Date: Wednesday 28 Jan 2015
LONDON (ShareCast) - Recruitment agency Staffline said it started the new year with a "stronger and more profitable business than ever before", after a solid 2014 with full-year revenues increasing by 20%.
Revenues increased to £503.2m from £416.2m the year before. Meanwhile, profits before tax rose 22.1% to £10.5m, driving earnings per share up 30% to 60p.
The company said it is on track to achieve the £1bn sales target for the next five years thanks to good performances in its staffing services and employability divisions.
Staffline said an improvement in the economy helped its staffing services to grow during 2014, with sales rising by 11.1% to £437.5m.
The employability division was helped by the extension of the Work Programme contract with the government for one extra year. The firm works as a prime provider on behalf of the government in the North East, North West, the Midlands and Surrey, Sussex and Kent.
Staffline decided to increase its final dividend by 37% from 6.2p to 8.5p.
Chief executive Andy Hogarth said: "We remain on track to meet our ambition to reach £1bn of revenues by 2017 and are focused on delivering growth organically and through strategic acquisitions in 2015 and beyond."
Liberum analysts said Staflline is enjoying an "excellent customer win momentum in staffing and recent contract wins in employability", leaving the group "increasingly well positioned.". The broker gave a 'buy' recommendation and a 1062p price tag.
Shares were up 8.08% to 789p on Wednesday at 12:09.
33.10p
