Staffline Group (STAF)

Sector:

Support

Index:

FTSE AIM All-Share

45.75p
   
  • Change Today:
      0.60p
  • 52 Week High: 92.80
  • 52 Week Low: 38.90
  • Currency: UK Pounds
  • Shares Issued: 164.75m
  • Volume: 103,132
  • Market Cap: 75.37m
  • RiskGrade: 424

Berenberg slashes Staffline price target ahead of 'significant challenges'

By Iain Gilbert

Date: Thursday 27 Jun 2019

LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg lowered their recommendation on the shares of the UK's biggest recruiter Staffline to 'hold' from 'buy' on Thursday and slashed their target price, citing a series of "significant challenges to overcome".
Staffline, which had belatedly released its 2018 annual results earlier in the session, noted its outlook for 2019 remained challenging.

Berenberg highlighted how Staffline had stuck to its recently reduced guidance for underlying earnings of 23-28m, the same range that it had guided towards on 17 May on the bak of a shift in its customers' demand profiles away from temporary workers, a slowdown in demand in higher-margin sectors such as automotive and driving, and a weaker-than-expected pick up in demand for work under the Apprenticeship Levy.

While Staffline's 2018 numbers were actually in line with prevailing expectations, with staffing revenue coming in at 1.02bn, up 21% year-on-year, a tough macro environment and the company's exposure to retail and automotive-focused assets saw the group turn in lower organic growth.

The German broker also noted that no further comments had been made regarding the National Minimum Wage review, with Staffline's management seeing the issue as "resolved".

"With a market cap of c42m and an EBITDA multiple of 4.5x for 2019 and 3.2x for 2020 the shares have priced in a lot of the negativity - understandably, given the high level of uncertainty," said the analysts, who also slashed their price target on the firm from 1,250p to just 150p.

"However, these are significant challenges to overcome and we expect the stock to remain a special situation for the foreseeable future."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Staffline Group Market Data

Currency UK Pounds
Share Price 45.75p
Change Today 0.60p
% Change 1.33 %
52 Week High 92.80
52 Week Low 38.90
Volume 103,132
Shares Issued 164.75m
Market Cap 75.37m
RiskGrade 424

Staffline Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
51.50% above the market average51.50% above the market average51.50% above the market average51.50% above the market average51.50% above the market average
63.46% above the sector average63.46% above the sector average63.46% above the sector average63.46% above the sector average63.46% above the sector average
Price Trend
2.32% below the market average2.32% below the market average2.32% below the market average2.32% below the market average2.32% below the market average
4.50% above the sector average4.50% above the sector average4.50% above the sector average4.50% above the sector average4.50% above the sector average
Income Not Available
Growth
36.46% below the market average36.46% below the market average36.46% below the market average36.46% below the market average36.46% below the market average
40.19% below the sector average40.19% below the sector average40.19% below the sector average40.19% below the sector average40.19% below the sector average

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 1
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Staffline Group Dividends

  Latest Previous
  Interim Final
Ex-Div 11-Oct-18 31-May-18
Paid 13-Nov-18 03-Jul-18
Amount 11.30p 15.70p

Trades for 16-Aug-2022

Time Volume / Share Price
16:07 5,000 @ 45.95p
15:40 50,000 @ 45.60p
14:53 30,000 @ 45.15p
14:51 6,748 @ 45.00p
13:40 2,000 @ 45.01p

Staffline Group Key Personnel

CEO Albert Ellis
CFO Daniel Quint

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