23rd Jul 2014 10:35
LONDON (Alliance News) - Staffline Group PLC Wednesday said its interim revenue increased by 11% to GBP208.1 million, boosted by sales growth, as the recruitment business said it is on track 18-months into a plan to achieve GBP1.0 billion in revenue by 2017.
In its earnings statement, Staffline said its underlying pretax profit increased to GBP6.4 million in the six months to June 30, up from GBP4.9 million in the corresponding period a year earlier. However, a number of charges, including acquisition costs, amortisation and share-based payment costs, meant that reported pretax profit fell to GBP1.9 million from GBP8.6 million.
Staffline increased its interim dividend to 5.0 pence, up 32% from 3.8p. Shares were Wednesday quoted up 2.7% at 986.13p.
Chief Executive Andy Hogarth said the group was buoyed by continued traction in its core recruitment business and by its May acquisition of Avanta Enterprise Ltd, a big provider of the UK government's Welfare to Work programme and skills training services across the country.
"Our new business pipeline continues to develop, and our newer divisions are beginning to gain market traction. The integration of Avanta is also progressing well, and we remain strongly optimistic that we can make further gains in the welfare to work and training arena," Hogarth said in a statement.
"Current trading remains robust and the confidence we have in our future trading prospects supports our commitment to the 32% increase in our interim dividend," the CEO added.
Separately, Staffline said that EOS, which provides services designed to return the longer-term unemployed back into sustainable employment, has won one of the three Northern Ireland 'Steps to Success' contracts. The contracts are Northern Ireland's main adult employment programme, operated by the Department of Employment and Learning, and similar to the Work Programme currently in operation across England, Scotland and Wales. Staffline said that the four-year contract includes the possibility of a two-year extension.
Staffline is currently intergrating its existing Work Programme contract held within EOS into Avanta, as it creates a larger, scaled division.
By Samuel Agini; [email protected]; @samuelagini
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