Staffline set for growth
The Board today confirms that earnings for the full year will be in line with market expectations. All divisions have traded well during the year with key contract wins in both the Recruitment Services and Welfare to Work arenas. A further significant win also includes the Ministry of Justice Rehabilitation contract in Warwickshire and Mercia Region which was announced in November.
The acquisition of Avanta, completed in June 2014, continues to perform well with integration progressing to plan.
A presentation for analysts and investors will be held at 9.30am on Wednesday 28 January at the offices of Buchanan, 107 Cheapside, London EC2V 6DN.
Andy Hogarth, chief executive of Staffline, commented, "Staffline has had another busy year delivering both financial growth and strategic progress. We remain well placed to achieve further growth for our shareholders in the coming year."
Joshua Raymond, chief market strategist of cityindex.co.uk, said, "Staffline confirmed in a brief trading update today that its full year earnings will be in line with market expectations. The firm is expected to report full year net income of £9.8m and EBITDA of £21.27m. In reaction, the recruitment and outsourcing firm’s shares price rallied more than 4% upon market open on Tuesday 6th January to trade as high as 859p, its highest levels since 29th October last year. Shares had lost more than 25% in value over the second half of last year having hit a high above £10 a share in July, which was its second major price correction in twelve months. So today’s move helps to re-establish a degree of investor confidence that the firm will continue to deliver in line with projections. A re-test of £10 could be achievable should shares trade back above 920p. However, given the fact that its shares were trading as low as 160p a mere three years ago, investors should get used to some volatile swings in its share price, as the last year has testified."