Trading Statement

Staffline Recruitment Group plc 09 January 2006 Under embargo until 7am 9 January 2006 STAFFLINE RECRUITMENT GROUP PLC Year End Trading Update Staffline Recruitment Group plc, a leading provider of recruitment and outsourced HR services to industry, today issues a trading update for the year ended 31 December 2005. The Board is pleased to report a strong Group operating and financial performance for the full year, with both sales and profit anticipated to be significantly ahead of last year and in line with its expectations. Our OnSite division, which manages the temporary recruitment function of its clients and represents approximately 60% of Group turnover, has seen strong year on year growth driven by a combination of new client wins and an increase in the number of sites Staffline manages for existing clients. The new OnSites added during the year are all performing in line with or ahead of management's expectations. Our Staffline industrial branch division has had a satisfactory performance and continues to incubate new OnSites. Our Techsearch division, which represents less than 10% of Group turnover and specialises in temporary and permanent placements in the engineering and FMCG sectors, has performed exceptionally well with increased sales, the benefit of the operational gearing in the business, and improved efficiencies leading to strong growth in operating profit. Staffline intends to issue its preliminary results for the year ended 31 December 2005 on Wednesday 1 March 2006, at which time a further update on current trading will be provided. Commenting on the trading update, Andy Hogarth, Staffline's Managing Director, said: 'Staffline has delivered a strong performance during 2005. In 2006, we will benefit from the full annualised effect of the OnSites won during 2005 and our current pipeline of OnSite prospects is stronger than it has ever been. We, therefore, remain confident of continued strong progress in the current year and thereafter.' - Ends - For further information, please contact: www.staffline.co.uk Staffline Recruitment Group plc 0115 950 0885 Andy Hogarth, Managing Director Carole Harvey, Finance Director Smithfield 020 7360 4900 Katie Hunt / Sarah Richardson / Reg Hoare 07884 494112 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 over 50 OnSite locations nationwide and also has a network of 17 industrial branches. In addition, the Group has a smaller but growing 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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