Acquisition

Staffline Recruitment Group plc 19 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 to industry, is pleased to announce the acquisition of Onsite Partnership Ltd, a Market Harborough-based recruitment company. The initial consideration is £2.0 million payable in cash from Staffline's existing bank facilities, to be followed by additional cash payments over a three year period, contingent upon levels of new business won during that time. The acquisition of Onsite Partnership is expected to make a positive contribution to Staffline in the Group's current financial year. Staffline's strategy continues to be based primarily on organic growth through expansion 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, selective acquisitions of complementary companies that improve our service offering, such as 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 permanent members of staff, operating from 25 on site locations. Onsite Partnership has revenues in excess of £10m per annum and is expected to be profitable this year under Staffline's ownership. Net assets as at the year end totalled £0.1m, and the 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 first acquisition since flotation in 2004. Onsite Partnership's business complements our existing operations and will, we believe, provide us with additional cross-selling opportunities and a greater geographical reach, in line with our stated strategy for growth. 'We believe that this represents an exciting opportunity both for Staffline and for Onsite Partnership, we look forward to welcoming them into the Staffline fold and working together to continue to grow the Group, whilst maintaining the exceptional 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 0885 Andy Hogarth, Managing Director 07931 175775 Carole Harvey, Finance Director 07904 262132 Oriel Securities Limited Natalie Fortescue 020 7710 7615 Smithfield Miranda 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 fully outsourced service, managing the temporary recruitment function of its clients on their premises, at 73 OnSite locations nationwide and also has a network of 17 industrial branches. In addition, the Group has a smaller division called Techsearch which specialises in temporary and permanent engineering, IT, HR and FMCG placements and operates from 4 branches. 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). This information is provided by RNS The company news service from the London Stock Exchange
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