Troubled recruiter issues second profit warning in two months
Nottingham recruitment giant Staffline has issued another profit warning – its second in a matter of weeks.
In a statement to the London Stock Exchange, the firm said its profits for the year ending 31 December 2019 are now likely to be “materially below” its previous guidance due to net charges incurred following its end of year audit.
Following a “detailed” review of its balance sheet, the company says it will “increase certain provisions and make further write downs.”
The news follows a day of drama in December when Staffline’s share price plummeted to a five-year low after it downgraded its profit forecast from around £20 million to between £10 million and £12 million. It attributed the slump to “challenging” trading conditions caused by high levels of consumer uncertainty across the UK.
However, despite this latest profit warning, the company says it has started 2020 “well” and insists that the Board’s expectations for the year are unchanged.
