Business Strategy

Prime People PLC 16 June 2005 Prime People Plc (the 'Company') The strategy of the business as set out in the 2004 Annual Report despatched to shareholders in March 2005, is to broaden the business base of the company through acquisition in the short to medium term. The objective of this strategy is to create shareholder value as measured by growth in earnings per share and cashflow. Following the appointment of Simon Murphy as chief executive in May 2005, the directors have undertaken an initial strategic review. As a result of this review, the Company intends focussing upon the industrial and business services sectors and identifying opportunities in the valuation range of £1m to £20m which require subsequent investment to enable them to continue to realise their potential over the longer term. Investment may be in support of, for example, geographic or product expansion or the introduction of value added services. Preferred criteria will be that the businesses are headquartered in the UK, are profitable and cash generative on an ongoing basis and are capable of being operated on a standalone basis with operational management who will transition with the business. The interim results for the Company for the six months ending 30 June 2005 will be released in August. This information is provided by RNS The company news service from the London Stock Exchange
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