FINANCIALS: Staffline expects revenue to rise

Recruitment and training group Staffline has seen revenues increase and is trading in line with expectations for the year to 31 December 2018.

This is according to an update released this morning, which revealed the group expects revenue to be 18% higher than the £957.8m reported for 2017.

The update also revealed the group’s recruitment division continues to grow, with group acquisitions made during 2018 performing ahead of expectations.

Turning to its PeoplePlus division, Staffline says the Apprenticeship Levy continues to present an excellent opportunity for growth, and along with Prison Education contract wins, is offsetting reduced activity from the run-off of the division’s work with the UK government’s welfare-to-work programme.

As part of the completion of the transformation of the PeoplePlus division shifting away from reliance on the Work Programme, the group reported significant one-off costs incurred in 2018, which it has classified as exceptional items in 2018. No further exceptional costs relating to the end of the Work Programme are expected in 2019. Excluding amortisation charges on intangible assets arising on business combinations and non-cash charges for share-based payment costs, total exceptional costs will be £20m, primarily due to the transformation of the PeoplePlus division. This contributed to an increase in group net debt of £63m as of 31 December 2018.

Staffline is set to announce its preliminary results for the year ended 31 December 2018 on Wednesday 30 January. 

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