Interim Pre-Close Trading Update

For immediate release 4 July 2017

Staffline Group plc

('Staffline' or 'the Group')

Interim Pre-Close Trading Update

Staffline (AIM: STAF), the Staffing and Employability organisation, is pleased to provide the following update on trading for the six months ended 30 June 2017.

As noted at the Group's Annual General Meeting on 18th May 2017, the Staffing division has continued to perform well with strong demand for its services from both new and existing customers. The number of OnSites continues to grow. We are still seeing no change in demand following the EU Referendum Vote and the Group continues to source record numbers of workers to supply this demand. In PeoplePlus, the Group's Employability, Training and Skills division, we are seeing the benefits of the reorganisation of the division in 2016. The new business pipeline remains strong and we continue to bid for and win new contracts.

As a result, we are pleased to confirm that current trading is in line with market expectations and the Board remains confident of the Group's growth prospects with the "Burst the Billion" £1 billion revenue target still very much on track for the current year.

The Board looks forward to providing a further update at the time of the June 2017 Interim Results, which will be announced on Wednesday 26 July 2017.

A presentation for analysts will be held at 9.30am on Wednesday 26 July 2017 at the offices of Buchanan, 107 Cheapside, London EC2V 6DN. A presentation for private and retail investors will also be held on Wednesday 26 July 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.

The Group expects to provide a final pre-close trading update on Wednesday 3 January 2018.

This announcement is released by Staffline Group plc and contains inside information for the purposes of the Market Abuse Regulation (EU) 596/2014 ("MAR") and is disclosed in accordance with the Company's obligations under Article 17 of MAR. The person who arranged for the release of this announcement on behalf of Staffline Group plc was Chris Pullen, Group Chief Financial Officer.

About Staffline

Staffline is a leading outsourcing organisation providing services, mainly in the UK, to both Government and commercial customers. The Staffing division supplies up to 51,000 workers per day to more than 1,500 clients. Using the skills we have developed and learned within Staffing we have developed a second division, PeoplePlus, and have become a leading provider to both Central and Local Government, offering a wide range of services to help and support in the Employability (Welfare to Work), Communities and Skills arenas.

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 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

· Driving Plus, providing HGV drivers to the driving industry

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

· Staffline Express, a high street branch based operation

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

· Brightwork, a recruitment business based in Scotland specialising in temporary and permanent jobs to the drinks industry

PeoplePlus (previously Employability)

Trading under the PeoplePlus brand, Government contracts include:

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

· New Enterprise Allowance (business start-up support), prime contractor in three regions (England) and a sub-contractor in Wales

· Steps to Success, prime contractor in Northern Ireland

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

· Youth Promise Plus, supporting youth employment in Birmingham

· Youth Employment Gateway, supporting youth employment in the Wirral

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

Training services:

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

· Prime contractor to the Education and Skills Funding Agency, Welsh Government and Skills Development Scotland, delivering Apprenticeships and Adult Education across the UK.

Community services:

· 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

· Independent Living Services, supporting 3,500 disabled people lead independent lives

· Visitor Centers for the Northern Ireland Prison Service

· Careers Hubs in Stoke and Staffordshire