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Staffline - After the dust settles...PE of 3.6

August 2019

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:
  • 136p
There are two areas of potential within Staffline. One is a blue collar staffing agency, predominantly for the food industry, supplying fruit pickers and staff for ready meal factories and the like. The group is the market leader with an 11% share. The other emerging business is PeoplePlus, which trains apprentices in the retail space, runs adult education courses and also provides training to prisoners. Turnover has grown from nowhere in the past decade to around £1.1bn. But the real attraction is that  based on forecast eps of 37.9p this year (fully diluted for extra shares now in issue) and 42.6p next, the PE drops to 3.2. Totally bonkers.£27m of exceptionals derail the share priceAs I de ...

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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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