These two UK stocks released annual financial statements on Tuesday. Here is the key information investors should know.
Fall in profits following the Covid-19 crisis
the Staff line group (LSE: STAF) the share price has risen sharply over the past year. It is up nearly 50% since last June as hopes for the economic recovery have gradually improved. However, the recruitment and training specialist fell 2% on Tuesday following the release of new financial statements.
Staffline saw its revenue drop 13% year-on-year in 2020 when the public health emergency erupted, he said. These totaled Â£ 927.6million for the full year. As a result, pre-tax losses widened to Â£ 51.6million from Â£ 44.4million in 2019.
While the group’s net fee income fell 12.7% last year, CEO Albert Ellis said, âthe impact of transformation and cost reduction actions resulted in a significant improvement in current operating income in the second half of the year compared to the first. “This means annual profits have beaten expectations at Â£ 4.8million from Â£ 2.9million the year before.
Staffline’s share price fell, however, as it warned that some coronavirus turmoil persisted. The British Support Share stated that âmarket conditions remain volatileâIn some of the sectors that have just reopened following the Covid-19 lockdowns.
Having said that, he noted that âthe successful vaccination program is a springboard for a strong recovery in the second half of 2021. He added that the performance for the first quarter of 2021 had exceeded expectations.
Sales also suffer from this share in the UK
the James cropper The share price (LSE: CRPR) was unchanged on Tuesday following the publication of its own annual results. It is still 7% higher than 12 months ago.
James Cropper manufactures advanced materials and paper products for a wide range of applications. And he saw his revenue drop by almost a quarter year-on-year in the fiscal year ended March 2021, to Â£ 78.8million. Demand for its products fell across the group, and sales were hit particularly hard in its main paper division. Revenue fell 32% from 2020 financial levels to Â£ 51.4million.
As a result, UK paper stock’s pre-tax profit fell to Â£ 1.7million last year, from Â£ 5.5million in the previous 12-month period.
James Cropper chief executive Phil Wild noted that the bulk of the impact of Covid-19 was felt in the first half of the year, with the company seeing steady improvement for the remainder of fiscal year 2021. He added that “With the pursuit of strong business development, the pursuit of innovation and the restart of investment, I am optimistic that the company is uniquely positioned to emerge stronger and accelerate growth in every company. “
The company now intends to revive capital investments that were frozen last year. This notably concerns the commissioning of a fourth production line within the Technical Fibers Products (or PTF) division. It also plans to significantly improve the finishing capabilities of its paper division.
Post UK stocks: Staffline Group and James Cropper release new financial data! first appeared on The Motley Fool UK.
Royston Wild has no position in any of the stocks mentioned. The Motley Fool UK has no position in any of the stocks mentioned. The opinions expressed on the companies mentioned in this article are those of the author and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. At The Motley Fool, we believe that considering a wide range of ideas makes us better investors.
Motley Fool United Kingdom 2021
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