STAFFLINE yesterday announced that its finance chief has stepped down as the recruitment firm cut its profit forecasts following a dip in consumer demand.

Shares in the company closed down almost 25 per cent yesterday as it revealed that trading performance in the fourth quarter was below the board's expectations following a slump in demand.

As a result of the challenges in fourth-quarter trading, Staffline said the board expected the group to post full-year adjusted operating profit of approximately £10m to £12m.

In September the firm said it expected to deliver £20m in operating profit. Customer demand was down 16 per cent in November compared to the same month in 2018, which Staffline blamed on high levels of uncertainty across the UK. The recruiter said December trading was slightly better, but remained below expectations.

Chief financial officer Mike Watts is stepping down following a torrid year for the recruitment firm that has seen its share price dive.

Daniel Quint, former finance chief of brewery Young & Co, has been appointed as Watts' replacement on an interim basis.

Chris Pullen, chief executive of Staffline, said: "It has been a most challenging year for Staffline. Despite this we have developed two robust market leading businesses which are well set as platforms for future growth. We remain optimistic about the future potential of the group with the challenges of 2019 behind us."

(c) 2019 City A.M., source Newspaper