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Tuesday 16 October, 2007

Northern Recruitment

Interim Management Statement

Northern Recruitment Group PLC
16 October 2007

                                                                 16 October 2007





                         NORTHERN RECRUITMENT GROUP PLC
                          INTERIM MANAGEMENT STATEMENT



At the Annual General Meeting to be held in Newcastle upon Tyne today, the
Chairman, Leo Finn, will deliver the following update:



'I am pleased to confirm that the Company has made a positive start to the
current year.  Profit before tax in the first quarter to 30 September 2007 was
ahead of our budget, though below the comparable period last year because of
lower levels of activity at our NRG Connect national response handling unit, to
which I referred in the annual report.



'Growth in our core permanent recruitment business is very pleasing, with net
fee income in the first quarter up 28 per cent compared with the first three
months of our last financial year.  Executive and professional recruitment were
the major contributors to this progress.  The appointment of additional fee
earners in this division gives us confidence in its prospects for the full year.



'Revenues from temporary placements were marginally lower than in the first
quarter last year, but are showing an improving trend and the tender pipeline
for temporary work is strong.  We continue to invest resource in our new
consortium, TotalNRG, which has already achieved some potentially significant
national business gains; we anticipate that these will generate growing volumes
over the four year life of this central Government framework contract.



'As I stated in the annual report, we expect the Company's progress in the first
half to be constrained by the reduced activity of NRG Connect, in the absence of
major new project wins.  However, performance and profitability across our other
main business streams is on track, underpinning our expectations for the year as
whole.'



                                     -ends-






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




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