Staffline shares plunge as recruiter slashes profit forecasts
Staffline has announced its finance chief has stepped down as the recruitment firm cut its profit forecasts following a dip in consumer demand.
Shares in the company plunged 33 per cent this morning as it revealed that trading performance in the fourth quarter was below the board’s expectations following a slump in demand.
Read more: Staffline swings to a loss as it issues dire earnings outlook
Following the challenges in fourth quarter trading, Staffline said the board expects the group to post full year adjusted operating profit of approximately £10m to £12m.
In September the firm said it expected to deliver £20m in operating profit.
In November, customer demand was down 16 per cent compared to the same month in 2018, which Staffline blamed on high levels of uncertainty across the UK. The recruiter said December trading was slightly better, but remained below expectations.
Chief financial officer Mike Watts is stepping down following a torrid year for the recruitment firm that has seen its share price dive.
Former Young & Co finance chief Daniel Quint has been appointed as Watts’ replacement on an interim basis.
Read more: PwC resigns as Staffline auditor
Chris Pullen, chief executive of Staffline, said: “It has been a most challenging year for Staffline.
“Despite this we have developed two robust market leading businesses which are well set as platforms for future growth. We remain optimistic about the future potential of the group with the challenges of 2019 behind us.”