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Staffline CEO stands down following series of profit warnings
20th Feb 2020 09:55
(Sharecast News) - Recruitment and training group Staffline's chief executive Chris Pullen tendered his resignation to the board on Thursday as the group looked to reduce potential covenant risks while operating in a "competitive environment".
Staffline said Pullen would continue to carry out his role as chief executive during his notice period in order to facilitate an orderly succession and maintain business continuity.
The AIM-listed group noted that it would immediately initiate a formal executive search process to identify a replacement for Pullen.
In terms of recent trading, Staffline said its full-year 2020 outlook remained "unchanged and in-line with market expectations" despite continuing to operate in a "competitive environment".
Staffline said it remained in "constructive dialogue" with its lenders and expects to reach agreement on revised terms that will remove the risk of covenant issues and ensure that it retains "sufficient liquidity headroom".
The company cautioned in January that annual adjusted profits were expected to be significantly lower than previously forecast. The warning followed three profit warnings in 2019.
The group's net debt position at 31 December 2019 was expected to be ?60m, which the company noted remained subject to audit.
As of 0950 GMT, Staffline shares had sunk 6.54% to 43.46p.
Staffline said Pullen would continue to carry out his role as chief executive during his notice period in order to facilitate an orderly succession and maintain business continuity.
The AIM-listed group noted that it would immediately initiate a formal executive search process to identify a replacement for Pullen.
In terms of recent trading, Staffline said its full-year 2020 outlook remained "unchanged and in-line with market expectations" despite continuing to operate in a "competitive environment".
Staffline said it remained in "constructive dialogue" with its lenders and expects to reach agreement on revised terms that will remove the risk of covenant issues and ensure that it retains "sufficient liquidity headroom".
The company cautioned in January that annual adjusted profits were expected to be significantly lower than previously forecast. The warning followed three profit warnings in 2019.
The group's net debt position at 31 December 2019 was expected to be ?60m, which the company noted remained subject to audit.
As of 0950 GMT, Staffline shares had sunk 6.54% to 43.46p.