Staffline Group (STAF) H1 2026 earnings summary

Executive summary

• Revenue grew 15.2% year-over-year to £559.4m, with operating profit up 57.6% to £5.2m and profit before tax up 383.3% to £2.9m, driven by new contract wins, expanded mandates, and strong temp hours and permanent fees, especially in Ireland.

• Gross profit increased 13.3% to £37.5m, with gross profit to operating profit conversion rising from 10.0% to 13.9%.

• Share buybacks since August 2023 reduced shares in issue by 30%, delivering 32% EPS accretion and supporting a 50–60% share price increase.

• Strategic focus on market share, economies of scale, portfolio diversification, and margin improvement, with significant growth in both GB and Ireland.

• Strong momentum into H2 2026, with high retender and renewal activity and robust demand in logistics, supermarket distribution, and food manufacturing.

Financial highlights

• Revenue for H1 2026: £559.4m (H1 2025: £458.5m), gross profit: £37.5m (H1 2025: £33.1m), operating profit: £5.2m (H1 2025: £3.3m).

• Profit before tax increased to £2.9m from £0.6m year-over-year.

• Net finance charges reduced to £2.3m due to tight cash control and lower interest rates.

• Net debt increased to £14.6m, mainly due to working capital investment and June trading spike.

• £17.3m spent on share buybacks since August 2023.

Outlook and guidance

• Trading at the top end of market expectations with strong momentum into H2 2026.

• Temporary worker hours in GB up 18.3% year-over-year in late June, with continued growth into July.

• Strong pipeline conversion, major contract retentions, and ongoing market share gains expected.

• Focus remains on strategic partnerships, market leadership, and resilience through blue-chip customer base.

• FY 2026 profit before tax expected at the top end of £8.7m–£9.2m market expectations.