REG - Staffline Group PLC - Unaudited Interim Results
Tue 07:00
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RNS Number : 8990S Staffline Group PLC 29 July 2025
29 July 2025
("Staffline", the "Company" or the "Group")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2025
- Strong financial performance reflects market leading position
- Staffline continues to perform in-line with management expectations,
underpinned by solid new business pipeline
Staffline (AIM: STAF), the recruitment group, announces its unaudited interim
results for the six months ended 30 June 2025 ("H1 2025" or the "Period").
Financial highlights
Continuing activities Six months to 30 June 2025 Six months to 30 June 2024 Change
Unaudited Restated*
Unaudited
Revenue £485.8m £446.8m +8.7%
Gross sales value(1) £547.6m £499.0m +9.7%
Gross profit £33.1m £31.2m +6.1%
Gross margin % 6.8% 7.0% -0.2 ppts
Underlying operating profit(2) £3.7m £2.4m 54.2%
Gross profit to underlying operating profit conversion % 11.2% 7.7% +3.5 ppts
Profit before tax £0.6m £0.3m +£0.3m
Pre-IFRS16 net debt(3) £(5.7)m £(9.2)m +£3.5m
*Restated to exclude the results of PeoplePlus, which was sold on 24 February
2025.
Alternative performance measures
1. Gross sales value represents the fair value of consideration
received or receivable for the supply of services, including agency sales,
(excluding fees), net of VAT.
2. Underlying results exclude goodwill impairment,
reorganisation costs and other non-underlying charges.
3. On a Post-IFRS16 basis, net debt was £(9.9)m at 30 June 2025
(2024: net debt £(14.5)m).
Key highlights:
· Revenue growth of 8.7% to £485.8m (H1 2024: £446.8m) supported by
excellent new business momentum in the Period
· Increase of over 50% in underlying operating profit to £3.7m (H1
2024: £2.4m) highlighting Staffline's operational strength as a pure-play
recruitment platform
· Performance underpinned by a 4.4% increase in temporary hours worked
in Recruitment GB and a 23.1% increase in permanent recruitment activities in
Ireland
· Strategic partnership with a leading food and drink logistics
provider announced in the Period, increasing market share and solidifying
Staffline's reputation as a trusted provider
· Transition to a pure-play recruitment platform, following the
divestment of PeoplePlus, which completed in February
· Launched a Share buyback programme of up to £7.5m, repurchasing a
total consideration of £4.8m in the Period
Current trading and outlook
· Staffline's pure-play recruitment platform continues to remain
resilient, despite ongoing macroeconomic headwinds, with market share gains
and new logistics contracts to come on stream in H2 2025
· Strong balance sheet and track record of cash generation, underpins
the Board's disciplined capital allocation policy and ongoing commitment to
delivering shareholder value
· Positive trading momentum has continued into H2 2025 with the Group
currently on track to deliver results in line with current management
expectations
Albert Ellis, Chief Executive Officer of Staffline, commented:
"I am delighted that the Group has produced such a strong financial and
operational performance in the first half of the year. Pleasingly, Staffline
continues to secure new business and grow our market share despite the ongoing
challenging macro-economic backdrop within the UK economy.
Having now created a leading pure-play recruitment platform across both the
blue and white-collar recruitment markets, following the divestment of
PeoplePlus, we are ideally placed to continue to capitalise on a number of
exciting new organic growth opportunities."
Retail investor webcast
Management will be hosting a presentation for investors in relation to the
Company's interim results at 9.00am (BST) on Tuesday, 29 July 2025.
The presentation will be hosted on the Investor Meet Company ("IMC") digital
platform and is open to all existing and potential shareholders. Investors can
sign up to IMC for free and add themselves to meet Staffline via:
https://www.investormeetcompany.com/staffline-group-plc/register-investor
(https://www.investormeetcompany.com/staffline-group-plc/register-investor)
Investors who have already registered with IMC will be automatically invited.
For further information, please contact:
Staffline Group plc via Vigo Consulting
www.stafflinegroupplc.co.uk (http://www.stafflinegroupplc.co.uk/)
Albert Ellis, Chief Executive Officer
Daniel Quint, Chief Financial Officer
Panmure Liberum Nominated Adviser and Joint Broker 020 3100 2222
www.panmureliberum.com (http://www.panmureliberum.com)
Nick How / Satbir Kler
Zeus Joint Broker 020 3829 5000
www.zeuscapital.co.uk
David Foreman / Ed Beddows (Investment Banking)
Nick Searle (Sales)
Vigo Consulting (Financial PR) 020 7390 0230
www.vigoconsulting.com (http://www.vigoconsulting.com/) staffline@vigoconsulting.com
Jeremy Garcia / Anna Sutton
About Staffline
Staffline is one of the UK's leading Recruitment groups. It has two divisions:
· Recruitment GB
The Recruitment GB business is a leading provider of flexible blue-collar
workers, supplying c.35,000 staff per day on average from around 400 sites,
across a wide range of industries including supermarkets, drinks, driving,
food processing, logistics and manufacturing.
· Recruitment Ireland
The Recruitment Ireland business is a leading end to end solutions provider
operating across multiple industries, ten branch locations and ten onsite
customer locations, supplying c.4,500 staff per day on average, and offering
RPO, MSP, temporary and permanent solutions across public and private sectors
throughout the island of Ireland.
Chief Executive Officer's Review
Introduction
I am pleased to report a strong financial performance in H1 2025, with our
core blue-collar recruitment businesses performing well and in line with
current management expectations.
Revenue increased 8.7% to £485.8m (H1 2024: £446.8m), with gross margin of
6.8% (H1 2024: 7.0%). Gross profit was up 6.1% at £33.1m (H1 2024: £31.2m),
and underlying operating profit increased by 54.2% to £3.7m (H1 2024: £2.4m)
following the strategic disposal of PeoplePlus and a resilient performance
from recruitment businesses, Recruitment GB and Recruitment Ireland.
Our recruitment businesses continue to perform well, and above current levels
of demand being experienced across the market delivering organic growth across
the Group, as we leverage our reputation as a large-scale trusted recruitment
solutions provider. This excellent trading performance has been supported by
Recruitment GB increasing temporary worker hours worked year-on-year by 4.4%,
alongside an increase in Recruitment Ireland's permanent hiring fees from
high-margin white-collar roles. Both divisions secured new mandates, including
a substantial contract with a leading food and drink logistics provider to
outsource 100% of agency labour services to Recruitment GB.
The Group maintains a strong balance sheet and has utilised proceeds from the
disposal of PeoplePlus and strong trading cash flows over the last 12 months
to initiate its 2025, £7.5m share buyback programme. To date, 15.5 million
ordinary shares have been repurchased, at an average price of 31.2 pence per
ordinary share, for a total consideration of £4.8m, demonstrating the Board's
disciplined capital allocation policy.
Market
The UK recruitment market continues to be affected by broader macroeconomic
headwinds, reflected in reduced hiring activity and staff attrition across
numerous sectors in both the UK and Ireland.
UK unemployment has marginally increased to 4.7% as job vacancies continue to
decline, falling below pre-pandemic levels, currently around 727,000. This
represents a decrease of 56,000 versus the previous quarter.
White-collar recruitment, to which our Ireland division is more exposed, has
been affected by a decline in business and candidate confidence, combined with
higher labour costs. By contrast, blue-collar temporary recruitment, which
accounts for 90.0% of Group gross profit, remains resilient in key defensive
sectors such as Staffline's core food and drinks and logistics sectors.
