gretel
03 Feb 2017
Finncap reiterate Buy, 1600p target Finncap have today reiterated their Buy and a 1600p target - here's their summary as posted elsewhere FYI:"FinnCapStaffline (BUY)Framework position secured, contracts nextThe share price is factoring in significant risk on Staffline’s ability to replace its Government contracts and weather any storm that Brexit produces. However, Staffline is the only company to have won a place in all seven regions of the new Work and Health Programme framework, flexible labour (such as that provided by Staffline) is an essential part of the UK economy and the group has a proven ability to continue to grow against changing market conditions. We expect contract wins to be announced throughout 2017 and reiterate our Buy recommendation.Contract wins likely. Right at the end of 2016, the Government awarded positions on the new Work and Health Programme framework. Staffline won a position on all seven regions, the only company to do so. Contracts will now be bid for and the scene is set for Staffline to announce a series of wins. Breadth of opportunity. On top of this framework (which is likely to be worth c.£1.7bn over four years), Staffline has opportunities in providing apprenticeships (funded by the £3bn levy), win further probation contracts and grow its communities work. High standards and quality of service. Some providers of blue collar, temporary workers operate questionable working practices. Staffline has built its brand on providing the highest quality of service, fully compliant with regulations and actively engaging in improving market working practices. This has supported market share gains as competitors have struggled to survive under tighter regulation and a greater focus on quality by clients. Strong cash flow. Other than a timing issue at the end of FY 2015, cash flow has been consistently strong. Operating profit conversion was 117% in 2016 and averaged 95% over the past five years. A move into net cash is possible in 2017 (we forecast early 2018). 1615p target based on sum of the parts. We value Staffing at a 20% premium to Hays and SThree due to the better growth track record and Peopleplus at a 25% discount to the outsourcers given the need to renew or replace contracts"
gretel
01 Feb 2017
Questor tips as a Buy today in the Daily Telegraph: "Buy Staffline: it's growing fast and undervalued Richard Evans 01 February 2017 Andy Hogarth, chief executive of Staffline, the recruitment firm, certainly believes in clear and ambitious targets. At the end of 2010 he said he wanted to “treble the treble” by growing the company’s sales and profits over the following three years (the business had already trebled in size since its flotation on Aim 2004). When he achieved that goal he set himself a new one: to “burst the billion”, by which he meant £1bn in sales, along with profits of £30m, by 2017. The profit element of the target was later increased to £50m following an acquisition. While City analysts’ forecasts currently fall a little short of the goal, at £930m of sales and £45m of profit on the “Ebitda” measure, it would be rash to write off Mr Hogarth’s chances too early, according to one fund manager who knows him well.“Andy Hogarth is an individual we have known for 10 years and he has a huge amount of drive, energy and vision,” Ken Wotton, manager of the Wood Street Microcap fund, told Questor.“He has successfully executed on the vision and has grown the business very materially.“He has been clear to the markets about his financial targets – it is rare for chief executives to be so explicit – and has then achieved them. So we are big supporters of his and believe there is a good chance that he will ‘burst the billion’ this year. While some of the growth will have to come from acquisitions, Andy has a good record in that respect.”Staffline operates in two areas: blue-collar recruitment and “employability”, which involves helping unemployed people return to work under government schemes. The former is a big market, worth about £8bn a year across the country and despite its rapid growth Staffline still accounts for just 8pc of it.