Staffline : Recruitment firm Staffline expects to beat forecasts as end of furlough to boost training unit
April 26, 2021 at 02:51 am EDT
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Recruitment firm Staffline said this morning it expects its financial results for this financial year to be ahead of forecasts as the employment market bounces back after the latest lockdown.
The company said it anticipates that it will benefit from the end of the furlough scheme, as people search for new jobs and training courses, as it reported a sharp increase in profit in the first quarter of the year.
Read more: Chief executive of recruiter Staffline resigns after string of profit warnings
Staffline said this morning that it is “seeing a stronger recruitment pipeline developing”, and that its Peopleplus division – an adult skills and training provider – will benefit from a government spending increase following the end of the furlough scheme.
In the three months ended 31 March, the recruiter said revenue increased 0.2 per cent to £227.9m, while gross profit dipped 6.1 per cent to £18.4m.
However, underlying operating profit was up 133 per cent to £1.4m.
Staffline also updated the market on last year’s financial performance, saying revenue levels fell from £1.06bn in 2019 to £928m in 2020.
Underlying operating profit for the year was around £4.8m, up from £2.9m in the previous year, which was ahead of expectations.
Staffline chief executive Albert Ellis said: “”There is no question that 2020 was one of the most challenging periods for both industry and commerce globally, but I’m delighted with the resilience demonstrated by our business. We’ve yet to be fully released from the constraints of the Covid-19 restrictions but we have already seen positive signs of recovery as we exited the first quarter of 2021.
“We have made significant progress restructuring our core business, much of which was completed in 2020, and we are now well-placed to capitalise on a number of exciting growth opportunities. Our market leading positions across food distribution, retail, e-commerce and the logistics markets have supported our recovery. As other parts of the UK economy begin to re-emerge, I am extremely confident in our ability to build on the momentum from the start of the year.”
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Staffline Group plc is a United Kingdom-based recruitment and training company. The Company is engaged in the provision of recruitment and outsourced human resource services to industry and the provision of skills-based employability training and support. It has three divisions: Recruitment GB, Recruitment Ireland and PeoplePlus Division. Recruitment GB division provides flexible blue-collar workers, supplying c.28,000 staff per day on average from around 400 sites. Recruitment Ireland division provides end to end solutions, operating across twenty industries, ten branch locations and ten onsite customer locations, supplying c.4,000 staff per day on average, and offering recruitment process outsourcing, managed service provision, temporary and permanent solutions across the island of Ireland. PeoplePlus Division provides adult skills and training in the United Kingdom, delivering adult education, prison education and skills-based employability programs across the country.
STAFFLINE GROUP PLC 
