RNS Number:9331J
Staffware PLC
11 April 2003



11 April 2003

                          Staffware plc ("Staffware")
                             AGM Trading Statement
                       Performance Improvement Continues

John O'Connell, Chairman and CEO of Staffware plc, speaking at the company's
Annual General Meeting at 11 am this morning, will make the following comments
to shareholders:

"Following on from our excellent results for last year, I am pleased to report
that the trend has been maintained in the first quarter of 2003. Sales have
grown by 12% to #9.1 million (Q1 2002: #8.1 million) achieving approximately
#0.4 million at EBITDA level, an improvement of approximately #0.7 million (Q1
2002: loss of #0.3 million). The focus on cost and cash management has continued
with cash balances increasing by #3.1 million in the quarter to #22.1 million as
at 31 March 2003. Sales revenue has now grown for 4 consecutive quarters at an
average annualised rate of 9% when compared to the corresponding quarters over
the last 12 months.


"As anticipated, market conditions for Enterprise Software companies remained
challenging. However these results were slightly ahead of management
expectations. In the period we won 5 notable new contracts of over #250,000
including: Defra and Global Home Loans in the UK, a global financial services
company* in the US, Winterthur in Spain and a large Dutch Governmental 
institute*.


"License sales were up by 12% in the period, compared to Q1 2002 and accounted
for 50% of our total revenue in the period (Q1 2002: 50%).  The average license
sale value per customer increased by 55% compared with the average for the same
period last year, to almost #100,000. Sales of our Business Process Management
(BPM) software, the iProcess Engine, accounted for 30% of total sales in the
quarter (Q1 2002: 5%). We believe this is as a result of both existing and new
customers recognising the real value of business benefits that can be achieved
through the adoption of BPM solutions.



"Since the end of the quarter, on April 1, Version 2 of the Staffware Process
Suite was launched in London. This has been followed by similar events in Sydney
and New York City in the last few days, as part of an on-going international
roll-out. Staffware Process Suite Version 2 includes some unique features in
terms of design flexibility, resource planning and throughput capability, which
we believe will help to strengthen our leadership position in the emerging BPM
market.


Board changes


"We are also announcing today a number of Board changes.


"The Board has accepted my recommendation to split the role of Chairman and
Chief Executive, in line with best practice on corporate governance and my
desire to reduce my operational responsibilities.  I will continue to fulfil
both roles until a new Chief Executive is appointed, which we expect to be this
year.



"Secondly, Paul Fullagar has announced that he is planning to retire from the
Staffware Board at the end of May 2003 after over 15 years as a director of the
company.  As Chairman from 1988 he successfully floated the company on AIM in
1996 and took the company to the Full List in 2000, following which he became
non-executive Deputy Chairman."



Commenting Mr Fullagar said "Staffware is a fantastic company with enormous
potential.  I am delighted to leave it in such excellent financial shape with
the world's leading BPM product and a wonderful team of people.  I look forward
to greater involvement in supporting other public companies and other business
opportunities."



Mr Fullagar continues to retain control over slightly more than 10% of
Staffware's issued share capital.


John O'Connell continued by saying, "Emrys Devonald, non-executive director,
will also be stepping down from the Board at the end of May 2003 after
approximately 20 years as a director with the company, including being
instrumental in obtaining the company's first round of financing in 1985.  The
advice and support given by Emrys has also been invaluable and he has
contributed greatly to our achievements over this period.



"Paul and Emrys will be greatly missed by their colleagues at Staffware. I would
like to thank them personally for their long service, from Staffware's humble
beginnings to now, in providing the Group and me with the benefits of their
counsel.



"The Board is appointing two new independent non-executive directors the details
of whom are in a separate announcement.



"Following the changes outlined above, I am certain that we will have a Board
which will have the appropriate skills and experience to address future
opportunities and challenges, with confidence.


Outlook


"Business and government organisations continue to place great emphasis on
demonstrable return on investment from organisational productivity, cost
constraint and leveraging their previous investments in technology.  We are very
well positioned to meet these needs with our BPM technology and related design/
integration services from our Partners and ourselves. Notwithstanding the
generally uncertain economic outlook internationally, we remain positive about
our prospects in the coming months."



Note:   Figures reported are unaudited

       * Contracts prohibit publicity

                                      Ends


For further information please see www.staffware.com, or call:

Staffware plc                          +44 (0) 1628 786 800
John O'Connell, Chairman and CEO
Tim Perks, CFO


Citigate Dewe Rogerson                 +44 (0) 20 7638 9571
Toby Mountford, Sara Batchelor, Fiona Bradshaw

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

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