“The company is a meaningful player but there is plenty of scope for further growth”, Mr Wotton said. Although margins in this part of Staffline’s business are relatively low at about 4pc, it is the faster growing of the two divisions and it largely serves non-cyclical parts of the economy – 70pc of revenues come from the food sector (customers include Tesco (Frankfurt: 852647 - news) and Asda) and much of the rest from online retail. Margins are higher in the “employability” division, at about 15pc, although growth prospects are to some extent limited by the Government’s system of appointing firms to operate return-to-work schemes on a regional basis: it will be hard to increase revenues organically unless the firm wins the contract for a new region. However, the company is well-placed to win such contracts, with top-quartile performance in achieving the scheme’s goals along with competitive pricing, Mr Wotton said. The division could also grow by acquisition, as the successful purchase of A4e in 2015 showed, while profits can improve as a result of increased efficiency. The combination of the two lines of business is unique in Britain, giving the company scope for long-term synergies. Last week’s results for the 2016 full year showed a 26pc rise in sales, just under half of which was organic growth, while earnings before interest and tax rose by 32pc. These results were marginally ahead of analysts’ expectations, despite the fact that the Brexit vote took place halfway through the year. The management said the company had not seen any “material impact” from the referendum result. Nonetheless, the vote still hit the share price, which had already fallen significantly from a peak of about £16. Shares (Berlin: DI6.BE - news) fell as low as about 750p before recovering some of the lost ground to close at £10.73 yesterday. A falling share price in conjunction with rising profits means a much lower “rating” or price-to-earnings ratio, of course. The shares now trade at about nine times forecast earnings for 2017.“If the firm can deliver on its targets
IOMINVESTCOM
16 Jan 2017
Re: Brokers targets up to 1615p-thats + ... nb - Should read June 2016
IOMINVESTCOM
16 Jan 2017
Re: Brokers targets up to 1615p-thats + ... I think they are old ie not updated only Reiterated with the same price target going right back to 5th July 2015 if you look down the list neither broker has changed but the company sentiment has. Both brokers a little lazy not changing their stance unlike the likes of Credit Suisse who started with 8.00 target in September.As I said before if they change their targets after the results on 25th it will have more meaning to me.16 Jan 17 Liberum Capital Buy 1,008.00 1100.00 1100.00 Reiterates04 Jan 17 finnCap Buy 1,008.00 1615.00 1615.00 Reiterates04 Jan 17 Liberum Capital Buy 1,008.00 1100.00 1100.00 Reiterates12 Dec 16 Liberum Capital Buy 1,008.00 1100.00 1100.00 Reiterates17 Nov 16 finnCap Buy 1,008.00 1615.00 1615.00 Reiterates27 Sep 16 Liberum Capital Buy 1,008.00 1100.00 1100.00 Reiterates22 Sep 16 Credit Suisse Underperform 1,008.00 - 800.00 Initiates/Starts11 Aug 16 Berenberg Buy 1,008.00 900.00 1250.00 Upgrades03 Aug 16 Liberum Capital Buy 1,008.00 1100.00 1100.00 Reiterates27 Jul 16 Liberum Capital Buy 1,008.00 1100.00 1100.00 Reiterates27 Jul 16 finnCap Buy 1,008.00 1615.00 1615.00 Reiterates05 Jul 16 Liberum Capital Buy 1,008.00 1100.00 1100.00 Reiterates05 Jul 16 finnCap Buy 1,008.00 1700.00 1615.00 Reiterates[link]
coldascheese
16 Jan 2017
Re: Brokers targets up to 1615p-thats + ... These targets are not old.Finncap is the-4th Jan 201704-Jan-17 FinnCap Buy - 1,615.00p
IOMINVESTCOM
16 Jan 2017
Re: Brokers targets up to 1615p-thats + 60% Trouble with both broker figures they are old ie June 2015 and have failed to keep up with events unlike credit suisse who in September decided to take the negative sentiment into account and downgrade with 8.00 price target. I will be more keen to get those two brokers forecasts after the results on 25th
coldascheese
16 Jan 2017
Brokers targets up to 1615p-thats + 60% Brokers on Jan 4thfinnCap reiterate BUY and 1615p target.Liberium reiterate BUY and 1100p tp.So anyway you look at it the price should rise.My view is that the worries about immigrants being used will fade away and the company share price will soon reflect the positive results here in an ever growing sector and a price nearer previous high of 1600p should result
coldascheese
13 Jan 2017
Re: Anybody there? Well the Dodo has woken up as its onlyjust over a week to wait until results and she wants to be in fine form on the day.
