Pinnacle Staffing Group PLC - News Announcement

Pinnacle Staffing Gp - Trading Statement

RNS Number : 7577Z
  Pinnacle Staffing Group PLC
  24 July 2008


24 July 2008

Pinnacle Staffing Group Plc - Update on Current Trading

Ahead of the announcement of its interim results for the 6 months to 6 July
2008, which are expected to be released around 26 September 2008, Pinnacle
Staffing Group plc ('the Group'), one of the UK's leading suppliers of temporary
and permanent
healthcare staff, has today issued the following trading statement:

The Board's view at the time of the release of the final results for the period
to 6 January 2008 was that the Group had a platform for positive progress in
2008. This was despite the limited availability of temporary staff due to
erosion of the
historical pay rate differentials in the NHS between temporary and permanent
posts, arising from the NHS Framework Agreements. It was expected that NHS
Trusts would look to work more closely with the Framework Agencies to reduce the
proportion of shifts
filled by higher-cost non-Framework suppliers.   Progress in this regard has
been slower than the Board had anticipated which, has led the Board to
reconsider its trading forecasts for the second half.

The Board now considers that whilst performance in the first half has been in
line with its expectations, growth in the second half will be below forecast. 
Consequently, the Board considers that operating profit for the year to 4
January 2009 will be
substantially below its previous expectations.

Further steps are being taken to secure efficiencies in the Group's cost base
and to consolidate on growth in the Nursing business. The Board retains
confidence in the viability of the business and the prospects for growth in the
medium term.


Enquiries:

Pinnacle Staffing Group Plc:
Richard Aitken-Davies        07836 668003
Jacqui Skinner, Chief Executive    01582 395900

Brewin Dolphin Limited (NOMAD):
    Matt Davis                 0845 270 8600
Alison Barrow

Citigate Dewe Rogerson:
    Seb Hoyle                 020 7638 9571
Hannah Seward


This information is provided by RNS
The company news service from the London Stock Exchange

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