Staffline Share Discussion Threads

[jbarlow78] 26/9/2019 17:28

Why is it everyday the close of business is 4:30pm but a trade always goes through at 4:35pm and 5:05pm approx? And they also seem to be for a large amount. Thanks.

[gripfit] 26/9/2019 15:25

123 trader , u been buying again??

[jbarlow78] 26/9/2019 14:27

Told you 109 was peak. If it even touches a penny more today ill donate my shares to charity. Good afternoon!

[123gmtrader] 26/9/2019 13:18

I had a biggish buy unreported here too.

[gripfit] 26/9/2019 13:18

now get back to bed ;o))

[jbarlow78] 26/9/2019 12:58

Bit of volume going through finally! Mine didnt appear at all, makes you wonder how many others dont and why? FYI it wasnt a big buy, but still..

[gripfit] 26/9/2019 12:46

those 6000 and 7000 trades are all buys ;o)))

[jbarlow78] 26/9/2019 11:47

I bought some 20 mins ago but the transaction didnt appear on the trade list?

[gripfit] 26/9/2019 09:13

come back in a week ,,,, £1:80....lol

[jbarlow78] 26/9/2019 09:08

Peaked at 109, going back to bed no point checking anymore.

[gripfit] 26/9/2019 08:16

227 shares bought , and price jumps to 109 offer !!😂😂lol

[dealy] 26/9/2019 08:12

if there are no buyers in the open market (possibly because all large holders are inside considering an offer) and there are any sellers at all then any price is possible

[jbarlow78] 26/9/2019 08:11

Tempted to add.

[mhm2013] 26/9/2019 08:05

What do we think it will fall to by the end of the day..

[jbarlow78] 25/9/2019 17:21

The slightest bit of positive news wouldnt go a miss

[chinahere] 25/9/2019 16:51

Very interesting thanks 123gmtrader.

HRnet are not going to want dilution either......

[123gmtrader] 25/9/2019 16:40

From the recent broker note:

Relaxation of covenants

The banks waived the June covenants and reset the covenants for the
following two quarters, as covenants are tested on an LTM basis. The interim
statement indicated a gradual reduction of the leverage covenant to net debt
of no less than 2x EBITDA by December 2020.
We see adequate headroom on current estimates.

Our sensitivity analysis shows a breach is possible

We have performed a sensitivity analysis to understand the level by which
Recruitment revenue would need to fall to result in a breach. Assuming a
year-end covenant of 2.75x, we estimate that H2 revenues would need to fall
8%. This is possible given the significance of December.

But we expect it to be avoided by management action

We believe that Staffline would have a variety of strategic options available in
the event of a breach.
Most obviously, we believe that they could sell the Irish business for c. £40m,
although this would clearly be dilutive to earnings.
PP is also a discrete business that could be worth £40m, but it is unlikely that
management would get full value given the expected strength of the recovery.

[chinahere] 25/9/2019 16:36

Good comments and I agree too.

I just hope the lenders don't manage to get them to fundraise again. In the good old days a value of 2x EBIT was very low for debt and loan covenants weren't as restrictive.

I read somewhere that Staffline may have assets they could sell if forced. Anyone know about those?

[dealy] 25/9/2019 16:16

totally agree. if this can't make normal margins with this much market share then the whole UK economy is basically bankrupt

[dansjhall] 25/9/2019 15:14

End of the day this business should be making 20-30m a year EBIT under decent management which is only 2-3% of Net margin. Tucking these away for a while and keeping my RNS alerts on :-)

[dansjhall] 25/9/2019 15:10

It is difficult to forecast where this will go next. Buy out is on the cards but it isn’t priced in. Then there is the poor results and optimistic forecast of £20m EBIT they stated at interim and which I fully expect them to miss due to their negative outlook on trading and backweighted plan to recover in H2. A £10m profit at 7x pe is priced in at the moment! Seems overdone this selling but with the low liquidity there is positive news needed for a revaluation and it all depends on the takeover to deliver this. Perilous in the short term as I see a wild ride continuing or a takeover to save the day but if/when this will happen is unknown. As a business I believe it is a bargain in the long term in my opinion but the short medium term could see some continued volatility.

[gbh2] 25/9/2019 15:03

JBarlow78 25 Sep '19 - 14:56 - 6853 of 6853 (Filtered)

Nothing more pathetic than a disgruntled loser !

[gbh2] 25/9/2019 14:19

If you need to ask and or question why Brexit would impact a Staffing Agency then you should be collecting stamps!

[dealy] 25/9/2019 13:15

if Brexit is so devastating, why is it being pursued with such vigour?