Staffline (LON:STAF) is a leading outsourcing organisation, operating mainly in the UK and Eire, through two divisions – Staffline Recruitment and PeoplePlus. The shares have been one of the top growth plays in the staffing services sector in the last 15 years, but are currently trading at a discounted valuation.
Staffline Recruitment is a leader in the UK and Ireland in industrial temporary staffing, with strong positions in industries including the food industry and distribution warehouses, serving customers including Tesco, Marks and Spencer, and 2 Sisters Food Group.
A major differentiator for Staffline in this space is its level of employee engagement, connecting with the workforce via interfaces including a unique digital app. Staffline offers fast, flexible, and continuous employment to its employee base; by retaining a large and motivated workforce, Staffline is able to provide a reliable and high-quality resource to the industrial customer base.
These attributes have enabled Staffline to keep gaining market share, underpinning a 9.5% organic growth in recruitment revenues in FY2017.
PeoplePlus is Staffline’s employment support and training business. Major revenue streams include back-to-work schemes for government and local government bodies, private sector apprenticeship schemes, and rehabilitation work in the justice system.
The PeoplePlus business has been implementing the winding down of one major scheme – the Work Programme. On page 2 we present some detail of how this is reflected in our financial forecasts.