Staffline Share News (STAF)

Temporary staff provider Staffline Group slightly beat upgraded expectations in 2010 following a year of strong growth. Analyst forecasts had been upgraded a number of times last year. Acquisitions have helped but there is undoubtedly organic growth as well. Many customers are experiencing a recovery in demand. Revenues rose 79% to £206.2m, while pre-tax profit doubled from £3.5m to £7m. Dividends have also been doubled from 3.1p a share to 6.2p a share. OnSite business accounts for 89% of group revenues. The number of sites has risen by 16 to 135. The full benefit of those new sites will come through this year. Food is still the predominant sector but business is becoming more diversified. Acquisitions have taken Staffline into new sectors. Qubic, which was acquired in November, adds manufacturing customers, while this year's purchase, Kelburn, adds a North East branch and an automotive supply customer base. Management expects another good year of trading with market share growing.