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Share Name Share Symbol Market Type Share ISIN Share Description
Staffline Group LSE:STAF London Ordinary Share GB00B040L800 ORD 10P
  Price Change % Change Share Price Shares Traded Last Trade
  -8.00p -0.78% 1,024.00p 9,726 09:30:25
Bid Price Offer Price High Price Low Price Open Price
1,024.00p 1,030.00p 1,038.00p 984.00p 984.00p
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Support Services 957.80 24.10 71.40 14.3 285.2

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Date Time Title Posts
09/1/201909:50Staffline Recruitment1,839
19/7/201615:05Staffline Results next week real undervaled stock11

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Staffline Daily Update: Staffline Group is listed in the Support Services sector of the London Stock Exchange with ticker STAF. The last closing price for Staffline was 1,032p.
Staffline Group has a 4 week average price of 940p and a 12 week average price of 940p.
The 1 year high share price is 1,360p while the 1 year low share price is currently 880p.
There are currently 27,849,349 shares in issue and the average daily traded volume is 136,183 shares. The market capitalisation of Staffline Group is £285,177,333.76.
tcarter66208: What is happening with this, great company .. absolutely dead share price
doubleorquits: We may not quite have bust the billion that was the target of Andy Hogarth but we were close enough and now I look forward to the next five years: "Our new plan, the fourth since we became a listed company, is during the next five years to grow underlying diluted Earnings Per Share to 200p, a 77% increase on the 112.6p reported this year. To achieve this target, we will continue to achieve strong organic growth. In addition, we will continue to seek further acquisitions in either current or complimentary new sectors." Pullen knows the business and finances of the company so should be a capable successor to Hogarth. So let's look forward to eps growth to 200p and put it on a modest PE of 10 for £20 share price with dividends increasing to 45-50p. Maybe not explosive growth but will do for this long-term holder.
cwa1: Satisfactory looking update:-
nurdin: Polls showing Labour catching up on Tories is what has halted the share price progress here imo.Sterling has also dropped markedly against the Euro for the same reason.Could be a buying opportunity as I feel confident that the Company will get NHS Professionals in the end.
nurdin: Octopus Investments have increased their holding by have over 13%
flagon: This morning - FinnCap Staffline (BUY) Framework position secured, contracts next The share price is factoring in significant risk on Staffline’s ability to replace its Government contracts and weather any storm that Brexit produces. However, Staffline is the only company to have won a place in all seven regions of the new Work and Health Programme framework, flexible labour (such as that provided by Staffline) is an essential part of the UK economy and the group has a proven ability to continue to grow against changing market conditions. We expect contract wins to be announced throughout 2017 and reiterate our Buy recommendation. Guy Hewett 020 7220 0549
rivaldo: Cheers zho - here's the full article: "Buy Staffline: it's growing fast and undervalued Richard Evans 01 February 2017 Andy Hogarth, chief executive of Staffline, the recruitment firm, certainly believes in clear and ambitious targets. At the end of 2010 he said he wanted to “treble the treble” by growing the company’s sales and profits over the following three years (the business had already trebled in size since its flotation on Aim 2004). When he achieved that goal he set himself a new one: to “burst the billion”, by which he meant £1bn in sales, along with profits of £30m, by 2017. The profit element of the target was later increased to £50m following an acquisition. While City analysts’ forecasts currently fall a little short of the goal, at £930m of sales and £45m of profit on the “Ebitda” measure, it would be rash to write off Mr Hogarth’s chances too early, according to one fund manager who knows him well. “Andy Hogarth is an individual we have known for 10 years and he has a huge amount of drive, energy and vision,” Ken Wotton, manager of the Wood Street Microcap fund, told Questor. “He has successfully executed on the vision and has grown the business very materially. “He has been clear to the markets about his financial targets – it is rare for chief executives to be so explicit – and has then achieved them. So we are big supporters of his and believe there is a good chance that he will ‘burst the billion’ this year. While some of the growth will have to come from acquisitions, Andy has a good record in that respect.” Staffline operates in two areas: blue-collar recruitment and “employability”, which involves helping unemployed people return to work under government schemes. The former is a big market, worth about £8bn a year across the country and despite its rapid growth Staffline still accounts for just 8pc of it. “The company is a meaningful player but there is plenty of scope for further growth”, Mr Wotton said. Although margins in this part of Staffline’s business are relatively low at about 4pc, it is the faster growing of the two divisions and it largely serves non-cyclical parts of the economy – 70pc of revenues come from the food sector (customers include Tesco (Frankfurt: 852647 - news) and Asda) and much of the rest from online retail. Margins are higher in the “employability” division, at about 15pc, although growth prospects are to some extent limited by the Government’s system of appointing firms to operate return-to-work schemes on a regional basis: it will