Staffline, the recruitment and training group, provided a trading update ahead of its Annual General Meeting today.

"We are pleased to report that the group's strong recruitment pipeline, highlighted in our full-year results statement, has begun to convert into organic growth in both the UK and Ireland," Staffline continued. "This growth has come mainly from Recruitment GB's existing logistics customers, alongside a contract renewal with M&S, all of which are anticipated to make a positive contribution in H2 2023. In PeoplePlus, a two-year extension of the Ministry of Justice's contract was secured, subject to performance in year one."

"The Board remains mindful of ongoing macroeconomic headwinds, which have impacted demand amongst Staffline's retail and food customers but anticipates a modest recovery in affected sectors as inflation stabilises," the company stated. "Trading in the current financial year is forecast to remain in line with expectations, with management anticipating full-year revenues to be H2-weighted in line with its historic trend."

"After a strong performance in FY 2022, the group's strategy continues to secure further market share and strengthen customer relationships, expanding the client base ahead of a broader economic recovery," the group stated.

In March 2023, Staffline reported revenue for the full year ended 31 December 2022 of £940.5 million, a marginal decrease of 0.2% compared with the previous year.

"The group continues to enjoy substantial financing headroom and the benefits from its interest rate cap," Staffline stated. "The Board remains confident in the group's prospects in the medium-to-long-term as we seek to further capitalise on our strengths by growing our market share."

In November 2022, Ian Starkey, Senior Independent Non-Executive Director and Audit Chair, informed the company that he would not be standing for re-election at today's Annual General Meeting, and he has now stepped down from the Board and as a Director.

On 17 April 2023, Amanda Aldridge joined the company as a Non-Executive Director. She will chair the Group's Audit Committee and has been appointed to Staffline's Remuneration and Nominations Committees, replacing Starkey.

Staffline Group shares last traded at £34.19, down 2.17% on the day and 9.50% above its 52-week low of £31.23, set on 24 January 2023. The company has a market cap of £56.78 million.