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Analysts Are Optimistic We'll See A Profit From Staffline Group plc (LON:STAF)

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Staffline Group plc (LON:STAF) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Staffline Group plc, together with its subsidiaries, provides recruitment and outsourced human resource services, and skills training and probationary services. The UK£100m market-cap company’s loss lessened since it announced a UK£49m loss in the full financial year, compared to the latest trailing-twelve-month loss of UK£3.2m, as it approaches breakeven. As path to profitability is the topic on Staffline Group's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Staffline Group

Staffline Group is bordering on breakeven, according to the 2 British Professional Services analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of UK£500k in 2022. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 133% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

Underlying developments driving Staffline Group's growth isn’t the focus of this broad overview, however, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 12% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Staffline Group, so if you are interested in understanding the company at a deeper level, take a look at Staffline Group's company page on Simply Wall St. We've also put together a list of key factors you should further examine:

  1. Valuation: What is Staffline Group worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Staffline Group is currently mispriced by the market.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Staffline Group’s board and the CEO’s background.

  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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