Share price collapses at troubled recruitment firm
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.”
