Staffline trades in line with expectations, debt rises on transformation costs

Staffline told investors on Tuesday that revenues looked set to have risen 18% year-on-year to roughly £1.13bn thanks to the continued growth of its recruitment division, fuelled by acquisitions completed during the year.

The AIM-listed group credited its investment in technology for creating a "a clear differentiation" in its recruitment offering and delivering "strong traction" across its customer base.

Staffline warned that the transformation of its PeoplePlus division away from its reliance on the Work Programme had led to "significant one-off costs" of £20m and resulted in an increase in net debt to roughly £63m as at 31 December 2018.

However, the Nottingham-based outfit also noted that the apprenticeship levy continued to present an excellent opportunity for growth and, along with its recent prison education contract wins, had offset much of the reduced activity in the Work Programme.

As of 0840 GMT, Staffline shares had slumped 5.45% to 1,181.90p.