Spring’s performance in 2004 demonstrates the benefits of focusing on organic growth following the successful integration of the Best International businesses acquired in 2003. Spring has achieved its objectives in 2004, with revenue growth of 37% in continuing operations, a return to profitability at the pre-tax level and a fivefold increase to over £9 million of operating profits in continuing operations, before goodwill amortisation and exceptional items.

The results include revenue growth across all divisions, with an increase of over 42% in the Group’s technology staffing businesses and around 5% in the Group’s general staffing businesses. Operating profits in continuing operations before goodwill amortisation and exceptional items have increased in each segment, whilst central costs have been controlled despite the significant growth levels.

In light of the group’s transition to profitability from the substantial loss-making position of prior years, the Board is recommending an increase in the proposed final dividend from 0.1p to 0.2p, thereby increasing the total dividend for 2004 to 0.3p, a 50% increase overall. The Board will continue to keep its dividend policy under review in line with the longer-term outlook for the Group.

Since the year-end we have added two new independent non-executive directors to the Board. The appointment of Amir Eilon was announced in January 2005, together with the resignation of Joseph Harch, a representative of the Group’s largest shareholder, ET Training LLC. Today we are announcing the appointment of Andrew Pinder, who was until recently the Government’s e-Envoy at the Department of Trade and Industry, as an independent non-executive director.

The 2004 results demonstrate the skill, professionalism and enthusiasm of Spring’s people and are a credit to all our staff. I would like to extend the thanks and appreciation of both the Board and the shareholders to each of them.

As we enter 2005, our customers are demonstrating an increased willingness to invest in IT and communications infrastructure and staffing levels, as confidence continues to strengthen and expenditure on information technology and communications, Spring’s largest markets in the UK and internationally, appears set to continue to grow. The Board believes that Spring is well positioned to take advantage of this strengthening demand.

Steven Fink
Chairman
22 March 2005