Staffline, the recruitment and training group, provides the following update on Group trading and outlook.
FY 2019 Update
Following the accounting review completed in the first half of the year, the Board has continued projects to improve Staffline’s internal controls. This has included a rigorous internal review process, with a detailed review of the balance sheet. Although the year end audit process, with our new auditors, Grant Thornton, is on-going, we have already identified that it is appropriate to increase certain provisions and make further write downs. Due to these net charges, the Board now expects the Group to report full year adjusted operating profit (being profits before interest, tax and non-underlying charges) for the period ending 31st December 2019 materially below our previous guidance.
Financial Position
Staffline maintains a constructive relationship with its lending banks and consequently the Board does not anticipate any covenant issues. The Company is also actively considering certain strategic options which may significantly reduce net debt during H1 2020.
Current Trading and Outlook
The Board is pleased to report that 2020 has started well and the Board’s expectations for the FY 2020 are unchanged.
staffline