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UK – Staffline Group reports strong growth following acquisition

28 January 2015

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.