Staffline interim pre-tax losses widen, revenues drop

(Sharecast News) - Recruitment firm Staffline said on Wednesday that interim pre-tax losses had widened amid a drop in revenues.
Staffline posted a pre-tax loss of £47.7m for the six months ended 30 June, a 284% widening year-on-year, as revenues slumped 16.8% to £434.9m. Underlying earnings fell 84% to £1.0m.

The AIM-listed company acknowledged that the current trading environment "remains challenging" but also stated that it was "confident" that the actions undertaken in the first half of 2020 had increased its "resilience" and placed it on "a much improved" strategic and financial platform.

Chairman Ian Lawson said: "Staffline continued to successfully service its customer base, and our business proved resilient in the first half of 2020 despite Covid-19 significantly impacting a number of the group's key sectors.

"Whilst we anticipate a stronger trading performance in H2 2020, there is a very high level of uncertainty across the market as a result of Covid-19."

Separately, Staffline said non-executive director Albert Ellis had been elevated to chief executive on Wednesday, effective 1 October.

As of 1345 BST, Staffline shares were up 12.20% at 27.68p.