This has been boosted further by revenues on new contract wins in the Republic and Northern Ireland, the company reported today. 

In unaudited results for H1 2024, Staffline reported 11.7% increase in revenues to £480.2m, compared to £430m at the same time in 2023, a 9.2% uplift in temporary hours worked in its Recruitment GB business of flexible blue-collar workers and a 30% increase in permanent recruitment fees in Ireland.

The company described its recruitment divisions – Recruitment GB and Recruitment Ireland – as “performing well”. Its PeoplePlus business, which specialises in employability, adult training, prison education and skills-based programmes across the UK, experienced a £1.3m reduction underlying operation profit. PeoplePlus’s in-person Skills business was discontinued as part of a PeoplePlus restructuring “to align business operations to market opportunities”, Staffline said. It added that the process of reducing overhead costs at PeoplePlus “is ongoing”.

However, PeoplePlus is set to be the preferred sole supplier to Mitie Care & Custody on a contract to supply services to HM Prison Millsike, currently under construction in York. Also, a two-year extension to the Restart employability programme has been agreed. That said, Staffline said, “other pipeline delays caused by political uncertainty have led to a non-cash impairment charge of £12.9m against goodwill carrying value of PeoplePlus”. 

“The group has delivered excellent progress in its strategy of increasing its share of the blue-collar recruitment market, growing its business in the Republic of Ireland, and remains focused on delivering across its strategic, operational, and financial objectives, which include… cross-selling and expanding the recruitment portfolio, managed services and permanent recruitment, investing in the Republic of Ireland, and continuing to transform PeoplePlus into a stable annuity business with diverse revenues,” the company statement said. 

In Ireland, the company said, gross profit increased by 6.6%, with underlying operating profit increasing by 50%. “Revenues were marginally lower than [in 2023] but a change in the mix and a successful strategy to focus on higher margin services is paying off… The highly creditable performance was set against the back drop of the wider economic headwins, weak results reported from peers in the sector, as well as the ongoing power sharing impasse at Stormont. With power sharing now resolved, we believe this will improve demand in the core public services sector,” Staffline said.

At Recruitment GB, temporary worker hours worked were up by 9.2% year-on-share. The company said its market share has increased by about 17% across its top 20 largest blue-collar customers, mainly in food distribution and logistics. For instance, Staffline said it “now exclusively provides all agency workers at Morrisons”.

Expecting a return to growth in white-collar recruitment, Staffline has invested in headcount at an Omega head office in Gloucestershire and Leeds. The last six months have also seen the company open its third operation in Birmingham. 

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