Third-quarter revenue rose 9.6% at Staffing 360 Solutions Inc. (NASD: STAF), a staffing provider operating in the US and UK. However, the increase was driven primarily by the inclusion of acquired businesses.

Gross margin improved but net loss increased.

Staffing 360’s revenue for the third quarter included $6.8 million from acquisitions. The company in September acquired Atlanta-based firstPRO Georgia, a US-based company targeting IT staffing and accounting and finance staffing, and CBS Butler Holdings Ltd., a UK-based firm specializing in engineering and IT staffing services. It also refinanced its balance sheet with current lenders.

Quote

“The third quarter represents a transformational period in the short history of Staffing 360 Solutions,” said Executive Chairman Brendan Flood. “We completed two acquisitions and continued to drive margin improvements and overhead controls. At the same time we materially refinanced our balance sheet, improved our working capital position and our ability to generate positive operating cash flow. Most importantly, our trailing twelve months’ pro-forma Adjusted EBITDA, which includes the profits of the acquisitions prior to acquisition, is now $11 million, up from $5.4 million in the comparable trailing twelve months of 2016.”

Share price and market cap

Shares in Staffing 360 fell 5.47% to 69 cents as of 1:05 p.m. Eastern time. The company had a market cap of $13.36 million.