Staffline has successfully mitigated the majority of these challenges in H1
2025 by working with our customers to provide agile solutions to their labour
requirements and mitigating growing cost pressures.
Strategy
With the transition to a focused, pure-play recruitment platform following the
divestment of PeoplePlus in February, the Group continues to deliver against
its strategic priorities:
· Strengthening the Group's market-leading position by leveraging
Staffline's scale, reach and excellence in delivery to grow market share in
blue-collar temporary recruitment organically.
· Broaden our portfolio by growing, where appropriate, white-collar and
adjacent permanent recruitment activity, including managed services.
· Continue to expand in the Republic of Ireland by securing new
contracts and growing the Group's market share.
· Increase shareholder returns whilst maintaining a healthy balance
sheet and returning excess cash to shareholders in the form of share buybacks
directly from annual trading cashflows.
We believe that our strategy has enabled the Group to navigate the currently
challenging macroeconomic backdrop whilst simultaneously delivering our
organic growth strategy and providing accelerated cash returns to
shareholders.
Operational review
Staffline's market-leading recruitment businesses performed well during the
Period, with the strong momentum experienced in 2024 continuing, delivering
significant operational and financial progress despite the challenging market
backdrop.
Recruitment GB
H1 2025 H1 2024 % Var
£m £m
Revenue 437.9 393.0 +11.4%
Gross Profit 26.8 24.7 +8.5%
Underlying operating profit 4.8 2.8 +71.4%
Recruitment GB has delivered an excellent trading performance in H1 2025, with
an uplift in revenue and gross profit of 11.4% and 8.5% respectively. This has
been underpinned by a 4.4% increase in temporary worker hours worked
year-on-year, indicative of the sustained demand for Staffline's temporary and
agency recruitment solutions. Pleasingly, underlying operating profits are
ahead by 71.4%, supported by a focused cost reduction programme improving
divisional gross profit to underlying operating profit conversion from 11.3%
to 17.9%.
Organic growth remains at the centre of our strategy. In May, the Group
secured a significant strategic partnership with a leading UK food and drink
supply chain management and logistics provider to outsource 100% of agency
labour services to Staffline, which is expected to have a material impact on
the Group's performance over the life of the contract. This partnership
includes the deployment of c.3,000 temporary workers across driving,
warehousing and security activities, significantly expanding the Group's
operational footprint. Staffline has worked closely with the leadership team,
delivering a seamless transition, and is now embedded within operations, with
the majority of activities expected to be fully integrated by August 2025.
Recruitment GB continues to pursue a range of further new business
opportunities, some of which could complete across H2 2025, with both new and
existing customers. Additionally, our M&S operations are expected to
return to full capacity following the recent cyber-attack, strengthening the
performance of the division across the remainder of the financial year.
We have continued to focus on maximising efficiencies and generating economies
of scale across the business through the implementation of a cost reduction
programme to reduce annual costs by c.£3m, mitigating the impact of higher
labour costs and ongoing inflationary pressures.
The division has maintained a strong permanent recruitment delivery capability
in anticipation of an economic upturn in due course. We have also leveraged
Datum RPO, our managed service provider, to support with audit and supply
chain consolidation, for which we have seen increased demand given the
currently challenging market.
Recruitment Ireland
H1 2025 H1 2024 % Var
£m £m
Revenue 47.9 53.8 -11.0%
Gross Profit 6.3 6.5 -3.1%
Underlying operating profit 0.7 1.2 -41.7%
Our Recruitment Ireland division has reported a swing in the mix of services
in favour of permanent recruitment solutions. Whilst revenue and demand from
temporary worker placements decreased, permanent revenue increased by an
excellent 23.1% year on year. This trend has been driven by the business in
the Republic of Ireland, and in particular the ongoing An Garda contract
(Republic of Ireland Police Service).
Reduced demand in the public sector, particularly in Northern Ireland, and a
higher percentage of white-collar recruitment than the Recruitment GB business
has led to a decline in overall results with the performance in H1 2025 below
that of H1 2024. However, management anticipates this improving in H2 2025 as
issues in relation to pipeline delays resolve, combined with a further
restructuring programme implemented in H1 2025.
Outlook
The Group delivered a strong performance across H1 2025, which is expected to
continue into the remainder the current financial year.
Our organic growth strategy continues to generate a strong new business
pipeline, underpinned by our market leading position in the blue-collar
recruitment market and reputation for exceptional service.
The Board is pleased with the Group's current trading performance, and despite
the challenging recruitment market, remains confident that trading in FY 2025
remains in line with management expectations.
Albert Ellis
Chief Executive Officer
28 July 2025
Financial Review
Introduction
The Group delivered strong results driven by increasing temporary worker hours
in the Period, notwithstanding ongoing challenges in the domestic consumer
market. Additionally, permanent recruitment activities remained robust in
contrast to market peers. The Group's balance sheet remains strong with
reduced pre-IFRS16 net debt of £(5.7)m (2024: £(9.2)m). Following receipt of
the proceeds of £4.9m from the disposal of PeoplePlus on 24 February 2025,
the Group also launched a share buyback programme, repurchasing shares for
total consideration of £4.8m in the Period. Significant headroom of £66.5m
(2024: £50.2m) exists in the Group's banking facilities alongside material
headroom in financial covenants.
In the Group's Annual Report for the year ended 31 December 2024, the disposal
of PeoplePlus, which is described more fully below, led to its treatment as a
discontinued operation. The results disclosed in this review relate to
continuing activities and comparatives have been restated where applicable.
Trading performance
Total revenue for H1 2025 increased by 8.7% to £485.8m (2024: £446.8m) due
to increased temporary worker hours, which were up 4.4% in Recruitment GB,
predominately in the food retail and distribution sectors. Gross profit
increased to £33.1m (2024: £31.2m) accompanied by a small decrease in gross
margin to 6.8% from 7.0% in 2024. The reduction in gross margin % is as a
result of a combination of pay inflation from National Minimum Wage and
Employers' National Insurance increases, reflected in higher wages that go
through revenue, and the increase in temporary worker hours in sectors where
the margin is comparatively low.
Underlying divisional performance
Following the disposal of PeoplePlus, the Group comprises two divisions:
Recruitment GB and Recruitment Ireland.
Six months ended 30 June 2025 Six months ended 30 June 2024
Recruitment GB Recruitment Ireland Group costs Recruitment GB Recruitment Ireland Group costs Continuing Discontinued
Unaudited Unaudited Unaudited Continuing Discontinued Unaudited Unaudited Unaudited Activities Operations
Activities Operations Restated Restated
Unaudited Unaudited Unaudited Unaudited
£'m £'m £'m £'m £'m £'m £'m £'m £'m £'m
Revenue 437.9 47.9 - 485.8 10.2 393.0 53.8 - 446.8 33.4
Period-on-period % change 11.4% (11.0)% - 8.7% (69.5)% 15.2% (1.3)% - 12.9% (2.6)%
Gross sales value(1) 499.7 47.9 - 547.6 10.2 445.2 53.8 - 499.0 33.4
Period-on-period % change 12.2% (11.0)% - 9.7% (69.5)% 10.3% (1.3)% - 9.0% (2.6)%
Gross profit 26.8 6.3 - 33.1 2.6 24.7 6.5 - 31.2 7.0
Period-on-period % change 8.5% (3.1)% - 6.1% (62.9)% 5.1% 6.6% - 5.4% (17.6)%
Gross margin % 6.1% 13.2% - 6.8% 25.5% 6.3% 12.1% - 7.0% 21.0%
Underlying operating profit /(loss) 4.8 0.7 (1.8) 3.7 - 2.8 1.2 (1.6) 2.4 (12.4)
Underlying operating profit as a % of revenue 1.1% 1.5% - 0.8% 0% 0.7% 2.2% - 0.5% 1.5%
Underlying operating profit as a % of gross profit 17.9% 11.1% - 11.2% 0% 11.3% 18.5% - 7.7% 7.1%
Post-IFRS16 net debt - - - (9.9) - - - - (14.5) -
Pre-IFRS16 net debt - - - (5.7) - - - - (9.2) -
(1) Gross sales value represents the fair value of consideration received or
receivable for the supply of services, including agency sales, (excluding
fees) net of VAT.
