Staffline Group PLC (LON:STAF) slipped on Thursday as chief executive Chris Pullen announced his departure after two years in the role.
Pullen, who joined the recruitment company in 2015, will continue to carry out his role until a replacement is found.
READ: Staffline slumps after profit warning
In the same update, Staffline said it remains “in constructive dialogue” with its lending banks while net debt at 31 December is expected to be £60mln, 5% lower than in 2018.
“The board expects to reach agreement with respect to revised terms that will remove the risk of covenant issues and ensure that the company retains sufficient liquidity headroom,” it added.
Guidance for 2020 remains unchanged although the firm highlighted it “continues to operate in a competitive environment”.
The AIM-listed company has been struggling for a while now, swinging to a full-year loss in 2018 due to penalties and remediation costs after failing to pay the national minimum wage.
It led to an investigation by auditor PWC, forcing the company to suspend trading for six weeks a year ago.
Dismal trading continued throughout 2019 amid Brexit uncertainty, ending up into a profit warning last month.
Shares dropped 6% to 43.5p on Thursday morning.
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