Staffline (325p and 2% of JIC portfolio). I have bought a holding in Staffline this morning using the remaining cash in the portfolio raised from the sale of Synergy Health last week. Staffline is a recruitment company which specialises in the supply of labour to the food processing, manufacturing, e-retail and logistics sectors. It provides and manages industrial workforces and uses training and business improvement techniques to ensure increased levels of efficiency to give their clients a significant commercial advantage. Operating from over 170 locations in the UK, Staffline supply up to 25,000 workers each day.
Its latest trading statement issued on 7th January confirmed that the Board expected earnings for the full year ending 31st December 2012 to be in line with expectations. The Chief Executive also said, "We continue to make steady progress and remain well placed to continue to capitalise on a number of strategic opportunities that exist across our business." Results for 2012 are due to be announced next Monday 25th February.
The stock came up on my ValueGrowthMomentum screen on Stockopedia.
Conclusion: On consensus earnings forecasts the shares are valued at 9.6x the year just ended for growth of 34%, 8.1x 2013 for growth of 19% and just 6.8x 2014 for growth of 20%. It also has a dividend yield of 2.5% for 2012 and on forecast dividends is on a prospective 2013 yield of 2.9% and 2014 yield of 3.4%. This seems too cheap to me. (see transactions)
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