Tag Archives: Brexit

Staffline Group Plc (ISIN GB00B040L800) -Growth machine or Brexit victim ?

Due to the well-known Brexit troubles in the UK, my contrarian instincts seem to motivate me to look more at UK companies these days. One of the UK companies on my watchlist was Staffline Plc, a recruitment and “human resources outsourcing company”.

staffline_group_logo_low2

The company got on my radar screen because friends mentioned that it looks like an interesting company and that the have a “great CEO”.

Those are the usual multiples:

Market Cap 232 mn GBP
P/E 2015: 15,6
P/E 2016: 7,4
EV/EBIT 11,7
EV/EBITDA 7,0

The company grew sales almost 10-fold over the last 10-12 years. Interestingly however GAAP EPS in 2015 was at the level of 2006.

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SportsDirect (SPD) – Bad PR but maybe good Capital Allocation ?

Already some days ago, I linked to an interesting write up from Wertart on UK retailer SportsDirect.

sportsdirect-com_logo

In general, I liked a lot of things at SportsDirect from a share holder perspective:

+ It is kind of “Owner operated” with an experienced management
+ Aldi/Lidl like business model (Some brands, own brands, “hard discount”)
+ good growth track record since IPO
+ very good profitability
+ looks cheap based on past performance

Of course there are a couple of issues as well:

  • it is retail after all
  • Brexit / GBP issues (higher import prices, potential issues with consumer confidence)
  • Bad PR (low wages, zero hour contracts, incidents)
  • some governance issues (related party dealings etc.)

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