Staffline Regulatory News (STAF)

STAFFLINE GROUP PLC

("Staffline" or "the Group")

Trading Update

Staffline, the Recruitment Services, outsourcing, training and Welfare to Work organisation, providing people and operational expertise to industry, today issues a trading update for its financial year ended 31 December 2014, ahead of its preliminary results for the period which it expects to announce on Wednesday 28 January 2015.

The Board today confirms that earnings for the full year will be in line with market expectations. All divisions have traded well during the year with key contract wins in both the Recruitment Services and Welfare to Work arenas. A further significant win also includes the Ministry of Justice Rehabilitation contract in Warwickshire and Mercia Region which was announced in November.

The acquisition of Avanta, completed in June 2014, continues to perform well with integration progressing to plan.

A presentation for analysts and investors will be held at 9.30am on Wednesday 28 January at the offices of Buchanan, 107 Cheapside, London EC2V 6DN.

Andy Hogarth, Chief Executive of Staffline, commented:

"Staffline has had another busy year delivering both financial growth and strategic progress. We remain well placed to achieve further growth for our shareholders in the coming year."

About Staffline

Staffline is a leading outsourcing organisation providing recruitment services to industry, supplying up to 35,000 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 into the government funded Welfare to Work and Skills arena.

The business comprises two key areas:

1. Recruitment Services

Specialising in providing complete labour solutions in agriculture, food processing, manufacturing, e-retail, driving and the logistics sectors, the Recruitment Services business operates from well over 200 locations in the UK, Ireland and Poland. The Recruitment Services 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

- Staffline Express, a high street branch based operation providing blue collar staff

- Driving Plus, providing HGV drivers to industry

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

- Resourcing Plus, providing permanent recruitment solutions

2. Welfare to Work and Training

Comprising the Avanta and Eos brands, government contracts include:

- Work Programme in four regions in England

- Steps to Success in Northern Ireland

- Youth Guarantee (MyGo Centre), helping young people find work in Suffolk

- Ministry of Justice Transforming Rehabilitation in Warwickshire and Mercia, helping to transform rehabilitation and probation services through Eos

The Group also provides training services through:

- Elpis, a national training consultancy, supported by Learning Plus, an e-learning platform

- Skillspoint, a procurement consultancy specialising in government-funded work-based training