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Staffline swings to loss as delayed results release, Brexit uncertainty bite

By BFN News | 07:46 AM | Tuesday 17 September, 2019


Recruitment and training group Staffline swung to a first-half loss that it pinned on the delayed publication of its 2018 results and a challenging trading environment. Pre-tax losses for the six months through June amounted to £7.7m, compared to losses of £10.5m on-year. Revenue rose 11.1% to £534.6m, though underlying profit fell 90% to £1.5m. Staffline had to delay the release of its 2018 results after it identified breaches of minimum wage rules in its accounts. Turning to its outlook, the company said trading remained challenging. Full-year adjusted operating profit was expected to come in at around £20m. 'The first six months of 2019 presented a number of unforeseen challenges for Staffline,' chief executive Chris Pullen said. 'The delay in the publication of the 2018 final results created uncertainty, which has been compounded by a challenging trading environment.' 'As a consequence of this and the transformation of PeoplePlus, this year's result will be more heavily weighted than usual towards the final quarter.' Pullen said Brexit had become the source of 'unprecedented uncertainty' for the company's end customers and was increasingly weighing on consumer confidence. 'The performance of our end customers in food and retail has a direct impact on the demand for our services.' 'Despite this, we remain convinced that the challenges the group is currently facing are short-term and that the business is sufficiently differentiated in its service proposition to return to future growth.' Story provided by StockMarketWire.com

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