Staffline Regulatory News (STAF)

26 May 2022

Staffline Group plc

("Staffline", the "Company" or the "Group")

AGM Trading Update and Board Changes

Staffline, the recruitment and training group, is pleased to provide the following trading update ahead of its Annual General Meeting ("AGM") at 9.00am today.

At the AGM, the following statement will be made:

"Staffline produced excellent results exceeding expectations for the year to 31 December 2021, successfully delivering on our strategic objectives for a sustained return to growth.

The Group has made a solid start to 2022 and notwithstanding labour shortages and macro-economic headwinds, trading in the current financial year is in line with expectations. Whilst the Board remains mindful of the potential impact of ongoing macro-economic uncertainty, Staffline's strengths in food production and distribution, the online sector and public sector spend on employability and training, provide the Group with a measure of resilience and revenue visibility.

The new customer win with BMW Group and the enhanced contract renewal with Vinci Construction, announced on 22 March, are both performing well and will deliver incremental revenues.

In addition, operating cash flow for the period is in line with expectations, further strengthening the balance sheet, which will underpin future organic growth.

Accordingly, the Board remains confident in the Group's prospects in the medium-to long-term as we seek to further capitalise on our strengths by growing our market share."

Board changes

The Group also announces that Ian Lawson, Non-Executive Chair, has informed the Company of his intention to step down from the Board and as a director of the Company with immediate effect.  Tom Spain will assume the role of Interim Chair and Ian Starkey, Independent Non-Executive Audit Chair, will assume the role of the Senior Independent Director.

Ian Lawson was appointed to the Board in 2020, helping to guide the business through a period of significant challenges, and supporting the Group through its comprehensive restructuring, transformation and successful equity raise in 2021.

Ian Lawson commented:

"It has been a privilege to support Staffline both as an exec and non-exec Chair. After a period of operational challenges, the Covid pandemic, and broader global macro-economic headwinds, Staffline has emerged as a truly reinvigorated business. I would like to thank all those at Staffline for their continued hard work and commitment, without which the strengthened balance sheet and robust operating structure we see today would not have been possible. With the Group now in its next phase of growth, it feels like the right time to step aside and allow a new Chair to help guide the business forward."

Albert Ellis, Chief Executive Officer, commented:

"We are hugely grateful to Ian for his contribution and dedication to Staffline during his time as Chair of the Board. With Ian's support, Staffline has made significant operational progress across all of its divisions, and continues its growth trajectory with renewed strength and resilience in both its financial position and broader operating structure. On behalf of the Board, I would like to wish him all the very best in his future endeavours."

As a result of Ian Lawson stepping down from the Board, he will not seek re-election at the Annual General Meeting.

As the Company's AGM Notice has already been issued, the Company confirms that the resolution to reappoint Ian Lawson as Chair of the Company (Resolution 5) is now withdrawn. The withdrawal of Resolution 5 does not otherwise affect the validity of the Notice of Meeting, or any proxy votes already submitted on other proposed resolutions. The numbering of all other proposed resolutions at the AGM will remain unchanged.

For further information, please contact:

About Staffline

Providing workforce solutions

Staffline is the UK's market leading Recruitment and Training group. It has three divisions:

Recruitment GB

Staffline is a leading provider of flexible blue-collar workers, supplying c.33,000 staff per day on average from around 420 client sites, across a wide range of industries including agriculture, supermarkets, drinks, driving, food processing, logistics and manufacturing.

Recruitment Ireland

The Recruitment Ireland business is a leading end to end solutions provider operating across twenty industries, ten branch locations and ten onsite customer locations, supplying c.4,500 staff per day on average, and offering RPO, MSP, temporary and permanent solutions across the island of Ireland.

PeoplePlus Division

PeoplePlus is leading skills and employability business with a clear purpose to help people transform their lives, get jobs and keep jobs, and develop their careers. The division works with employers to develop workforces of the future, and with central, local and devolved governments to support their economic and social policy agendas.