Staffline Share Discussion Threads

[tia01] 09/8/2022 13:50

Ok smelly explain why and how they could take it private given the number of large investors who would oppose that strategy and in any event they would need to buy out the shares at an acceptable price in a similar way to what with the AA. But if you were smart enough to buy the shares at 10-11p you were offered 35p a share. Anyway I do not see it’s in the companies interest to go private now they had the capital raise are setting the company up for a growth strategy. Each and everyone to there own opinions and value every one else’s but see this near the bottom.I genuinely see this as a takeover target and for HFNet who offered much more for percentage of Staffline years ago they must be casting a eye over this. The capital raise actually diluted there voting rights so I guess at some point they’ll need to top up if they still see this as a takeover target. However one must ask is Staffline in a better place than when the price went to 90p. The answer is clearly yes however if Albert was to show credibility and purchase his own shares this would install confidence

[my retirement fund] 09/8/2022 12:34

Page reports a slowing market, it can only get worse, its very disappointing Staff line have failed to cash in on record employment numbers. Since they have been unable to turn cashflow positive by now, there's every reason to believe things will look a hell lot wore next years results. Perhaps they are waiting to take it private for pennies then, you could be right.

Shocking to think it was once £12.00

[qsmeily456] 09/8/2022 12:17

They're happy to hold and take it private at 30p 🤣

Their previous purchases were alot higher and people thought it was cheap 🤣

No benefits just loses here in the last 6 months for any holders plus many lost opportunities.

I think that will continue 🤣

[tia01] 09/8/2022 12:08

Be interesting to see if it breaks through 40p and that’s still 10p below capital raise price so ask yourself did you participate in the capital raise?. If so then @ 40p with the company streamlining and new contracts and in a healthier place what changed. 🤔 inflationary pressures however employment demand is high unlike other potential recessions. Time for individuals to look at there own risk calculator and think will Staffline be in demand through a recession and given that many temporary workers have returned back to Europe then the shortage will remain. If we can pass the costs on then Staffline demand will remain high throughout a recession. In any event they have edged and putting the tools in place for a nice growth story. Henry Spain clearly believes in the story however will others follow like HRNET. I suspect they will declare there positions shortly. Anyway selling and panicking are only materialising there loses. Holding and adding is more sensible in my opinion but I am long term.

[my retirement fund] 09/8/2022 11:18

what you make of that belated purchase smelly ?

[gripfit] 09/8/2022 08:39

Bet he’s pulling his hair out with this one now ….

[tia01] 09/8/2022 08:22

Owns over 28m shares. I doubt he’s desperate

[tia01] 09/8/2022 08:16

With over 28m shares in his pocket I don’t think Henry is desperate. I’d say he clearly knows how cheap it really is. Anyway everyone makes there purchase when they are comfortable. Just wish Albert had some ⚽️ϟ7;️⚽5039;⚽️⚽️

[currencytrader1] 09/8/2022 07:42

Mr Spain desperate to average down

[tia01] 09/8/2022 07:41

hxxp://ir.q4europe.com/Tools/newsArticleHTML.aspx?solutionID=3774&customerKey=Staffline&storyID=15514714

Just as I said we will know soon enough who bought the 350,000 shares. Henry Spain knows they are cheap.

[tia01] 08/8/2022 15:59

A buy like 350,000 would require a RNS if linked to the company so I would expect a RNS confirming the buyer otherwise someone not connected seeing a reason to buy. We will find out shortly I think

[tia01] 08/8/2022 14:47

Napoleon 14
Good right up.
Stripping out old contracts with high costs and low margins is smart and moving into niche lucrative ones like BMW makes sense. Also revenue from restart to be included in next results. A leaner business on less overheads in the long run is smart business and all the bad news is out there so any positive news can help the company. The balance sheet is healthy and debt is hedged so that’s also good news. The markets will decide but also remember the next recession is inflationary led and only interest rate rises can control inflation and we are protected so we are in a strong position. I don’t think we should avoid acquisitions if compatible but only if it adds value. We are still turning over nearly a billion and if our Irish sector is doing well then we need to learn from them. I’ll be happy when I personally see Directors buying with there own money though. A shortage of workers will help us during the recession because the food , hospitality and aviation all still have demands regardless of a recession.

