Staffline Regulatory News (STAF)

STAFFLINE GROUP PLC

("Staffline" or "the Group")

AGM Trading Update

Staffline (AIM: STAF), the Staffing services, outsourcing, training and Employability organisation, providing people and operational expertise to industry, will hold the Group's Annual General Meeting at 10.00am this morning.

At the meeting Andy Hogarth, Chief Executive of the Group, will make the following statement on current trading:

"Following the transformational year of 2015, Staffline has continued to make excellent progress in the new financial year.

"In particular, having entered 2016 with a record new business pipeline, our Staffing division has further built on this momentum, with continued strong performance in the year to date. Demand from our customers for flexible labour has continued unchanged despite the introduction of the National Living Wage in April.

In PeoplePlus, the Group's Employability division, we are seeing the benefits of the integration of A4e, completed ahead of schedule last year, deliver tangible improvements in our Work Programme Contract performance.

As a result, we are pleased to confirm current trading is in line with market expectations and the Board remains confident of the Group's growth prospects."

About Staffline

Staffline is a leading outsourcing organisation providing Staffing services to industry, supplying up to 45,000 workers every day to more than 1,300 clients. In the last five years the Group has also grown to become a leading provider of services in to the Government funded Employability (Welfare to Work), Justice and Skills arena.

The business comprises two key areas:

Staffing Services

Specialising in providing complete labour solutions in agriculture, food processing, manufacturing, e-retail, driving, and the logistics sectors, the recruitment business operates from well over 300 locations in the UK, Eire and Poland.

The Staffing brands include:

· Staffline OnSite, based on clients' premises and providing both blue and white collar, out-sourced, temporary workforces

· Select Appointments, a high street branch-based operation providing white collar office staff, operated entirely on a franchised basis by independent business owners

· Staffline Express, a high street branch based operation

· Driving Plus, providing HGV drivers to the driving industry

· Staffline Agriculture, providing workers to the UK farming and growing sectors

Employability

Comprising the PeoplePlus brand, Government contracts include:

· Work Programme, prime contractor in nine regions and sub-contracts in five regions in England

· Steps to Success, prime contractor in Northern Ireland

· Youth Guarantee (MyGo Centre), supporting youth employment in the Ipswich area

· Ministry of Justice Transforming Rehabilitation in Warwickshire and West Mercia, helping to transform rehabilitation and probation services

· OLASS, delivery of training to prisoners in nine prisons in the East of England

· Building Employment through Education, working in Schools in Northern Ireland

Training services:

· Elpis, a national training consultancy,

· Learning Plus, an e-learning platform

· Skillspoint, a procurement consultancy specialising in helping employers benefit from government-funded, work-based training

Support services:

· The Money Advice Service,

· Independent Living Services

· Northern Ireland Prison Services, Visitor Centers