A non-cash accounting treatment effectively skewed reported numbers for recruiter Staffline (STAF). On an underlying basis, the picture is positive, with profit and EPS growing 5 per cent and 3 per cent, respectively. However, pre-tax profit was £5.2m lower than the reported figure for the first half of 2016 due to increased share-based payment charges following a 56 per cent increase in the share price during the period.
Organic sales in the staffing division were up 8 per cent to £370m, boosted by acquisitions in Ireland and Scotland. Onsite numbers have continued to grow, numbering 388 locations at the end of June, an increase of 31, with expectations of full-year growth similar to 2015 and 2016. The Peopleplus division, which deals largely with public sector work, suffered from the wind-down of the government’s work programme, which pushed segmental revenues down 26 per cent to £57.9m as new referrals ceased. The work programme will continue to provide income until March 2021. In the meantime, the group is looking to replace the value of the programme, roughly £100m, with smaller contracts and by accessing the new £3bn apprenticeship market.