LONDON (ShareCast) - (Sharecast News) - Recruitment and training company Staffline has sold off its PeoplePlus subsidiary for £12m and plans to return £7.5m to shareholders by way of a share buyback, causing shares to jump on Tuesday.
The disposal of its workplace training and employability business, to Talent International, leaves Staffline as a "pure-play recruitment platform with market leading reach across the UK and Ireland", the company said.

The cash consideration of £12m, which includes £2m deferred contingent on the start of potential new contracts expected within the next. 12 months, is on a cash- and debt-free basis.

However, it is subject to a deduction of £5.1m of advanced payments received in respect of future revenue, leaving net proceeds at £6.9m.

"PeoplePlus has played an important part in developing Staffline's service offering over a number of years but with our strategic ambitions centred on our fast growing recruitment activities as opposed to training and education, now feels like the opportune moment to implement this change," said chief executive Albert Ellis.

"We see significant opportunities for organic growth in our remaining recruitment divisions and will accelerate value creation for Staffline shareholders going forward."

The stock was up 12% at 26.6p by 0900 GMT.

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