Staffing 360 Solutions Inc. (NASDAQ: STAF), a staffing firm with operations in the US and UK, reported third-quarter revenue rose 39.2% to $66.1 million year over year. However, gross margin narrowed at the New York-based staffing provider.

On a constant currency basis, revenue rose 44.3%.

“This quarter also marked the first full quarter of contribution from our recent acquisition of Headway Workforce Solutions and to date, we remain on track to implement $1.8M of wide-ranging integrations savings,” Chairman, CEO and President Brendan Flood said.

“We believe that Headway’s unique approach to staffing is an excellent complement to our business model and can be leveraged into our other brands in both the US and UK.”

Flood noted the company reduced its fixed-term debt to $9.4 million from $70 million in 2020 and recently completed the consolidation of its US asset-based lending facility, which will extend maturity into 2024 and lower borrowing costs.

Staffing 360 anticipates continued revenue growth and margin improvements ahead, Flood said.

The company recently announced the appointments of Joe Yelenic as principal financial officer and Nick Koutsivitis as principal accounting officer following Khalid Anwar’s resignation.

Staffing 360 posted growth in its US and UK professional staffing segments. However, revenue fell 12.4% in its US commercial staffing segment.

The company also reported a net income of $1.0 million compared with a net income of $8.7 million in the year-ago quarter, as 2021 included forgiveness of a PPP loan of $9.5 million. Excluding the forgiveness, the company reported net income showed significant improvement.

Revenue by segment

Share price and market cap

Shares in Staffing 360 were up 2.77% to $2.78 as of 12:21 p.m. Eastern time; they were 26.36% above their 52-week low, according to FT.com. The company had a market cap of $6.58 million.