Key performance indicators (continuing activities)
Six months ended 30 June 2025 Six months ended 30 June 2024
Recruitment GB Recruitment Ireland Recruitment GB Recruitment Ireland Total
Unaudited Unaudited Total Unaudited Unaudited Group
Group Unaudited
Unaudited
Hours worked by temporary workers 21.5m 2.4m 23.9m 20.6m 2.9m 23.5m
Gross profit per fee earner £38.1k £50.3k £40.1k £38.5k £49.2k £40.4k
For management reporting purposes, the Recruitment GB division presents its
'gross sales', which includes sales under agency arrangements. The reporting
of gross sales gives an indication of the full level of activity undertaken by
the division. The value is adjusted for revenue reporting in accordance with
IFRS15. The adjustment relative to reported revenue for the Group is as
follows:
H1 2025 H1 2024 Unaudited
Unaudited £'m
£'m
Gross sales value 547.6 499.0
Agency sales (61.8) (52.2)
Revenue as reported 485.8 446.8
Revenues in the Recruitment GB division increased by £44.9m, (11.4%), to
£437.9m (2024: £393.0m). The increase is predominately from organic growth
with existing customers, mainly in the logistics and distribution sector. This
new business has been won based on quality of service and performance by the
business driving the growth in market share.
The gross profit for Recruitment GB increased 8.5% year-on-year, from £24.7m
in 2024 to £26.8m, with the gross margin % decreasing slightly from 6.3% in
H1 2024 to 6.1% this year. This was adversely impacted by a 6.7% increase in
the National Living Wage from April 2025, from £11.44 to £12.21, which
follows on from a 9.8% increase the year before. This does not impact absolute
gross profit, as the increase is passed through to customers but does
adversely impact the gross margin % achieved. Gross profit margin % was also
impacted by the slight reduction in permanent recruitment, which generated
gross profit of £1.7m (2024: £2.0m).
Revenues in the Recruitment Ireland division decreased by £5.9m (-11.0%) to
£47.9m (2024: £53.8m), mainly reflecting a reduction in onsite temporary
recruitment activity, as well as weak public sector activity driven by
lacklustre investment at government level. The gross profit for Recruitment
Ireland decreased by 3.1% from £6.5m in H1 2024 to £6.3m in H1 2025, whilst
the gross profit margin % increased from 12.1% to 13.2%. This gross margin %
improvement was supported by an increase in permanent recruitment gross profit
of 23.1% with £1.6m of gross profit in H1 2025 compared to £1.3m in H1 2024,
reflecting the growing business in the Republic of Ireland, and in particular
the ongoing An Garda contract (Republic of Ireland Police Service).
Group underlying operating profit increased by 54.2% to £3.7m (2024: £2.4m),
with gross profit to underlying operating profit conversion increasing to
11.2% compared to 7.7% in H1 2024. The Group expects underlying operating
profit to be H2 weighted due to the main peak trading period in the lead up to
Christmas and the New Year.
Discontinued operation
During 2024, partly as a result of the general election, the pipeline for new
contracts and the timing of tender results stalled considerably, impacting the
prospects for the PeoplePlus division. Following an approach from Swipejobs
Holdings Pty Ltd, negotiations for the disposal commenced during H2 2024,
culminating in the disposal of the wholly owned subsidiary, PeoplePlus Group
Ltd, on 24 February 2025.
The consideration for the sale was £12.0m, including £2.0m of deferred
consideration. The consideration was on a cash-free, debt-free basis, subject
to a deduction of £5.1m of advanced payments received for future revenue. The
net proceeds of the disposal (including the deferred consideration) were
£6.9m, of which £4.9m has been received in cash to date. The £2.0m of
deferred consideration is contingent on the commencement of potential new
contracts expected to take place within the 15 months following the date of
this statement.
Further details are provided in note 5.
Finance costs and interest rate hedge
Net finance costs were £2.7m (2024: £2.1m), which includes £0.1m (2024:
£0.2m) of non-cash charges for amortisation of debt re-financing costs. Gross
finance costs were actually lower than prior year as a result of the reduction
in Bank of England base rate from 5.25% to 4.25% since August 2024, but the
ending of the interest rate cap instrument in October 2024 led to the increase
in net costs.
Profit before taxation
The Group's reported profit before taxation of £0.6m in H1 2025 compares to a
profit of £0.3m in 2024.
Taxation
There is a £0.2m tax charge (2024: charge £0.1m) for the Period due to the
movement on deferred tax balances.
The reported profit after tax on continuing activities for H1 2025 is £0.4m
(2024: profit £0.2m).
Statement of financial position, cash generation and financing
The Group ended H1 2025 with pre-IFRS16 net debt of £(5.7)m (2024: £(9.2)m).
Post-IFRS16 net debt was £(9.9)m at H1 2025 (2024: £(14.5)m). The movement
in net debt is shown in the table below. The change in working capital
includes the Q1 VAT payment, representing VAT collections in the Group's peak
seasonal Q4 2024 trading period. Good trading cash generation in the Period
driven by the organic growth in Recruitment GB temporary hours worked, has
been offset by the required working capital usage. The proceeds of the sale of
PeoplePlus enabled the purchase of the Company's own shares under a new share
buyback scheme.
Movement in net debt H1 2025 H1 2024
Unaudited Unaudited
£'m £'m
Opening net cash (pre-IFRS16) 9.6 3.8
Cash generated before changes in working capital (note 14) 4.7 5.2
Movements in working capital (12.8) (12.1)
Net taxation and interest paid (2.6) (1.9)
Capital investment (net of disposals) (2.2) (1.4)
Proceeds from disposal of PeoplePlus 4.9 -
Cash adjustment on disposal of PeoplePlus* (2.5) -
Own shares purchased (4.8) (1.9)
Principal repayment of lease liabilities (0.5) (1.2)
Employee equity settled share options 0.5 0.3
Closing net (debt) (pre-IFRS16) (5.7) (9.2)
IFRS16 lease liabilities (4.2) (5.3)
Closing net (debt) (post-IFRS16) (9.9) (14.5)
*This represents cash collected from trade receivables and remitted for
payables, paid on disposal of PeoplePlus.
The table below reconciles underlying EBITDA (earnings before interest,
taxation, depreciation and amortisation), to operating loss.
