OnSites opened during the second half of 2009.
Overall we continue to be encouraged by the levels of interest in our products and services from new clients and, whilst we expect the recession to continue to provide a tough economic backdrop in the markets where we operate, we remain confident that our model will allow us to operate profitably and indeed continue to grow. The operational savings that are being constantly implemented will allow us to continue to underpin our profitability in 2010.
We are in a strong financial position, net debt continued to fall during 2009 and with our term loan not maturing until 2013, we expect to continue to generate significant cash in the coming years. We continue to look for acquisition opportunities and look forward to the challenges ahead.