21 November 2017 – trading update
The international specialist staffing group has issued a trading update for the year to 31 December which has confirmed that whilst pre-tax profits for the year will be ahead of last year at a new record level, they will be below market expectations. This is largely due to reduced margins in Germany due to changes in legislation and a weak performance from markets in the Middle East. As is often the case with smaller companies at the moment any disappointing news can see the share price hammered and we believe that the share price fall has been overdone. With the shares trading on a p/e ratio of about 10x on reduced expectations for 2017 we feel the shares justify a recommendation of SPECULATIVE BUY.