Staffline Group publish half year interim results
· Interim dividend increased by 32% to 5.0p (H1 2013: 3.8p)
· Successful placing of new shares in May 2014 raised £16m, at a premium to the then prevailing share price, to part fund the acquisition of Avanta
• Continued expansion of the OnSite model, increased by 18 sites during the period to 212
• Completed the acquisition of Avanta for a net consideration of £45m, net of cash acquired
o Staffline now top 3 Work Programme provider in UK
o Integration well advanced
o Combined Avanta/EOS operation well placed to grow market share
• Five year growth strategy to reach £1bn revenues in place and on track
• Group continues to trade in line with market expectations for the full year
• Contract win for EOS in Northern Ireland announced today
Commenting on the results and prospects, Andy Hogarth, Chief Executive, said:
"We have made a good start to 2014, buoyed by the continued traction in our core recruitment business and the recent acquisition of Avanta, our largest transaction to date. With Staffline continuing to outperform the broader recruitment sector as regulatory and budgetary constraints create added pressure for UK businesses, demand for our services remains strong.
"Our new business pipeline continues to develop and our newer divisions are beginning to gain market traction. The integration of Avanta is also progressing well and we remain strongly optimistic that we can make further gains in the welfare to work and training arena.
"Current trading remains robust and the confidence we have in our future trading prospects supports our commitment to the 32% increase in our interim dividend."