5 September 2011 – interim results

Interim results from Staffline demonstrated ongoing progress, fuelled by recent acquisitions.  Revenues were up 45% at £120.9m (2010: £83.4m).  Profit before tax was up 38% to £2.9m (2010: £2.1m) and fully diluted earnings per share were up 39% to 9.2p (2010: 6.6p).  The interim dividend increased by 21% to 2.9p (2010: 2.4p) and a progressive dividend policy is an attraction for investors.  Net cash was £2.4m at the period end (2010: net debt £4.8m).  This is a company we will continue to keep an eye on but for now we feel the share price is too high, meaning that we keep our recommendation as AVOID.