Staffline Group, the Nottingham-based recruitment and training group, is set to launch a share buyback programme.
The company said it intends “to make a series of share repurchases with a view to returning up to £4 million to shareholders.”
It added: “The Group remains disciplined in its allocation of capital with the main objective being to enhance shareholder value. We continuously assess our medium-term plans which take account of growth prospects, investment in the Republic of Ireland branch network, cash generation, net borrowings, and leverage. Therefore, the amount allocated to buybacks is based on our predicted trading cash flows and financing headroom.”
Following the announcement of its 2023 interim results, Staffline believes the current time presents a good opportunity to make share purchases. The company has delivered two years of underlying operating profits of at least £10m and net debt (pre IFRS16) has reduced to £3.5 million at 30 June 2023 (30 June 2022: £9.7 million) through retained earnings and improvements in working capital.
In addition, average borrowings are on a downward trend. Consequently, the company has substantial headroom under its available debt facilities.
Accordingly, the company is launching the share buyback, to repurchase ordinary shares in the capital of the company up to an aggregate value of £4 million.
In further news for the business, GXO Logistics has awarded Staffline’s Recruitment GB division the dedicated temporary labour supply to a further 14 distribution centres across the UK for several major High Street brands. This award grows the Staffline share of GXO labour supply business in the UK by an additional 40%. The award will result in the generation of significant revenue growth to the business.
In addition, Recruitment GB has been awarded contract renewals with Marks and Spencer and AM Fresh Group.
Albert Ellis, Chief Executive Officer of Staffline, said: “We are extremely pleased to announce these opportunities which are live and coming on stream in H2 2023.
“We have grown our operational reach with these hugely important customers, not only fulfilling a key strategic objective for the Group, but further expanding our services with substantial and progressive employers of choice and is testament to our strong operational and strategic partnership approach to our valued customers.”
