Staffline Group (STAF)

Sector:

Support

Index:

FTSE AIM All-Share

85.60p
   
  • Change Today:
    -0.20p
  • 52 Week High: 957.60
  • 52 Week Low: 79.10
  • Currency: UK Pounds
  • Shares Issued: 68.93m
  • Volume: 31,353
  • Market Cap: 59.00m
  • RiskGrade: 350

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 85.60p
Change Today -0.20p
% Change -0.23 %
52 Week High 957.60
52 Week Low 79.10
Volume 31,353
Shares Issued 68.93m
Market Cap 59.00m
RiskGrade 350

Staffline Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
96.61% above the market average96.61% above the market average96.61% above the market average96.61% above the market average96.61% above the market average
98.28% above the sector average98.28% above the sector average98.28% above the sector average98.28% above the sector average98.28% above the sector average
Price Trend
94.89% below the market average94.89% below the market average94.89% below the market average94.89% below the market average94.89% below the market average
96.75% below the sector average96.75% below the sector average96.75% below the sector average96.75% below the sector average96.75% below the sector average
Income
81.19% above the market average81.19% above the market average81.19% above the market average81.19% above the market average81.19% above the market average
85.54% above the sector average85.54% above the sector average85.54% above the sector average85.54% above the sector average85.54% above the sector average
Growth
13.33% above the market average13.33% above the market average13.33% above the market average13.33% above the market average13.33% above the market average
12.28% above the sector average12.28% above the sector average12.28% above the sector average12.28% above the sector average12.28% above the sector average

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 1
Sell 0
Strong Sell 0
Total 2
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 24-Jan-2020

Time Volume / Share Price
16:35 115 @ 85.60p
16:35 139 @ 85.60p
16:04 2,750 @ 85.50p
15:17 67 @ 85.60p
14:27 672 @ 85.60p

Staffline Group Key Personnel

CEO Chris Pullen

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