Recruiter Staffline (STAF) has continued to benefit from its growing involvement in the government's welfare to work scheme, which helps the unemployed back into work. After completing its largest acquisition to date with its takeover of Avanta earlier in the year, revenue for the group's employability division grew by 191 per cent to £65.7m in 2014.
The group spent the year integrating its latest acquisition with its existing Eos brand to create the new division. Eos won three major contracts during the second half of the year, including a seven year deal with the Ministry of Justice to deliver probation services to the courts due to commence shortly. Chief executive, Andy Hogarth, said the group is forecasting a "fairly significant rise in profitability" in the year ahead, after the first full-run of Avanta and revenue from its Ministry of Justice feeds in.
The group continued to expand its Onsite model, in which a Staffline team is physically based at its clients' premises. The business added 41 sites, with a total of 235 locations, boosting operating profits for its staffing services' division by 18 per cent to £11.6m.
Finncap expects adjusted EPS of 73.1p this year, up from 59.6p during 2013-14.
STAFFLINE (STAF) | ||||
|---|---|---|---|---|
| ORD PRICE: | 791p | MARKET VALUE: | £219m | |
| TOUCH: | 785-791p | 12-MONTH HIGH: | 1,018p | LOW: 435p |
| DIVIDEND YIELD: | 1.7% | PE RATIO: | 25 | |
| NET ASSET VALUE: | 238p* | NET DEBT: | 27% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 206 | 7.0 | 23.7 | 6.2 |
| 2011 | 288 | 7.5 | 25.9 | 7.1 |
| 2012 | 367 | 8.5 | 29.7 | 8.1 |
| 2013 | 416 | 8.6 | 33.3 | 10.0 |
| 2014 | 503 | 10.5 | 31.6 | 13.5 |
| % change | +21 | +22 | -5 | +35 |
Ex-div: 4 Jun Payment: 6 Jul *includes intangible assets of £82m, or 295p a share | ||||
