Trading Statement

Staffline Recruitment Group plc 04 July 2006 For immediate release 4 July 2006 STAFFLINE RECRUITMENT GROUP PLC ('Staffline') Half Year Trading Update Notice of Results Staffline Recruitment Group plc, a leading provider of recruitment and outsourced HR services to industry, today issues a half year trading update for the six months ended 30 June 2006. Since the AGM trading update, announced on 25 May, Staffline has continued its strong performance such that sales and profit for the first six months of the year are, as anticipated, well ahead of the same period last year and are in line with our expectations. This performance has been driven primarily by our OnSite and industrial branch divisions. Our OnSite division, which manages the temporary recruitment function of its clients and represents approximately two thirds of Group turnover, has successfully won OnSites with both new and existing clients resulting in a total of 63 OnSites at 30 June 2006 compared to 42 at 30 June 2005 and 53 at 31 December 2005. Our industrial branch division has continued to perform well across the entire network, whilst it also continues to incubate new OnSites. We announced on 25 May a significant contract won with a major producer of fast moving consumer goods (FMCG). The contract is now being implemented, with Staffline already providing all temporary recruitment services to four of six intended production sites. In May 2006, Staffline became the first of the major labour providers operating in the food production and associated sectors to have successfully gained a licence from the Gangmasters Licensing Authority. Since that time, we have been encouraged by the level of interest received from potential clients as a result of our licensed status. Commenting on outlook, Andy Hogarth, Staffline's Managing Director, said: 'In light of the performance in the first six months of the year, the OnSites successfully won to date and a good pipeline of OnSite opportunities, we are confident of continued progress in the second half of the year and of our prospects for the year as a whole. As it is still early in the financial year, our outlook for the year as a whole remains unchanged.' Staffline intends to issue its interim results for the six months ended 30 June 2006 on Wednesday, 6 September 2006 at which time a further update on current trading will be provided. - 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 Smithfield 020 7360 4900 Katie Hunt / 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 63 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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