Staffline secures major contract with UK food logistics client

(Sharecast News) - Staffline Group has secured a major new contract with a leading UK food and drink logistics provider, it announced on Friday, marking a significant expansion of its operational footprint.

The AIM-traded firm said the two-year agreement, which includes an option for a one-year extension, would see it assume full responsibility for agency labour services currently managed in-house by the client.

It said the partnership would cover operations across the UK and Ireland.

Under the deal, Staffline said it would deliver flexible temporary employment solutions and manage second-tier suppliers across chilled and ambient logistics operations.

Mobilisation of about 3,000 temporary workers in roles spanning driving, warehousing and security is expected to begin at the end of the second quarter and continue through the third quarter of 2025.

The company said the contract was expected to further strengthen its position in the logistics sector, and reflected growing demand for outsourced workforce solutions in complex supply chain environments.

"We are delighted to have secured such an important, value enhancing strategic partnership," said chief executive officer Albert Ellis.

"This new contract reinforces Staffline's strong reputation as a trusted partner for supplying volume labour to the food and drinks, logistics and FMCG sectors and materially enhances the board's expectations of group performance over the life of the contract.

"Over the coming months the Staffline team will be working with the leadership to manage a smooth transition, creating efficiencies, synergies and opportunities for all parties."

At 1146 BST, shares in Staffline Group were up 16.91% at 31.8p.

Reporting by Josh White for Sharecast.com.