When he resigned from the CEO position at the Finals, he subsequently sold 2m shares at £10 per share. Did the right thing, didnt he? Although this is history, I don't see any comment about this on the BB - or have I missed it?
This one got on my alerts .
Bought in today Monday @ 8.45am @ 945 p ( reduced price Friday from 961 & 950 ) which did not lift.
The lower share price drop was not showing on record of trades before i bought .
Down 2.5% 9.26 to 931 showing above.
Sound performance by a complex but very well managed company working in an environment not helped by Brexit and general government spending uncertainty. However, they continue to deliver and their 5 year plan performance ending with these results is formidable. The uncertainty presumably accounts for the low PER at under 9 but their sustained performance doesnt deserve this.
Andy Hogarth is stepping down as CEO after a long spell but continues an a NED. However, there is a well developed senior management team and succession is planned.
Going forward, they are once again adjusting well to the changing tides, and I have no doubt they will be on the acquisition trail again soon, having reduced debt significantly, by around half. They are also introducing the next 5 year plan with a target of EPS of 200p by 2022, versus 112p reported in 2017, a 77% increase. Pretty ambitious, but why not? They have achieved all the others.
So many companies with low margins are poorly run, and seem to be unable to manage their finances effectively. As a result they are very exposed to changes in their operating environment, and cant cope with the stresses. STAFF has a good cost effective model, with several divisions with a wide spread coverage of activities. If one area falls short temporarily, others make up.
Also, the major area - now called Recruitment - operates on a very cost effective model with operations on customer's premises. Fixed costs are therefore tightly controlled.
They have the expertise to take on more acquisitions, and this will provide the growth in the near term. or the moment the chair is forecasting that profitability will be slightly higher than 2017 in a period of consolidation when some of the government programmes wind down.
A strong hold at least.
Long time no speak, and there is quite a lot to talk about on STAFF. This seems to be a balanced company which can either use immigrant labour - which farmers etc tell us still be needed after
brexit, or they can be paid by the government to traain jup locals to do the jobs they are currently not doing. They are also making useful acquisitions in ROI and Scotland consolidating in an industry qwhere there are still lots of opportunities to do so.
The SP has recovered but IMHO still has some way to go.
Seems a very neat addition to the expanding business ni Scotland, after an earlier acquisition in Republic of Ireland recently.
For Immediate Release
15 May 2017
STAFFLINE GROUP PLC
("Staffline" or "the Group")
Acquisition of Brightwork Limited
Staffline, the Staffing and Employability organisation, today announces the acquisition of Brightwork Limited ("Brightwork"), a recruitment business based in Scotland specialising in temporary and permanent jobs in the drinks, warehousing, manufacturing and distribution sectors.
Brightwork has a long and successful history as a multi-sector recruiter for clients across Scotland from offices based in Edinburgh and Glasgow. As previously indicated, the Group has been developing its business in Scotland. The acquisition therefore represents an attractive strategic opportunity to increase footprint in this area, strengthening the Group's geographic reach across the UK, as well as bringing a blue-chip client base. Derek May, Chief Executive of Brightwork, will continue in his role to lead the business
The acquisition is expected to be earnings neutral in the current year and is being funded out of Staffline's existing resources.
Andy Hogarth, Chief Executive of Staffline, commented:
"Staffline is delighted to announce the acquisition of Brightwork. We have been increasing our capability in Scotland in recent years and this acquisition will accelerate the growth of both businesses as it provides scale, as well as greater geographic coverage and value added services. We can offer our clients a greater national service. We very much look forward to working with all the team at Brightwork and to building a great future together".
The trading update is in line with market expectations and very positive. This follows an expansion of the company's business in Scotland earlier in the week.
Staffline Group plc
('Staffline' or 'the Group')
AGM Trading Update
Staffline (AIM: STAF), the Staffing and Employability organisation, will hold the Group Annual General Meeting at 11.00am this morning.
At the meeting, Andy Hogarth, Chief Executive of the Group, will make the following statement on current trading:
"Following the record year of 2016 which saw significant growth in the number of our Staffing divisions OnSites and good progress as a fully integrated business from our PeoplePlus division, Staffline has continued to make excellent progress in the new financial year.
The Staffing division has continued to perform well with strong demand for its services from both new and existing customers. The number of OnSites continues to grow. We are still seeing no change in demand following the EU Referendum Vote and the Group continues to source record numbers of workers to supply this demand.
In PeoplePlus, the Group's Employability, Training and Skills division, we are seeing the benefits of the reorganisation of the division in 2016. The new business pipeline remains strong and we continue to bid for and win new contracts.
As a result, we are pleased to confirm that current trading is in line with market expectations and the Board remains confident of the Group's growth prospects with the "Burst the Billion" £1 billion revenue target still very much on track."
The Group expects to provide an interim pre-close trading update on Tuesday 4th July 2017.
and always the effect of the SP hovering around a break point in this case 1200.
The tough talk going on at the moment is alll aboout tactics for the brexit negotiations, and the effect on the decisions made on permanency of EU citizsens here and ours in the EU. I think thta this will be settled sooner rather than later when negotiations begin. It is in both sides' interests.
As for the effect in sourcing labour in a poor labour movement situation in the future from the EU to the UK, STAFF is in a good position to train up UK citizens to do the same job as their Polish or other counterparts now. They have the training and back to woor programmes to do this. If anyone is inetrsrtyed in the CEO's answer to these questions, they were put by Paul to him in an interview some months which we should still be able to access.
Also there would appear to be opportuntiies to grow both sides of the business - service and training - because of the opportunities for growth by acquisition in the former and the expansion at the enpense of others in government schemes based on their past sucess in getting people back into work.
So paradoxically, this is probably a very good buy-in point for this very well managed company with lots of opportunity for expansion.
Looking at the business currently servicing the SPD empire, I think that STAFF would want to run it in a more professional way, and I guess that means more cost for Ashley. Also, would STAFF want to walk into the lion's den? Not exactly a happly place to work, and always in the limelight - for the wrong reasons. Not STAFF's modus operandi by any means.
Still STAFF no doubt ready for further expansion on the right terms, to take the SP back towards their rightful place.
Finncap have today reiterated their Buy and a 1600p target - here's their summary as posted elsewhere FYI:
Framework position secured, contracts next
The share price is factoring in significant risk on Stafflines 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.
Contract wins likely. Right at the end of 2016, the Government awarded
positions on the new Work and Health Programme framework. Staffline won a
position on all seven regions, the only company to do so. Contracts will now be
bid for and the scene is set for Staffline to announce a series of wins.
Breadth of opportunity. On top of this framework (which is likely to be worth
c.£1.7bn over four years), Staffline has opportunities in providing
apprenticeships (funded by the £3bn levy), win further probation contracts and
grow its communities work.
High standards and quality of service. Some providers of blue collar,
temporary workers operate questionable working practices. Staffline has built
its brand on providing the highest quality of service, fully compliant with
regulations and actively engaging in improving market working practices. This
has supported market share gains as competitors have struggled to survive
under tighter regulation and a greater focus on quality by clients.
Strong cash flow. Other than a timing issue at the end of FY 2015, cash flow
has been consistently strong. Operating profit conversion was 117% in 2016
and averaged 95% over the past five years. A move into net cash is possible in
2017 (we forecast early 2018).
1615p target based on sum of the parts. We value Staffing at a 20%
premium to Hays and SThree due to the better growth track record and
Peopleplus at a 25% discount to the outsourcers given the need to renew or
"Buy Staffline: it's growing fast and undervalued
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 companys 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 Hogarths 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 Stafflines 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 Governments 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 schemes 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 weeks 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.
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