Shares in Staffline (LON:STAF) rose after the recruitment agency forecast better-than-expected annual profits in 2016 and said it had a record line-up of new business.
The stock gained 65p to 1360p as Staffline boosted revenues by 40% to £702.2mln and group gross profit by 34% to £86.8mln in the year to December 31.
Underlying profit before tax lifted 52% to £28.3mln, underlying diluted earnings per share increased 55% to 92.4p and·the group boosted its final dividend of 12.5p, leading to a total dividend for the year of 20p, up 48%.
Its record new business pipeline continued into the new financial year with extra contracts due to start in the first quarter of 2016.
It said it had record internal growth of its OnSite business and successfully integrated three acquisitions including its employability division A4e in May 2015, now integrated and rebranded as PeoplePlus.
It bought Milestone Operations, which suppliers lorry drivers, in September 2015 and acquired Northern Irish business Diamond Recruitment in October.
Chief executive Andy Hogarth said: "2015 was another transformational year of organic and acquisitive growth for Staffline.
"Our work to position the group at the forefront of ethical standards and compliance has resulted in a record number of OnSites with new and existing customers and has also differentiated us with our now-enlarged employability division, now called PeoplePlus, having completed the integration of A4e.
"We are confident our strategic initiatives in both of our divisions will continue to support our momentum and as a result we expect to exceed current market expectations for 2016."
LIberum Capital upgraded Staffline to 'buy' and reduced its target price to 1400p from 1500p.
The broker described the 2015 results as strong and said it was increasing its earnings per share forecast by 9%.
Finncap, which also has a 'buy' recommendation on the shares, upgraded its forecast for 2016 earnings per share by 8%.
"We maintain our view that Staffline can continue to grow at above-average rates as its innovative models in its two markets gain market share," the broker's analyst Guy Hewett said in a note.