Good morning, it's Paul here with Friday's SCVR.

Sorry I didn't manage to do any more writing yesterday afternoon, I was too tired by the time I got home, and not in the best frame of mind, with the car having failed its MoT for the second time in a week.

Estimated timings - I've started at 7am, so should be done by 1pm.
Edit at 13:07 - today's report is now finished.


Staffline (LON:STAF)

Share price: 48.5p (up 52% yesterday) - currently down 17% today, to 40p, at 08:54
No. shares: 68.9m
Market cap: £33.4m

Statement re share price movement

Some kind of speculative frenzy gripped this share yesterday, with it spiking up 52% on no news. Hence the company has needed to put out a statement today. The crux is;

Staffline, the recruitment and training group, notes the recent movement in the Company's share price and confirms it is not aware of any reason for the price movement...

Further points;

Bank facilities - expects to agree & implement revised financing arrangements soon.

Results - for FY 12/2019 should be published soon (they need to get their skates on, as I think the shares would be suspended if not published by end June). Audit work not yet finalised - which will presumably hinge on bank facilities being signed off, in order to publish accounts on a going concern basis. Although this might allow shares to continue trading, possibly? -

The full report and accounts for the year ended 31 December 2019 is now expected to be published and sent to shareholders in July. Accordingly, the Company has applied to AIM Regulation for an extension to the current reporting deadline of 30 June 2020, which has been granted in accordance with the temporary measures put in place due to the impact of COVID-19.

Figures - 2019 results expected to show small underlying EBITA loss, and pre-IFRS16 net debt of £59.5m - that's a lot of debt, but remember that Staffline has a blue chip client base, with a large receivables book. So the bank has quite good security.

Cashflow - benefiting from Govt deferral of VAT & payroll taxes - "significantly improved ... liquidity through the end of 2020". Whilst this is helpful, these liabilities will still have to be paid at a later date, which the bank may not be happy…

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