Share price collapses at troubled recruitment firm

Staffline Group's Nottingham headquarters

Shares in troubled recruitment firm Staffline have collapsed to their lowest price for over six years after the firm issued a profit warning on Friday (17 May).

Staffline’s shares closed at 838p on Thursday, but tumbled during the morning and closed at 331p – meaning the company lost 60% of its value in a single day.

Nottingham recruitment giant Staffline issued a profit warning on the back of a “broad range of factors” that are affecting the firm.

The company said that ongoing Brexit uncertainty, a slowdown in new contract momentum brought about by the delay in publishing its annual results because of an investigation into its historic compliance with National Minimum Wage regulations and a slow take up of the Apprenticeship Levy scheme will has led it to downgrade its forecast for 2019.

A statement from Staffline said: “The Group experiences seasonality in its trading and typically earns only approximately 15% of its earnings in the first quarter of the financial year. The April performance is therefore a key initial indicator as to the full year turn out, and with visibility of that trading, and as a consequence of the broad range of factors highlighted above, the Board now expects the Group to deliver adjusted EBIT in the range of £23m to £28m for the financial year ending 31 December 2019.”

Click here to sign up to receive our new South West business news...
Close