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Staffline - Stage looks well set for recovery

February 2024

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • STAF
  • Price:
  • 28p
Any recovery in shares is hard to time precisely when market sentiment is so poor. But Staffline seems to be turning the corner, even if we have to wait a bit longer for it to show through. The last year has seen Staffline restructure its GB Recruitment business ensuring it has the right IT and rationalised back office operations for when better times return; it’s refocussed on better quality clients who pay quicker, allowing the company to report a small net cash position, which is also enabling it to reduce the rate of interest on its invoice discounting facility from January; and it’s completed a £5m buyback, enhancing eps by 7%.  This month’s preclose update shows FY23 sales up 1.1% to £938m with H2 +3.7% versus -0.9% in H1. O ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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