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View All NewsUK – Staffline reports half-year growth boosted by acquisitions
Staffline Group (STAF: LSE), the UK-based staffing and employability organisation reported revenue for the six months ending 30 June 2016 of £414.7 million, an increase of 39.5% compared with the first half of 2015.
| H1 2016 | H1 2015 | Change | |
| Revenue | £414.7 million | £297.2 million | 39.5% |
| Gross Profit | £62.4 million | £42.0 million | 48.6% |
| Operating Profit | £16.7 million | £10.9 million | 53.2% |
“This positive first half of the year reflects the continuation of the growth and success which the Group enjoyed in 2015,” 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 of OnSites opened in our Staffing division and a continuing strong new business pipeline. Our PeoplePlus business has also made huge strides in improving the former A4e (Action for Employment) Work Programme contracts. We have every confidence that our strategic initiatives will translate into delivering current market expectations for 2016 and drive long term shareholder value.”
Staffline acquired Diamond Recruitment and Milestone during Q4 2015 and the company says that they are both performing ahead of initial expectations.
Staffline currently identifies 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’. Segment information for the reporting half year is as follows:
| H1 2016 | H1 2015 | Change | |
| Staffing Services | £336.7 million | £233.1 million | 44.4% |
| People Plus | £78.0 million | £64.2 million | 21.5% |
Staffline states that the company remain on track to deliver current expectations for FY 2016.
The company states: “In the uncertain political climate we remain responsive and focused on adapting to new regulations and government change. Whether this is the NLW (National Living Wage) or the potential changes which the UK’s exit from the EU may bring over time, our scale and capabilities mean that organisations increasingly look to Staffline to ensure their access to a flexible and efficient workforce.”
In trading today, Staffline Group PLC traded at £905.00, up 5.23% on the day and 24.83% above the 52 week low of £725.00 set on 7 July 2016. Based on its current share price, the company has a market value of £230.32 million.