Pre Close Trading Update

STAFFLINE GROUP PLC

("Staffline" or "the Group")

Pre Close Trading Update

Staffline (AIM: STAF), the Staffing and Employability organisation, providing people and operational expertise to industry, is pleased to provide the following update on trading for the six months ended 30 June 2016.

The Group has made excellent progress in the first half of 2016, with trading in line with expectations.

As noted at the Group's AGM in May, Staffing has continued to perform well with strong demand for its services from both new and existing customers. Furthermore, to date, there has been no change in demand following the recent EU referendum vote and the Group continues to source record numbers of workers to supply this demand. Our Employability division, PeoplePlus, has achieved an encouraging performance, with the improvement of the Work Programme contracts now clearly showing through.

The Board continues to view the Group's growth prospects positively and looks forward to providing a further update at the time of Interim Results, which will be announced on Wednesday 27 July 2016. A presentation for analysts and investors will be held at 9.30am on the day of results at the offices of Buchanan, 107 Cheapside, London EC2V 6DN.

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. 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 over 330 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

PeoplePlus is one of the largest Prime Contractors of the Work Programme in the UK with over 150 locations nationwide. Contracts include:

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

· Steps to Success, prime contractor in Northern Ireland

· Skills Funding Agency - managing the Offender's 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 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