REG - Staffline Group PLC - Disposal of PeoplePlus Group Limited

StafflineAnnouncement

25/02/2025 07:00

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RNS Number : 2801Y  Staffline Group PLC  25 February 2025

The information contained within this announcement is deemed by Staffline
Group Plc to constitute inside information pursuant to Article 7 of EU
Regulation 596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 as amended.

 

25 February 2025

Staffline Group plc

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

 

Disposal of PeoplePlus Group Limited

 

Strategic disposal creates a pure-play recruitment platform with market
leading reach across the UK and Ireland

 

Cash proceeds to fund Share Buy Backs and working capital for growth

 

Staffline (AIM: STAF.L), the recruitment and training group, announces that
it has disposed of its wholly owned subsidiary, PeoplePlus Group Limited
("PeoplePlus") to Talent International (UK) Limited, a wholly owned subsidiary
of Swipejobs Holdings Pty Ltd ("Swipejobs"), for cash consideration of
£12.0m, which includes £2.0m of deferred consideration (the "Disposal").

 

The consideration is on a cash free, debt free basis and subject to a
deduction of £5.1m of advanced payments received in respect of future
revenue. The net proceeds of the Disposal (including the deferred
consideration) are expected to be £6.9m. The £2.0m of deferred consideration
is contingent on the commencement of potential new contracts expected to take
place within the next 12 months.

 

The Board intends to use the cash proceeds from the Disposal for a combination
of Share Buy Backs and increasing funding capacity for the Group's successful
organic growth strategy.

 

PeoplePlus is a leading workplace training and employability business whose
purpose is to help people transform their lives, get jobs and keep jobs, and
develop their careers. The division works with employers to develop inclusive
workforces and with central, local and devolved governments to support their
economic and social policy ambitions. Creating social value in this way,
PeoplePlus aims to ensure that every person of working age can participate in
paid work, including vulnerable and disadvantaged people, as part of a more
dynamic economy with greater levels of social inclusion in which no one is
left behind.

 

For FY 2024, PeoplePlus contributed approximately £65m* of revenues to the
Group and generated profit before tax of approximately £1.3m*, with gross
assets of c.£16m*ᶧ at 31 December 2024.

 

Albert Ellis, Chief Executive Officer of Staffline, commented:

 

"PeoplePlus has played an important part in developing Staffline's service
offering over a number of years but with our strategic ambitions centred on
our fast growing recruitment activities as opposed to training and education,
now feels like the opportune moment to implement this change.

 

I would like to thank all the staff at PeoplePlus and wish them a prosperous
future under their new owners.

Moving forward, we can have greater focus and cash resource for our market
leading recruitment activities, which delivered outstanding results across
2024. We see significant opportunities for organic growth in our remaining
recruitment divisions and will accelerate value creation for Staffline
shareholders going forward."

 

*These figures are unaudited and provisional.

ᶧexcludes intercompany debtor balance of £23.4m

 

 

For further information, please contact:

 

 Staffline Group plc                                                 via Vigo Consulting

 www.stafflinegroupplc.co.uk (http://www.stafflinegroupplc.co.uk/)

 Albert Ellis, Chief Executive Officer

 Daniel Quint, Chief Financial Officer

                                                                     020 3100 2222

 Panmure Liberum (Nominated Adviser and Broker)

 www.panmureliberum.com (http://www.panmureliberum.com)

 Richard Lindley

 Satbir Kler

 Zeus (Joint Broker)                                                 020 3829 5000

 www.zeuscapital.co.uk (http://www.zeuscapital.co.uk/)

 David Foreman (Investment Banking)

 Nick Searle (Sales)

 Vigo Consulting (Financial PR)                                      020 7390 0230

 www.vigoconsulting.com (http://www.vigoconsulting.com/)             Staffline@vigoconsulting.com

 Jeremy Garcia / Verity Snow

 

Market Abuse Regulation:

 

For the purposes of MAR, Article 2 of Commission Implementing Regulation (EU)
2016/1055 and the UK version of such implementing regulation, the person
responsible for arranging for the release of this Announcement on behalf of
the Company is Daniel Quint, Chief Financial Officer.

 

About Staffline

Staffline is one of the UK's leading Recruitment groups. It has two divisions:

 

Recruitment GB

The Recruitment GB business is a leading provider of flexible blue-collar
workers, supplying up to c.35,000 staff per day on average from around 400
sites, across a wide range of industries including supermarkets, drinks,
driving, food processing, logistics and manufacturing.

 

Recruitment Ireland

The Recruitment Ireland business is a leading end to end solutions provider
operating across multiple industries, ten branch locations and ten onsite
customer locations, supplying c.4,500 staff per day on average, and offering
RPO, MSP, temporary and permanent solutions across public and private sectors
throughout the island of Ireland.

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