Staffline Q1 trading beats management expectations

Recruitment and training group Staffline said on Monday that first-quarter trading came in ahead of management expectations, providing the company with "increased confidence" in the full year.

Staffline stated underlying operating profits had increased 133% year-on-year to £1.4m, with strong demand in the food distribution, with a "significant restructuring" of the group in 2020 also helping generate roughly £15.0m in overhead cost savings.

Quarterly revenues were also up 0.2% at £227.9m. However, gross profits slipped 6.1% to £18.4m

The AIM-listed group also highlighted that despite a hard national lockdown in the Republic of Ireland, Staffline Ireland also reported "very positive momentum" across the quarter.

Net debt was cut from £69.5m to £54.9m.

"Whilst there continues to be ongoing uncertainty relating to the pandemic, given the strength of Staffline's results in the first quarter of 2021 and the momentum being seen across the group's core markets, the board's confidence in the outlook for the year has increased," said Staffline.

"As a result and subject to no further unforeseen lockdown restrictions, the board is confident that results for the current financial year are likely to be ahead of expectations."

As of 1115 BST, Staffline shares were up 5.64% at 73.0p.