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Spring Group plc - Interim Management Statement

Spring Group plc - Interim Management Statement

Spring Group PLC has provided an interim management statement for the first quarter 2009.

In common with our peers, the current economic environment has proven to be challenging in the first quarter. Notwithstanding this we have produced results in line with our expectations to date.

Our Contract business which accounts for approximately 80% of our Net Fee Income, experienced a 3% reduction, performing creditably against the market. In our Permanent divisions which have historically accounted for around 20% of net fee income we experienced a 42% fall which has tracked in line with the sector. This has resulted in a total reduction of 12% in net fee income year on year.

The new offices opened in 2008 in Italy, France and Asia Pacific, whilst still in investment phase, are all performing in line with our expectations. We believe that this ongoing investment will put us in a strong position to support our future growth.

The RPO contract wins from 2008 are all now integrated into our supply chain. As markets recover we see this business with its expanded client base as forming a good platform to take market share.

Peter Searle, Chief Executive Officer commented:

With our RPO and Contract offerings and limited exposure to Permanent we are well placed to weather the current economic challenges. We continue to maintain strong cash balances as reported at year end and with our continuing investment in infrastructure, systems and geographies we believe we are in a strong position to take market share in a recovery.

The Group will announce its results for the six month January June in August 2009.

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