Reconciliation of operating loss to EBITDA H1 2025 H1 2024 Unaudited
Unaudited Restated*
£'m £'m
Operating profit 3.3 2.4
Non-underlying charges 0.4 -
Underlying operating profit 3.7 2.4
Depreciation and amortisation 1.4 1.5
Underlying EBITDA 5.1 3.9
Lease rental payments (0.5) (0.5)
Underlying EBITDA (pre-IFRS16) 4.6 3.4
*Restated to exclude the results of PeoplePlus, which was sold on 24 February
2025.
Note: Underlying operating profit is stated before goodwill impairment and
reorganisation costs.
The Group's banking facility headroom under its available committed banking
facilities is set out below:
H1 2025 H1 2024
Unaudited Unaudited
£'m £'m
Cash at bank 4.6 4.6
Available receivables finance agreement unutilised 61.9 45.6
Banking facility headroom 66.5 50.2
Banking facilities
The Group manages its working capital requirements using a Receivables Finance
Agreement ("RFA"), and a number of separate, non-recourse, customer financing
arrangements whereby specific customers' invoices are settled in advance of
their normal settlement date via a funding intermediary.
The RFA leverages the Group's trade receivables with sufficient headroom and
flexibility to manage the variability and size of weekly cash outflows. The
key terms of the facility are set out below:
i) maximum receivables financing facility of £60.0m over a
four-year term, with a one-year extension option;
ii) an Accordion option of up to an additional £20.0m, subject
to lender approval;
iii) security on all of the assets and undertakings of the Company
and certain subsidiary undertakings;
iv) interest accruing at a maximum of 2.25% over SONIA, with a
margin ratchet downward to 1.5%, dependent upon the Group's leverage reducing
to less than 1.00x;
v) a non-utilisation fee of 0.35%;
vi) maximum net debt (averaged over a rolling three months) to
EBITDA leverage covenant of 4.0x; and
vii) minimum interest cover covenant of 2.25x the last 12 months
EBITDA to finance charges.
The estimated balance funded under the customer finance arrangements at 30
June 2025 was £43.8m (2024: £58.2m).
Purchases of own shares
The Group has delivered four years of annual underlying operating profits of
at least £10.0m and annual operating cash generation remains strong. During
the last 12 months the Board has taken the opportunity to make share purchases
under share buyback programmes and for the Employee Benefit Trust. The Group
continues to have substantial headroom of £66.5m (2024: £50.2m) under its
available banking facilities.
Pursuant to an announcement of the launch of a share buyback programme on 10
June 2024 the Company repurchased 6,860,792 ordinary shares in the capital of
the Company (the "Ordinary Shares") at a cost of £2.5m. On 25 February 2025
the Group announced the commencement of a buyback programme to be carried out
in two tranches, the first being for 15,517,851 ordinary shares and the second
being for 12,440,000 ordinary shares. The second tranche being subject to
approval of the relevant resolution at the Company's 2025 Annual General
Meeting.
Tranche 1 of the buyback programme completed on 11 April 2025, having
purchased 15,517,851 ordinary shares for a total consideration of £4,843,094,
at an average price of 31.2p per ordinary share.
At the Company's AGM on 21 May 2025, the members approved a resolution to
purchase the Company's ordinary shares up to a maximum number of 19,021,847.
On 22 May 2025 the Group announced launch of tranche 2 of the 2025 buyback
programme for the acquisition of up to 12,400,000 ordinary shares. Up to the
date of this report, no further ordinary shares have been acquired.
The Ordinary Shares purchased pursuant to the share buyback programmes have
been cancelled.
Dividend policy
No interim dividend for 2025 is proposed (2024: £nil).
Going concern
The Directors have formed a judgement, at the time of approving the unaudited
condensed interim Group financial statements, that there is a reasonable
expectation that the Group has adequate resources to continue in operational
existence and meet its liabilities as they fall due over the assessment
period. The Directors have not identified any material uncertainties relating
to events or conditions that, individually or collectively, may cast
significant doubt on the Group's ability to continue as a going concern for a
period of at least eighteen months from when the unaudited condensed interim
Group financial statements are authorised for issue. For this reason, the
Directors continue to adopt the going concern basis in preparing the financial
statements.
International Financial Reporting Standards
There have been no new accounting standards or interpretations in the first
half of 2025 which materially impact the Group's reported performance or
financial position.
Daniel Quint
Chief Financial Officer
28 July 2025
Consolidated statement of comprehensive income
For the six months ended 30 June 2025
Six-month period ended 30 June 2025 Six-month period ended 30 June 2024 Year ended
Unaudited Restated(1) 31 December 2024
Unaudited Restated(2)
Note £'m £'m £'m
Continuing activities
Revenue 2 485.8 446.8 992.9
Cost of sales (452.7) (415.6) (922.1)
Gross profit 33.1 31.2 70.8
Administrative expenses (29.8) (28.8) (60.9)
Operating profit 3.3 2.4 9.9
Underlying operating profit before non-underlying administrative expenses 3.7 2.4 10.1
Administrative expenses (non-underlying) 3 (0.4) - (0.2)
Operating profit 2 3.3 2.4 9.9
Finance income - 0.9 1.5
Finance charges (2.7) (3.0) (6.4)
Profit for the period before taxation 0.6 0.3 5.0
Tax expense (0.2) (0.1) (0.9)
Profit from continuing activities 0.4 0.2 4.1
Loss from discontinued operation - (12.5) (14.9)
Profit/(loss) for the period 0.4 (12.3) (10.8)
Items that will not be reclassified to the statement of comprehensive income - - - (0.3)
actuarial gains and losses, net of deferred tax
Items that may be reclassified to the statement of comprehensive income:
- foreign exchange translation adjustment 0.3 0.1 (0.2)
- movement on cash flow hedge, net of deferred tax (0.4) (0.4) (0.7)
Total comprehensive profit/(loss) for the period 0.3 (12.6) (12.0)
Earnings per ordinary share 4
Continuing operations: Basic 0.3p 0.1p 3.0p
Continuing operations: Diluted 0.3p 0.1p 2.9p
Discontinued operations: Basic and diluted - (8.7)p (8.9)p
(1) Restated to exclude the results of PeoplePlus, which was sold on 24
February 2025.
(2) For details of the restatement, refer to note 5.
The accompanying notes form an integral part of these unaudited condensed
interim Group financial statements.
Consolidated statement of changes in equity
For the six months ended 30 June 2025
Unaudited Share capital Own shares Capital redemption reserve Share-based payment reserve Foreign exchange translation reserve Profit and loss account Total equity
Cash flow hedge reserve
£'m £'m £'m £'m £'m £'m £'m £'m
At 1 January 2025 14.2 (6.4) 2.4 1.5 0.2 (0.8) 30.3 41.4
Prior year adjustment (see note 5) - - - - - - (2.5) (2.5)
At 1 January 2025 restated 14.2 (6.4) 2.4 1.5 0.2 (0.8) 27.8 38.9
Issue of shares to management - 0.3 - (0.5) - - - (0.2)
Share based payments - - - 0.5 - - - 0.5
Shares purchased and cancelled (1.5) - 1.5 - - - (4.9) (4.9)
Transactions with owners (1.5) 0.3 1.5 - - - (4.9) (4.6)
Profit for the period - - - - - - 0.4 0.4
Other comprehensive income - - - - (0.4) 0.3 - (0.1)
Total comprehensive income for the period, net of tax - - - - (0.4) 0.3 0.4 0.3
At 30 June 2025 12.7 (6.1) 3.9 1.5 (0.2) (0.5) 23.3 34.6
Consolidated statement of changes in equity
For the six months ended 30 June 2024
Unaudited Share capital Own shares Capital redemption reserve Share-based payment reserve Foreign exchange translation reserve Profit and loss account Total equity
Cash flow hedge reserve
£'m £'m £'m £'m £'m £'m £'m £'m
At 1 January 2024 14.9 (4.7) 1.7 1.2 0.9 (0.6) 41.5 54.9
Issue of shares to management - 0.3 - - - - - 0.3
Share based payments - - - 0.1 - - - 0.1
Shares purchased and cancelled (0.1) - 0.1 - - - (0.3) (0.3)
Own shares purchased - (1.6) - - - - - (1.6)
Transactions with owners (0.1) (1.3) 0.1 0.1 - - (0.3) (1.5)
Loss for the period - - - - - - (12.3) (12.3)
Other comprehensive income - - - - (0.4) 0.1 (0.2) (0.5)
Total comprehensive income for the period, net of tax - - - - (0.4) 0.1 (12.5) (12.8)
At 30 June 2024 14.8 (6.0) 1.8 1.3 0.5 (0.5) 28.7 40.6
The accompanying notes form an integral part of these unaudited condensed
interim Group financial statements.
