After being found to have breached National Minimum Wage Regulations over 6 years, Staffline, the Nottingham recruitment and training group, has revealed that total non-recurring exceptional charges for 2018 will rise to £32.6m.
On 12 March 2019 the Staffline announced that the Board had received key findings of an independent legal investigation and increased a provision in respect of additional costs from £4.4m to £7.9m. Since then, with additional independent specialist advice and following discussions with HMRC, the Group has further reviewed its “obligations and liabilities.” This has led the firm to update the provision for liabilities associated with historical National Minimum Wage compliance, increasing this from £7.9m to £15.1m, which includes £500,000 of adviser costs. Additional exceptional costs included in the 2018 result relating to extended audit procedures will be £1.8m, taking total non-recurring exceptional charges for 2018 to £32.6m.
The Company has now commenced discussions with investors regarding a Placing of ordinary shares to raise approximately £30m.
Chris Pullen, Chief Executive of Staffline, commented: “Whilst the time taken to announce our 2018 financial results is frustrating, we look forward to posting these results at the end of June at which point we expect the business to return to normalised trading. Staffline continues to enjoy a unique position in its markets and once this episode is behind us we are confident of a return to future growth.”
The Group intends to announce its audited results for the year ended 31 December 2018 on 27 June 2019.