Staffline Regulatory News (STAF)

21 May 2009 07:00



For immediate release 21 May 2009

STAFFLINE RECRUITMENT GROUP PLC

("Staffline" or "the Group")

AGM Statement

Staffline, a leading provider of outsourced HR services to industry, is today holding its Annual General Meeting.

Andy Hogarth, Staffline's Chairman, will make the following remarks at the AGM:

"Performance in the first four months of 2009 has been in line with management's expectations.  The current financial year is seeing the full benefit of the new OnSites opened during the second half of 2008, offset as previously announced by the loss of a significant client with 4 OnSites at the end of the first quarter of 2009. 

"Whilst we expect the recession to continue and impact our industry and our clients, we remain confident that our business model will allow us to operate profitably and to grow our market share, particularly given the relative resilience of the sectors in which we operate, particularly food processing. The operational savings implemented during 2008 should underpin profitability in 2009 and also assist us to remain competitive 

"Critical to our success in these difficult times is our strong financial position, and the cash generative nature of our business, in contrast to many of our competitors. Reflecting this, we continue to see new opportunities as many of our competitors are in poor financial shape and we have already won new business because of this.

"At the Annual General Meeting today we are seeking shareholder approval to change the name of the company to Staffline Group plc, having already refreshed our branding and corporate identity. These changes reflect the move in the last few years away from being a traditional recruitment business towards being an outsourced business services provider and have not incurred material costs. 

"An update on our first half performance, for the six months ending 30 June 2009, will be provided in early July."

- Ends -

About Staffline

Staffline Recruitment Group plc's main business is as a specialist supplier of "blue collar" temporary and contract staff to industry. It provides a fully outsourced service, managing the temporary recruitment function of its clients on their premises, at 108 OnSite locations nationwide and also has a network of 11 industrial branches. In addition, the Group has two smaller businesses branded as Techsearch, which specialises in temporary and permanent engineering, IT, HR and FMCG placements, and OSP, which provides permanent recruitment services principally to the distribution and logistics sector. The Group, which is managed from a head office in Nottingham, was founded in 1986 and was admitted to AIM in December 2004 (Ticker: STAF.L).