Staffline Group PLC (AIM:STAF) shares were in demand on Tuesday morning after a positive trading update, with the recruitment group saying full-year revenues were expected to rise 1.6% to £942.7mln after a strong second half.
Operating profit is forecast to more than double from £4.8mln to around £10mln, some 11% ahead of market expectations despite the pandemic and the widespread labour shortages.
It withdrew from a number of lower-margin contracts but gained new customers and further business from existing clients.
On the down side, its PeoplePlus business was restructured in 2020 but the discovery of incomplete records relating to 2019 means it will have to repay £2mln of revenues.
As for the outlook, it said; "[The] momentum is expected to continue into 2022, supported by a strong new business pipeline, a lower overhead cost base and the expected post-COVID-19 recovery of historically strong Staffline recruitment sectors, such as automotive, manufacturing, aerospace and travel. The board remains confident in the growth prospects for the group in the medium-to-long-term."
Its shares have jumped 11.71% or 6.5p to 62p.