claude reins
11 Jan 2017
Anybody there? Is there a reason why the STAFF BB is almost as dead as a dodo?The prelims are due on the 25th, with a meeting for all shareholders that day - to be applauded for their invitation to all PIs too! Wish I lived within striking distance and coudl get there.I understand the sentiment for A fall in the SP - employment of many immigrant workers; concerns about companies like SPD who employ low paid workers; concern that their government employment grants may dry up etc. However the trading statement was positive. An interview with Paul Scott some time before Christmas was positive.Why THE LEVEL of fall in SP? Unjustified in my view. I am a shareholder and am tempted to add to my holding ahead of the prelims, given the very low PER et
claude reins
04 Jan 2017
Re: Good trading update this morning Amazing too that tight controls and reporting mean that can deliver prelims within 4 weeks of year end? Good that private investors invited to presentation too. Unfortunately don't live within striking distance of London or I would be there. Can understand why the SP is where it is, but a re-rating should be justified sooner rather than later. Buy ahead of results. I'm very tempted to add to my holding.
gretel
04 Jan 2017
Good trading update this morning STAF are trading in line with 111p EPS expectations for last year. This means they made around 63p EPS in H2 alone:[link] Board is pleased to report that the Group expects to deliver full year results in line with market expectations. Demand in the Staffing business has remained strong through the second half and the division has once again achieved excellent growth in the number of OnSites this year. PeoplePlus, the Employability, Skills and Justice Division, has also made good progress, becoming the top performer in Work Programme contracts as well as benefiting from its focus on improved margins."
coldascheese
23 Nov 2016
Re: Paul Scott interview with CEO I agree -interview was excellent and think that coming results in January will show that this is way undervalued.
claude reins
23 Nov 2016
Paul Scott interview with CEO I feel very much more informed on the business after having listened to this 3/4 hour interview. Despite a very heavy cold, the CEO put across a balanced view of the business, acknowledging the risks but at the same time regarding the future as full of opportunity. The most compelling things about what he had to say was the focus on reasonable returns, highly efficient business model and focus on high performance which gave good profitability but a strong competitive edge. I felt that whatever was thrown at the business, they were highly adaptable and would come out on top of the pile. I was also impressed by his take on what was being achieved in the Back to Work programme which resonated with me on giving back to many a sense of greater self esteem by increasing value to employers through improved skills, and independence by reducing dependence on benefits.I am looking to add to my holding at this price which has seen the SP fall by 50% over the last year. PER of under 8; PEG of less than 1; a divi of around 3%.If you want to hear the talk go to [link] Be ready for an abrupt end as a call of left - from wife? - he needed to take the dog to the vets and a child to the doctors - or something like that. They had largely finished anyway.
claude reins
25 Oct 2016
Anybody there? Octopus announce they have increased their share holding - to above 12% - not b a huge amount, and the share price falls!This share must be at least a Hold, although there are some who will be concerned about the Brexit effect on both sides of the business - heavily foreign (Polish) employees on the service side, and concern about government contracts on the other. However, a recent documentary I saw demonstrated that thwere was a major shortfall in qualified HGV drivers - one of Staffline's specialities. Some local unemployed men in Lincs were interviewed ansd given the opportunity to have a go. At first, they didnt see much future in it, but after some tuitition they said they had changed their minds! So........Staffline's training department should be in line for more business, training more HGV drivers, whgerever they come from! Pity they werent in the documentary - CEO, a missed opportunity!
gretel
30 Aug 2016
New acquisition Not announced on RNS, but that's not to say it isn't earnings-enhancing as it would have to been paid for with cash (any share issue would have to be RNS'd):[link] "25 August, 2016 01
0 ONE of Ireland's largest recruiters Staffline Ireland is expanding again with yet another acquisition. The company, headed up by Tina McKenzie has taken over Hugh J O'Boyle Training in Downpatrick. It is the third acquisition for Staffline in the north this year, where it is parent company to PeoplePlus NI. The business acquired Paragon Training in February and Diamond Recruitment Group last October. Headquartered in Newtownabbey, Staffline Ireland began operations in February 2013 with a mission to reach £100m turnover by the end of 2017. And the latest acquisition puts it well on the way, reaching an estimated turnover of £65m for 2016. etc"
