Staffline Group PLC (LON:STAF) shares surged on their return to trading on Tuesday after an accounting blunder failed to dent its expectations for the latest full year.
The recruitment firm’s shares were previously suspended at the end of January after it delayed the publication of its final results amid concerns over its invoicing and payroll practices, causing the shares to plunge around 33% on the day.
READ: Staffline says full-year trading expected to be in line with market expectations although net debt has risen
In an update alongside its restoration, the group said one of the allegations had concerned its compliance with the UK’s minimum wage laws, adding that it had discovered “potential underpayments” relating to preparation time (the time taken for employees to put on workwear) at a “limited number” of food production facilities in the past.
As a result, Staffline said it had added £3.5mln to its exceptional costs for 2018, taking the total to £23.5mln.
However, despite the additional charge, the company said it still expected its underlying trading performance to be “in line with expectations” for the year while also maintaining its guidance for 2019.
John Crabtree, non-executive chairman of Staffline, said the company would release its delayed results “in due course” following the completion of an audit.
In a note to clients, analysts at Staffline’s broker Liberum said that the issues “should not repeat” as the firm had been undergoing a “cultural change” since the start of last year.
“Staffline has invested in an employee engagement platform which provides constant feedback from the work force. This should help to identify issues such as these, earlier. We expect Staffline to be fully compliant with the NMWR rules going forward.”
Shares were up 26% at 843p.