Staffing 360 Solutions Inc. (NASDAQ: STAF) reported that fourth quarter revenue fell 12% in constant currency with the decrease driven primarily by the loss of a low-margin client in the UK. The New York-based staffing firm — which has operations in the US and UK — announced results on Monday for the quarter ended Dec. 28.
| (US$ thousands) | Q4 2019 | Q4 2018 | % change | % constant currency |
| Revenue | $63,834 | $74,091 | -13.8% | -12% |
| Gross profit | $11,614 | $12,345 | -5.9% | |
| Gross margin | 18.2% | 16.7% | ||
| Net loss | ($2,544) | ($1,406) | nm |
Fourth-quarter gross margin improved while net loss widened.
Chairman and CEO Brendan Flood said that currently the company has converted to working from home in the face of the Covid-19 crisis.
Full-year revenue
| (US$ thousands) | FY 2019 | FY 2018 | % change | % constant currency |
| Revenue | $278,478 | $260,926 | 6.7% | 8.7% |
| Gross profit | $48,309 | $48,304 | 0.0% | |
| Gross margin | 17.3% | 18.5% | ||
| Net loss | ($4,894) | ($6,501) | nm |
“While full-year revenue, EBITDA and adjusted EBITDA grew and our net loss showed meaningful improvement, we’re not satisfied with our 2019 results,” Flood said. “We are focused and working to do better in 2020 in the face of the evolving economic impact of the Covid-19 pandemic.”
Share price and market cap
Shares in Staffing 360 Solutions were down 18.87% to 43 cents as of 12:01 p.m. Eastern time today; the company had a market cap of $4.6 million, according to FT.com