Staffline Group Reports Widened Loss but Remains Optimistic

Staffline Group, a U.K. recruitment-and-training company, has announced a widened pretax loss and a slight slip in revenue for the first half of the year. However, despite the challenging macroeconomic environment, the company remains optimistic and has backed its guidance.

In the six months ended June 30, Staffline posted a pretax loss of GBP4.3 million compared to a loss of GBP1.0 million in the same period last year. The decline in revenue from GBP438.0 million to GBP434.1 million is attributed to various factors including changes in the business mix, a slowdown in the retail sector, and weaker demand for permanent recruitment.

Looking ahead, Staffline expects a significant improvement in the second half of the year. This is in line with the traditional second-half weighting of its recruitment division and will be supported by contributions from new opportunities, an expected upswing in seasonal retail business volumes, and cost-reduction benefits.

The company did not provide a specific figure but expects the full-year underlying operating profit to be in line with expectations. In 2022, the underlying operating profit rose to GBP12.0 million, up from GBP10.3 million the previous year.

To enhance its financial position, Staffline plans to buy back and cancel up to 16.6 million shares. This decision comes after delivering two years of minimum underlying operating profit of GBP10 million, reducing net debt, and observing a downward trend in average borrowings.

Despite the challenging circumstances, Staffline Group remains confident in its ability to navigate the market and achieve its financial goals.