Staffline Group PLC (LON:STAF) has unveiled a new chief executive while also reporting a swing to loss in its first half as the pandemic dented the bottom line of the recruitment and training firm.
The company said non-executive director Albert Ellis will become CEO on October 1 following his initial appointment to the board in March. Ellis previously served as CEO of fellow recruitment firm Harvey Nash Group before its sale in 2018 and has also held senior finance roles at Hays PLC (LON:HAS).
READ: Staffline aiming for all three divisions to post operating profits this year
Following Ellis’ appointment, current Staffline executive chairman Ian Lawson will move to become non-executive chair on December 31.
"For an individual of Albert's calibre to take up the role of chief executive is testament to the underlying fundamentals of our business. Albert brings almost unrivalled expertise in our core staffing and training outsourcing markets, we believe the Company will significantly benefit from his leadership qualities and his focus on best practice and corporate governance. Whilst the current market backdrop continues to present a number of challenges, we are delighted that Albert will be taking up this role as Staffline moves into the next phase of its evolution", Lawson said in a statement.
Ellis added: "Having joined the board earlier in the year, I believe that Staffline has excellent long-term prospects underpinned by its scale in its core key worker staffing markets and leading market positions in training and employability outsourcing. I look forward to working even more closely with the wider management team as we drive the business forward with a view to returning to growth and realising value for our key stakeholders."
Swing to loss
In a separate announcement covering its results for the six months ended June 30, Staffline reported an underlying operating loss of £800,000, swinging from a £4.4mln profit in the previous year, while revenues fell 16.9% to £434.9mln.
The company highlighted an “unprecedented surge” in demand for its services in the food supply chain sector, including supermarkets, during the period as grocers saw increased customer traffic during lockdown, however, they added that this had not offset the impact of the pandemic on its other sectors.
Looking ahead, Staffline said current trading “remained challenging”, although it said it still expected that it will “perform in line with expectations for the full year” and is on track to deliver an underlying operating profit across each of its three divisions.
"Staffline continued to successfully service its customer base, and our business proved resilient in the first half of 2020 despite [coronavirus] significantly impacting a number of the group's key sectors. Our teams have worked tirelessly to not only support our customers in what has been a very challenging trading environment, but to ensure all of our workforce remains safe. Whilst we anticipate a stronger trading performance in [the second half of] 2020, there is a very high level of uncertainty across the market as a result of [coronavirus]", Lawson said in a statement.
Staffline shares were flat at 24.7p in early trading on Wednesday.