Staffline Regulatory News (STAF)

For immediate release 4 January 2017

STAFFLINE GROUP PLC

("Staffline" or "the Group")

Trading Update

Staffline, the Staffing and Employability organisation, today issues a trading update for its financial year ended 31 December 2016.

The Board is pleased to report that the Group expects to deliver full year results in line with market expectations. Demand in the Staffing business has remained strong through the second half and the division has once again achieved excellent growth in the number of OnSites this year. PeoplePlus, the Employability, Skills and Justice Division, has also made good progress, becoming the top performer in Work Programme contracts as well as benefiting from its focus on improved margins.

Staffline will announce its preliminary results for the year ended 31 December 2016 on Wednesday 25 January 2017. A presentation for analysts will be held at 9.30am on Wednesday 25 January at the offices of Buchanan, 107 Cheapside, London EC2V 6DN.

A presentation for private and retail investors will also be held on Wednesday 25 January 2017, starting at 12.00pm at the offices of Buchanan, 107 Cheapside, EC2V 6DN. Admittance is strictly limited to those who register their attendance in advance of the event. To register for the event, please contact Buchanan on 020 7466 5000 or staffline@buchanan.uk.com.

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 350 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 three 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:

· Independent Living Services

· Northern Ireland Prison Services, Visitor Centers

· Careers Hubs in Stoke and Staffordshire