Daily News
View All NewsUK – Staffline Group reports strong growth following acquisition
Recruitment firm Staffing Group (STAF: LSE) reported revenue of £503.2 million for the year ending 31 December 2014, an increase of 20.9% from 416.2 million in 2013.
2014 | 2013 | Change | |
Revenue | £503.2 million | £416.2 million | +20.9% |
Gross Profit | £64.8 million | £42 million | +54.3% |
Operating Profit | £11.2 million | £8.9 million | +25.9% |
Andy Hogarth, Chief Executive of Staffline Group, said: “2014 was a period of significant progress for our business. Important strategic steps in both our Staffing services and Employability divisions have delivered positive momentum for the Group and we start 2015 with a stronger and more profitable business than ever before.”
“We remain on track to meet our ambition to reach £1 billion of revenues by 2017 and are focused on delivering growth organically and through strategic acquisitions in 2015 and beyond,” he added.
The company operates two divisions:
Staffing Services; which specialises in providing complete labour solutions in agriculture, food processing, manufacturing, e-retail, driving, and the logistics sectors. The recruitment business operates from over 250 locations in the UK, Ireland, and Poland.
The company’s staffing brands include: Staffline OnSite, Select Appointments, Staffline Express, Driving Plus, and Staffline Agriculture.
Employability; which provides employment training, e-learning services, welfare-to-work services.
Staffing Services | Employability | |||||
2014 | 2013 | Change | 2014 | 2013 | Change | |
Revenue | £437.5 million | £393.6 million | +11.1% | £65.7 million | £22.6 million | +190.8% |
Gross Profit | £38.6 million | £34 million | +13.5% | £26.2 million | £8 million | +228.4% |
Operating Profit | £7.4 million | £6.3 million | +15.8% | £3.9 million | £2.6 million | +50.8% |
In May 2014, Staffline announced the acquisition of Avanta Enterprise Ltd, a provider of Welfare to Work and skills training services for a total consideration of £65.2 million. The acquisition added 8.8% to Group sales in the seven months following the acquisition.
Staffline advised that the company assessed a number of acquisition opportunities during 2014 and their strategy remains to target bolt-on acquisition to support growth. No acquisition targets have been identified yet.
In trading today, the company’s share price rose by 7.7% to £7.86, an increase of 61.9% compared with a year ago. Based on its current share price, the company has a market value of £218.7 million.