Preliminary Audited Results

Savile Group plc

("Savile" or the "Group")

PRELIMINARY AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2013

Financial summary 2013

► Revenue on continuing operations £8.11m (2012: £7.4m)

► Operating profit/(loss) before exceptional items £0.11m (2012: Loss £0.04m)

► Operating loss £0.33m after exceptional costs of £0.45m (2012: Loss £0.1m after exceptional costs of £0.06m)

► No bank debt (2012: nil) at year end

► Fully diluted loss per share on continuing operations at 2.13 pence (2012: 0.62 pence loss per share)

David Harrel, Non Executive Chairman of Savile, commented:

"The Group has faced another challenging year, especially in the first half, with an improvement in performance in the second half in which the Group returned to profit.

Career transition revenue increased year on year and this segment of the business was profitable. However the talent management segment was loss making, with the re-launch of Cedar not gaining the traction we had hoped for despite our continued investment in this area. In addition IDDAS had an extremely poor first half and, despite improving in the second half, was loss making for the year and this resulted in an impairment in the carrying value of the investment in the Company's balance sheet.

Against this difficult trading environment cash levels were reduced and given the difficult trading environment the Group put in place a financing facility which remained undrawn at the year end.

During the year Career Management Consultants Limited (CMC) was integrated into the Group and in April 2013 the trade of CMC was transferred into Fairplace. The Group now operates its career transition business under the Fairplace brand.

At the year end our career transition business had a more efficient operational infrastructure and a streamlined cost base and the IDDAS business has also been remodeled with a more flexible cost base.

However, as noted in our recent trading update, the first quarter of the new financial year has been extremely disappointing and below the Directors' expectations, with a significant downturn in activity in the Group's career transition business.

Trading during July and August was below the Directors' expectations in what are traditionally quiet months and the usual recovery in September was much weaker than in previous years.

Trading has continued at lower levels than for the equivalent period last year in career transition, reflecting subdued career transition activity in the financial services sector as the economy recovers.

The Board has taken steps to align costs with lower activity levels. The reduced sales and losses have had a commensurate adverse impact on the Group's cash reserves".

Enquiries to:

Chairman's statement

The Group has faced another challenging year, especially in the first half, with an improvement in performance in the second half in which the Group returned to profit.

Career transition revenue increased year on year and this segment of the business was profitable. However the talent management segment was loss making, with the re-launch of Cedar not gaining the traction we had hoped for despite our continued investment in this area. In addition IDDAS had an extremely poor first half and, despite improving in the second half, was loss making for the year and this resulted in an impairment in the carrying value of the investment in the Company's balance sheet.

Against this difficult trading environment cash levels were reduced and given the difficult trading environment the Group put in place a financing facility which remained undrawn at the year end.

During the year Career Management Consultants Limited (CMC) was integrated into the Group and in April 2013 the trade of CMC was transferred into Fairplace. The Group now operates its career transition business under the Fairplace brand.

Results for 2012/13

Group revenue on continuing operations for the year ended 30 June 2013 was £8.11m (2012: £7.39m). The operating loss was £333,000 (2012: £102,000 loss).

This result is after the Group incurred reorganisation costs of approximately £446,000 (2012: £62,000) relating to the career transition business.

Following an operating loss in the first half of the financial year, the Group returned to operating profit in the second half.

Board

During the year Clare Chalmers joined the board as CEO of IDDAS and brings a wealth of experience with her.

Helen Pitcher left the board at the end of the year and we thank her for all her efforts for the Group.

Alex Wilson will not be seeking reappointment at the AGM.

Staff

As ever, our people remain the major asset of each business. There has been a lot of change during the year with the integration of CMC and the reorganisation of the career transition business and I would like to thank all our staff for their support and hard work throughout the year.

Outlook

At the year end our career transition business had a more efficient operational infrastructure and a streamlined cost base and the IDDAS business has also been remodeled with a more flexible cost base.

