Recruiter Staffline (STAF) is becoming a force to be reckoned with in welfare to work. Staffline first established a presence in the government's scheme to help the unemployed into work with the acquisition of Eos in 2011. Then, earlier this year, Staffline acquired Avanta, which positioned it as a top three welfare to work provider in the UK. Now Staffline has won its first contract with the equivalent scheme in Northern Ireland.
The momentum here, together with that in other newer specialisms such as HGV driver recruitment, will be instrumental in getting the company to its 'burst the billion' target of £1bn in revenues by 2017. Management tells us they are still very much on track to pass this milestone.
The traditional blue-collar recruitment business isn't doing badly, either. Staffline's OnSite model, in which it has a team based at its clients' premises, has proved popular, and the company had a busy first half. Staffline increased its number of OnSites by 18 during the period, which is already more than the 15 deals it won last year as a whole.
Broker Liberum expects full-year adjusted pre-tax profit of £18.4m, giving earnings per share of 59.6p (from £12.5m, 45.8p in 2012-13).
| STAFFLINE (STAF) | ||||
|---|---|---|---|---|
| ORD PRICE: | 980p | MARKET VALUE: | £272m | |
| TOUCH: | 975p-980p | 12-MONTH HIGH: | 989p | LOW: 435p |
| DIVIDEND YIELD: | 1.1% | PE RATIO: | 34 | |
| NET ASSET VALUE: | 226p* | NET DEBT: | 43% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 187 | 3.4 | 11.1 | 3.8 |
| 2014 | 208 | 1.9 | 6.6 | 5 |
| % change | +11 | -43 | -41 | +32 |
Ex-div: 16 Oct Payment: 14 Nov *Includes intangible assets of £81m, or 291p a share | ||||
