Worst over for Greatfleet
12 September 2012
Recruitment shares have had another difficult couple of weeks. Among those shares which hit new 52-week lows were FDM at 92.5p, Hydrogen Group at 202.5p, Interquest at 74p, Networkers at 21p, Parity at 28p and Synarbor at 19.5p.
Recruitment shares have had another difficult couple of weeks. Among those shares which hit new 52-week lows were FDM at 92.5p, Hydrogen Group at 202.5p, Interquest at 74p, Networkers at 21p, Parity at 28p and Synarbor at 19.5p.
A few recruiters bucked the trend, notably Spring up 3.5p to 47.5p and SThree up 19p to 202.5p. After its recent AIM debut, Impellam Group put on an impressive 7p to 94.4p.
Greatfleet shares also equalled their 52-week low of 26p as the company announced its results for 2007. Chief executive Colin Gerstein told Recruiter that he was "bruised, battered, but still here" after the company announced a pre-tax loss of £1.66m on turnover of £10.3m, down from £11.4m in 2006. However, he added that after the recent company restructuring, the worst was now over. He said he expected the company to break even in June, and to be trading profitably in Q3. One significant sign of progress was a rise in net fee income from £5,000 per head to "just under £10,000". This was continuing to increase, he said, but was already "above the industry average of £8,500".
Gerstein conceded that on its own this wouldn't translate into a higher share price. He said the market would need "more tangible evidence" for this to happen. However, if his own share dealings are anything to go by then investors can be confident about the future. Gerstein said he had doubled his holdings in the company since he came into the business, and was taking advantage of the low share price to buy more stock. He said what gave him greatest confidence was that those in the company now shared a common goal "of winning and winning big".
A few recruiters bucked the trend, notably Spring up 3.5p to 47.5p and SThree up 19p to 202.5p. After its recent AIM debut, Impellam Group put on an impressive 7p to 94.4p.
Greatfleet shares also equalled their 52-week low of 26p as the company announced its results for 2007. Chief executive Colin Gerstein told Recruiter that he was "bruised, battered, but still here" after the company announced a pre-tax loss of £1.66m on turnover of £10.3m, down from £11.4m in 2006. However, he added that after the recent company restructuring, the worst was now over. He said he expected the company to break even in June, and to be trading profitably in Q3. One significant sign of progress was a rise in net fee income from £5,000 per head to "just under £10,000". This was continuing to increase, he said, but was already "above the industry average of £8,500".
Gerstein conceded that on its own this wouldn't translate into a higher share price. He said the market would need "more tangible evidence" for this to happen. However, if his own share dealings are anything to go by then investors can be confident about the future. Gerstein said he had doubled his holdings in the company since he came into the business, and was taking advantage of the low share price to buy more stock. He said what gave him greatest confidence was that those in the company now shared a common goal "of winning and winning big".