[gripfit] 08/8/2022 14:42

Don’t think Henry Spain can buy many more …

[tia01] 08/8/2022 14:30

If only a buy like that came through today and a update. Clearly someone accumulating

[gripfit] 08/8/2022 14:15

Same person imho

[napoleon 14th] 08/8/2022 14:04

Small Caos Life, 060822:

Staffline (STAF.L) - Interim Results
Revenue is down 2.8%, well over double digits in real terms. Is the wage inflation in the sectors Staffline serve somehow far lower than ever other temporary staffing sector? Or have volumes (hours worked) fallen significantly? Figures are for 21.4m hours versus 26.1m, a 18% fall which is indeed very significant. The risk is that hiding behind the commentary about weak markets is a loss of market share, which in turn could be due to some underlying competitive or service issue. They do remind us that "The strategic exit from a significant high volume, low margin contract during 2021 further reduced revenues." so there probably has been some loss of market share, but not something that will hopefully continue.

Gross margins at the core Recruitment GB unit are up to are up to 7.1% from 6.8% which is pretty impressive given the pass-though nature of the revenue. Falls in operating profits are put down to investment ahead of growth. And the implication is that their staff are costing them much more even if wages of the staff they place have not. These are a poor results at the interim stage and their excuse is basically that their markets are in a transitionary phase - sectors benefitting from covid (food, online distribution) have slowed while some of those hit (automotive, aerospace) are only just starting to recover.

The only really bright spot has been Recruitment Ireland which is focused on permanent recruitment. They were lucky not to be forced into selling this last year (or perhaps lucky no offers were forthcoming) and have consistently said it has a long runway ahead.

For such bad interim results the outlook is strong:

· The Group has made a solid start to the year and continues to trade in line with expectations

· Continued strong demand for white collar recruitment across the UK

· A strong pipeline of new business opportunities and a robust balance sheet underpins confidence in the second half of 2022

· The full year outlook is subject to any adverse changes in the current macroeconomic headwinds of inflation, the associated cost of living challenge and global supply chain issues

But as is often the case, there are two outlook statements and the above is the wrong one. No actually there are three. Here's the bit from the shareholder perspective which reads like a deferred profits warning:

The Group expects performance to be second half weighted, with an increase in revenues from business wins secured in H1 2022, expected returns from PeoplePlus' Restart contracts, and increased seasonal retail trading volumes in Q4. Accordingly, management remains confident that FY 2022 results will be in line with expectations.

Who doesn't love a Q4 weighting?

On cashflow, things initially look bad due to the repayment of deferred VAT. Negative movement in working capital is less than half the VAT repaid. So are they stretching working capital elsewhere?

The IMC presentation gave more details on financial position:


In those terms it looks very comfortable. Leo found the presentation arguments over why H2 will be better fairly convincing so while the Q4-weighting remains a risk, this may not be as bad as it first appears. This has proven a good trading share in the past, perhaps due to the takeover potential, and it doesn't seem overpriced on an EPS basis, if they do indeed meet targets.

[maryhopkins] 08/8/2022 13:19

Strange how smelly, grip and tia all turn up at the same time!!!

[tia01] 08/8/2022 13:18

Obviously a buy. You couldn’t sell at that price Friday

[qsmeily456] 08/8/2022 13:01

And down it goes 🤣🩳🩳🩳8745;💥

[gripfit] 08/8/2022 12:54

More likely a sell

[edukelis] 08/8/2022 12:52

350k buy showed up from Friday trades

[qsmeily456] 05/8/2022 09:17

🎄🌲🌳🩳7796;🛩ԁ65;37p test 🤣🤣🤣🤣

Once that goes it quickly down to test 30p 🤣

[qsmeily456] 05/8/2022 08:37

The Bank of England, raising rates by 50bps yesterday, forecast a squeeze in living standards and a recession lasting five quarters, along with a rise in UK inflation to a remarkable 13%