Consolidated statement of changes in equity
For the year ended 31 December 2024
Share Own Share- Cash flow hedge reserve Foreign exchange translation reserve Profit Total
capital shares Capital based £'m £'m and loss Equity
£'m £'m redemption payment account Restated*
reserve reserve Restated* £'m
£'m £'m £'m
At 1 January 2024 14.9 (4.7) 1.7 1.2 0.9 (0.6) 41.5 54.9
Share-based payments - equity-settled - - - 0.7 - - - 0.7
Issues of shares to management - 0.2 - (0.4) - - (0.1) (0.3)
Share purchased and cancelled (0.7) - 0.7 - (2.5) (2.5)
Own shares purchased - (1.9) - - - - - (1.9)
Transactions with owners (0.7) (1.7) 0.7 0.3 - - (2.6) (4.0)
Loss for the year - - - - - - (10.8) (10.8)
Other comprehensive income - - - - (0.7) (0.2) (0.3) (1.2)
Total comprehensive income for the year, net of tax - - - - (0.7) (0.2) (11.1) (12.0)
At 31 December 2024 14.2 (6.4) 2.4 1.5 0.2 (0.8) 27.8 38.9
*For details of the restatement, refer to note 5.
The accompanying notes form an integral part of these unaudited condensed
interim Group financial statements.
Consolidated statement of financial position
As at 30 June 2025
30 June 2025 30 June 2024 Unaudited 31 December 2024
Unaudited Restated*
Note £'m £'m £'m
Assets
Non-current assets
Goodwill 6 27.1 37.8 27.1
Other intangible assets 10.7 9.1 10.0
Property, plant and equipment 3.1 4.5 3.2
Retirement benefit net asset - 0.5 -
Deferred tax asset 2.3 4.2 2.5
Derivative financial instruments - - 1.0
43.2 56.1 43.8
Current assets
Trade and other receivables 7 149.8 142.0 141.5
Derivative financial instruments 8 - 0.8 -
Cash and cash equivalents 9 4.6 4.6 14.6
Assets included in disposal group classified as held for sale - - 17.2
154.4 147.4 173.3
Total assets 197.6 203.5 217.1
Liabilities
Current
Trade and other payables 10 147.8 141.9 153.2
Borrowings 11 10.3 13.8 5.0
Current tax liability 0.2 0.2 0.2
Provisions 12 0.2 1.0 0.2
Lease liabilities 11 0.9 1.4 1.0
Liabilities included in disposal group classified as held for sale - - 13.9
159.4 158.3 173.5
Non-current
Provisions 12 0.3 0.4 0.3
Lease liabilities 11 3.3 3.9 3.7
Derivative financial instruments - - 0.6
Deferred tax liabilities - 0.3 0.1
3.6 4.6 4.7
Total liabilities 163.0 162.9 178.2
Equity
Share capital 13 12.7 14.8 14.2
Own shares (6.1) (6.0) (6.4)
Capital redemption reserve 3.9 1.8 2.4
Share-based payment reserve 1.5 1.3 1.5
Cash flow hedge reserve (0.2) 0.5 0.2
Foreign exchange translation reserve (0.5) (0.5) (0.8)
Profit and loss account 23.3 28.7 27.8
Total equity 34.6 40.6 38.9
Total equity and liabilities 197.6 203.5 217.1
*For details of the restatement, refer to note 5.
The accompanying notes form an integral part of these unaudited condensed
interim Group financial statements.
Consolidated statement of cash flows
For the six months ended 30 June 2025
Six months ended 30 June Six months ended 30 June Year ended
2025 2024 31 December
Unaudited Unaudited 2024
Note £'m £'m £'m
Cash flows from operating activities 14 (7.6) (6.6) 21.5
Taxation received - - (0.2)
Net cash (outflow)/inflow from operating activities (7.6) (6.6) 21.3
Cash flows from investing activities - trading
Gross proceeds from disposal of PeoplePlus 4.9 - -
Cash adjustment on disposal of PeoplePlus* (2.5) - -
Purchase of intangible assets - software (2.0) (0.8) (3.7)
Purchases of property, plant and equipment (0.2) (0.6) (0.7)
Total cash flows arising from investing activities 2.7 (1.4) (4.4)
Total cash flows arising from operating and investing activities (7.4) (8.0) 16.9
Cash flows from financing activities
Net movements on Receivables Finance Agreement 5.3 4.3 (4.5)
Finance lease principal repayments (0.5) (1.2) (2.0)
Net interest paid (2.6) (1.9) (4.7)
Own shares purchased (4.8) (1.9) (4.4)
Net cash flows from financing activities (2.6) (0.7) (15.6)
Net change in cash and cash equivalents (10.0) (8.7) 1.3
Cash and cash equivalents at beginning of period 14.6 13.3 13.3
Cash and cash equivalents at end of period 9 4.6 4.6 14.6
*This represents cash collected from trade receivables and remitted for
payables, paid on disposal of PeoplePlus.
The accompanying notes form an integral part of these unaudited condensed
interim Group financial statements.
Notes to the summary financial statements
For the six months ended 30 June 2025
1 Interim accounts and accounting policies
Staffline Group plc, a Public Limited Company, is incorporated and domiciled
in the United Kingdom.
The unaudited condensed interim Group financial statements for the six-month
period ended 30 June 2025 (including the comparatives for the six-month period
ended 30 June 2024 and the year ended 31 December 2024) were approved and
authorised for issue by the Board of Directors on 28 July 2025.
It should be noted that accounting estimates and assumptions are used in the
preparation of the interim financial information. Although these estimates are
based on management's best knowledge and judgement of current events, actual
results may ultimately differ from those estimates. The unaudited condensed
interim Group financial statements have been prepared using the accounting
policies as described in the December 2024 audited year-end Annual Report and
have been consistently applied.
The interim Group financial information contained within this report does not
constitute statutory accounts as defined in the Companies Act 2006, section
434. The full accounts for the year ended 31 December 2024 received an
unqualified report from the auditors and did not contain a statement under
Section 498(2) or (3) of the Companies Act 2006. A copy of the statutory
accounts for that year has been delivered to the Registrar of Companies.
