Recruitment and training firm Staffline Group PLC (LON:STAF) said its PeoplePlus division has won £104.6mln in contracts from the latest round of UK prison education tenders.
The contracts, which span four years, will boost the company’s share of the prison education market to 25% from 10%, ahead of the 20% it was targeting. Staffline will operate in 22 prisons across the UK following the contract wins.
"Growing our presence in prison education is a key strategic priority for our PeoplePlus division, and I am delighted that we have managed to exceed the target that we set at the interims,” said chief executive Chris Pullen.
“This strong performance is underpinned by our innovative proposition and demonstrates our continued success in transitioning PeoplePlus into the UK's leading skills and training provider."
READ: Staffline shares up as it expects to accelerate consolidation of market position
Shares jumped 5.7% to 1,280p in morning trading.
PeoplePlus, previously known as Action 4 Employment (A4e), was taken over by Staffline in 2015 for £34mln.
The acquisition came a month after six employees of A4e, which helped people gain training to get into work, were jailed for fraud. The employees falsely claimed almost £300,000 by making up files, forging signatures and claiming they helped people find jobs.
In a note to clients, analysts at Liberum Capital commented: “Following this contract win, Staffline should have a c.25% share of the Prison Education market and will operate in 22 prisons in the UK.
“The Group has also been able to retain all of its existing contracts and has added further delivery. We expect a trading statement tomorrow morning and we will revisit the numbers then.
Liberum repeated a ‘buy’ rating and 1,320p target price on Staffline shares which in late afternoon trading were 2.5% higher at 1,240p.
-- Adds analyst comment, share price --