Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on STAFFLINE GROUP PLC. We currently have 35 research reports from 5 professional analysts.
|31Oct16 07:00||RNS||Notification to Shareholders|
|25Oct16 10:10||RNS||TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES|
|19Aug16 07:00||RNS||Appointment of Non-Executive Director|
|12Aug16 10:30||RNS||TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES|
|27Jul16 04:00||RNS||Director/PDMR Shareholding|
|27Jul16 04:00||RNS||Director/PDMR Shareholding|
|27Jul16 07:00||RNS||UNAUDITED INTERIM RESULTS|
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STAFFLINE GROUP PLC
STAFFLINE GROUP PLC
17 Nov 16
Topic of the quarter: Following on from our last quarterly we have delved further into the potential and challenges that the Internet of Things present the sector. Having spoken to a wide variety of companies from the sector (large and small, UK and overseas) it is apparent that there is going to be a very significant increase in the amount of data either generated by or available to Support Service companies. The key to generating value from this change will be breaking down the silos in which data is currently held, attracting and investing in the right skills and talent, seeing beyond the short-term investment that is likely to be needed and engaging with clients on a higher, more strategic level. If the sector doesn’t react, then the door is wide open for the Technology sector.
Excellent progress in H1
05 Jul 16
In an encouraging H1 trading update, Staffline has confirmed trading remains strong and in line with expectations. There has been continued strong demand from new and existing customers in recruitment, and the group continues to source record numbers of workers to meet this demand. There has been no change in demand following the EU referendum, and the improvement in the Work Programmes is now clearly showing through. We continue to believe the fundamental demand for Staffline's recruitment services will remain strong, supported by the cost savings that a flexible labour model offers clients and its differentiated model. However, we believe the risk to underlying GDP has increased with Brexit and this tempers the level of progress that we assume the group can make in the short term. We have reduced our FY 2016 EPS and price target by 5%. We now forecast 22% EPS growth in FY 2016 followed by 5% in FY 2017 and FY 2018. The significant decline in the share price has more than accounted for the increased macro risk, in our view, and we reiterate our Buy recommendation.
02 Jun 16
Highlights this quarter: Topic of the quarter: A significant proportion of the Support Services industry is characterised by regular, scheduled visits driven by fear that something might be about to go wrong. Maintenance schedules by Facilities Managers or visits by Home Carers for example. An entire cost base dedicated to continuously rotating skills around a client base (preventative) sits alongside another cost base focused on fixing a problem when the safety net fails (reactive). But what if you could tell that a part is about to fail or a particular service is about to be needed (predictive)? The Internet of Things holds enormous potential for the Support Services sector. Those fleets of white vans that currently monotonously tour clients will only be seen when they are on-route to a specific need, laden with precisely the right part. Economic indicators: The outlook remains weak. While services PMIs remain better than manufacturing, service sector growth in the UK weakened in April. Labour markets remain strong but uncertainty in the UK, driven in part by the potential Brexit, has resulted in a switch from permanent hiring to temporary, despite the National Living Wage driving the sharpest rise in temporary pay since mid-2007. Sector newsflow: People skills are in demand this quarter with takeover bids for Penna and Sweett Group (following on from ISG and Xchanging last quarter). Serco continues on its recovery path with contract renegotiations yielding benefits, and Babcock has extended its track record of delivery with another good set of results and solid outlook. MITIE highlighted lower UK growth rates with further government spending cuts, increasing labour costs and uncertainty relating to the EU referendum. HSS has seen some signs of softness in the UK and Lakehouse revised down its expectations again. Sector valuation: The sector has underperformed the All Share by -0.8% in 2016 with smaller companies reversing some of the significant outperformance from 2015. Logistics (driven by Menzies and the mail providers) and Equipment Rental (as Aggreko and HSS started to reverse significant declines in 2015) are the best relative performers to date. Other outperformers are Consultants (we highlight Utilitywise in this note), Distributors (Acal is also set to benefit from IoT) and Self Storage (where we continue to highlight Lok'nStore as the best way to play structural growth here, supported by relative valuation).
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
Focused on the long term
08 Dec 16
These are rare events but it is nice to see a management use its public listing advantageously to trade short-term dilution in EPS for the optionality of asymmetric upside in the long term. With over £10m already in the balance sheet, ABD has successfully raised £5.4m gross in a placing and expects to raise another £1m from an offer. We were not surprised to learn that the placing was over 3.5x oversubscribed. How many listed UK companies are positioned to take advantage of the digital revolution in the automotive industry? The additional investment in new people, facilities, products & services should be dilutive to FY2017-18 EPS but this is small price to pay to establish the leading supplier of integrated test, measurement and simulation solutions to the autonomous vehicle industry. Our forecasts assume that growth will accelerate from FY2019. We raise our target price to 575p based on 15x FY2019 EPS, equivalent to Ricardo, the only other UK stock which has embraced the optionalities offered by the technological changes in the automotive industry.
07 Dec 16
Severfield’s (SFR’s) H117 results were well ahead of the previous year; margin performance and order book development cause us to raise our FY17 profit expectations. This combination has also proved to be a catalyst for share price outperformance following the results. Revenue growth and further margin development towards management’s stated aim of doubling FY16 PBT by 2020 can sustain further progress.
Exceptional trading continues
08 Nov 16
Keywords has announced that the strong trading in localisation and audio services has continued into H216. In particular, the Synthesis business acquired in April continues to benefit from exceptionally strong trading. Full-year results are now expected to be materially ahead of consensus and we upgrade our FY16e EPS by 13%. Erring on the side of caution, we have not changed our FY17 estimates significantly. Nevertheless, we believe the company does have a platform to sustain double-digit earnings growth, and hence medium-/long-term prospects for further share appreciation remain good.
N+1 Singer - Waterman Group - Encouraging AGM statement in line with expectations
09 Dec 16
This morning’s AGM Statement confirms that trading in the first four months of the year to 31st October was in line with expectations. Revenue was slightly above the prior year period and cash collection has remained strong. The Group has reiterated its commitment to maintaining a progressive dividend policy. The statement is encouraging and we therefore leave our forecasts unchanged. We note the attractions of a 5% dividend yield and consider the shares inexpensive at 4.5x FY’17 EV/EBITDA.