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Staffline Group PLC - Nottingham-based recruitment firm - Raises gross proceeds of GBP44 million from issuing 88.0 million shares in a placing and subscription at 50 pence each.
CEO Albert Ellis says: "We are delighted to have received such a strong endorsement from both new and existing investors for this fundraising, which, coupled with our working capital refinancing will transform our balance sheet. The level of support for the transaction is testament to the turnaround, strategic progress and deep transformation delivered over the last year.
"This includes exiting non-core loss-making businesses and contracts as well as reducing the group's headcount and infrastructure costs, whilst maintaining the highest levels of fulfilment for our blue-chip customers. The divisional leadership team have implemented substantial operational improvements and we are beginning to realise the benefits of this, in both the quality of the business we are winning and the talent we are attracting."
Notes earlier Friday it is carrying out a refinancing of debt facilities, which is inter-conditional with the fundraise.
"The debt refinancing and fundraise are being carried out in order to meet a forecast funding shortfall for the group and to put in place what the board believes to be more appropriate debt facilities with reduced ongoing group borrowing costs," it says.
Adds that it is pleased with trading progress thus far in 2021, and is starting to see benefits of virus restrictions easing. Also publishes unaudited financials for 2020, with revenue falling 12% to GBP927.6 million from GBP1.06 billion in 2019, but underlying operating profit grows 66% to GBP4.8 million from GBP2.9 million. Full results for 2020 to be published in June.
Current stock price: 57.20 pence, down 19% on Friday
Year-to-date change: up 29%
By Lucy Heming; lucyheming@alliancenews.com; Updated by Paul McGowan; paulmcgowan@alliancenews.com;
Copyright 2021 Alliance News Limited. All Rights Reserved.
