Recruiter Staffline's (STAF) first-half figures look impressive, both on an adjusted and reported basis - a rare feat among recruitment companies reporting at present. Throw in a larger than expected dividend hike and it's little wonder the market gave these results the thumbs up - the shares rose 3 per cent.
Staffline's bread and butter at present is the recruitment of mostly blue-collar workers through its 'OnSite' model based at clients' premises, which accounts for around 85 per cent of total revenues. But the company has other irons in the fire. A five-year growth plan, which began in January, is looking to grow its presence in the UK government's welfare to work scheme, the HGV driver market, white-collar recruitment and training. Chief executive Andy Hogarth says that Staffline has trebled in size twice since listing eight years ago and his aim is to treble it again by the end of 2017.
A swing into profit for the company's welfare to work division in the first half, together with continued growth in recruitment revenues as the Select Appointments acquisition bedded down, helped drive underlying EPS up 35 per cent to 17p. Broker Liberum Capital forecasts full-year adjusted pre-tax profit of £12m, giving EPS of 40.7p (from £10.7m and 36.6p in 2012), rising to EPS of 44.2p in 2014.
| STAFFLINE (STAF) | ||||
|---|---|---|---|---|
| ORD PRICE: | 533p | MARKET VALUE: | £135m | |
| TOUCH: | 525p-540p | 12-MONTH HIGH: | 551p | LOW: 217p |
| DIVIDEND YIELD: | 1.7% | PE RATIO: | 17 | |
| NET ASSET VALUE: | 169p* | NET DEBT: | 6% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 164 | 2.75 | 9.70 | 3.10 |
| 2013 | 187 | 3.42 | 11.1 | 3.80 |
| % change | +14 | +24 | +14 | +23 |
Ex-div: 18 Oct Payment: 15 Nov *Includes intangible assets of £33.1m, or 131p a share | ||||