be hard to increase revenues organically unless the firm wins the contract for a new region. However, the company is well-placed to win such contracts, with top-quartile performance in achieving the scheme’s goals along with competitive pricing, Mr Wotton said. The division could also grow by acquisition, as the successful purchase of A4e in 2015 showed, while profits can improve as a result of increased efficiency. The combination of the two lines of business is unique in Britain, giving the company scope for long-term synergies. Last week’s results for the 2016 full year showed a 26pc rise in sales, just under half of which was organic growth, while earnings before interest and tax rose by 32pc. These results were marginally ahead of analysts’ expectations, despite the fact that the Brexit vote took place halfway through the year. The management said the company had not seen any “material impact” from the referendum result. Nonetheless, the vote still hit the share price, which had already fallen significantly from a peak of about £16. Shares (Berlin: DI6.BE - news) fell as low as about 750p before recovering some of the lost ground to close at £10.73 yesterday. A falling share price in conjunction with rising profits means a much lower “rating” or price-to-earnings ratio, of course. The shares now trade at about nine times forecast earnings for 2017. “If the firm can deliver on its targets and Brexit fears prove unfounded, we can expect some of the fall in the p/e ratio to be undone,” Mr Wotton said. Questor likes executives and fund managers who have “skin in the game” and Mr Hogarth owns about 6pc of Staffline, while Mr Wotton has a “significant” holding in his firm’s funds. Mark Slater, another fund manager Questor admires, is another long-term holder of the shares. He said Staffline had “a fantastic track record of organic growth”. Questor says: Buy Ticker: STAF "
loobrush: 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.
flagon: Motley Fool comment A dirt cheap cyclical stock Also reporting today was recruitment company Staffline (LSE: STAF). It expects to deliver results for the full year which are in line with market expectations. Demand within the staffing business has remained robust throughout the second half of the year, while the PeoplePlus division has also delivered impressive results. Clearly, the outlook for the UK and European economy is challenging and this is reflected in Staffline’s forecasts. It’s expected to grow its bottom line by just 3% in 2017, which is around half the wider market growth rate. However, its uncertain outlook appears to be adequately priced-in, with the company having a price-to-earnings (P/E) ratio of 7.5. As such, a 25% rise in its share price would leave it with a P/E ratio of 9.4. This would still represent good value for money. As well as growth potential, Staffline also offers a yield of 3.1%. Dividends are covered 4.3 times by profit, which shows that they could move significantly higher over the medium term and still leave the company in a sound financial position. Link -> hTTp://
rivaldo: FYI here's the full SCSW tip for STAF in this month's issue - enough time has elapsed now for this to probably be OK imo, though I might just reduce it to a few highlights after it's been up for a while: "Staffline - OnSite recruiter looks dirt cheap 216p Epic code: STAF (Sharewatch) Staffline Recruitment has the look of a company that seems well placed to string together several years of consecutive growth. The group is an expanding industrial recruitment business engaged mainly in the supply of temporary blue collar workers and it therefore competes directly with the Blue Arrow business of Impellam (IPEL; 338p), a company Sharewatch featured in March. At the time that we 'Buy' rated Impellam, we had highlighted that the presence of controversial Tory donor Lord Ashcroft on the share register (with a 57% stake) was one of the reasons why the shares were sitting on a miserly prospective PE of just 4.5. Impellam has risen by almost £1 since our tip as investors have gradually appreciated that its prospects are not as bad as the share price was suggesting. We think Staffline will do just as well - perhaps even better. Although we don't have Ashcroft to depress the price this time, what was holding back the shares recently was an overhang - perceived or otherwise - from a former VC backer that held almost one third of the equity. The bulk of their stake was finally placed last month but the shares have still to re-rate upwards and look cheap on a prospective PE of 7.8. Unlike Impellam there is a useful dividend yield of 3.5% adding to the attractions. To triple in size in three years During the month we met chief executive Andrew Hogarth who has a plan of ballooning sales and pretax profit for his recruitment business to £360m and £12m respectively within three years. If he goes anywhere towards achieving this goal then we think the shares will stand substantially higher. Anyone can make punchy projections like that but there are sound reasons for believing Hogarth in this case. Between 2005 and 2010 the business lifted profits from £2.5m to £7m on turnover up from £61.5m to £206m. Meanwhile, earnings per share have grown from 8p in 2005 to 23.7p in 2010, a compound growth rate of 24%. It hasn't been all plain sailing. There was, of course, a blip in 2009 when the business was affected by the collapse of Lehman Brothers and the subsequent recession. At the time, Staffline was significantly exposed to clients in the motor sector such as Landrover, which sharply reduced output of vehicles and consequently their staffing requirements. But more recently the unmistakable signs are that the rate of growth is accelerating because