Staffing 360 rallies as UK subsidiary re-signs British American Tobacco, its largest client, to multiyear contract

Staffing 360 Solutions Inc (NASDAQ:STAF) rallied Tuesday after reporting that a UK subsidiary signed its largest client, British American Tobacco plc (NYSE:BTI), to a multiyear client.

The New York-based group of staffing organizations said in a statement that the subsidiary, Clement May, is providing resource process outsourcing and staffing services for the tobacco company.

Shares of Staffing 360 climbed US$1.03, or 51%, to US$3.06 in Tuesday’s premarket trading.

READ: Staffing 360 acquires North Carolina-based Key Resources as part of expansion drive

“We are proud of the service we provide to BAT and are very pleased that our consistently high level of service level has been recognized in this way,” Chris Rowbotham, managing director of Clement May, said in a statement. “We will continue to work with BAT on areas where we can help to improve its business even further.”

Staffing 360 said its acquisition strategy has expanded the company from US$41 million in revenue in 2014 to US$187 million for the first nine months of 2018. The company expects to be profitable for the 2019 fiscal year.

Revenue goal

Opportunities for acquisitions will drive annual revenue to US$500 million, according to Staffing 360. In August, the company announced the acquisition of Key Resources Inc to expand its presence in North Carolina.

US-listed stock of British American Tobacco climbed US$0.25, or 0.8%, to $33.15 in Tuesday’s premarket trading while it’s London-traded shares added 1p to 2,566p.

Contact Dennis Fitzgerald at [email protected]

Story by ProactiveInvestors