(Alliance News) - Staffline Group PLC on Friday said it was unaware of any reason for its recent share price movement, after shares spiked sharply on Thursday, adding it expects to report a loss for 2019.
The recruitment firm's shares jumped from 32.00 pence on Wednesday to close at 48.50p on Thursday. On Friday, following Staffline's announcement, shares were down 21% at 38.34p.
The recent gyrations followed sharp price movements for Nottingham-based Staffline in recent years. In January 2019, it was forced to book GBP15 million of costs after an anonymous email alleged it had failed to pay staff the UK minimum wage. Before the news broke, its shares had been above 1,000p.
Adding to its woes, Staffline issued a profit warning at the end of January 2020, which sent its shares plummeting from more than 70p.
On Friday, Staffline reiterated its statement from April that it had made "good progress" in agreeing a revised financing structure for its main banking facilities and was expecting to have a new financing structure in place before publication of its preliminary 2019 results.
Audit work is still incomplete but at present the firm expects to post a small underlying loss before interest, tax, and amortisation for 2019 with pre-IFRS16 net debt of GBP59.5 million as at December 31. Net debt at the end of 2018 stood at GBP63.0 million.
Staffline expects to publish its 2019 results "shortly", though has yet to provide a specific date. It did, however, say that its full report and accounts for 2019 are forecast to be published in July and so the firm has applied for an extension to the current June 30 reporting deadline. This extension has been grated as part of temporary Covid-19 allowances that have been given to all London-listed firms.
The company said it is benefiting from measures put in place by the UK government in order "to support businesses in light of Covid-19, particularly with respect to VAT deferral" and this has improved its liquidity.
By Anna Farley; annafarley@alliancenews.com
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Staffline (STAF)