of acquisitions (nine in the past 20 months), which are adding a second dimension to profit growth. If the steady diet of small agencies bought for cash on ridiculously low multiples continues, we think the company could double or treble in size over the next three years. VC Backers sell down position Staffline was set up 25 years ago when it opened its first recruitment agency unit in Nottingham and the business origins were as a traditional employment agency with a branch network located principally within the Leeds, Liverpool and Northampton triangle. From the start, the group's focus has been on blue collar, semi-skilled and unskilled recruitment. The transformation in the group's fortunes however began in early 2000 when there was a management buyout backed by venture capital firm ISIS and the arrival of Hogarth, initially as finance director, before moving to the chief executive's role shortly afterwards. As we describe below, he subsequently turned the recruitment operations on its head by introducing an outsourced model. ISIS had sold down part of its stake at the time of the float but until last month still retained 26.9% of the equity in three tranches. But last month's move to place the largest element (18.4%) and leave 8.5% in their two VCT funds, Baronsmead VCT and Baronsmead VCT2, has removed the overhang and is the trigger we think that is going to re-rate the shares. Hogarth still retains 13.5% and is strongly incentivised to keep Staffline performing. OnSite model Nowadays, says Hogarth, Staffline still retains its branch network of 14 units in secondary high street locations but is no longer seeking to expand these. Instead, the real attraction as an investment is the fact that the group is expanding its presence under the outsourced "OnSite model" and almost nine-tenths of last year's £206m sales came from these site-based term contracts, compared to 43% of £49m revenues at the time of the IPO in 2004 . Under the OnSite model, Staffline has employees installed on the customer's premises and will undertake the whole of their temporary recruitment process, which is a continuous process essential to keeping a plant open and running efficiently. A total change of culture was required to bring the employees much closer to the customer in this way but as Hogarth notes, the advantage of having someone in situ on a client site is that they inevitably become more in tune with the client's facility and can better identify client requirements. For instance, he says staff at an abbatoir will have first hand experience of the environment and can weed out unsuitable employees enabling Staffline to provide better service delivery. OnSite contracts are typically on a two year rolling basis but Hogarth says that as Staffline becomes increasingly integrated into a customer's operations there have been only a handful of instances where it will be replaced by a competitor. Consolidation amongst clients or a few bankruptcies are the only reason it has ever lost a client and most new customers therefore become almost permanent additions to revenue. Having added 16 OnSite contracts in 2010, Staffline now operates 135 of these in total. Conversion to profit higher But as we are learning, the benefit to the OnSite model is that both the opening and running costs are lower compared to a traditional branch agency and there are opportunities to generate higher margins. By way of illustration, Hogarth says that the OnSite model only needs to employ one contract manager whereas a branch might, for instance, typically have four members of staff. These lower overheads enable Staffline to price contracts at a lower gross margin than if it was a traditional branch. The degree to which this gross profit is also converted to operating profit is higher with the OnSite model. A typical markup on a temp from a branch might be 20% giving rise to an operating margin of 7-8% after paying property and office costs. With an Onsite contract, some of the cost savings will be handed back to the client so it will typically have a lower markup of 12-15% but the margin still works out at 9-12%. As Staffline has moved away from the low margin branch model to which the group has a shrinking exposure, operating margins have continued to decline and last year the average margin for the group was 11%. The tradeoff to lower margin, of course, is better visibility to income and the chance to pick up almost all of a client's blue collar employment work. The OnSite model has also enabled Staffline to expand beyond the historic Leeds-Liverpool- Northampton triangle. In addition, Hogarth says that in terms of service lines, there are four key sectors including meat and poultry; ready-to-eat food; manufacturing (automotive, aerospace and general manufacturing); and distribution. It is, however, hard to categorise the areas of business discretely in this way as new areas of staffing are constantly being added. Recently, for example, Staffline bought one business where it was also recruiting HGV drivers and this has been consolidated into the distribution sector. That said, Staffline looks better placed than most to weather any recessionary influences given its defensive end market exposure, with 90% of revenues from the food (60%) and distribution (30%) sectors. Hogarth notes that temporary workers have always been used in these sectors to satisfy the need for seasonal workers, for instance during Christmas but increasingly customers are routinely turning to temporary workers throughout the year. For instance, he notes that food manufacturers are regularly being called upon to support supermarkets with buy-one-get-one-free type offers and this creates regular sharp spikes in requirements for workers. On-off-on-off