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Staffline (STAF:LSE), the recruitment and outsourced HR services provider, said it will meet market expectations this year after the firm today announced a +36% increase in revenue which reached £163.9 million in the first half of 2012.
The firm said strong demand, new business wins and acquisitions helped drive revenue. Revenues in the recruitment sector increased by +34% to £158.4 million, but the gross margin in recruitment services decreased to 9.0% (H1 2011: 10.8%) due to the change in the business mix and new customer wins.
Overall, gross profit in the first six months of the year was up to £15.2 million from £14.3 million a year ago while the gross margin dropped to 9.3% from 11.8% year-over-year.
Operating profit was roughly flat at £3.8 million while net profit dropped marginally by -1.3% to £2.056 million.
The company’s CEO, Andy Hogarth, warned of challenges in the second half of the year which has also impacted planned bolt-on acquisitions.
“Although we have examined a number of acquisition targets over the last six months, we have seen fewer opportunities to acquire competitors than in previous years,” he said. In August, the firm acquired DKM Driving Limited, a Nottingham-based provider of temporary staff drivers.
Staffline, the 16th largest staffing firm in the UK, offers recruitment and outsourced human resource services to industry, providing temporary staff to customers as the placement of permanent staff to customers.
In early trading this morning, the company’s share price was down -1.05% to 235.00 pence, down -0.8% from a year ago and -6% below its 52-week high of 250 pence seen in July 2012. The firm has a market value of £54.33 million.