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BUSINESS AS USUAL FOR JSA

In response to the misleading articles that have been appearing over the past couple of days, the directors of JSA would like to point out that, back in 2009, we recognised the fact that auditing our business wasn't just about compliance and that in order for JSA to protect all of our customers, we needed to financially restructure our business to ensure that we would be in a stronger position to support all of our customers.

Thus, JSA took the appropriate action and by entering into a debt restructuring, with HMRC's full backing and that of industry bodies such as APSCo, Professional Passport and PCG, we were able to ensure that all of our contractors will be paid on time in the normal way and with no need to worry. HMRC would not have agreed to back the CVA if they had any doubts at all about our financial situation or our future trading ability.

Our business is now very strong and financially buoyant. Contrary to the figures being referred to in some circles, JSA has already paid off nearly 50% of the historic debt approved by the creditors in the CVA on or ahead of schedule and our remaining outstanding liabilities to HMRC in the CVA are 2.2m, the repayment of which over 5 years is fully factored into the business plan approved in the CVA process. We can reassure agencies and contractors that every contractor will be paid as normal.

It is essential to highlight that in entering a CVA, the new directors of JSA are compelled by law to act in the best interest of creditors at all times, rather than in the interests of shareholders or in pursuit of any other agenda.

JSAs Chairman, Andrew Goodman said: As a consequence of the companys new management taking the above steps, the companys position is now strongly cash positive and its net current asset basis strongly solvent. It has a much more robust status than many trading businesses, and is fully able to pay all its debts on time.

Rick Flood, JSAs Managing Director added: The bottom line is that we are in a robust financial position and have already repaid almost 50% of the debt on or ahead of schedule. Contrary to the numbers being referred to in some circles, JSAs remaining outstanding liabilities to HMRC in the CVA are 2.2m, which will be repaid over a 5-year period and is fully factored into the business plan approved in the CVA process. We can reassure agencies and contractors that every contractor will be paid on time as normal and that it is business as usual at JSA.

The new ownership and management team, which came into place at the time of the CVA in 2009, was a key and conditional element behind the creditors
approval of the plan for the business future viability and successful continuation of trade. As directors of the company, our Chairman Andrew Goodman with a 25 year history of successfully building private and publicly-backed staffing businesses - myself and Finance Director Andy Yates are fully committed to looking after and securing the future of JSAs creditors, first and foremost. As a consequence, the monies held, whether for contractors or recruitment agencies, are very safe.

Obviously the recession has had an impact on service providers in general and it is very sad to hear that other companies have hit troubled times, but JSA were well organised and had the foresight to put measures in place to ensure that the business would stay financially robust. Contractors and agencies face no risk at all by signing up with or continuing to use JSAs services.

For further clarification on any of the above points, please contact either JSAs Chairman, Andrew Goodman, on: andrewg@jsagroup.co.uk or MD, Rick Flood, on: rickf@jsagroup.co.uk.

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