IPEL.L Regulatory News (IPEL)

The Corporate Services Group Limited

Interim Financial Report

1 September 2010

The Corporate Services Group Limited ("CSG") has today published its interim financial report for the twenty six weeks ended 2 July 2010.

About The Corporate Services Group Limited

CSG is a wholly owned subsidiary of Impellam Group plc ("Impellam"), a human capital resource solutions group whose shares are admitted to trading on the AIM market of the London Stock Exchange plc. Impellam was formed in May 2008 when Carlisle Group Limited merged with The Corporate Services Group plc ("CSG plc"). Upon completion of the merger CSG plc became a non-trading subsidiary of Impellam and subsequently re-registered as a private company.

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1 September 2010

INTERIM FINANCIAL REPORT (UNAUDITED) FOR THE TWENTY SIX WEEKS ENDED 2 JULY 2010

Financial results and business review for the twenty six weeks ended 2 July 2010

The results for the twenty six weeks ended 2 July 2010 show a retained profit of £1.4 million. This compares to a loss of £3.7 million for the six months ended 30 June 2009 and £9.6 million loss for the 12 months ended 31 December 2009. This is due mainly to currency movements on investments denominated in US Dollars which have been favourable this year reflecting the relative weakness of Sterling against the US Dollar. The company remains an investment holding company and as such its activities have remained unchanged.

Board changes

There have been no changes to the Board of Directors.

Going concern

The company is dependent, in the absence of other funding, on the continued support of the ultimate parent company, Impellam Group plc. The ultimate parent company has confirmed that it will continue to support the company for a period of at least twelve months. On this basis, the Directors consider it appropriate to prepare the accounts on the going concern basis.

Principal risks and uncertainties

The principal risks and uncertainties of Impellam Group plc ("the Group"), which include those of the Company, are discussed in the Group Financial Director's Report in the Group's annual report which does not form part of this report. The Group's business and financial risks are managed at a group level, rather than at an individual company level. For this reason, the Company's Directors believe that a discussion of the Group's risks would not be appropriate for an understanding of the development, performance or position of the Company as there are many risks at the group level which are not applicable at the Company level. These risks and uncertainties for the remaining six months remain as they were at December 2009 and are fully detailed in the Group annual report and accounts which are available for download on the Group's web-site.

Audit

This interim financial report has not been audited or reviewed by Auditors pursuant to the Auditing Practice Board guidance on Review of Interim financial information.

Disclaimer on forward looking statements

Certain statements in this interim report are forward-looking. Although the company believes that the expectations reflected in these forward-looking statements are reasonable, it gives no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements.

The company undertakes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.

Statement of Directors' responsibilities

The Directors confirm that this condensed interim financial report has been prepared in accordance with applicable accounting standards and the Companies Act 1985. They also confirm that the interim management report contained herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:

·; An indication of important events that have occurred during the first six months and the impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year, and;

·; Material related party transactions in the first six months and any material changes in the related party transactions described in the last annual report.

The Directors of The Corporate Services Group Ltd are as listed in the 2009 annual report and accounts.

By order of the Board,

Andrew Burchall

Director

Consolidated income statement

For the twenty six weeks ended 2 July 2010

Turnover and operating profit/(loss)derive wholly from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

There is no material difference between the result reported above and the result on an unmodified historical cost basis.

Consolidated condensed balance sheet

At 2 July 2010

Notes to the interim financial statements

1 Basis of preparation

I. Statement of Compliance

The financial statements have been prepared on a going concern basis under the historical cost convention and in accordance with applicable UK accounting standards and the Companies Act 2006.

II. Accounting policies

The accounting policies used in this interim report are consistent with those applied at 31 December 2009 by the Company.

2 Exceptional items

In 2009, exceptional costs of £4,462,000 were incurred relating to movements on the impairment of various loans to subsidiaries.

3 Taxation

Income tax expense is recognised based on management's best estimate of the effective annual income tax rate expected for the full financial year.