Staffing 360 Solutions, Inc., a company executing an international buy-integrate-build strategy through the acquisition of staffing organizations in the United States and the United Kingdom, provided its 2020 outlook and previewed fiscal 2019 revenue results.
Brendan Flood, Chairman and CEO said, “For many reasons 2020 is already shaping up to be a highly productive year for us as outlined in our 2020 overview.”
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2020 Overview
- On a macro level, there is growing optimism in the business media that the world economy will continue on a strong path in 2020.
– We operate in both the US and the UK and those economies are strong.
– Staffing Industry Analysts (SIA) recently said that the worst of the temp slowdown may be behind us.
– Brexit should commence the end of this month, allowing for more certainty about the UK economic outlook. - From a corporate perspective, we are still experiencing very strong demand for candidates in each of our business streams (for contract and permanent talent) and we are making solid progress adding new clients.
– Cross-sales within the US and within the UK continue to build on recent successes
– All four US & UK brands successfully collaborated on a new US-based project late in Q4. We see these new inter-country cross-sales opportunities growing as well.
– Our fourth quarter engagement of R.W. Baird (a multinational independent investment bank and financial services company) is active as they assist us with strategic acquisitions – and the related refinancing of our balance sheet to accommodate any successful transactions.
– That work progresses simultaneously down two paths. First combined acquisition and refinance and second for standalone debt refinance. - UK Professional
– Clement May – continuing to build upon January 2019 three-year extension with client British American Tobacco, with placements both inside and outside the US.
– CBSbutler – permanent placements off to a healthy start, that pipeline is strong. Contract placements up in December. Seeing new demand in pharmaceutical and aviation markets.
– JM Group – growing contract placements for Information Security. - US Professional
– firstPRO – strong 2019 finish for contract placements with headcount still increasing; permanent placement also increasing. Actively targeting and producing higher level contract placements to increase margins; anticipate increased performance.
– Lighthouse – strong permanent outlook. Seeing aggressive growth with pharma; on track to become approved vendor for east coast hospital. Anticipate cross-sales success with Commercial this year. - US Commercial
– Monroe – large accounts performing well with high customer satisfaction rating; win rates have tripled; program for improved account retention; solid opportunities in pipeline.
– Net Promotor Score (NPS) measuring customer loyalty is 75+% (industry average is 35%) - Key Resources – three new potential clients look strong. Fiscal 2019 Revenue Preview
– 2019 revenue is expected to be $278.5 million, an increase of 6.7%.
– Revenue is in line with previously stated full year revenue estimate of $275-285 million.
Flood said, “We are optimistic and our overall business outlook is strong – with 2020 giving all the appearances of a good one for us. As my final comment, I would like to point out that I consider our work with R.W. Baird on the refinancing of our debt very important and it remains one of the focal points of the corporate office.”
Staffing 360 Solutions, Inc. is engaged in the execution of an international buy-integrate-build strategy through the acquisition of domestic and international staffing organizations in the United States and United Kingdom.
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