Staffline (STAF)

[Asagi]

Staffline is a few things, but generally it is a blue collar staffing supplier to industry such as food manufacture. The company describes itself thus:

From our network of more than 450 locations, we supply in excess of 55 million hours of temporary labour each year to our diverse portfolio of more than 1,600 clients, including the major supermarket chains, food growers and manufacturers, logistics and distribution centres, customer service organisations, the care sector and welfare to work.

The company has done this very well. Since 2006 dividends have been increasing every year, from 1.9p per share to 20p for 2016.

Staffline has today made a trading statement for the financial year to end-December 2016:
http://www.investegate.co.uk/staffline- ... 00202450T/

The Board is pleased to report that the Group expects to deliver full year results in line with market expectations. Demand in the Staffing business has remained strong through the second half and the division has once again achieved excellent growth in the number of OnSites this year. PeoplePlus, the Employability, Skills and Justice Division, has also made good progress, becoming the top performer in Work Programme contracts as well as benefiting from its focus on improved margins.

according to my data, that puts the shares on a 2016 P/E of just 7.5, with an expected yield of 2.9%.

The company is famous for getting its results out quickly. Finals are scheduled for January 25th. So we have a successful company, with a modest valuation and a reappraisal event coming soon (i.e. results). I have bought more shares this morning.

Asagi (long STAF)