Staffline Regulatory News (STAF)

For immediate release 6 January 2016

STAFFLINE GROUP PLC

("Staffline" or "the Group")

Trading Update

Staffline, the Staffing and Employability organisation, providing people and operational expertise to industry, today issues a trading update for its financial year ended 31 December 2015.

The Board today confirms that earnings for the full year will be in line with market expectations and both of the business' divisions have performed well in the year.

The Staffing business has secured a record number of Onsite wins in the period, also supported by two strategic bolt-on acquisitions completed in the second half. In PeoplePlus, the Employability, Skills and Justice Division, the integration of A4e, acquired in April 2015, remains on track and PeoplePlus continues to build on its reputation for quality and performance.

The record performance in winning new business in the Staffing Division has led to a short-term increase to working capital requirements, which, in conjunction with the acquisitions completed, means that net debt peaked at the year end at around £64m. Net debt remains on track to fall quickly over coming periods.

For further information, please contact:

Staffline Group plc

Andy Hogarth, Chief Executive 07931 175775

Phil Ledgard, Group Finance Director 07432 554437

www.staffline.co.uk

Liberum Capital Limited

NOMAD & Joint Broker

Steve Pearce / Steve Tredget / Richard Bootle 020 3100 2222

www.liberumcapital.com

Berenberg

Joint Broker

Chris Bowman / Marie Stolberg 020 3465 2722

www.berenberg.com

Buchanan

Sophie McNulty / Richard Oldworth / Gabriella Clinkard 020 7466 5000

www.buchanan.uk.com

About Staffline

Staffline is a leading outsourcing organisation providing Staffing services to industry, supplying up to 36,000 workers every day to more than 1,300 clients. The Group is also a leading provider of services in to the Government funded Welfare to Work and Skills arena across the UK.

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 Staffing 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 logistics industry

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

Employability, Skills and Justice

PeoplePlus is one of the largest Prime Contractors of the Work Programme in the UK. Our Employability, Skills and Justice division has over 150 locations nationwide. Contracts include:

· Work Programme, prime contractor in nine regions in England and four sub-contracted regions

· Steps to Success, prime contractor in Northern Ireland

· Skills Funding Agency - managing the Offenders Learning and Skills Service ("OLASS 4")

· The Money Advice Service ("TMAS")

· Independent Living Services

· New Enterprise Allowance scheme - supporting people to become self-employed

· Suffolk County Council MyGo centre supporting youth employment

· Ministry of Justice Transforming Rehabilitation in Warwickshire and West Mercia

The Group also operates in the Kingdom of Saudi Arabia and Australia and provides grade 2 training services in the UK through:

· 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