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Staffline

April 2022

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • STAF
  • Price:
  • 58p
Staffline has reported an excellent FY21. Revenues increased by 1.6% from £928m but operating profit doubled to £10.3m in FY21.  Staffline has increased conversion of GP to EBIT from 6.4% to 12.4%. Closing net cash was £6.9m helped by debtor days coming down by 10 from two years ago as it ditched slow paying customers and also saw stronger than expected cash generation - so it’s pleasing to see both confirmed so soon after last month’s main write up. With cash ahead of expectations, finance costs fell and pretax profit came in at £7.9m, 5% ahead of forecasts. Adjusted eps of 7.1p was also bolstered by £1.7m tax credits in the period. A couple of new contracts were also announced including one with BMW, where a number of emp ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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