Staffline Share Discussion Threads

[fruitninja84] 25/1/2017 14:10

Blue finish today and a breakout? I'm seldom surprised by the markets. I hold and hopefully will get £12.

[rivaldo] 25/1/2017 14:03

Finncap have a 1615p target price and say today:

Extracts:

"Contract wins likely and will drive the shares
BUY

Staffline has reported another strong set of results and a positive outlook.
Adj. EPS was up 23% on last year (our forecast 22%) backed by strong cash
flow. Staffing goes from strength to strength and is now the clear market
leader but with only 9% market share that continues to grow. Early signs on
the new welfare to work rebids are positive and success here is likely to be
the main driver for the shares. We do not anticipate making any major
changes to our PBT/EPS forecasts and maintain our target price."

"1615p price target. We value Staffing at a 2017E EV/EBIT of 12.6x (a 20%
premium to Hays and SThree) and Peopleplus at 10x (a 20% discount to the
Outsourcers). The main catalyst to achieving this will be contract wins in the
welfare to work area and continued evidence that Staffing’s market share gains
can offset any market challenges."

[flagon] 25/1/2017 13:22

Motley Fool 25/1/17

This fast-growing small cap looks cheap to me after 30% profit growth

Underlying pre-tax profit rose by 30% to £36.7m last year at employment specialist Staffline Group (LSE: STAF), while its dividend rose by 29% to 25.8p.

Adding to the stock’s appeal is a fairly modest valuation. Staffline trades on a trailing P/E of just nine after today’s results.

Against this positive backdrop, it’s hard to see why Staffline shares have lost 21% of their value over the last year. Today I’ll explain why I believe this stock offers an opportunity for small cap investors. I’ll also consider an alternative stock with less UK exposure.

A contrarian buy?
Staffline shares fell by more than 4% this morning, despite the group reporting a strong start to the year, with several new contracts and a record sales pipeline. In my view, the main reason for this weakness is that investors are uncertain about whether Staffline’s profits can be maintained.

The group has two main divisions, each of which contributes broadly equally to profits. In Staffing Services, Staffline draws on its database of 292,000 workers to provide up to 51,000 agency staff a day to more than 1,500 clients.

Staffline’s other division is referred to by the company as Employability. The firm has a number of contracts to run training and employment programmes for the Department of Work and Pensions and the Ministry of Justice.

Both lines of business could be vulnerable in a UK recession, or if Brexit results in a shortage of low-cost labour in the UK. It’s too early to say whether these problems will materialise, but Staffline’s management appears to have a good eye for profitable opportunities. I expect they will be able to manage these risks and the Brexit transition.

Analysts are cautious about the outlook for 2017 and expect earnings per share to rise by 3% to 116.1p. But with the shares trading on a forecast P/E of nine, I think the risks are reflected in the price. If earnings guidance is upgraded later this year, I believe the shares could perform strongly.

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[qs99] 25/1/2017 12:18

Really odd that divi is payable so late, really isn't very clever

[loobrush] 25/1/2017 12:08

Share price has dropped to ridiculous level in my view after these brilliant results
and growth prospects. I expect that it will go back up to a sensible price after the analysts have been briefed this morning and then done their figures.
Fears over their immigrant workforce are way overdone.

[nurdin] 25/1/2017 11:57

Indeed. I was prepared for some profit taking but this is absurd!

[the big fella] 25/1/2017 11:04

Strange reaction to a very good set of numbers.

[hutch_pod] 25/1/2017 09:19

I guess running into some profit taking & nervousness over the PeoplePlus revenue pressures. The latter does look short-lived to me.

[flagon] 25/1/2017 09:04

FinnCap this morning -

Staffline (BUY)

Contract wins likely and will drive the shares

Staffline has reported another strong set of results and a positive outlook. Adj. EPS was up 23% on last year (our forecast 22%) backed by strong cash flow. Staffing goes from strength to strength and is now the clear market leader but with only 9% market share that continues to grow. Early signs on the new welfare to work rebids are positive and success here is likely to be the main driver for the shares. We do not anticipate making any major changes to our PBT/EPS forecasts and maintain our target price.

Guy Hewett

020 7220 0549

[nurdin] 25/1/2017 07:42

On track to meet £1Bn turnover target....brokers were forecasting sales of £926m Can expect decent upgrades on forecasts I feel.

[cwa1] 25/1/2017 07:29

Sound very satisfactory on first glance.

One minor grumble, dividend paid on 4/7! Glad they managed to squeeze it in to 2017.....

[shauney2] 25/1/2017 07:27

How cheap is that 8 quid looking now.Very good indeed.

[nurdin] 25/1/2017 07:27

Yup..great results and a very bullish commentary too!

[rivaldo] 25/1/2017 07:18

Results ahead of expectations on every measure:

- 114p EPS compared to 111.1p forecast (and not far off the forward 2017 forecast of 115.9p EPS)
- £36.7m PBT compared to £35.9m forecast
- 25.8p divi compared to 24.23p forecast

Current year trading is good, and the outlook statement very positive.

[ihatemms] 25/1/2017 07:06

Superb results.

[gswredland] 24/1/2017 17:07

Nice breakout

[barbar7619] 20/1/2017 17:33

Can see these going up Monday Tuesday before results. Must be a good buy still at this price

[gswredland] 17/1/2017 18:38

Recent changing views of brokers regarding employment

[rabito79] 17/1/2017 17:55

Any guesses as to why this has moved so quickly? Not complaining just wondering how the rise had been so fast?

[gswredland] 17/1/2017 16:41

Continuing to look good. Can we reach 1100 fairly quickly?

[w1ndjammer] 16/1/2017 17:48

nice close above 1000 i am sticking with it, shortage of labour in the UK

WJ.

[jak1] 16/1/2017 14:34

Looks like a hard brexit is back on. Maybe a stumbling block for Staff. Hope not but I have reduced just in case...

[eggbaconandbubble] 16/1/2017 13:32

Looks like some large sell orders were programmed in at 1000p. Once they are cleared....up up and away! Fingers crossed.

[gswredland] 16/1/2017 13:15

Which I think is what Slater fund bought them for

[aishah] 16/1/2017 12:46

rivaldo :-)

Liberium reiterate BUY. 1100p target