work of this nature is ideally suited to Staffline, which can supply workers for one or perhaps two days at a time (average duration of employment within the group runs at 17 weeks). As Staffline has grown it has also become less exposed to any one customer. Hogarth says that Tesco is currently the largest at c.10% of sales (down from 12% last year) whilst the top eight are c.50% of sales. Its bigger size also means it can transfer staff between firms - or even between industries - to diversify risk. Available pool from Eastern Europe Hogarth notes that one other key factor helping the trend towards temporary staff is that the quality of labour is better than it might have been a decade ago. This is not only because the recession has increased the size of the available pool of staff but because many of its workers are migrants from Eastern Europe. Although the majority of Staffline's workers stem from the EU, and in particular Poland, they are typically already based in the UK. Nowadays most workers are sourced not through newspaper advertising, which was the traditional method but by word of mouth. That said, Staffline does have a small team to recruit workers with niche skills (e.g. butchers, glass blowers) directly from Poland. 8 acquisitions add second dimension The Staffline story has recently been given an extra twist because of the acquisitions. In total, there have been nine deals in the past 20 months. In terms of exactly what is happening Hogarth gives the example of the first acquisition, Hardcastle Associates, a small family run recruitment business that was barely profitable (£30,000) on sales of £4.5m in family ownership. Staffline bought the business for £400,000 of which £90,000 was paid upfront and the rest deferred for one year based on future profits. Hogarth says that stripping out duplicated costs and absorbing the sales into the existing overhead structure meant that virtually all of Hardcastle's gross margin went to the bottom line. In the first year the business ended up making £300,000 - making it a ridiculously cheap acquisition and one that virtually paid for itself. By all accounts this wasn't a one off spectacular example. By way of a second example, Hogarth talks about DKM, which was bought from the receivers for nothing. DKM had sales of £12m and overzealous cash extraction by its owners meant it had fallen into disarray after not being able to pay its NIC/PAYE liabilities. Adding the additional sales to Staffline's existing infrastructure meant that the business made a £0.5m operating profit contribution in its first year. In fact, a presentation from the company shows that the latest eight acquisitions were an outstanding success in Staffline's hands with an average exit multiple of just 1.4x operating profit. In total, the first eight acquisitions have added annualised sales of £56m and £4.2m operating profit contribution. But Hogarth says that stripping out duplicated costs and improving utilisation of existing administrative staff is only part of the story. In fact, results are also being boosted by cross-selling. This is particularly true of one of the acquired businesses, Peter Rowley, a training provider that provides vocational qualifications (such as NVQs) in the area of business improvement techniques. Bringing it into Staffline's fold has already enabled some customers to map their in-house training programmes in areas such as food handling. Hogarth quips that it helps workers make sandwiches faster and more efficiently whilst customers can also reclaim the cost of the courses from the government. Peter Rowley is also involved in the Government's Welfare to Work programmes, which is proposing to make changes to jobseekers allowances and incapacity benefits. Although controversial, benefit cuts will be good for Staffline as Hogarth says it will add impetus for the long-term unemployed to return to work. Ninth acquisition -giveaway price! Earlier this month, Hogarth put Staffline squarely into this space when it paid £3m cash for the ninth acquisition, Fourstar Employment, a Work Programme (welfare to work) provider in the Midlands. By all accounts this looks a giveaway price as the business came with £3m cash although there is a need for some investment in the future. After this acquisition, group net debt will be unchanged at c.£2m against recently renegotiated bank facilities of £10m. Under the government's Work Programme, Fourstar is paid for finding work for those claiming Job Seeker Allowance and Incapacity Benefit and then keeping them in work. It could potentially be a massive money spinner as Staffline will be able to place unemployed workers into vacancies in the existing staffing business, thereby generating a margin twice - once from the customer and once from the government. The catch is that the government element is going to be results based (with most of the money being paid for keeping people in work for 18 months) and this will mean profits are back-end weighted - but clearly the business could pleasantly surprise with analysts expecting it to deliver a £10-£11m operating profit over the five year life of the programme. Dirt cheap Despite the recent progress it is therefore odd then to see some analysts (eg. Liberum and Altium) remaining nonchalant and leaving forecasts unchanged, although both highlight scope for upgrades. Altium's forecast is presently £8.8m pretax for 2011 with £9.7m next year. Corresponding eps is 27.8p and 31p, respectively. Trading is going well and we expect upgrades, possibly after the AGM on 19 May when a further update is expected. D-I-R-T cheap; buy."
Staffline share price data is direct from the London Stock Exchange
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