GB : Staffline - Improving productivity and client wins

EBIT of £10.3m was slightly ahead of the £10.0m pre-announced in January, with no exceptionals apart from amortisation. After upgrades in January, we now leave EPS estimates unchanged. FY 21 spot net cash (excluding leases) of £7m, in line with guidance. Bank lending provides ample head-room. We maintain our FY 22 IAS 17 spot net debt estimate of £15m despite the investment of working capital in growth. The UK job market is strong despite softening slightly in the last quarter. At Recruitment GB, GP per fee earner was up 15% and there is positive contract news. At Recruitment Ireland strong perm has driven H2 EBIT and the business is investing in market share gains. At PeoplePlus, Restart has started well and an increase in digital activity has increased efficiency. The shares are trading on a CY 23 P/E of 10.4x, which is attractive given the recovery potential and positive momentum.