Staffline Group PLC (LON:STAF) said the higher demand seen in the food sector during the coronavirus outbreak is not enough to offset losses in other segments.
The recruiter said food sector customers represent 60% of its client base, while March saw a record 87,000 digital applications on its online portals.
READ: Staffline flags spike in food sector recruitment demand amid pandemic
Staffline said tax deferrals have “significantly improved” its cash balance through the end of 2020, alongside other cost-saving measures such as furloughing staff.
New chair
The AIM-listed firm also announced the appointment of Ian Lawson as executive chairman, after six weeks in which he acted as an independent board adviser.
Lawson has over 15 years' board-level experience in the support services and engineering sectors, including Severfield PLC (LON:SFR) and Kier Group PLC (LON:KIE).
He replaces chief executive Chris Pullen, who resigned in February, and non-executive chairman Tracy Lewis, who resigned on Friday with immediate effect.
Under review
Analysts at house broker Liberum put the stock and the target price under review from ‘buy’ and 25p respectively.
The broker forecasts modest underlying earnings (EBIT) in the year to 31 December but a loss before tax in the current financial period, while the net debt of £52mln should remain unchanged thanks to the tax deferrals.
Shares shot up 15% to 33.2p on Monday at the opening bell.