StockMarketWire.com - Recruitment agency and training group Staffline said it expected its annual revenue to rise by around 18%, though it warned that one-off costs would push up its debt levels.

Revenue for the year through December was expected to rise to around £957.8m, contributing to a trading performance in line with market expectations, the company said.

The recruitment division had continued to grow, with acquisitions completed during the year performing ahead of management expectations.

The PeoplePlus division, meanwhile, had 'successfully transitioned into the UK's leading skills and training provider, making good progress in the year', Staffline said.

However, as part of a transformation of PeoplePlus, significant one-off costs were incurred and classified as exceptional items.

'Excluding amortisation charges on intangible assets arising on business combinations and non-cash charges for share-based payment costs, total exceptional costs will be £20m in 2018, principally due to the aforementioned PeoplePlus transformation,' Staffline said.

'Whilst the group remains highly cash generative, these costs, together with the consideration paid for acquisitions in the second half of the year, have resulted in an increase in net debt to around £63m as at 31 December 2018.'




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