Recruitment and human resource specialist Staffline has reported a significant fall in revenue and a static level of profit as it deals with the recession.

Reporting its interim results for the six months to June 30, 2009, the company said revenue was down 11 per cent to £49.1 million from 54.9m in 2008.

The Staffline Group’s pre-tax profit held at £1.4m (2008: £1.4m) after it benefits from cost reductions.

Cash generated from operations increased significantly to £2m from £800,000 in 2008, while net debt reduced by £1.9m to £4.2m (December 31, 2008: £6.1m).

It also expects to benefit from a reduction in staff and new board appointments.

Andy Hogarth, chairman and chief executive, said: “The group has had a successful first half year considering the tough economic backdrop in many of its trading sectors. Our focused strategy of deriving a greater proportion of revenues from the more secure areas of outsourced labour, training and other business services has continued.

“Trading in the first eight weeks of the second half of the year has been satisfactory in the food sector and remains subdued in logistics and manufacturing... Our strong financial position means we are in good shape to take advantage of acquisition opportunities and strengthen our competitive position and we expect to benefit from the recent acquisitions completed and also from the continuing positive effect of cost reductions.”

Topics