(Alliance News) - Staffline Group PLC said on Tuesday it had returned to profit after tax in 2021 due to the continuing recovery of different industries from the Covid-19 pandemic.
The Nottingham, England-based employment agency reported a significantly narrowed pretax loss of GBP100,000 in 2021 from a loss of GBP51.6 million the previous year.
After tax, the company said it recorded its first profit since 2017 of GBP1.6 million against a loss after tax of GBP48.5 million the previous year.
Revenue increased 1.6% to GBP942.7 million from GBP927.6 million year-on-year. The company explained that this was driven by the ongoing recovery of certain industries from the Covid-19 pandemic and new business wins, coupled with the group beginning to realise the benefits from its cost reduction measures and the exit of lower-margin business contracts.
Staffline said it currently has an "encouraging" pipeline of opportunities emerging across sectors such as automotive and travel as the UK economy continues its recovery from the Covid-19 pandemic.
Chief Executive Albert Ellis said: "I am delighted with Staffline's performance across 2021, both in the significant operational progress we have delivered across the group but also in more than doubling our underlying operating profit in the year. I am satisfied that we now have the operating platform, balance sheet strength and governance in place to fully capitalise on our market leading position and drive sustainable growth."
Separately, Staffline announced its Datum Recruitment Process Outsourcing consultancy has secured a five-year contract extension with Vinci Construction UK, part of Vinci SA.
The company's Recruitment GB division has also secured a long-term agreement with BMW AG to supply flexible operational workforces and a number of specialist roles for BMW's manufacturing sites in England.
Staffline expects the contract with the German vehicle manufacturer to begin in the second quarter of 2022. It also believes that this contract will help aid Staffline's automotive and automotive supply chain services back to pre-pandemic levels from the second half of the year onwards.
Shares in Staffline were up 6.0% at 64.64 pence on Tuesday afternoon in London.
By Heather Rydings; heatherrydings@alliancenews.com
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Staffline (STAF)