REG - Staffline Group PLC - Launch of Share Buy-back

StafflineAnnouncement

10/06/2024 07:00

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RNS Number : 6638R  Staffline Group PLC  10 June 2024

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE MARKET
ABUSE REGULATION (EU NO. 596/2014) AS IT FORMS PART OF UK DOMESTIC LAW BY
VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR").

 

 

10 June 2024

Staffline Group plc

 

("Staffline" or the "Company")

 

Launch of Share Buy-back

 

Staffline Group plc, the recruitment and training group, today announces it
intends to commence a share buyback programme to purchase ordinary shares of
10 pence each in the Company (the "Ordinary Shares") for up to a maximum
aggregate consideration of £2.5m from the day of this announcement (the
"Buyback"). The Ordinary Shares purchased pursuant to the Buyback will be
cancelled.

 

The Group remains disciplined in its allocation of capital with the main
objective being to enhance shareholder value.  We continuously assess our
medium-term plans which take account of growth prospects, investment in the
business, cash generation, net borrowings, and leverage.  Therefore, the
amount allocated to buybacks is based on our predicted trading cash flows and
financing headroom.

 

The Buyback will be operated in accordance with the terms of the Company's
general authority to repurchase Ordinary Shares granted by shareholders at its
annual general meeting (the "AGM"), held on 22 May 2024.

 

In accordance with the authority granted at the AGM, a) the aggregate number
of Ordinary Shares to be repurchased will not exceed 22,378,643, b) the
minimum price which may be paid for each Ordinary Share will be £0.10, and c)
the maximum price (excluding expenses) which may be paid for each Ordinary
Share will be the higher of: (i) an amount equal to 105 per cent of the
average of the middle market quotations for the Ordinary Shares as derived
from the AIM Appendix of the Daily Official List of London Stock Exchange plc
for the five business days immediately preceding the day on which the purchase
is made; and (ii) an amount equal to the higher of the price of the last
independent trade of an Ordinary Share and the highest current independent bid
for an Ordinary Share on the trading venue where the purchase is carried out.

 

Shareholders should be aware that a purchase of Ordinary Shares by the Company
on any trading day may represent a significant proportion of the daily trading
volume in the Ordinary Shares and could exceed 25 per cent. of the average
daily trading volume of the preceding 20 business days. Should that be the
case, the Company could exceed the pricing and/or volume restrictions as
established by the Commission Delegated Regulation 2016/1052/EU (as in force
in the UK and as amended by the FCA's Technical Standards (Market Abuse
Regulation) (EU Exit) Instrument 2019) (the "Regulation") and therefore the
Buyback may not fall within the safe harbour provisions of the Regulation.

 

As part of the Buyback, Liberum has been appointed to purchase the Ordinary
Shares as principal.

 

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

 Liberum Capital Limited (Nomad and Broker)                                     +44 (0) 20 3100 2000
 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 - Recruitment, Training and Support

Enabling the Future of Work™

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

Recruitment GB

The Recruitment GB business is a leading provider of flexible blue-collar
workers, supplying c.30,000 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.

 

PeoplePlus Division

The PeoplePlus business is a leading provider of employability, adult
training, prison education and skills-based programmes across the country to
those who are disadvantaged in society. In addition, it delivers Community
Service support as well as social value services and expertise to employers.

 

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