Trading Update

RNS Number : 5020B

Staffline Group PLC

31 January 2020

 

31 January 2020

STAFFLINE GROUP PLC

("Staffline" or the "Company")

Trading Update

Staffline, the recruitment and training group, provides the following update on Group trading and outlook.

FY 2019 Update

Following the accounting review completed in the first half of the year, the Board has continued projects to improve Staffline's internal controls. This has included a rigorous internal review process, with a detailed review of the balance sheet.  Although the year end audit process, with our new auditors, Grant Thornton, is on-going, we have already identified that it is appropriate to increase certain provisions and make further write downs.  Due to these net charges, the Board now expects the Group to report full year adjusted operating profit (being profits before interest, tax and non-underlying charges) for the period ending 31st December 2019 materially below our previous guidance.

Financial Position

Staffline maintains a constructive relationship with its lending banks and consequently the Board does not anticipate any covenant issues.  The Company is also actively considering certain strategic options which may significantly reduce net debt during H1 2020.

Current Trading and Outlook

The Board is pleased to report that 2020 has started well and the Board's expectations for the FY 2020 are unchanged.

For further information, please contact:

Staffline Group plc www.stafflinegroupplc.co.uk Chris Pullen, Chief Executive Officer Daniel Quint, Interim Chief Financial Officer	via Vigo Communications
Liberum NOMAD and Joint Broker www.liberum.com Bidhi Bhoma / Joshua Hughes	020 3100 2222
Berenberg Joint Broker www.berenberg.com Chris Bowman / Toby Flaux	020 3207 7800
Vigo Communications Financial PR www.vigocomms.com Jeremy Garcia / Antonia Pollock / Charlie Neish	020 7390 0230 [e-mail]

Market Abuse Regulation

This announcement is released by Staffline Group plc and contains inside information for the purposes of the Market Abuse Regulation (EU) 596/2014 ("MAR") and is disclosed in accordance with the Company's obligations under Article 17 of MAR. The person who arranged for the release of this announcement on behalf of Staffline Group plc was Chris Pullen, Group Chief Executive Officer.

About Staffline - Recruitment, Training and Support

Enabling the Future of Work™

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

Recruitment Division

Staffline is the UK's leading provider of flexible blue-collar workers, supplying over 60,000 staff per day to c. 1,600 private sector clients, across a wide range of industries including agriculture, drinks, driving, food processing, logistics and manufacturing. It operates from over c.460 locations in UK, Republic of Ireland and Poland. Its world leading Customer Experience platform provides optimised customer-based staffing management solutions whilst providing market-leading levels of job satisfaction for workers.

PeoplePlus Division

Staffline is the leading adult skills and training provider in the UK, delivering apprenticeships, adult education, prison education and skills-based employability programmes across the country.

Skills and Training - market leading provider of Apprenticeships (both Levy and non-Levy), learning and development, adult education and health and well-being programmes to the Private and Public sector.

Justice and Community - largest independent provider of education and training services for prisoners and ex-offenders, as well as individual support services for carers and people with disabilities, both at home and in the work place.

Employability - market leading provider of programmes providing back-to-work education, skills support services to the unemployed and enterprise advice to individuals wanting to start their own business.

 

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