Friday, August 12, 2022

Staffline hails solid first half despite revenue dip

Staffline Group, the recruitment and training group, has hailed a “solid performance” in unaudited results for the six months ended 30 June 2022, with trading in line with expectations.

It comes despite revenue dipping slightly to £438m from £450.7m in the same period of the year prior, which the firm attributes to lower hours worked in the food and online distribution sectors.

Meanwhile the business posted a £39.9m gross profit, up from £39m, a £4m underlying operating profit, down from £4.6m, and a £1m pre-tax loss, widening from the £0.8m loss reported in the first half of 2021.

Albert Ellis, Chief Executive Officer of Staffline, said: “I am pleased with the solid start Staffline has made to 2022, providing a strong base from which to deliver across the remainder of the year. This performance, achieved against the backdrop of macro-economic and geopolitical uncertainty, as well as the adverse impact of the Omicron COVID-19 wave in January 2022, further highlights the resilience of our business and the value of our scale and operational expertise.

“Our executive management team has worked hard to deliver on our growth strategies, securing new business in challenging labour markets through contract wins with BMW Group, VINCI Construction and the Ministry of Justice, which will deliver incremental revenues in H2 2022.

“In addition, we have actively invested in headcount in order to capitalise on future growth opportunities and build the capacity required to further increase our fee income organically. I am confident this will yield positive results in the second half of the year, which will also see a boost from the maiden returns from our Restart contracts.

“Management remains conscious of heightened macro and political headwinds going forward, and will seek to offset any associated impacts by protecting the Group’s strong balance sheet through tight control of the cost base and continued focus on working capital management. We believe the industry-wide challenges that lie ahead present an unprecedented opportunity for Staffline, as we pursue a number of new business prospects and continue to grow our market share at the expense of sub-scale competitors.”

Staffline has also revealed that its PeoplePlus subsidiary has secured a new seven year contract worth £15m with the Ministry of Justice.

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