Staffline Group PLC Trading Update (3405Z)
17 May 2019 - 4:00PM
UK Regulatory
TIDMSTAF
RNS Number : 3405Z
Staffline Group PLC
17 May 2019
17 May 2019
STAFFLINE GROUP PLC
("Staffline," the "Company" or the "Group")
Trading Update
Staffline, the Recruitment and Training group, provides the
following trading update.
Recruitment
The ongoing Brexit uncertainty is impacting the UK labour market
and led to a number of customers transferring a significant volume
of their temporary workforce into permanent employment to mitigate
the risk of that labour market tightening. Typically, this reaction
to uncertainty tends to reverse over time, but we expect it will
continue to impact temporary worker demand throughout the current
year.
A proportion of these "temp to perm" transfers have occurred in
the higher margin driving sector, resulting in an overall margin
dilution. In addition, we are seeing further challenges in the
higher margin automotive sector and associated supply chain where
reductions in demand have been greater than expected.
There has also been a slowdown in new contract momentum in the
current financial year, which the Company largely attributes to the
impact of the delay in publication of the 2018 Full Year results.
The key outstanding matter in finalising the results relates to the
Group's historical compliance with National Minimum Wage
Regulations 2015. This is a complex area and management, in
conjunction with HMRC and supported by an independent advisor, are
assessing the significant amount of historic data and transactions,
which will then be subject to audit.
Notwithstanding these current headwinds, the Recruitment
division is beginning to see the definitive benefits from the
Company's market-leading approach to worker engagement and
digitally enabled candidate attraction. Management expects this
strategy to result in increasing differentiation and to support
future growth.
PeoplePlus
In PeoplePlus, the successful transition from a Work Programme
provider to the UK's leading skills and training company is almost
complete. With c. 60% of 2020 revenues already contracted, the
Company maintains a positive outlook for PeoplePlus in 2020 under
its new operating model. However, performance in 2019 will be
affected by continued delays in Apprenticeship new starts. This is
partially as a result of the slow take up of the Apprenticeship
Levy scheme nationally, but also a reflection of the current
economic uncertainty. Sectors such as retail for example, are
delaying Apprenticeships whilst store restructure programmes are
completed, however management remains confident that this market is
attractive, notwithstanding this timing effect. However, the other
elements of PeoplePlus, which are expected to contribute c.85% of
PeoplePlus revenue in 2020, continue to develop well.
Current Trading
The Group experiences seasonality in its trading and typically
earns only approximately 15% of its earnings in the first quarter
of the financial year. The April performance is therefore a key
initial indicator as to the full year turn out, and with visibility
of that trading, and as a consequence of the broad range of factors
highlighted above, the Board now expects the Group to deliver
adjusted EBIT in the range of GBP23 million to GBP28 million for
the financial year ending 31 December 2019.
For further information, please contact:
Staffline Group plc via Vigo Communications
www.stafflinegroupplc.co.uk
Chris Pullen, Chief Executive Officer
Michael Watts, Group Chief Financial
Officer
Liberum NOMAD and Joint Broker
www.liberum.com
Steve Pearce / Joshua Hughes 020 3100 2222
Berenberg Joint Broker
www.berenberg.com
Chris Bowman / Toby Flaux 020 3207 7800
Vigo Communications Financial PR 020 7390 0230
www.vigocomms.com staffline@vigocomms.com
Jeremy Garcia / Antonia Pollock / Charlie
Neish
Market Abuse Regulation
This announcement is released by Staffline Group plc and
contains inside information for the purposes of the Market Abuse
Regulation (EU) 596/2014 ("MAR") and is disclosed in accordance
with the Company's obligations under Article 17 of MAR. The person
who arranged for the release of this announcement on behalf of
Staffline Group plc was Michael Watts, Group Chief Financial
Officer.
Note for Editors
About Staffline - Recruitment, Training and Support
Enabling the Future of Work(TM)
Staffline is the UK's market leading Recruitment and Training
group. It has two divisions:
Recruitment Division
The UK's leading provider of flexible blue-collar workers,
supplying over 60,000 staff per day to c. 1,500 private sector
clients, across a wide range of industries including agriculture,
drinks, driving, food processing, logistics and manufacturing. It
operates from over 400 locations in UK, Eire and Poland.
Its world leading Customer Experience platform provides
optimised customer-based staffing management solutions whilst
providing market-leading levels of job satisfaction for
workers.
PeoplePlus Division
The leading adult skills and training provider in the UK,
delivering apprenticeships, adult education, prison education and
skills-based employability programmes across the country.
Education and Training - market leading provider of training
courses for private sector Apprenticeships (both Levy and non-Levy)
and Government funded Adult Skills programmes.
Employability - top quartile performer, supporting Government
programmes providing back-to-work education and support services to
the unemployed.
Justice and Community - education and training services for
prisoners and ex-offenders, as well as individual support services
for carers and people with disabilities, both at home and in the
work place.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTSFWEFMFUSELI
(END) Dow Jones Newswires
May 17, 2019 02:00 ET (06:00 GMT)
Staffline (LSE:STAF)
Historical Stock Chart
From Mar 2024 to Apr 2024
Staffline (LSE:STAF)
Historical Stock Chart
From Apr 2023 to Apr 2024