AIM:STAF

Stock Analysis Report

Executive Summary

Staffline Group plc, together with its subsidiaries, provides recruitment and outsourced human resource services, and skills training and probationary services in the United Kingdom.

Snowflake

Fundamentals

High growth potential and slightly overvalued.

Risks

  • Staffline Group has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Staffline Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-6.4%

AIM:STAF

-0.5%

GB Professional Services

-0.3%

GB Market


1 Year Return

-87.6%

AIM:STAF

12.3%

GB Professional Services

-5.3%

GB Market

STAF underperformed the Professional Services industry which returned 11.5% over the past year.

STAF underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.7% over the past year.


Share holder returns

STAFIndustryMarket
7 Day-6.4%-0.5%-0.3%
30 Day12.4%1.2%-3.9%
90 Day-54.1%6.4%-2.2%
1 Year-87.5%-87.6%14.9%12.3%-0.9%-5.3%
3 Year-84.6%-85.5%53.2%42.5%18.9%5.1%
5 Year-81.9%-83.5%118.8%93.1%28.1%1.1%

Price Volatility Vs. Market

How volatile is Staffline Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Staffline Group undervalued based on future cash flows and its price relative to the stock market?

33%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Staffline Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Staffline Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Staffline Group is loss making, we can't compare its value to the GB Professional Services industry average.

Staffline Group is loss making, we can't compare the value of its earnings to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Staffline Group, we can't assess if its growth is good value.


Price Based on Value of Assets

Staffline Group is good value based on assets compared to the GB Professional Services industry average.


Next Steps

Future Growth

How is Staffline Group expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

64.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Staffline Group's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).

Staffline Group's earnings are expected to grow significantly at over 20% yearly.

Staffline Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Staffline Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Staffline Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Staffline Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Staffline Group performed over the past 5 years?

11.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Staffline Group does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Staffline Group's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Staffline Group's 1-year growth to the GB Professional Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Staffline Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Staffline Group has efficiently used its assets last year compared to the GB Professional Services industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Staffline Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Staffline Group's financial position?


Financial Position Analysis

Staffline Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Staffline Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Staffline Group's level of debt (87%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (17.2% vs 87% today).

Debt is not well covered by operating cash flow (8.5%, less than 20% of total debt).

Staffline Group is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.2x debt.


Next Steps

Dividend

What is Staffline Group's current dividend yield, its reliability and sustainability?

2.52%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Staffline Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Staffline Group's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Staffline Group has not reported any payouts.

Unable to verify if Staffline Group's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Staffline Group has not reported any payouts.


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (2040.8x coverage).


Next Steps

Management

What is the CEO of Staffline Group's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

Chris Pullen (48yo)

1.6yrs

Tenure

UK£337,000

Compensation

Mr. Christopher Mark Pullen, also known as Chris, has been the Chief Executive Officer of Staffline Group plc since January 24, 2018 and served as its Group Chief Financial Officer since April 18, 2016 and ...


CEO Compensation Analysis

Chris's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Chris's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.0yrs

Average Tenure

The tenure for the Staffline Group management team is about average.


Board Age and Tenure

2.3yrs

Average Tenure

51yo

Average Age

The average tenure for the Staffline Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Staffline Group individual insiders in the past 3 months.


Recent Insider Transactions

BuyUK£53,94819 Jul 19
Martina McKenzie
EntityIndividual
Shares53,948
Max PriceUK£1.00
BuyUK£37,28314 Nov 18
Martina McKenzie
EntityIndividual
Shares2,959
Max PriceUK£12.60
BuyUK£40,25910 Oct 18
Martina McKenzie
EntityIndividual
Shares3,319
Max PriceUK£12.13
BuyUK£24,80005 Sep 18
Christopher Pullen
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares2,000
Max PriceUK£12.40

Ownership Breakdown


Management Team

  • Marshall Evans

    Executive Officer

    • Tenure: 6.5yrs
    • Compensation: UK£30.00k
  • Shaun Brittain

    Joint Managing Director of Staffline Recruitment Ltd.

    • Tenure: 6.5yrs
    • Compensation: UK£28.00k
  • Chris Pullen (48yo)

    CEO & Executive Director

    • Tenure: 1.6yrs
    • Compensation: UK£337.00k
  • Andrew Coop

    Operations Director and Joint Managing Director of Staffline Recruitment Ltd

    • Tenure: 0.0yrs
  • Paul Collins

    Company Secretary

    • Tenure: 0.0yrs
  • Mike Watts (45yo)

    CFO & Director

    • Tenure: 1.3yrs
    • Compensation: UK£210.00k

Board Members

  • John Rawcliffe Crabtree (70yo)

    Non-Executive Chairman

    • Tenure: 8.3yrs
    • Compensation: UK£80.00k
  • Chris Pullen (48yo)

    CEO & Executive Director

    • Tenure: 1.6yrs
    • Compensation: UK£337.00k
  • Tracy Lewis (54yo)

    Senior Independent Director

    • Tenure: 0.1yrs
    • Compensation: UK£30.00k
  • Ed Barker (46yo)

    Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: UK£30.00k
  • Mike Watts (45yo)

    CFO & Director

    • Tenure: 1.3yrs
    • Compensation: UK£210.00k
  • Dawn Ward (58yo)

    Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£8.00k

Company Information

Staffline Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Staffline Group plc
  • Ticker: STAF
  • Exchange: AIM
  • Founded: 1986
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: UK£101.706m
  • Shares outstanding: 67.80m
  • Website: https://www.stafflinegroupplc.co.uk

Number of Employees


Location

  • Staffline Group plc
  • 19-20 The Triangle
  • NG2 Business Park
  • Nottingham
  • Nottinghamshire
  • NG2 1AE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STAFAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 2004

Biography

Staffline Group plc, together with its subsidiaries, provides recruitment and outsourced human resource services, and skills training and probationary services in the United Kingdom. The company operates t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 20:37
End of Day Share Price2019/08/19 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.