Staffline Recruitment, backed by Growth Company Investor at 122p last year, has cheered with an optimistic year-end update for calendar 2005 – the full year figures are out in March.

Both sales and profits are set to be ‘significantly ahead’ of last year and in line with City forecasts. OnSite, the division managing the temporary recruitment needs of clients on their own site, now makes up 60% of sales, and enjoyed strong year-on-year growth thanks to new client wins and a rising number of sites managed for existing customers. The industrial branch division turned in a decent performance, and ‘continues to incubate’ new OnSites.

Managing director Andy Hogarth says 2006 will benefit from the ‘full annualised effect’ of OnSites won during the year, and claims the pipeline of OnSite prospects is ‘stronger than it has ever been’.

Following the statement, house broker Oriel Securities retained its ‘buy’ stance on the stock. When the figures are unveiled, investors can expect pre-tax profits of £2.3m off a top line £58m, and earnings of 8.2p. For December 2006, a move to a £3m surplus on £61.3m sales has been pencilled in, giving 10p of earnings.

At current levels Staffline trades on forward multiples of 12.9 and 10.6. The shares, admittedly down on our recommendation price, remain well worth a flutter.

Staffline Recruitment	AIM	£8.39m	39.50p	0.00p
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