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UK — Staffline buys Peter Rowley

03 December 2009

Staffline Group Plc (STAF:LSE), the Outsourced Human Resources firm, has announced the acquisition of Peter Rowley Limited, a training provider. Peter Rowley, the principal of the company, will remain committed to Staffline for a minimum period of two years.

The acquisition is in line with Staffline's strategy of making selective acquisitions to broaden its revenue streams, thereby positioning it more as a provider of value added business services in the Human Resources arena.

Peter Rowley has 36 employees and, in the year ended 31 July 2009, it achieved revenues in excess of 2 million Pounds per annum and a pre-tax profit of 0.5 million Pounds, with a net asset value of 0.8 million Pounds.
The consideration comprises an initial cash payment of 1 million Pounds, payable from Staffline's existing bank facilities, deferred cash consideration of 0.5 million Pounds, payable in January 2011, and two further cash payments payable up to an aggregate maximum of 1.0 million Pounds based on 50% of the profits achieved in excess of 0.5 million Pounds during the two financial years following the acquisition.

Commenting, Andy Hogarth, Staffline's Chairman and Chief Executive, said "We are delighted to welcome Peter Rowley and his company to the Group, bringing a highly complementary offering to our existing operations. Together our two organisations will provide a platform for further growth in our core operating areas."
"We continue to look for similar acquisition opportunities, in addition to other smaller industrial recruitment businesses in order to enhance shareholder value."

Brokers Altium Securities told Reuters "the business is complimentary in that it augments Staffline's existing training activities and allows the combined group to bid for larger government funded schemes, particularly those aimed at the long-term unemployed."

Altium expects the acquisition to enhance full-year 2010 earnings per share estimates by around 10%.

In early trading Staffline's shares were up by 1.26% to 80.50 Pence.



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