Third-quarter revenue increased by 39.2% year over year at Staffing 360 Solutions Inc. (NASDAQ: STAF), a staffing provider with operations in the US and UK.

Gross profit stood at $12.3 million, an increase of 28.1% from $9.6 million in the prior year period, or an increase of 30% on a constant currency basis.

The group said excluding the $9.5 million PPP (US-based Paycheck Protection Programme during Covid-19) loan forgiveness in the prior year, it showed significant improvement.

Operating income was $500,000 for the quarter as compared with operating income of $470,000 in the prior year period.

EBITDA for the quarter was $3.0 million against $10.5 million in the prior year period. Excluding the $9.5 million PPP loan forgiveness in the prior year, we again showed significant improvement

Adjusted EBITDA was $3.1 million as compared with $1.5 million in the prior year period

Brendan Flood, Chairman, CEO and President, said, “Our paradigm changing service delivery approach continues to gain momentum in the market, delivering strong revenue growth and significant margin improvements in the third quarter.”

“This quarter also marked the first full quarter of contribution from our recent acquisition of Headway Workforce Solutions and to date we remain on track to implement $1.8 million of wide-ranging integrations savings,” Flood said. “We believe that Headway’s unique approach to staffing is an excellent complement to our business model and can be leveraged into our other brands in both the US and UK.”

“I am also very pleased with the progress we have made in our capital structure. We have reduced our fixed term debt to $9.4 million from a high of $70 million in 2020 and have recently completed the consolidation of our US asset-based lending facility, which will extend maturity into 2024 and significantly lower borrowing costs going forward,” Flood added.

“Our buy-integrate-build strategy is beginning to pay dividends, and we anticipate continued revenue growth and margin improvements as we move towards our long-term goals,” concluded Mr. Flood.

Staffing 360 also announced that revenue increased by 19.1% to $175.1 million as compared with $147.0 million for the nine months ended 2 October 2021. On a constant currency basis, the increase was 22.3%.

Staffing 360 Solutions shares closed at $2.71, down 1.99% on the day and 22.95% above the 52 week low of $2.20 set on 7 November 2022. The company has a market cap of $6.58 million.