Staffing 360 Solutions Inc. (NASD: STAF), a staffing provider operating in the US and UK, yesterday reported second-quarter revenue rose 23.1% to $73.5 million, of which $20.7 million was attributable to the acquisitions of Clement May and KRI. This was partially offset by a decline of $3.3 million from the divestment of PeopleServe, $1.8 million from unfavourable foreign currency translation and an organic revenue decline of $1.8 million.

Zacks Equity Research suggested that the revenue increase was below consensus estimates and that, over the last four quarters, the company has not been able to surpass consensus EPS estimates.

The company also saw a sharp decline in gross margin from 19.9% in Q2 2018 to 16.5% due to a changing mix of business. Income from operations grew to $0.5 million compared with $0.1 million in Q2 2018.

The group also reported revenue for the year to date of $147.3 million, up 27.5% from $115.5 million, including an unfavorable foreign currency translation impact of $4.2 million. Gross profit grew by 3.2% to $24.2 million, from $23.5 million.

Brendan Flood, Chairman and Chief Executive Officer, commented, “We continue to make great progress toward our stated goal of growing into a profitable $500 million revenue business by 2020. While we had hoped to be able to accomplish the net gain on a settlement in the second quarter just ended, reporting it in the third quarter gives us a significant head start.”

In trading yesterday, Staffing 360 Solutions shares closed at $1.54, down 1.50% on the day and 18.46% above the 52 week low of $1.30 set on 6 December 2018. Based on its current share price the company has a market value of $13.37 million.