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The spread has now narrowed so hopefully we can finally get a positive momentum going. It would be nice to think the sellers are out. Come on Albert buy some and install trust.
Indeed, Nimrod, that’s what I called it and recent results don’t change my view.
Stand back for a moment. This company turns over not far short of a billion yet can’t make a bean out of that.
Their GP increase year on year is entirely due to a surge in permanent placements. While nice, this may well not be repeatable. The rest of the GP remains beached at just over 8%. You can’t make any sort of return from that. Sorry. And then you have to factor in rising finance costs and the chronic labour shortages in the unskilled sector which, while increasing demand, make satisfying that demand ever more costly and difficult.
This is a model that cannot work without radical change; they are simply turning over money.
As mentioned before, 5% of turnover should hit the bottom line for a well run industrial recruitment agency. You can’t get anywhere on an 8% gross margin.
Peakyblinder
In other recessions we’ve had issues with less work around maybe but this time it’s a recession that may be caused by higher interest rates to control inflationary pressures. Things are very different this time because unlike the last recession we are not in the EU.
This time the government won’t have the capability to allow EU workers in to help bring down the cost of labour and help with inflationary pressures. A lot have returned back home during lockdown and I think we actually have a shortage not a surplus of workers so any recession will have little or no effect this time.
Secondly If we were to go into recession the government would pay Staffline to retrain workers and help find any employment needed to get people into employment.
Once again I think Albert is smart in this field and preparing the grounds by getting rid of non profit making contracts. It will take time but they will get it right. I’ll be happy once the debts are cleared and they can talk about dividends but not worried about a recession that may not happen.
Board scooping free shares to sell when they get the boot..
Jam, I mean the SP will be worse, less work around in a recession.
Recruitment not the place to be, Nim was brave but right to sell out. Cash in the Bank to buy bargains next year when the hardship starts...
I sold out yesterday on results.....didn't expect to see lower income and the company showing debt plus a lower cash in hand than previously....the company like many others appears to be run for the benefit of the directors and sod the retail investors as we don't matter.....someone said that the company is a busted flush, I'm listening to what he said now....
Peakyblinder
Explain why you think given the strategy in the investor meeting you believe next year will be worse. I actually think it get better as new contracts show dividends. The loss making contracts gone and they eluded to the fact that certain contracts will be in the results like restart. So how’s it going to be worse. We clearly hedged the debt so that’s a clever move. Less staff needed because loss making contracts gone and new lucrative contracts will show up fully in next results. Even in a recession our services required. It will take time though and may be a buyout soon enough at these prices I feel. Who knows you could also be correct who knows for sure
Next year Will be worse mate, I wouldn't buy any more!
Amazing that HRnet or Henry Spain ain’t mopped up a shed load at these prices considering there buying prices previously. Surely the selling is overdone on all metrics. Whilst I’m not a massive fan of Albert due to his personal miss leading comment regarding buying shares before I felt the overall feel of the company after yesterday’s presentation was positive. I feel they are holding news back on existing contracts to pleasantly surprise at the next results. The problem is how low does the share go before value is seen by investors. Markets are brutal even with presentations explaining things. They see results in black and white and falling revenue didn’t go down well even though it was expected
Selling continues.
Director's helping themselves to free shares again, fair play...
I can't see any resistance in the 30s, who knows...
I think this overdone but trying to catch a
Falling knife is dangerous but if you get it right may be rewarding. This could easily be private if it continues to fall. Don’t think that’s the intentions but this is a vulnerable company now. I can’t believe we’ve still
Got any debt. Why they didn’t raise enough at capital raise at 50p confused me. I’m sure it will bounce but when.
"Record permanent fees of £3.2m up 113% on 2021 (2021: £1.5m)"
To me, this is core strength of Albert Ellis, and he can continue improvement on Permie recruitment. Much higher margins and fragmented market.
Albert only seems to be buying with options it seems.
CFO hedge was a great move.
Hopefully it’s a flush out brighter times ahead. New contracts to show dividends later. Smart move locking in interest rate on debt in this environment. Just waiting for Alberts buy in price
13% down, not a good start
Rise in margins as they exited old contracts, but Will also decline now with falling revenue.. debt really not helping..
Disappointing.
Rise in margins is good, along with a PP contract win which is higher margin business.
BUT, revenue needs to go up, not down.
I’m buying now. Personally feel it was a over reaction this morning. They are clearly turning this ship around with new contact wins etc. Interesting to see if Albert buys. He was privileged to new contact so that will be the excuse given 100% and acceptable given stock market rules. No excuse now though!. Perfect buy in price but sub 40p a blessing to LTH. No panic unless you need your cash. New contracts so revenue will keep coming and profits grow while margins increase as inflationary costs are passed onto clients. I also see acquisitions and interesting to see how large shareholders react. They brought way higher after last results so a bargain for them with positive numbers but who knows for sure.
Good luck all and stay positive
I Will open a position sub 40p.
Peakyblinder
Your prediction could be correct as it’s fell on results. Strange nothing appears concerning and new contact wins . I’ll have a few more today I think
not to bad Jam, sounded a bit smoke and mirrors, but nothing horrendous..gla.
http://ir.q4europe.com/Tools/newsArticleHTML.aspx?solutionID=3774&customerKey=Staffline&storyID=15507644
Let’s see what’s said at the 2pm presentation
But I see nothing to worry about.Alberts statement was as expected
http://ir.q4europe.com/Tools/newsArticleHTML.aspx?solutionID=3774&customerKey=Staffline&storyID=15507577
Result are what we expected but new contract win is a bonus. Nothing to worry about