December 18, 2019 / 7:37 AM / 2 months ago

UK recruiter Staffline issues third profit warning for year, shares sink

(Reuters) - Recruitment company Staffline Group Plc (STAF.L) cut its full-year profit forecast for the third time, hit by a slump in Britain’s job market in the fourth quarter, sending its shares down 29% to their lowest in a decade.

The company said Chief Financial Officer Mike Watts has left with immediate effect.

“During November, customer demand was down approximately 16% from the prior year which the Board believes reflects high levels of consumer uncertainty across the UK,” the company said.

Staffline said it may have overstated last year’s profit by nearly 4 million pounds ($5.13 million), from errors relating to costs which were not correctly booked, after an accounting review.

The recruiter expects adjusted profit before interest, tax and non-underlying charges of about 10 million pounds to 12 million pounds for the year ending Dec. 31, down from previous forecast of 20 million pounds.

The company expects fourth-quarter performance in its employment support and training division PeoplePlus to come in lower than estimated, due to the impact of general election on short-term demand.

Daniel Quint has been appointed as chief financial officer on an interim basis, the company said.

Reporting by Tanishaa Nadkar in Bengaluru; Editing by Rashmi Aich and Sherry Jacob-Phillips

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