Staffing 360 Solutions Inc. (NASDAQ:STAF): Staffing 360 Solutions shares are making big moves over the last couple of days after losing substantial value in the previous five years.

Staffing 360 Solutions Shares Spike after Big Announcement

Staffing 360 Solutions shares jumped sharply higher after the announcement of the acquisition of Clement May Limited at the beginning of this week. Its shares are currently trading around $3 after hitting a 52-week low of $1.35 a share at the end of last month.

The company’s new business strategy of expanding its top-line performance through acquisitions and management realignment exercises is optimizing traders’ sentiments. The management claims they are experiencing better revenue and margin performance with the new business strategy.

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Staffing 360 Solutions believe the Clement May Limited acquisition would allow them to enter into the Resource Process Outsourcing market. Its Chairman Brendan Flood says, “The acquisition of Clement May reflects our continuing focus on strategic M&A activity that, in concert with an intelligent integration program, is designed to drive top-line growth towards our stated revenue goal of $500 million over the next two years.”

Financial Numbers Optimizes Sentiments

Its business strategies are working, considering the robust growth in its financial numbers. The company generated a year-over-year revenue growth of 37% in the first quarter of this year, driven by previous acquisitions and management realignment exercises.

Staffing 360 Solutions’ gross margin grew by 58% in the first quarter compared to last year, while its adjusted EBITDA rose 57% to $1.6 million. The company has also narrowed its loss to $1.3 million compared to the loss of $3.1 million in the same period last year.

The company says they expect similar results in the second quarter and the rest of year, thanks to acquisitions.

Although its shares are down more than 12% in the last twelve months and 96% in the past five years, the fresh momentum in its financial numbers is likely to offer substantial support to its share price in the days to come.

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