Basis of preparation
The unaudited interim Group financial statements, which should be read in
conjunction with the audited Annual Report for the year ended 31 December
2024, have been prepared in accordance with AIM Rules for Companies - Part
One, Section 18 "Half-yearly reports".
The unaudited condensed interim Group financial statements consolidate those
of the parent company and all its subsidiaries as at 30 June 2025.
Subsidiaries are all entities to which the Group is exposed, or has rights, to
variable returns and has the ability to affect those returns through power
over the subsidiary.
The unaudited condensed interim Group financial statements have been prepared
on a going concern basis using the significant accounting policies and
measurement bases summarised in the December 2024 audited year-end Annual
Report, and in accordance with International Financial Reporting Standards
(IFRS) as adopted by the EU and with the Companies Act 2006, as applicable to
companies reporting under IFRS. The financial statements are prepared under
the historical cost convention except for equity-settled share options,
derivative financial instruments and the retirement benefit net asset, which
are measured at fair value. The consolidated financial statements are
presented in sterling, which is also the functional currency of the parent
company.
Going concern
The Directors have formed a judgement, at the time of approving the unaudited
condensed interim Group financial statements, that there is a reasonable
expectation that the Group has adequate resources to continue in operational
existence and meet its liabilities as they fall due over the assessment
period. The Directors have not identified any material uncertainties relating
to events or conditions that, individually or collectively, may cast
significant doubt on the Group's ability to continue as a going concern for a
period of at least 18 months from when the unaudited condensed interim Group
financial statements are authorised for issue. For this reason, the Directors
continue to adopt the going concern basis in preparing the unaudited condensed
interim Group financial statements.
Notes to the summary financial statements (continued)
For the six months ended 30 June 2025
2 Segmental reporting
Management currently identifies two reportable segments: Recruitment GB, the
provision of workforce recruitment and management to industry and Recruitment
Ireland, the provision of generalist recruitment services. The Group's skills
training and employability services provider, PeoplePlus, was sold on 24
February 2025 and is classed as a discontinued operation. The Group's
reportable segments are determined based on the Group's internal reporting to
the Chief Operating Decision Maker ("CODM"). The CODM has been determined to
be the Group Chief Executive Officer, with support from the Board.
Segment information for the reporting half-year is as follows:
Six months ended 30 June 2025 Six months ended 30 June 2024*
Segment continuing operations Recruitment GB Recruitment Ireland Group Continuing Recruitment GB Recruitment Ireland Group Continuing
Unaudited Unaudited costs activities Discontinued Unaudited Unaudited costs activities Discontinued
£'m £'m Unaudited Unaudited operations Unaudited £'m £'m Unaudited Unaudited operations Unaudited
£'m £'m £'m £'m £'m £'m
Revenue from external customers 437.9 47.9 - 485.8 10.2 393.0 53.8 - 446.8 33.4
Cost of sales (411.1) (41.6) - (452.7) (7.6) (368.3) (47.3) - (415.6) (26.4)
Segment gross profit 26.8 6.3 - 33.1 2.6 24.7 6.5 - 31.2 7.0
Administrative expenses (20.9) (5.3) (1.8) (28.0) (2.5) (20.7) (5.0) (1.6) (27.3) (5.7)
(underlying)
Depreciation and software amortisation (underlying) (1.1) (0.3) - (1.4) (0.1) (1.2) (0.3) - (1.5) (0.8)
Segment underlying operating profit* 4.8 0.7 (1.8) 3.7 - 2.8 1.2 (1.6) 2.4 0.5
Goodwill impairment - - - - - - - - - (12.9)
Reorganisation costs (0.2) (0.2) - (0.4) - - - - - -
Segment operating profit/(loss) 4.6 0.5 (1.8) 3.3 - 2.8 1.2 (1.6) 2.4 (12.4)
Finance (costs)/income (2.7) - - (2.7) - (2.8) - 0.7 (2.1) -
Profit/(loss) for the period before taxation 1.9 0.5 (1.8) 0.6 - - 1.2 (0.9) 0.3 (12.4)
Tax (charge)/credit (0.5) (0.1) 0.4 (0.2) - - (0.3) 0.2 (0.1) (0.1)
Net (loss)/profit for the period 1.4 0.4 (1.4) 0.4 - - 0.9 (0.7) 0.2 (12.5)
*Restated to show the results of PeoplePlus, which was sold on 24 February
2025, as a discontinued operation.
Note: Segment underlying operating profit before goodwill impairment and other
non-underlying costs.
Six months ended 30 June 2025 Six months ended 30 June 2024*
Segment continuing operations Recruitment GB Recruitment Ireland Staffline Continuing Recruitment Ireland Staffline Continuing
Unaudited Unaudited Group Activities Recruitment GB Unaudited Group Unaudited Activities Discontinued
£'m £'m Unaudited Unaudited Unaudited £'m £'m Unaudited operations
£'m £'m £'m £'m Unaudited
£'m
Total non-current assets 27.0 13.9 - 40.9 28.1 10.8 - 38.9 13.0
Total current assets 133.9 18.5 2.0 154.4 115.2 17.6 3.7 136.5 10.9
Total assets (consolidated) 160.9 32.4 2.0 195.3 143.3 28.4 3.7 175.4 23.9
Total liabilities (consolidated) 151.2 11.0 0.8 163.0 137.3 10.3 - 147.6 15.0
Capital expenditure inc software 2.1 0.1 - 2.2 3.5 0.1 - 3.6 0.1
*Restated to show the results of PeoplePlus, which was sold on 24 February
2025, as a discontinued operation.
Notes to the summary financial statements (continued)
For the six months ended 30 June 2025
2 Segmental reporting (continued)
Segment information for the year ended 31 December 2024 is as follows:
Segment continuing operations Recruitment Recruitment Ireland Group Continuing Discontinued
GB 2024 Costs Activities Operations
2024 £'m 2024 2024 2024
£'m £'m £'m £'m
Sales revenue from external customers 884.4 108.5 - 992.9 65.6
Cost of sales (827.7) (94.4) - (922.1) (48.3)
Segment gross profit 56.7 14.1 - 70.8 17.3
Administrative expenses (43.2) (10.6) (3.8) (57.6) (14.4)
Depreciation, software & lease amortisation (2.4) (0.7) - (3.1) (1.6)
Segment underlying operating profit/(loss)* 11.1 2.8 (3.8) 10.1 1.3
Strategic consultancy costs (0.1) - (0.1) (0.2) -
Release of prior year provision - - - - 1.0
Goodwill impairment - - - - (14.5)
Segment (loss)/profit from operations 11.0 2.8 (3.9) 9.9 (12.2)
Finance income - - 1.5 1.5 -
Finance costs (6.0) (0.1) (0.3) (6.4) -
Segment (loss)/profit before taxation 5.0 2.7 (2.7) 5.0 (12.2)
Tax (expense)/ credit (1.4) (0.1) 0.6 (0.9) (0.2)
Segment (loss)/profit from continuing operations 3.6 2.6 (2.1) 4.1 (12.4)
Note: Segment underlying operating profit before goodwill impairment and other
non-underlying costs.
Total non-current assets 26.0 14.3 1.0 41.3 -
Total current assets 133.7 17.4 5.0 156.1 18.8
Total assets (consolidated) 159.7 31.7 6.0 197.4 18.8
Total liabilities (consolidated) 154.1 9.6 0.6 164.3 13.9
Capital expenditure inc software 3.2 0.8 - 4.0 0.4
The analysis above excludes deferred tax assets and liabilities, as required
by IFRS 8, Operating segments.
