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Staffline - £7m saving not factored into forecasts

August 2015

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:
  • 1458p
The shares had been nudging £14 when Staffline reported its H1 results. As expected these were superb with sales up 43% to £297m (22% organic) and pretax profit up 56% to £10.1m. Eps lifted 45% to 32.2p. Net debt was £49.8m.The swing factor to results was growth of the Employability division following the two acquisitions of A4e in April this year and Avanta in June 2014. The Work Programme currently represents two thirds of the Employability division's revenues with the other bits being the Skills and Justice division. Now rebranded PeoplePlus post the acquisitions, Staffline is one of the largest Work Programme providers in the UK (with 150 locations) and prime contractor in nine regions in England with four sub-contract ...

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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.

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