Staffline shares slump to five-year low
Shares in Nottingham-based recruitment and training giant Staffline have slumped dramatically on the back of a profit warning.
Shares in the company dropped by a third this morning (18 December) to 63.8p – a five year low – before rallying slightly to 81p at 12.30pm.
The news comes after the company significantly downgraded its profit forecast for the year ending 31 December 2019.
In September, the company said it was expecting to post operating profits of around £20 million, but now says the figure is more likely to be between £10 million and £12 million – a slump it has attributed to “challenging” trading conditions caused by high levels of consumer uncertainty across the UK.
Meanwhile, the CFO of Staffline has left the company with immediate effect. Mike Watts, who recently tendered his resignation to Staffline’s Board, will be replaced by Daniel Quint on an interim basis.
Chris Pullen, chief executive of Staffline, said: “It has been a most challenging year for Staffline. Despite this we have developed two robust market leading businesses which are well set as platforms for future growth. We remain optimistic about future potential of the group with the challenges of 2019 behind us.”