3 Non-underlying expenses
Administrative expenses Six months ended Six months ended Year ended 31 December 2024
30 June 2025 30 June 2024 £'m
Unaudited Unaudited
£'m £'m
Reorganisation and redundancy costs 0.4
Strategic consultancy costs - - 0.2
Goodwill impairment - 12.9 14.5
Tax credit on non-underlying costs - - -
Post taxation effect on non-underlying costs 0.4 12.9 14.7
Notes to the summary financial statements (continued)
For the six months ended 30 June 2025
4 Earnings per share and dividends
Earnings per share
The calculation of basic earnings per share is based on the earnings
attributable to ordinary shareholders divided by the weighted average number
of shares in issue during the period, after deducting any shares held by the
Employee Benefit Trust ("EBT") - "own shares" (7,627,198 shares at 30 June
2025, 8,535,706 shares at 31 December 2024 and 7,583,206 shares at 30 June
2024). The calculation of the diluted earnings per share is based on the basic
earnings per share as adjusted to further take into account the expected issue
of ordinary shares resulting from any share options granted to Executive
Directors and certain senior employees, and share options granted to employees
under the SAYE scheme.
Details of the earnings and weighted average number of shares used in the
calculations are set out below:
Basic six months ended 30 June 2025 Basic six months ended 30 June 2024 Basic Diluted six months ended 30 June 2025 Diluted six months ended 30 June 2024 Diluted
Restated(1) Year ended 31 December 2024 Restated(1) Year ended 31 December 2024
Restated(2) Restated(2)
Unaudited Unaudited Unaudited Unaudited
Profit/(loss) from continuing operations (£'m) 0.4 0.2 4.1 0.4 0.2 4.1
Weighted daily average number of shares 125,945,434 142,369,230 138,868,494 127,168,247 143,313,695 140,160,630
Earnings/(loss) per share from continuing operations (p) 0.3 0.1 3.0 0.3 0.1 2.9
Underlying earnings from continuing operations (£'m) 0.8 0.2 4.3 0.8 0.2 4.3
Underlying earnings per share (p) 0.6 0.1 3.1 0.6 0.1 3.1
Loss from discontinued operations (£'m) - (12.5) (14.9) - (12.5) (14.9)
Weighted average number of shares - 142,369,230 138,868,494 - 143,313,695 140,160,630
Loss per share from discontinued activities (p) - (8.7) (10.7) - (8.7) (10.6)
Profit/(loss) for the period (£'m) 0.4 (12.3) (10.8) 0.4 (12.3) (10.8)
Weighted average number of shares 125,945,434 142,369,230 138,868,494 127,168,247 143,313,695 140,160,630
Total earnings/(loss) per share (p) 0.3 (8.6) (7.8) 0.3 (8.6) (7.7)
(1) Restated to exclude the results of PeoplePlus, which was sold on 24
February 2025.
(2) For details of the restatement, refer to note 5.
Note: Underlying earnings after adjusting for goodwill impairment and other
non-underlying costs.
Dividends
No interim dividend for 2025 is proposed (2024: £nil).
Notes to the summary financial statements (continued)
For the six months ended 30 June 2025
5 Disposal of PeoplePlus Group Ltd (PeoplePlus division)
On 24 February 2025, the Group sold its wholly owned subsidiary PeoplePlus
Group Ltd, which represented the PeoplePlus division, for cash consideration
of £12.0m, which includes £2.0m of deferred consideration. The consideration
was on a cash-free, debt-free basis and was subject to a deduction of £5.1m
of advanced payments received in respect of future revenue. The net proceeds
of the disposal (including the deferred consideration) were £6.9m, of which
£4.9m in cash has been received to date. The £2.0m of deferred consideration
is contingent on the commencement of potential new contracts expected to take
place within the 15 months following the date of this statement.
PeoplePlus was classified as held for sale in the Group's 2024 Annual Report
and as a discontinued operation in the Group's consolidated statement of
comprehensive income for that year, in accordance with IFRS 5.
At the date of disposal, the carrying amounts of assets and liabilities of
PeoplePlus were as follows:
£'m
Non-current assets
Goodwill 6.6
Intangible assets 0.6
Property, plant and equipment 1.3
Deferred tax asset 0.9
Current assets
Trade and other receivables 6.6
Cash and cash equivalents 1.6
Liabilities
Trade, other payables and provisions (14.0)
Total net assets 3.6
Total consideration received in cash 4.9
Deferred consideration 2.0
Working capital adjustment (2.5)
Disposal costs (0.8)
Net cash receivable 3.6
Profit or loss on disposal -
Prior year adjustment
At 31 December 2024, the goodwill impairment calculation did not take into
account a £2.5m favourable working capital position which, had it been
properly considered, would have increased the loss on discontinued operations
from £12.4m to £14.9m. A prior year adjustment has been made in respect
of this item. There is no effect on the consideration receivable as a
result of this adjustment.
Notes to the summary financial statements (continued)
For the six months ended 30 June 2025
6 Goodwill
The breakdown of Goodwill carrying value by division is listed below:
30 June 2025 30 June 2024 31 December 2024
Unaudited Unaudited £'m
£'m £'m
Recruitment GB 21.4 21.4 21.4
Recruitment Ireland 5.7 5.7 5.7
PeoplePlus - 10.7 -
27.1 37.8 27.1
7 Trade and other receivables
30 June 2025 30 June 2024 31 December 2024
Unaudited Unaudited £'m
£'m £'m
Trade receivables 120.7 107.0 123.1
Prepayments and other receivables 29.1 29.5 3.5
Contract assets - accrued income - 5.5 14.9
149.8 142.0 141.5
8 Derivative financial instruments
30 June 2025 30 June 2024 31 December 2024
Unaudited Unaudited £'m
£'m £'m
Cash flow hedges - net value - 0.8 0.4
Effective from 14 October 2024, the Group entered into an amortising interest
rate collar instrument, comprising:
• a cap element to reduce exposure to interest rate increases
above 4.75% above SONIA on an aggregated two-thirds of the RFA and the
customer finance arrangements, and,
• a floor element, based on the same nominal values and over the
same period as the cap, to pay the issuer the differential if the SONIA
interest rate falls below 2.51%.
The instrument, which has a term of five years from 14 October 2024, is based
on quarterly notional amounts varying between £58.9m and £77.3m, with an
average of £68.6m. The instrument was acquired for no upfront premium.
In October 2021 the Group entered into an amortising interest rate cap
instrument, which reduced exposure to interest rate increases above 1% of
SONIA on an aggregated two-thirds of the Receivables Finance Agreement and the
customer finance arrangements. The instrument, which expired on 13 October
2024, was based on quarterly notional amounts varying between £39.5m and
£62.5m, with an average of £51.9m.
Notes to the summary financial statements (continued)
For the six months ended 30 June 2025
9 Cash and cash equivalents
30 June 2025 30 June 2024 31 December 2024
Unaudited Unaudited £'m
£'m £'m
Cash and cash equivalents 4.6 4.6 14.6
Cash and cash equivalents consist of cash on hand and balances with banks
only. All cash on hand and balances with banks are held by subsidiary
undertakings but these balances are available for use by the Group.
