Revenue growth of 37% to £476.4 million in continuing operations
Operating profit* up fivefold to £9.0 million
Final dividend doubled to 0.2p

Spring Group plc (“Spring”), the UK’s leading IT staffing and workforce management company, announces strong revenue growth and operating profit* up almost fivefold to £9.0 million.

FINANCIAL HIGHLIGHTS

• Revenues increased 37% to £476.4 million (2003: £348.4 million) in continuing operations
• Operating profit* £9.0 million (2003: £1.9 million)
• Operating profit, after goodwill amortisation and exceptional items £6.4 million (2003: loss £7.1 million)
• Profit before taxation £5.8 million (2003: loss £18.9 million)
• Profit after taxation £10.7 million (2003: loss £18.9 million)
• Earnings per share 7.0p (2003: loss per share 12.92p)
• Final dividend increased to 0.2p (2003: 0.1p)
• Group net funds £28.9 million (2003: £33.0 million)
• Net assets increased by £11.9 million to £79.5 million (2003: £67.6 million)

* Continuing operations before goodwill amortisation and exceptional items

Richard Barfield, Chief Executive Officer, commented:

“Spring has delivered a strong financial performance in 2004, growing revenues by 37% in continuing operations, increasing operating profits almost fivefold to £9.0 million and returning to the black at the pre-tax level. During the year we cemented our position as the leader in UK technology staffing and workforce management services, and continued to grow our general staffing operations.

“During the course of 2004 the UK staffing industry experienced a resurgence in demand for IT professionals after almost three years of declining demand. This was due mainly to the resurrection of projects delayed during the economic downturn. In addition, we have seen a significant increase in new IT projects, major integration projects arising from increased M&A activity, and investment in the integration of the internet into core business practices. These trends have continued into 2005 and Spring has started the year on a positive note.”