Staffline Group (lon:staf)
Staffline – A Continuing Disaster Or Growing Pains.

Staffline Group Financials

ItemCurrent PeriodPrevious Period
Period6 Months6 Months
Adjusted Earnings£2m£15m
Adjusted EBITDA
Statutory Profit
Adjusted Profit
Total Debt
Net Debt£89m£37m

Commentary History
No ticker supplied in the url so commentary history can not be collected.
Staffline Group Share Price
Grade:The Black Grade - Shares That I Think Could Collapse To Nothing Or Suffer A Massive Share Issue.
Title: Staffline – A Continuing Disaster Or Growing Pains.
Company: STAF - Staffline Group
Share Price Then: 70p
Author: Ian Smith
Date: Wed 18 Dec 2019
Comments: Staffline have been on my radar for a while now, each time I look at it I think is this the end of the bad news, Have a look at the case study?

Yet each time there is a sort of mini recovery in the share price as some new action, change of focus or fund raising is announced followed by more big bad news.

This time the bad news is poor trading figures, an overstatement of 2018 profits by around £4m and the departure of the CFO.

Underlying profits are expected to be down from £39m in 2018 to around £10m in 2019.

The Board expects year end net debt to be approximately £50 to £55 million, in line with current market expectations. Staffline maintains a constructive relationship with its lenders and consequently the Board does not anticipate any covenant issues over the year end. Furthermore, the Company is considering certain strategic options which may significantly reduce net debt during H1 2020.

So there is some concern that the company may simply run out of money, in August 2019 the auditors PriceWaterhouseCooper resigned, it is hard to know if there is anything that a shareholder should infer from this though.
Read Count: 491/10102

Buy/No Buy In A Nutshell
NegativesToo much debt and they have already done a share issue to fix that along with a recent history of issues with financial management
PositivesAn attractive takeover target at a low enough price.
Initial Review Price26p
Last Review Price26p
Last Review Date21-Aug-2020
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