The AIM-listed recruitment firm continues to see strong demand in staffing division
Companies: Staffline Group plc
Recruitment specialist Staffline has said that it expects to deliver full-year results in line with expectations when it announces its preliminaries later this month.
The AIM-listed firm says demand in its staffing business remained strong through the second half of the year, achieving "excellent" growth in the number of OnSites.
Stockbroker finnCap welcomed the results, saying demand had been strong and margins had improved:
"Demand in the staffing business has remained strong during H2 with 'excellent' growth in the number of OnSites (supporting in our view continued good growth into 2017). The employability business has also made good progress becoming the top performer in Work Programme contracts (supporting a positive outlook on rebid) as well as generating improved margins."
According to finnCap, Staffline shares are trading at a discount to the recruitment sector as a whole:
"The recruitment sector is valued at 7.5-18.1x 2016 P/E with Staffline near the bottom at 7.6x despite the very strong track record, 70% of recruitment sales from the UK food sector and 10% from e-tail and improving outcomes on the Work Programmes."
Staffline shares increased marginally on Wednesday to 857p/share.