Acquisition

19 Mar 2007 07:03

Staffline Recruitment Group plc19 March 2007 For immediate release 19 March 2007 STAFFLINE RECRUITMENT GROUP PLC ("Staffline" or "the Group") Acquisition Staffline, a leading provider of recruitment and outsourced HR services toindustry, is pleased to announce the acquisition of Onsite Partnership Ltd, aMarket Harborough-based recruitment company. The initial consideration is £2.0million payable in cash from Staffline's existing bank facilities, to befollowed by additional cash payments over a three year period, contingent uponlevels of new business won during that time. The acquisition of OnsitePartnership is expected to make a positive contribution to Staffline in theGroup's current financial year. Staffline's strategy continues to be based primarily on organic growth throughexpansion of the number of OnSite locations for both new and existing customers.As indicated at the time of the Group's Admission to AIM in 2004, selectiveacquisitions of complementary companies that improve our service offering, suchas Onsite Partnership, are also considered. Onsite Partnership was founded in 1999 by Brian Jordan, its Managing Director,and specialises in the provision of staff to a mostly blue-chip client base,principally in distribution and logistics. The Company employs 28 permanentmembers of staff, operating from 25 on site locations. Onsite Partnership hasrevenues in excess of £10m per annum and is expected to be profitable this yearunder Staffline's ownership. Net assets as at the year end totalled £0.1m, andthe Company had a small overdraft for working capital purposes. Commenting, Andy Hogarth, Staffline's Managing Director, said: "I am delighted today to announce the completion of Staffline's firstacquisition since flotation in 2004. Onsite Partnership's business complementsour existing operations and will, we believe, provide us with additionalcross-selling opportunities and a greater geographical reach, in line with ourstated strategy for growth. "We believe that this represents an exciting opportunity both for Staffline andfor Onsite Partnership, we look forward to welcoming them into the Stafflinefold and working together to continue to grow the Group, whilst maintaining theexceptional standards of customer service for which we are known." - Ends - For further information, please contact: www.staffline.co.uk --------------------- Staffline Recruitment Group plc 0115 950 0885Andy Hogarth, Managing Director 07931 175775Carole Harvey, Finance Director 07904 262132 Oriel Securities LimitedNatalie Fortescue 020 7710 7615SmithfieldMiranda Good / Reg Hoare 020 7360 4900 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 fullyoutsourced service, managing the temporary recruitment function of its clientson their premises, at 73 OnSite locations nationwide and also has a network of17 industrial branches. In addition, the Group has a smaller division calledTechsearch which specialises in temporary and permanent engineering, IT, HR andFMCG placements and operates from 4 branches. The Group, which is managed from ahead office in Nottingham, was founded in 1986 and was admitted to AIM inDecember 2004 (Ticker: STAF.L). This information is provided by RNS The company news service from the London Stock Exchange