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Staffline Group plc (STAF:LSE), the recruitment and outsourced HR services specialists today announce their interim results for the half year ended 30 June 2009.
Revenues are down 11% to 49.1 million Pounds in 2009 from 54.9 million Pounds in 2008 reflecting the difficult trading environment. Pre-tax profits were unchanged at 1.4 million Pounds benefiting from cost reductions.
Diluted earnings per share were up to 4.4p compared to 4.3p in 2008. The interim dividend was also unchanged at 1.4p. Cash generated from operations increased significantly to 2 million Pounds in 2009 compared to 0.8 million Pounds in the same period of 2008.
Net debt was reduced by 1.9 million Pounds to 4.2 million Pounds compared to 6.1 million Pounds on 31 December 2008. Gearing was reduced to 17% from 24% in the same period of 2008.
Commenting on the results, Andy Hogarth, Chairman and Chief Executive said,
"the group has had a successful first half year considering the tough economic backdrop in many of its trading sectors. Our focused strategy of deriving a greater proportion of revenues from the more secure areas of outsourced labour, training and other business services has continued."
Trading in the first eight weeks of the second half of the year has been satisfactory in the food sector and remains subdued in logistics and manufacturing although the automotive sector appears to be showing signs of a potential recovery. Our strong financial position means we are in good shape to take advantage of acquisition opportunities and strengthen our competitive position and we expect to benefit from the recent acquisitions completed and also from the continuing positive effect of cost reductions."
In early trading Staffline shares were down -3.51% to 55p.