Staffing 360 Solutions Inc (NASDAQ:STAF) reported a net loss of $7.0 million, versus a year-ago profit of $0.2 million in the year-ago period. Its revenue fell 20.5% to $58.7 million.
The New York-based Staffing, a company executing an international buy-integrate-build strategy through the acquisition of staffing organizations in the United States and the United Kingdom, today announced Fiscal 2020 first quarter results, which were impacted in March by the economic downturn resulting from the COVID-19 pandemic.
CEO Brendan Flood said, "Q1 results were directly in line with the guidance provided in our year-end financial results call. As anticipated, the revenue decline was principally due to the loss of a low-margin client in the U.K. and the impact of IR35 payroll tax legislation in the U.K. Additionally, late in the quarter both countries in which we do business were negatively impacted by the swift worldwide economic turndown due to COVID-19."
Flood concluded, "Based on our current outlook, I believe that the combined US and UK government stimulus assistance we’ve received ($19.4 million from a forgivable U.S. PPP loan, and $1.3 million VAT deferral and government-funded furlough program from the U.K.) will make a significant positive improvement in our full year financial results.
"We expect that our use of the U.S. PPP funds should qualify for and allow for full, or nearly full, forgiveness of that loan. We are actively evaluating additional U.S. and U.K. government programs for which we may qualify."
STAF 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.
STAF shares faded 1.7 cents, or 1.6%, to $1.06.
