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STAF

Staffline Group AIM:STAF Stock Report

Last Price

UK£0.39

Market Cap

UK£63.4m

7D

-4.3%

1Y

-44.5%

Updated

27 Sep, 2022

Data

Company Financials +
STAF fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance2/6
Financial Health3/6
Dividends0/6

STAF Stock Overview

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

Staffline Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Staffline Group
Historical stock prices
Current Share PriceUK£0.39
52 Week HighUK£0.75
52 Week LowUK£0.37
Beta2.02
1 Month Change-9.94%
3 Month Change-18.43%
1 Year Change-44.52%
3 Year Change-63.33%
5 Year Change-96.70%
Change since IPO-54.97%

Recent News & Updates

Aug 10
We Don’t Think Staffline Group's (LON:STAF) Earnings Should Make Shareholders Too Comfortable

We Don’t Think Staffline Group's (LON:STAF) Earnings Should Make Shareholders Too Comfortable

Staffline Group plc ( LON:STAF ) posted some decent earnings, but shareholders didn't react strongly. Our analysis...

Aug 03
Staffline Group's (LON:STAF) Returns On Capital Not Reflecting Well On The Business

Staffline Group's (LON:STAF) Returns On Capital Not Reflecting Well On The Business

Ignoring the stock price of a company, what are the underlying trends that tell us a business is past the growth phase...

Shareholder Returns

STAFGB Professional ServicesGB Market
7D-4.3%0.6%-3.1%
1Y-44.5%-9.9%-14.5%

Return vs Industry: STAF underperformed the UK Professional Services industry which returned -10.8% over the past year.

Return vs Market: STAF underperformed the UK Market which returned -14.6% over the past year.

Price Volatility

Is STAF's price volatile compared to industry and market?
STAF volatility
STAF Average Weekly Movement5.8%
Professional Services Industry Average Movement3.9%
Market Average Movement5.3%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.6%

Stable Share Price: STAF is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: STAF's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19862,336Albert George Ellishttps://www.stafflinegroupplc.co.uk

Staffline Group plc, together with its subsidiaries, provides recruitment and outsourced human resource services, and skills training and probationary services. It operates through three segments: Recruitment GB, Recruitment Ireland, and PeoplePlus. The company provides solutions to the agriculture, drinks, food processing, manufacturing, e-retail, driving, and logistics sectors.

Staffline Group Fundamentals Summary

How do Staffline Group's earnings and revenue compare to its market cap?
STAF fundamental statistics
Market CapUK£63.43m
Earnings (TTM)UK£1.50m
Revenue (TTM)UK£930.00m

42.3x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
STAF income statement (TTM)
RevenueUK£930.00m
Cost of RevenueUK£846.30m
Gross ProfitUK£83.70m
Other ExpensesUK£82.20m
EarningsUK£1.50m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.0091
Gross Margin9.00%
Net Profit Margin0.16%
Debt/Equity Ratio31.8%

How did STAF perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is STAF undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for STAF?

Other financial metrics that can be useful for relative valuation.

STAF key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.08x
Enterprise Value/EBITDA5.4x
PEG Ratio0.5x

Price to Earnings Ratio vs Peers

How does STAF's PE Ratio compare to its peers?

STAF PE Ratio vs Peers
The above table shows the PE ratio for STAF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average24x
MIND Mind Gym
60.9xn/aUK£97.6m
EMR Empresaria Group
8.9x6.7%UK£25.7m
IPEL Impellam Group
17.6xn/aUK£234.6m
RWA Robert Walters
8.8x8.1%UK£332.4m
STAF Staffline Group
42.3x79.7%UK£63.4m

Price-To-Earnings vs Peers: STAF is expensive based on its Price-To-Earnings Ratio (42.3x) compared to the peer average (24x).


Price to Earnings Ratio vs Industry

How does STAF's PE Ratio compare vs other companies in the GB Professional Services Industry?

Price-To-Earnings vs Industry: STAF is expensive based on its Price-To-Earnings Ratio (42.3x) compared to the UK Professional Services industry average (17.6x)


Price to Earnings Ratio vs Fair Ratio

What is STAF's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

STAF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio42.3x
Fair PE Ratio83.3x

Price-To-Earnings vs Fair Ratio: STAF is good value based on its Price-To-Earnings Ratio (42.3x) compared to the estimated Fair Price-To-Earnings Ratio (83.3x).


Share Price vs Fair Value

What is the Fair Price of STAF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: STAF (£0.39) is trading below our estimate of fair value (£0.42)

Significantly Below Fair Value: STAF is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Staffline Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


79.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STAF's forecast earnings growth (79.7% per year) is above the savings rate (0.9%).

Earnings vs Market: STAF's earnings (79.7% per year) are forecast to grow faster than the UK market (9% per year).

High Growth Earnings: STAF's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: STAF's revenue (5.1% per year) is forecast to grow faster than the UK market (4.6% per year).

High Growth Revenue: STAF's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if STAF's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has Staffline Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-20.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: STAF has a high level of non-cash earnings.

Growing Profit Margin: STAF became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: STAF has become profitable over the past 5 years, growing earnings by -20.8% per year.

Accelerating Growth: STAF has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: STAF has become profitable in the last year, making it difficult to compare its past year earnings growth to the Professional Services industry (47%).


Return on Equity

High ROE: STAF's Return on Equity (2.1%) is considered low.


Discover strong past performing companies

Financial Health

How is Staffline Group's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: STAF's short term assets (£131.2M) do not cover its short term liabilities (£139.3M).

Long Term Liabilities: STAF's short term assets (£131.2M) exceed its long term liabilities (£6.5M).


Debt to Equity History and Analysis

Debt Level: STAF's net debt to equity ratio (11.3%) is considered satisfactory.

