Staffing 360 Solutions Inc. (NASD: STAF), a staffing provider operating in the US and UK, reported fourth-quarter revenue rose 29.1%, according to preliminary results. The revenue increase was driven primarily by acquisitions of 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.

Net loss increased to $9.1 million in the fourth quarter, which included $7.9 million of noncash costs.

However, gross margin improved; the company cited the exit of a low-margin business, the acquisition of two higher-margin businesses, the strengthening of its permanent placement business, and improvements made in Monroe Staffing Services operation over workers’ compensation insurance costs.

Staffing 360’s revenue for the fourth quarter included $17.7 million from the firstPRO Georgia and CBS Butler Holdings Ltd. acquisitions. 

Quote

“Fiscal 2017 was a transformative year for us,” said Chairman and CEO Brendan Flood. “We completed two acquisitions which, on a pro forma annual basis, added approximately $85 million to the top line, and more than doubled adjusted EBITDA of our overall business to $11 million. Additionally, we reorganized our business into three distinct segments (Commercial Staffing – US, Professional Staffing – US and Professional Staffing – UK), a strategic move which allows us to further leverage our international presence, drive growth, increase operating efficiencies, and generate sustainable profitability. We look forward to reporting our progress in the coming months.”

Full-year results

Share price and market cap

Shares in Staffing 360 fell 3.88% to $3.22 as of 12:45 p.m. Eastern time. The company had a market cap of $12.49 million.