(Alliance News) - Staffline Group PLC on Tuesday said it recorded full-year revenue growth and a more than doubled underlying operating profit due to a "strong" trading performance throughout the year.
Shares were up 10% at 61.30 pence each on Tuesday midday in London.
The Nottingham, England-based recruitment and training company generated revenue of GBP942.7 million in 2021.
This represents a 1.6% increase from revenue of GBP927.6 million posted the year before.
Staffline's underlying operating profit more than doubled to GBP10.0 million from GBP4.8 million throughout the year.
This is 11% ahead of expectations, the company noted.
Staffline put this performance down to "strong" trading throughout the year and a robust performance by all three of its divisions.
Net cash as of December 31 swung to GBP6.9 million from debt of GBP8.8 million the same date a year prior.
The recruitment and training company credited this to a successful equity raise of GBP46.4 million that significantly strengthened its balance sheet during the year.
This was despite the fact that GBP40.7 million were used to repay its deferred value-added tax relief.
Staffline expects its strong momentum to continue this year, supported by a "strong" new business pipeline, a lower overhead cost base and the expected post-Covid recovery of historically strong Staffline recruitment sectors. These include automotive, manufacturing, aerospace and travel.
"Having both re-capitalised and refinanced the group, we now have the balance sheet strength and operational agility to execute on more ambitious organic growth plans. The pipeline for 2022 is encouraging, underpinning the board's increased confidence in the current financial year and beyond," Chief Executive Albert Ellis commented.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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Staffline (STAF)