Staffline's growth has not gone unnoticed and the shares have had a strong run. But trading at 13 times Liberum Capital's 2014 underlying earnings forecast of 44.7p (reported EPS forecasts are given in the accompanying table), the current PE ratio is well below larger players such as Hays and Michael Page on 17 and 25 times, respectively. And if Staffline does achieve its 2017 profit target, the implied PE ratio for that year starts to look a real steal at around five times. True, the dividend yield is not fantastic, but the dividend is well covered and growing - by a larger than expected 23 per cent at the first half. That hike indicates management's confidence in the future - given Staffline's track record, it could be foolish to bet against them as always dyor gl,
11 Oct '13
Other irons in the fire include a growing presence in HGV driver training, where Staffline hopes to help fill a skills shortage, and a push into the white-collar job market on the back of last year's acquisition of Select Recruitment. Gearing is low with a debt-free position looking likely by the year end, so Staffline has the financial flexibility to undertake further bolt-ons if it can find appropriate targets. Staffline's activities mean that it is affected by employment regulations. But tougher employment rules to address issues such as people trafficking generally benefit Staffline as they drive less scrupulous players out. The company is also potentially vulnerable to disruption from union actions such as strikes at its big customers. This is more of a wild card, although strikes can mean Staffline is given work finding temporary staff to cover during the strike
11 Oct '13
When a company promises to treble its profits in five years, you would be forgiven for taking that with a large pinch of salt. But in Staffline's (STAF) case, the management's track record suggests this is a promise to be taken seriously. The training and recruitment company has trebled in size twice already since its 2004 listing and is targeting a near trebling of 2012 underlying profit before tax to £30m by 2017. This target is not predicated on an economic recovery; nor does it assume growth by acquisition. Rather, the company has identified opportunities for growth and is positioning itself to be in the right place at the right time. Staffline's core business is the supply of mainly blue-collar workers through its OnSite model, which accounts for 85 per cent of total revenues. The OnSite model, in which Staffline has a team based at its clients' premises, allows Staffline to build an embedded position that generates plenty of repeat business. Staffline currently supplies staff to the distribution centres of every major high street supermarket chain, many leading UK manufacturers and is one of the UK's largest suppliers of food industry staff. But while the OnSite model provides the bread and butter, a growing presence in other, newer activities provides the jam. The acquisition in 2011 of Eos took Staffline into the Welfare to Work segment; a government scheme that helps the long-term unemployed back into the job market. Eos, whose contract covers Birmingham, Solihull and the Black Country, has been ranked the best performing contract of the 40 work programme contracts across the UK. And the contract is now cash positive with the division moving into profit during the first half. Given Eos's strong performance on its current contract, it looks well-placed to grab further work from underperforming peers in this space.
7 Oct '13
another gud one shan....... http://www.investegate.co.uk/staffline-group-plc--staf-/rns/tr-1--notification-of-major-interest-in-shares/201310070700078424P/
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