Staffline Group (STAF: LSE), the UK-based staffing and employability organisation, reported revenue for the six months ending 30 June 2017 of £427.8 million, an increase of 3.1% compared with the first half of 2016.

The decrease in gross profit was due to reduced activity in the group’s PeoplePlus segment where revenues decreased by 26% and gross profit decreased as well.

"This positive first half of the year reflects the continuation of the growth and success which the group enjoyed in 2016,” Andy Hogarth, Chief Executive, said. “It is hugely encouraging to see that, even in these uncertain economic times, Staffline can continue to thrive, with another record number of OnSites opened in our Staffing division and a strong new business pipeline. Our PeoplePlus business has performed very well in all our Work Programme contracts and has also achieved significant operational efficiencies. Our two acquisitions during the period have both settled in well and are performing in line with our expectations.”

Staffline has two operating segments: the provision of recruitment and outsourced human resource services to industry (‘Staffing Services’) and the provision of welfare-to-work services, skills training and probationary services - collectively this segment is called ‘PeoplePlus’ and was previously known as the ‘employability division’. Revenue by segment for the half year is as follows:

Earlier this year, Staffline Group made a number of acquisitions including Brightwork Limited, a recruitment business based in Scotland. The group stated that due to this acquisition, Staffing Services now has a market-leading presence in Scotland to add to the other newer divisions. Staffline also acquired Oak Recruitment, a recruitment firm based in Ireland. Staffline stated that these acquisitions helped boost revenue in its Staffing Services segment.

The group has also tabled a bid to acquire NHS Professionals, the government-owned agency that supplies doctors and nurses to hospitals across the UK.

Staffline stated that the revenue decline in PeoplePlus reflects the continued wind down of the Work Programme and the ceasing of new referrals in March 2017.

“We have every confidence that our positive growth and implementation of strategic initiatives will translate into delivering current market expectations for 2017 and continue to drive long term shareholder value."

Looking to the future Staffline stated that they have a positive outlook for the remainder of 2017 and are on track to achieve their five-year £1 billion revenue target by the end of 2017.

As of last trade Staffline Group traded at £1,180.00, down 0.67% on the day and 18.72% below its 52-week high of £1,451.72, set on 31 May 2017. Based on its current share price the company has a market value of £330.85 million.