Recruitment firm’s revenue soars but ‘challenges’ lie ahead

Staffline has defied market challenges to post a £120m rise in full-year revenues, but uncertainty looms for 2025.
The Nottingham-based recruitment and training group saw revenues climb 13% to £1.06bn, driven by strong recruitment activity and a surge in permanent placement fees.
Despite exceeding market expectations in underlying profit before tax, the company warns that macroeconomic uncertainty could impact 2025 performance.
Rising employer national insurance costs may slow recruitment in blue-collar markets, while weaker demand for white-collar roles could hit its Ireland division.
Staffline remains optimistic about growth in blue-collar recruitment across Great Britain, fueled by market share expansion and new business wins.
Albert Ellis, chief executive of Staffline said: “The group delivered an outstanding operational and financial performance in 2024, driven by increased market share and new customers combined with a disciplined approach to costs.
“The traditional peak trading period in the run-up to Christmas was a success due to the Company’s commitment to service excellence. Strong trading cash flow exceeded expectations, underpinning the share buy-back programme, and resulted in £9.7m of net cash (pre-IFRS16) at the end of the year.”
Gross profit rose by 9%, while underlying operating profit increased 7.8% to £11.1m, with gains in Recruitment GB and Recruitment Ireland offsetting weaker performance in PeoplePlus.
Challenges persist for PeoplePlus, with delays in public sector contracts affecting short-term performance.
Higher-than-expected interest rates are set to increase working capital costs, adding further pressure to the group’s outlook for the year ahead.
Ellis added: “Staffline remains a trusted strategic partner across several key sectors, both in the UK and Ireland, and I am confident that despite the challenging backdrop, our track record in continuing to increase market share will continue to support growth in 2025.”