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UK – Staffline considers more bolt-on acquisitions to increase shareholder value

17 May 2012

Staffline (STAF:LSE), the recruitment and outsourced HR services provider, said today that it is evaluating bolt-on acquisitions, which could increase its client focus and shareholder value.

Last year revenue rose by +40% to £288.3 million, largely supported by a number of acquisitions the firm had made including UK staffing businesses such as Taskforce in September 2011, FourstaR in April 2011 and Kelburn Industrial in January 2011.

Staffline is the 16th largest staffing firm in the UK according to Staffing Industry Analysts and ahead of today’s Annual General Meeting, Chief Executive Andy Hogarth said that the firm “has started the current financial year well.”

But he also warned it is “too early to draw firm conclusions about the financial year” especially as the UK economy was weakening. Yet the board remains confident that the Group will meet market expectations this year.

Demand for temporary workers has also been steady, according to Mr Hogarth.

“We continue to see good levels of demand for our OnSite offering driven by both regulatory change and a need for temporary workers across our client base. Our Eos business, which manages Works Programme contracts in Birmingham, Solihull and the Black Country, is now well placed to maximise its strong regional presence and remains a key growth driver for the Group in the medium term.”

Staffline Group offers recruitment and outsourced human resource services to industry, providing temporary staff to customers as the placement of permanent staff to customers. The firm’s  subsidiaries include Staffline Recruitment Limited, Onsite Partnership Limited and Peter Rowley Limited. It was founded in 1986 and operates nationwide with headquarters in Nottingham.

In early trading this morning, the company’s share price was down -0.2% at £227.00, down -1.1% from a year ago but +4.3% below its 52-week high of £265.00 set on 23 June 2011. This values the company at £52.04 million. 

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