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Share Name Share Symbol Market Type
Staffline Group Plc NEX:STAF.GB NEX Ordinary Share
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -5.52p -1.67% 324.48p 230.00p 0.00p 331.89p 323.72p 323.72p 19,093 15:52:33

Staffline Group PLC Trading Update

17/05/2019 7:00am

UK Regulatory (RNS & others)


Staffline (NEX:STAF.GB)
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RNS Number : 3405Z

Staffline Group PLC

17 May 2019

17 May 2019

STAFFLINE GROUP PLC

("Staffline," the "Company" or the "Group")

Trading Update

Staffline, the Recruitment and Training group, provides the following trading update.

Recruitment

The ongoing Brexit uncertainty is impacting the UK labour market and led to a number of customers transferring a significant volume of their temporary workforce into permanent employment to mitigate the risk of that labour market tightening. Typically, this reaction to uncertainty tends to reverse over time, but we expect it will continue to impact temporary worker demand throughout the current year.

A proportion of these "temp to perm" transfers have occurred in the higher margin driving sector, resulting in an overall margin dilution. In addition, we are seeing further challenges in the higher margin automotive sector and associated supply chain where reductions in demand have been greater than expected.

There has also been a slowdown in new contract momentum in the current financial year, which the Company largely attributes to the impact of the delay in publication of the 2018 Full Year results. The key outstanding matter in finalising the results relates to the Group's historical compliance with National Minimum Wage Regulations 2015. This is a complex area and management, in conjunction with HMRC and supported by an independent advisor, are assessing the significant amount of historic data and transactions, which will then be subject to audit.

Notwithstanding these current headwinds, the Recruitment division is beginning to see the definitive benefits from the Company's market-leading approach to worker engagement and digitally enabled candidate attraction. Management expects this strategy to result in increasing differentiation and to support future growth.

PeoplePlus

In PeoplePlus, the successful transition from a Work Programme provider to the UK's leading skills and training company is almost complete. With c. 60% of 2020 revenues already contracted, the Company maintains a positive outlook for PeoplePlus in 2020 under its new operating model. However, performance in 2019 will be affected by continued delays in Apprenticeship new starts. This is partially as a result of the slow take up of the Apprenticeship Levy scheme nationally, but also a reflection of the current economic uncertainty. Sectors such as retail for example, are delaying Apprenticeships whilst store restructure programmes are completed, however management remains confident that this market is attractive, notwithstanding this timing effect. However, the other elements of PeoplePlus, which are expected to contribute c.85% of PeoplePlus revenue in 2020, continue to develop well.

Current Trading

The Group experiences seasonality in its trading and typically earns only approximately 15% of its earnings in the first quarter of the financial year. The April performance is therefore a key initial indicator as to the full year turn out, and with visibility of that trading, and as a consequence of the broad range of factors highlighted above, the Board now expects the Group to deliver adjusted EBIT in the range of GBP23 million to GBP28 million for the financial year ending 31 December 2019.

 
 For further information, please contact: 
 Staffline Group plc                           via Vigo Communications 
  www.stafflinegroupplc.co.uk 
  Chris Pullen, Chief Executive Officer 
  Michael Watts, Group Chief Financial 
  Officer 
 
 Liberum NOMAD and Joint Broker 
  www.liberum.com 
  Steve Pearce / Joshua Hughes                 020 3100 2222 
 
 Berenberg Joint Broker 
  www.berenberg.com 
  Chris Bowman / Toby Flaux                    020 3207 7800 
 
 Vigo Communications Financial PR              020 7390 0230 
  www.vigocomms.com                             staffline@vigocomms.com 
  Jeremy Garcia / Antonia Pollock / Charlie 
  Neish 
 

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 Michael Watts, Group Chief Financial Officer.

Note for Editors

About Staffline - Recruitment, Training and Support

Enabling the Future of Work(TM)

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

Recruitment Division

The UK's leading provider of flexible blue-collar workers, supplying over 60,000 staff per day to c. 1,500 private sector clients, across a wide range of industries including agriculture, drinks, driving, food processing, logistics and manufacturing. It operates from over 400 locations in UK, Eire 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

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

Education and Training - market leading provider of training courses for private sector Apprenticeships (both Levy and non-Levy) and Government funded Adult Skills programmes.

Employability - top quartile performer, supporting Government programmes providing back-to-work education and support services to the unemployed.

Justice and Community - 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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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May 17, 2019 02:00 ET (06:00 GMT)

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