Reducing Debt: STAF's debt to equity ratio has reduced from 62.1% to 31.8% over the past 5 years.

Debt Coverage: STAF's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: STAF's interest payments on its debt are not well covered by EBIT (0.9x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Staffline Group Dividend Yield vs Market
How does Staffline Group dividend yield compare to the market?
SegmentDividend Yield
Company (Staffline Group)0%
Market Bottom 25% (GB)2.1%
Market Top 25% (GB)6.1%
Industry Average (Professional Services)2.6%
Analyst forecast in 3 Years (Staffline Group)0%

Notable Dividend: Unable to evaluate STAF's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate STAF's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if STAF's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if STAF's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: STAF is not paying a notable dividend for the UK market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as STAF has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Albert George Ellis (58 yo)

2.5yrs

Tenure

UK£749,000

Compensation

Mr. Albert George Hector Ellis, BACC, CA, serves as Director at Staffline Group plc since March 17, 2020 and serves as its Chief Executive Officer since October 1, 2020. He served as the Chief Executive Of...


CEO Compensation Analysis

Albert George Ellis's Compensation vs Staffline Group Earnings
How has Albert George Ellis's remuneration changed compared to Staffline Group's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

UK£2m

Mar 31 2022n/an/a

UK£2m

Dec 31 2021UK£749kUK£350k

UK£2m

Jun 30 2021n/an/a

-UK£3m

Mar 31 2021n/an/a

-UK£26m

Dec 31 2020UK£391kUK£88k

-UK£48m

Compensation vs Market: Albert George's total compensation ($USD805.25K) is above average for companies of similar size in the UK market ($USD326.24K).

Compensation vs Earnings: Albert George's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: STAF's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: STAF's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: STAF insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

AIM:STAF Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
10 Aug 22BuyUK£19,850Daniel QuintIndividual50,000UK£0.40
12 May 22BuyUK£250,000Henry Spain Investment Services LimitedCompany500,000UK£0.50
07 Apr 22BuyUK£6,500Henry Spain Investment Services LimitedCompany10,621UK£0.61
07 Apr 22SellUK£6,479Henry Spain Investment Services LimitedCompany10,621UK£0.61
04 Apr 22BuyUK£61,050Henry Spain Investment Services LimitedCompany105,244UK£0.58
04 Apr 22SellUK£60,954Henry Spain Investment Services LimitedCompany105,244UK£0.58
25 Mar 22BuyUK£560,354Henry Spain Investment Services LimitedCompany887,881UK£0.64
25 Mar 22SellUK£138,887Henry Spain Investment Services LimitedCompany217,011UK£0.64
22 Mar 22BuyUK£325,905Henry Spain Investment Services LimitedCompany500,000UK£0.65
22 Mar 22BuyUK£4,975Richard ThomsonIndividual7,678UK£0.65
22 Mar 22BuyUK£65,181Thomas SpainIndividual100,000UK£0.65

Ownership Breakdown

What is the ownership structure of STAF?
Owner TypeNumber of SharesOwnership Percentage
Public Companies529,0430.3%
Employee Share Scheme1,140,4000.7%
Individual Insiders2,413,3181.5%
General Public11,591,3137.0%
VC/PE Firms17,013,99510.3%
Private Companies24,923,60915.1%
Institutions107,141,53965.0%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 90.28% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
17%
Henry Spain Investment Services Limited
28,000,000£10.8m1.82%no data
15.09%
Simco Trust
24,866,833£9.6m3.67%no data
11%
Schroder Investment Management Limited
18,126,009£7.0m-0.31%0.01%
10.33%
Gresham House Asset Management Limited
17,013,995£6.6m0%0.77%
9.72%
Fidelity International Ltd
16,022,070£6.2m0%no data
6.91%
Lombard Odier Asset Management (Europe) Limited
11,381,555£4.4m0%0.07%
6.9%
abrdn plc
11,372,812£4.4m0%no data
3.08%
Teviot Partners LLP
5,074,441£2.0m0%1.49%
1.59%
A J Bell Holdings Limited, Asset Management Arm
2,625,857£1.0m0%0.01%
1.43%
Barclays Bank PLC, Wealth and Investment Management Division
2,355,302£906.8k0%0.01%
1.17%
HBOS Investment Fund Managers Limited
1,933,970£744.6k0%0.01%
1.11%
Charles Stanley & Co. Ltd, Asset Management Arm
1,820,948£701.1k0%0.01%
0.79%
Thomas Spain
1,300,000£500.5k0%no data
0.69%
Staffline Group Plc, ESOP
1,140,400£439.1k0%no data
0.49%
HSBC Global Asset Management (UK) Limited
807,472£310.9k0%no data
0.45%
IG Group Holdings Plc, Asset Management Arm
747,087£287.6k0%0.03%
0.35%
Idealing.com, Asset Management Arm
568,739£219.0k0%0.13%
0.32%
Lloyds Banking Group plc
529,043£203.7k0%no data
0.32%
Barclays Investment Solutions Limited
521,503£200.8k0%0.01%
0.3%
Close Asset Management Limited
491,502£189.2k0%no data
0.28%
UBS Asset Management
461,035£177.5k0%no data
0.26%
Albert George Ellis
422,407£162.6k0%no data
0.26%
Jarvis Securities plc, Asset Management Arm
421,456£162.3k0%0.01%
0.22%
Octopus Investments Limited
366,610£141.1k0%0.01%
0.22%
River and Mercantile Asset Management LLP
363,506£139.9k0%0.01%

Company Information

Staffline Group plc's 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
  • Implied Market Cap: UK£63.430m
  • Shares outstanding: 164.75m
  • 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
OSUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2004

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/27 00:00
End of Day Share Price2022/09/27 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.