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Tuesday 01 May, 2007

Northern Recruitment

Trading Statement

Northern Recruitment Group PLC
01 May 2007

                                                                      1 May 2007

                         NORTHERN RECRUITMENT GROUP plc 
                                 TRADING UPDATE

When reporting the Company's interim results in February we noted that an
improved performance over the year would be contingent upon improved levels of
utilisation at our national response handling unit, NRG Connect. During our
second half to date, NRG Connect's activity levels have remained exceptionally
low. Although the division remains profitable, and can operate on very short
lead times, we believe that there is unlikely to be any significant increase in
activity before the end of our financial year on 30 June 2007. However, the
remainder of the Group is performing well, with our core permanent recruitment
operations and our temporary business revenues both continuing to show strong
growth over the comparable period last year. Accordingly we expect operating
profit in our current financial year to be broadly similar to that achieved in
2006.

At the interim stage we also reported that a number of bids and tenders were in
the pipeline. We are pleased to report that the Company has been successful in a
number of these, including the largest by value, which was secured by forming a
national consortium led by NRG. This consortium is now one of a small number of
approved suppliers for a very substantial nationwide public sector contract
covering temporary administrative staff. The Board believes that this and our
other contract wins will have a very positive impact on the business in our next
financial year and beyond.

NRG Chief Executive Lorna Moran commented: 'I am very encouraged by our recent
new business wins, and in particular by the success of our ground-breaking
consortium approach to winning major national contracts. This is important in
itself, and it also provides us with a model which we will be able to use again
in the future.'


ENQUIRIES:

Northern Recruitment Group            Hudson Sandler
Lorna Moran, Chief Executive          Nick Lyon
Tel: 0191 260 4412                    Tel: 020 7796 4133



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