Is this company worth a punt? any info would be appreciated.

Staffline BUY 28/02/2011 Miles Nolan

Fast expanding recruitment firm Staffline (STAF) has rewarded its shareholders with a doubling of the dividend thanks to a record trading performance. In the year to 31 December sales jumped 79% to 206.2m as pre-tax profits soared 100% to 7m.

Staffline is benefiting from a shift in its blue chip client base toward larger contracts. Last year it had one 5m contract whereas this year it has five of the same size. The recession has left its bedrock in the food industry relatively unscathed, however, the automotive and manufacturing markets are witnessing a robust pick up in demand.

Three acquisitions were completed last year and all are now contributing to profits. Staffline has completed nine deals since floating on AIM and reckons it has run its slide rule over 80 potential targets - proof it is highly selective. The new businesses helped profit margins expand 0.6% to 3.8%. The market for outsourcing continues to increase as clients see the cost saving benefits it can produce with worker productivity up by as much as 15% in some cases.

The 'on-site' model represents 89% of sales and operates whereby Staffline has an office based at the client to provide training, health & safety and employee relations - this flexible service engages 22,500 employees a week.

Recently appointed house broker Liberum Capital predicts 2012 pre-tax profits of 8.9m and EPS of 28.7p. Due to the cash generative nature of the business, if assuming no acquisitions, its debt will be repaid leaving a net cash balance of 4.3m. At 193.5p the shares have unfairly drifted in the recent market malaise. Buy.

Staffline Group PLC
ALL-AIM
Consumer, Non-cyclical
Buy
240
182.5
31.5%
Charles Stanley Securities

Broker note late Friday.........

SP target 240p 31.5% upside.

Interesting audio interview with Andy Hogarth, Chief Executive of Staffline.

Click the link below to listen:


http://www.brrmedia.co.uk/event/105791/andy-hogarth-chief-executive

Staffline today announced interim results for the six months ended 30th June 2015.

The Board remains confident of meeting current market expectations.

New free research note at http://www.investorschampion.com/blog/