STAFFLINE yesterday announced the resignation of chief executive Chris Pullen, weeks after the recruiting firm issued a profit warning due to an ongoing accounting review.

The company had warned last month that annual adjusted profit would be materially below prior forecasts. The company issued three profit warnings in 2019, delayed publishing its annual results, and its auditor PWC resigned.

Pullen, who led the firm for two years, will continue to lead Staffline while it searches for a new chief executive, the company said.

In an update to the stock exchange yesterday, Staffline said its outlook for 2020 remains unchanged and in line with expectations, despite noting "the group continues to operate in a competitive environment".

Tracy Lewis, non-executive chair of the company, said: "I would like to thank Chris for his contribution to the business as both chief executive and previously finance director."

"Chris has led the business through very difficult circumstances and we wish him well for the future. I look forward to announcing a new chief executive in due course."

Shares fell 5.5 per cent to 43.95p following the announcement yesterday.

It came as rival recruitment firm Hays reported a fall in profit yesterday, citing the UK General Election and a weak German economy as reasons for the decline.

Like-for-like operating profit for the company dropped 18 per cent to £100.1m, down from £124.1m in 2018, as net fees slumped two per cent to £553.1m.

The recruitment firm's performance in the UK was impacted by "pre-election uncertainties", which led to private sector fees dropping eight per cent, however it added that "in time the result could provide impetus".

Hays said that the Australian bushfires in December "severely impacted the market", although fees were broadly stable beforehand.

5.48%

(c) 2020 City A.M., source Newspaper