FINANCIALS: Staffing 360 Solutions sees fall in annual revenue

US and UK-based recruitment group Staffing 360 Solutions has seen annual revenue decrease 5.6% year-on-year, according to Q3 2019 results.

The group’s results, released this morning, reveal revenue of $67.3m (£52.3m), from $71.3m in Q3 2018, driven primarily by the loss of a low margin client in the UK and unfavourable foreign currency translation effect of $1.5m, with gross profit of $12.5m, which was flat compared with Q3 2018.

Gross margin improved to 18.5% compared with 17.5% in Q3 2018 driven by higher mix of permanent placement revenue and the group recorded a net loss of $1.1m – an improvement on the net loss of $2m in Q3 2018.

Elaborating on the group’s performance, CEO and chairman Brendan Flood said: “While revenue was down for the quarter, margins were up, overhead was strategically reduced and we remained operating income positive. We are confident that the dip in revenue is short term and that we continue to be progressing in the right direction.

“Our acquisition pipeline remains full and active with several potential acquisitions having passed the initial due diligence step.

“We remain focused on completing strategic acquisitions and also on pursuing related financing that could involve restructuring our existing debt. To help facilitate that endeavour, we’ve recently engaged the services of Robert W. Baird, a multinational independent investment bank and financial services company. I remain highly confident in our goal to build a profitable $500m revenue company.”

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