Staffline Group (STAF) Trading Update summary

Financial performance highlights

• Revenue rose 12.8% to £1,058.5m in FY 2024, reflecting market share gains despite a challenging recruitment and training market.

• Gross profit increased 9.0% to £88.1m, with strong recruitment activity and new customer permanent placement fees.

• Underlying operating profit grew 7.8% to £11.1m, exceeding market expectations, with net cash (pre-IFRS 16) at £9.7m, well ahead of forecasts.

• A £2.5m share buyback was completed, demonstrating confidence in the business model and financial strength.

Divisional performance

• Recruitment GB achieved a 10% increase in hours worked, driven by market share gains in outsourcing and supermarket clients.

• Recruitment Ireland saw a 38% rise in permanent placement fees and improved gross profit after a challenging prior year.

• PeoplePlus delivered resilient results, securing new contracts including a £28m Scottish Prison Services partnership starting September 2025.

Outlook and strategic positioning

• FY 2025 performance may be impacted by macroeconomic uncertainty, higher employer national insurance, and delayed public sector contract awards.

• Continued growth is expected in blue-collar recruitment in Great Britain, supported by market share expansion and new business wins.

• Interest rates higher than anticipated will increase working capital costs, but the group remains confident in its scale and service excellence.