FINANCIALS: Staffline acquisitions boost group revenue
Bolt-on acquisitions have helped Staffline deliver a 12.4% year-on-year increase in group revenue.
Interim results for the six months to 30 June 2018, released by the recruitment and training organisation this morning, reveal overall revenue rose to £481m from £427.8m in H1 2017. Profit margin increased from 1.5% to 2.2% over the same period.
The increase in overall group revenue was led by the firm’s recruitment business, which saw revenue rise to £429.6m – up 16.1% growth on the previous year. This increase offset an 11.3% decline in revenue for the group’s PeoplePlus business, which saw revenue drop to £51.4m from £57.9m in H1 2017.
The period saw the group’s PeoplePlus division continue its transition away from government’s Work Programme, while the group has recently added the acquisitions of LearnDirect Apprenticeships and Grafton Recruitment.
While these two acquisitions have not fed into this latest set of results, speaking to Recruiter this morning, Staffline CEO Chris Pullen revealed acquisitions over the period had accounted for 11% of the 16% revenue growth for the group’s recruitment business.
“It’s early days and we’re completing the integration of those acquisitions in the second half so we will see the full benefit next year, which is why we’re indicating some good meaningful growth in the business next year as a result of those acquisitions bedding in,” Pullen told Recruiter.
With regard to potential future acquisitions, Pullen revealed he would be interested in speaking with UK recruiters operating in the blue collar industrial temporary space.
Looking ahead, Pullen added the group has good momentum moving into H2 due to its emphasis on acquisitions and achieving organic growth.
“Overall group profitability is going to grow and then in the PeoplePlus business we’re fast becoming the country’s market leading skills training provider. That transition away from the Work Programme implies an initial reduction in profit but we’re covering it by the growth we’re seeing in the recruitment business.”
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