Long term credit ratings for the banks used by the Group are currently as
follows:
Fitch Standard Moody's
& Poor's
National Westminster Bank plc AA- A+ A1
Royal Bank of Scotland plc AA- A+ A1
The Group's banking facility headroom is as follows:
30 June 2025 30 June 2024 31 December 2024
Unaudited Unaudited £'m
£'m £'m
Cash and cash equivalents 4.6 4.6 14.6
Available receivables finance agreement balance 61.9 45.6 61.3
Banking facility headroom 66.5 50.2 75.9
10 Trade and other payables
30 June 2025 30 June 2024 31 December 2024
Unaudited Unaudited £'m
£'m £'m
Trade and other payables 25.3 26.2 29.4
Accruals and deferred income 67.2 59.7 61.2
Contract liabilities - deferred income - 5.5 -
Other taxation and social security 55.3 50.5 62.6
147.8 141.9 153.2
Notes to the summary financial statements (continued)
For the six months ended 30 June 2025
11 Borrowings
30 June 2025 30 June 2024 31 December 2024
Unaudited Unaudited £'m
£'m £'m
Current liabilities:
Receivables finance agreement 10.3 13.8 5.0
Lease liabilities 0.9 1.4 1.0
11.2 15.2 6.0
Non-current liabilities:
Lease liabilities 3.3 3.9 3.7
Total borrowings 14.5 19.1 9.7
Less: Cash and cash equivalents (note 9) (4.6) (4.6) (14.6)
Net debt 9.9 14.5 (4.9)
Credit facilities
The Group uses a Receivables Financing Agreement ("RFA") to fund its
day-to-day working capital requirements. The RFA leverages the Group's trade
receivables with sufficient headroom and flexibility to manage the variability
and size of weekly cash outflows.
The facility is provided jointly by RBS Invoice Finance Limited and by Leumi
UK Group Limited, who replaced ABN AMRO Asset Based Finance N.V., UK Branch,
on 12 March 2025.
The key terms of the facility are set out below:
i) maximum receivables financing facility of £60.0m over a
four-year term, with a one-year extension option;
ii) an Accordion option of up to an additional £20.0m, subject
to lender approval;
iii) security on all of the assets and undertakings of the Company
and certain subsidiary undertakings;
iv) interest accruing at a maximum of 2.25% over SONIA, with a
margin ratchet downward to 1.5%, dependent upon the Group's leverage reducing
to less than 1.00x;
v) a non-utilisation fee of 0.35%;
vi) maximum net debt (averaged over a rolling three months) to
EBITDA leverage covenant of 4.0x; and
vii) minimum interest cover covenant of 2.25x the last 12 months
EBITDA to finance charges.
The Group also uses a number of separate, non-recourse, Customer Financing
arrangements whereby specific customer invoices are settled in advance of
their normal settlement date. At 30 June 2025, the estimated value of invoices
funded under these arrangements was £43.8m (2024: £58.2m).
Notes to the summary financial statements (continued)
For the six months ended 30 June 2025
12 Provisions
Group 2025 2024
Staff Property Group Group
costs costs Total Total
£'m £'m £'m £'m
At 1 January 2025 0.1 0.4 0.5 2.3
Amounts charged to the income statement - - - 0.1
Amounts utilised - - - (1.0)
Unused amounts reversed to the income statement - - - -
At 30 June 2025 0.1 0.4 0.5 1.4
Due within one year (current) 0.1 0.1 0.2 1.0
Due after more than one year (non-current) - 0.3 0.3 0.4
At 30 June 2025 0.1 0.4 0.5 1.4
The Group makes provision for staff and property costs relating to
reorganisation programmes. The staff costs relate to redundancies and the
property costs relate to lease dilapidations.
Provision is made for "wear and tear" dilapidation costs at the Group's leased
properties. Where possible, dilapidations provisions are determined based on
an independent valuation of the estimated total cost payable on expiry of the
respective leases. The timing and value of the costs are uncertain due to
potential changes to exit dates and the final liability which may be subject
to negotiation with the landlord.
The Company has no provisions (2024: £nil).
13 Share capital
30 June 2025 Unaudited 30 June 2024 31 December 2024
£'m Unaudited £'m
£'m
Allotted and issued
126,812,313 ordinary 10p shares 12.7 14.8 14.2
30 June 2025 30 June 2024 31 December 2024
'000 '000 '000
Shares issued and fully paid
At the beginning of the period 142,330 149,191 149,191
Shares cancelled during the period 15,518 (851) (6,861)
At the end of the period 126,812 148,340 142,330
All Ordinary Shares have the same rights and there are no restrictions on the
distribution of dividends or repayment of capital with the exception of the
7,627,198 shares held at 30 June 2025 (2024: 7,583,206 shares) by the Employee
Benefit Trust where the right to dividends has been waived.
Notes to the summary financial statements (continued)
For the six months ended 30 June 2025
14 Cash flows from operating activities
Reconciliation of loss before taxation to net cash inflow from operating Six months ended Six months ended Year ended
activities
30 June 2025 30 June 2024 31 December 2024
Unaudited Unaudited Restated*
£'m £'m £'m
Profit/(loss) before taxation from:
Continuing operations 0.6 0.3 5.0
Discontinued operations - (12.4) (14.7)
0.6 (12.1) (9.7)
Adjustments for:
Finance income - (0.9) (1.4)
Finance costs 2.7 3.0 6.3
Depreciation and amortisation 1.4 2.3 4.7
Goodwill impairment - 12.9 17.0
Cash generated before changes in working capital and share options 4.7 5.2 16.9
Change in trade and other receivables (7.3) (12.6) (20.0)
Change in trade, other payables and provisions (5.5) 0.5 23.9
Cash (utilised in)/generated from operations (8.1) (6.9) 20.8
Employee equity settled share options 0.5 0.3 0.7
Net cash (outflow)/inflow from operating activities (7.6) (6.6) 21.5
( )
(*) For details of the restatement, refer to note 5.
Movement in net debt Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
Unaudited Unaudited £'m
£'m £'m
Net cash/(debt) at beginning of the period 4.9 (0.2) (0.2)
Lease payments, additions, disposals and interest 0.5 (1.3) (0.7)
Net (drawn from)/repayments to Receivables Finance Agreement (5.3) (4.3) 4.5
Change in cash and cash equivalents (10.0) (8.7) 1.3
Net (debt)/cash at end of period (9.9) (14.5) 4.9
Represented by:
Cash and cash equivalents (note 9) 4.6 4.6 14.6
Current borrowings (note 11) (10.3) (13.8) (5.0)
Lease liabilities (note 11) (4.2) (5.3) (4.7)
Net (debt)/cash at end of period (9.9) (14.5) 4.9
Notes to the summary financial statements (continued)
For the six months ended 30 June 2025
15 Related party transactions
Transactions between the Company and its subsidiaries, which are related
parties, have been eliminated on consolidation and are not disclosed in this
note. There were no material transactions with Directors of the Company during
the Period, except for those relating to remuneration.
The directors holding office at 30 June 2025 have the following beneficial
interests in the Company's share capital:
Number
Amanda Aldridge 80,000
Albert Ellis 1,231,392
Catherine Lynch 10,000
Daniel Quint 945,423
Tom Spain 1,675,000
3,941,815
Albert Ellis and Daniel Quint have interests in
4,227,510 and 3,435,916 respectively for options for Ordinary Shares,
awarded under the Company's 2021 long term incentive plan in February 2023,
January 2024 and June 2025, and the SAYE scheme 2022. The other directors have
no current interests in share options or the SAYE scheme.
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