Equity Analysis /
United Kingdom

GB : Staffline - Positive momentum across the group

    Alex O’Hanlon
    Alex O’Hanlon

    Analyst - Support Services

    Joe Brent
    Joe Brent

    Analyst - Support Services & Special Situations

    CGS-CIMB
    28 March 2022
    Published by

    FY 21 EBIT of £10.3m was slightly ahead of expectations, with no exceptionals apart from amortisation. After upgrades in January, we leave our EPS estimates unchanged. It is early in the year, but there are grounds for optimism. All divisions enter 2022 with good momentum. Inflation gives scope for rate card increases. The UK job market is strong and work winning has been strong across the group, with £120m worth of new business won over the last five quarters. Reducing sickness should increase hours worked. Restart has begun well and the rise in digital activity has increased efficiency. The shares are trading on a CY 23 P/E of 10.9x, which is attractive given the recovery potential and positive momentum.