Recruitment group Staffline Group PLC (AIM:STAF) has cautioned that the UK permanent jobs market remains challenging at present due to high levels of employment generally.
“The group expects to grow market share across the temporary recruitment market, but anticipates short-term market challenges within the retail and consumer sectors,” it said in a statement with its full-year results.
AIM-listed Staffline saw revenues flatline at £941mln in 2022 while underlying profits [EBITDA] rose by 4% to £17.6mln.
The outturn for the year exceeded original expectations for profitability and cashflow, Staffline added, in spite of the challenging conditions.
Permanent recruitment was healthy while customer wins in temporary recruitment offset softer demand from pandemic-boosted sectors and a weaker Skills division within PeoplePlus.
Albert Ellis, Staffline chief executive, noted that 2022's was a strong trading performance that included two significant new contracts with BMW and Sainsbury's/Argos and extended important existing relationships with VINCI Construction UK and Causeway Coast and Glens Borough Council.”
Pre-tax profits in 2022 were £1.9mln compared to a loss of £100,000 in 2021, while net cash at the year-end was £5mln (2021: £6.9mln). There was no dividend.