Staffline Share Price (STAF)

good rns' today!

UK recruitment organisation Staffline Group has announced the acquisition of the trade and assets of GB Resourcing. GB Resourcing, a temporary recruitment provider based in Birmingham, has been operating throughout the Midlands since it was formed in 1999. Staffline, which specialises in recruitment in food processing, manufacturing, e-retail, driving and logistics, said the procurement of GB Resourcing is in line with the company's existing business strategy in targeting selective bolt-on acquisitions operating in relevant fields to expand their customer base and increase revenue. Staffline's Onsite business will have two new food Onsites and a branch in Birmingham following the purchase. "The acquisition of GB Resourcing strengthens the foothold in the Midlands area as well as broadening our expertise to provide high quality staffing services across a variety of sectors," Chief Executive of Staffline, Andy Hogarth, said in a statement Wednesday. "We look forward to working with GB Resourcing and continue to pursue further bolt-on acquisition opportunities." The group's existing bank facility is funding the acquisition and it will be earnings neutral in the first full year of ownership. Staffline supplies to 30,000 blue collar workers each day and operates from more than 200 locations in the UK. Its shares were up up 0.71% at 282.50p Wednesday.

Staffline Group puts unskilled or semi-skilled workers into temporary jobs, ranging from salad washing to lorry driving. The firm is reaping benefits as big employers use more temporary staff and chief executive Andy Hogarth is full of plans for the future. The company steers clear of high-end recruitment, focusing instead on jobs that are essential to everyday life but require little more than basic training. Initially, Staffline operated primarily from High Street shops. Over the past few years, however, it has moved increasingly in to customers' premises, such as warehouses, distribution centres and factories. This enables it to forge longer-term relationships with customers and keeps its costs low. Staffline is one of the biggest operators in its field but it still has a market share of just 5%, so there is plenty of room for expansion, particularly as smaller rivals are increasingly willing to sell out. The group has made three acquisitions this year and will probably continue in this vein, while also developing organically. This year, for example, it moved into call centre recruitment, supplying workers for an existing customer. This has proved successful and will almost certainly be replicated. Staffline is doing well despite continued economic uncertainty, increasing customer numbers and doing more business with each. Hogarth has just finished drafting his plans for the future and is confident about prospects. At 239 1⁄2p, the shares are a buy, says The Financial Mail on Sunday's Midas column.

Eyups,Yeh,this is recommended on the midas page...... Also recommended by jange and mulledwine but dont quote me....lol....

Shore Capital upgraded its "hold" recommendation on Staffline (STAF) to "buy" with a target price of 229p after the recruitment company secured the acquisition of Select Appointments. The broker believes this is a positive step towards establishing the brand nationwide and cited plans to triple the amount of branches operating under the Select brand as being positive news for potential investors. Shore Capital added further justification to its claim by suggesting that back office services for further expansion will be met by existing operations, adding minimal additional cost to the business

Andy Hogarth, Chief Executive of Staffline said: "The acquisition of Select Appointments is an exciting strategic step for Staffline as we seek to further broaden our operational reach. Not only is the Select brand instantly recognisable but its established franchise network will provide a stable footing for the Group as we seek to expand our services into the white collar staffing market. "Today's announcement is a natural evolution for our business as we aim to replicate our success in the blue collar recruitment market. Our recent expansion into the Welfare to Work arena coupled with today's announcement is a clear indication of our ambitions to further grow the business and continue to enhance shareholder value."