Staffline unaffected by Brexit with "strong" year end profits

Staffline, an AIM-listed recruitment organisation, recorded a 30% rise in underlying profit before tax at £36.7m for the year ended 31 December 2016, as the Brexit-vote did not seem to have a negative effect on earnings.

The group’s revenues rose by 26% to £882.4m and gross profit was up 24% to £124.9m. Underlying profit before tax was 30% higher at £36.7m.

Chief executive Andy Hogarth said: "These strong results are testament to the hard work and determination of all those involved in our business. In what has been a competitive environment, we are delighted to report such strong organic growth and, with the decision to leave the EU having had no negative impact on trading to date, Staffline has continued to perform well.”

Net debt was “significantly” reduced to £36.7m at year end from £63.1m in 2015, equivalent to 0.8 times 2016 underlying earnings before interest, tax, depreciation and amortisation of £44.9m.

Underlying diluted earnings per share were up 23% to 114p. Final dividend was 15.3p bringing the total dividend for the year to 25.8p, an increase of 29%.

The company has had a record year within the Staffing division. OnSites grew by 52 locations bringing the total to 357, which the group says makes it a clear market leader.

Newer divisions, Driving Plus, Ireland and Agriculture, each had an “excellent” year and there is a continuing strong pipeline of further opportunities

PeoplePlus (previously Employability) achieved significant improvements as a fully integrated business with contract performance now in the top quartile, 22 other contracts won or extended within the Employability division and it being the only provider to secure inclusion on framework for all of the government's new welfare to work contracts.

“Our reputation for reliability has not only led to new contract wins but also existing customers extending their work with us, meaning Staffline is now increasing its market share more than ever,” said Hogarth.

The board has a positive outlook for 2017 and believes the company on track to achieve its ambitious five-year £1bn revenue target

The share price fell 3.3% to 1,025p at 1444 GMT on Wednesday.