Good morning!

Just in case you missed it, here is the link for yesterday's report, as I added another section on Victoria (LON:VCP) (in which I hold a long position) after the 1pm email was sent out.

There were also some fascinating comments from readers, about the chronology of how the Chairman managed to take over a sleepy company, and generate enormous wealth for himself - and it has to be said, other shareholders too.

So this is a tricky situation - where an outlandishly lucrative incentive scheme for management (which I would normally oppose vehemently) seems to have actually worked for the benefit of everyone - just look at the share price chart over the last few years! Food for thought anyway.

Staffline (LON:STAF)

Share price: 888p (up 3.2% today)
No. shares: 27.7m
Market cap: £246.0m

(at the time of writing, I hold a long position in this share)

Interim results - the financial highlights in today's interim results (6m to 30 Jun 2016) look very impressive. Note the prompt reporting schedule too - only 27 days to produce published interim results - to me that demonstrates good financial controls are in place.


Note that most of the growth has come from acquisitions. However, organic growth was still very good, at 14%.

Going through these numbers, I really cannot see any justification for the Brexit-related plunge in share price. It doesn't seem to make sense, so this is looking like a good buying opportunity to me.

Current trading & outlook comments all sound positive;

The second half of 2016 has started well.  Our sales pipeline, which remains significant, will support continued growth.  As a result, we remain on track to deliver current expectations for FY 2016.

Furthermore, Staffline continues to work towards its longer term growth ambitions. We remain responsive and focused on adapting to new regulations and government change. Whether this is the NLW or the potential changes which the UK's exit from the EU may bring over time, our scale and capabilities mean that organisations increasingly look to Staffline to ensure their access to a flexible and efficient workforce.

Our Employability division, PeoplePlus, is making good progress and we expect the enlarged business to continue to have a significant impact financially and operationally…

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