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Totally agree, it's misleading information, I was a big fan of Albert Ellis because of what he did at HN. However, you have to question what else he has said that is not true. If I had more time I would report this to the FCA.
He has technically been affecting the Share price.
Kosh
Listen to what he said again and yes it’s clearly a misleading statement. No defence in my opinion. He shouldn’t have said anything he never meant. Sorry but a Director should act with integrity and held accountable. Sorry I think the falling share is who’s responsibility?
This from Friday:
Mark Zuckerberg, CEO of Meta, now seems to share this pessimistic view. During the traditional weekly Q&A session with company employees on June 30, he said he expected "one of the worst downturns that we've seen in recent history
There is a lot worse to come. It is common sense to sit this out right now.
Did he give a date and a definite undertaking? No!
It was an intent at that time and circumstances change.
I cannot remember the number of shares which tanked right after directors bought.
Forget it.
Kosh
When a Director makes a statement they should be held to account
Forget about directors buying ffs.
It will happen when it happens. Sick of hearing that line.
It's results that matter and we will have interims soon.
I meant reverses and heads north. lol
Looking at the three year chart Staffline is at a critical point. It either reverses and heads south or sadly we continue North with the rest of the market.
Once again the Directors should show confidence and buy because we are all left confused why a Billion pound turnover company back in profits continues to sell off. The fact is the Chairman made a statement of intent to buy shares and failed to do so. This needs to be actioned or addressed in my opinion.
The company is in a much healthier place but lack of communication from the board is hampering confidence. At least give us something to stop it falling further.
News needed more than ever
Staffline have increased profits per client which is stated n results. Also f there’s a shortage of staff T means the one ones Staffline have are in demand and customer have to pay higher rates T to get them. Sorry but there’s two sides to the coin. I would be more worried if there was no demand for workers not the the other way round. A billion pound turnover and back n profits. I’d love dividends reinstated but hopefully the next statement will be a positive one. Also Directors could give support by buying shares as stated.
Never saw Staffline advertising locally before. Seen several this week.
STAFFLINE WILL BE upselling products and services, not just bodies. rates will be going up and the customer will have to pay it and guess who pays it in the end, US.
Staff will be fine, they will take more market share and tie companies in for longer.
Albert Ellis when are you buying?
Any contract by default has an inflation clause
Incorrect
Employers have no staff, companies not able to service customers, Staffline losing billions. Sell sell sell.
Went to primark, couldn't buy anything as no one on tills. Nothing getting delivered as no delivery drivers across whole of UK. Oh dear!
If employers are saying they can't get workers, how are staffline making any money??
Lol.
If they were "doomed", we would have had a profits warning by now.
Any contract by default has an inflation clause.
Anyway, time will tell soon.
I would be buying at this rate if my other shares had not also gone down!
Jamrock, you may want to bear in mind my comments of a couple of months ago, below.
There may be further bad news on the GP front in that a lot of Staffline’s contracts are signed on a fixed margin basis. They have not historically factored in inflationary rises for the simple fact that there has been no inflation to speak of. So they will be tied into many contracts where wages are soaring but their hourly margin remains the same. I will be looking at where their GP is going very closely when interim results are posted.
5 May '22
As someone who operates in the same field as Staffline, I reckon they are doomed.
They built a huge business by buying turnover at the expense of profit. They deliver a GP of 8% when even their most cut-price competitors operate at 12% minimum. It is not possible to produce meaningful profit at those margins. My own company, much smaller, hits around 16% GP. Of that, around 11% is taken up in overheads (80% of which are staffing costs, and we usually return around 5% of turnover in profits. At 8% GP, we'd be out of business. Given the weighting of staff costs against other overheads, there are few economies of scale in industrial recruitment.
Staffline are not translating their turnover into meaningful profit and I don't see how they ever can, unless, somehow, they achieve a huge increase in GP percentage. They had to be bailed out, twice I believe, by shareholders, after running out of cash, and that will happen again I suspect. Two things that mitigate against them. Firstly, VAT was deferred during the pandemic which would have given them a huge cashflow boost. That has now had to be repaid. Secondly, interest rates are rising and likely to rise further. Their tiny margins will be further compromised.
Additionally, since Brexit, sourcing good unskilled staff has become harder and more labour intensive in many of the geographical areas in which they operate. Most agencies in their field are operating at shortages of 10%-20%.
I have no idea what will happen to shares in the short term but there is a reason why the company has lost 98% of it's peak value. It's a busted flush.
Kosh
I feel these are way undervalued in a sector that is booming despite labour shortages. Lucrative contracts like BMW and back in profits.
The problem is market sentiment however look at Gattaca going up 18% yesterday.
Our time will come but not sure when in these markets.
In 2018, Staffline gave interim results on 25th July.
Can we get them that quick this year? Positive if we can.