However, as noted in our recent trading update, the first quarter of the new financial year has been extremely disappointing and below the Directors' expectations, with a significant downturn in activity in the Group's career transition business.

Trading during July and August was below the Directors' expectations in what are traditionally quiet months and the usual recovery in September was much weaker than in previous years.

Trading has continued at lower levels than for the equivalent period last year in career transition, reflecting subdued career transition activity in the financial services sector as the economy recovers.

The Board has taken steps to align costs with lower activity levels. The reduced sales and losses have had a commensurate adverse impact on the Group's cash reserves.

David Harrel

Chairman

11 November 2013

Group statement of comprehensive income

for the year ended 30 June 2013

Group Balance Sheet

as at 30 June 2013

Statement of Changes in Equity

for the year ended 30 June 2013

Group Cash Flow Statement

for the year ended 30 June 2013

Notes to the preliminary announcement

for the year ended 30 June 2013

1. Accounting policies

The financial information set out in these preliminary results does not constitute the company's statutory accounts for the years ended 30 June 2013 or 30 June 2012.

Statutory accounts for the year ended 30 June 2012 have been filed with the Registrar of Companies and those for the year ended 30 June 2013 will be delivered to the Registrar in due course; both have been reported on by the Independent Auditors. The independent auditors' reports on the Annual Report and accounts for the years ended 30 June 2012 and 30 June 2013 were unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

The financial information in these preliminary results has been prepared using the recognition and measurement principles of International Accounting Standards, International Financial Reporting Standards and Interpretations adopted for use in the European Union (collectively Adopted IFRSs). The principal accounting policies adopted are set out below, they have been consistently applied to all the years presented and are consistent with the policies used in the preparation of the statutory accounts for the year ended 30 June 2013.

Basis of consolidation

The financial information in these preliminary results consolidates the accounts of the Company and all its subsidiary undertakings drawn up to 30 June each year using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the income statement from the date on which control is obtained.

Business combinations that took place prior to 1 July 2006 have not been restated.

Goodwill

Goodwill represents the excess of the cost of a business combination over the interest in the fair value of identifiable assets, liabilities and contingent liabilities acquired. Cost comprises the fair values of assets given, liabilities assumed and equity instruments issued. For business combinations prior to 1 July 2009, any direct costs of acquisition were included as part of the cost of acquisition. Following IFRS 3 (revised) becoming effective, direct costs of acquisition are expensed.

Goodwill is capitalised as an intangible asset with any impairment in carrying value being charged to the statement of comprehensive income.

From the date of transition to IFRS (1 July 2006) Savile Group plc discontinued the amortisation of goodwill and implemented annual impairment tests for goodwill. The current year accounts do not include comparatives for the transitional period.

Impairment of non-financial assets

Impairment tests on goodwill are undertaken annually at the financial year end. Other non-financial assets are subject to impairment tests whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Where the carrying value of an asset exceeds its recoverable amount (i.e. the higher of value in use and fair value less costs to sell), the asset is written down accordingly.

Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on the asset's cash-generating unit (i.e. the lowest group of assets in which the asset belongs for which there are separately identifiable cash flows). Goodwill is allocated on initial recognition to each of the Group's cash-generating units that are expected to benefit from the synergies of the combination giving rise to the goodwill.

Impairment charges are included in the operating expenses line item in the income statement. An impairment loss recognised for goodwill is not reversed. Previously recognised impairment losses on assets other than goodwill are reversed when there is an increase in the estimated service potential of an asset.

Financial assets and Liabilities

Financial assets and liabilities are recognised initially at their fair value and are subsequently measured at amortised cost. For trade receivables, trade payables and other short-term financial liabilities this generally equates to original transaction value.

Intangible assets

Intangible assets are recognised on business combinations if they are separable from the acquired entity or give rise to other contractual or legal rights. The amounts ascribed to such intangibles are arrived at by using valuation techniques.

The significant intangibles recognised by the Group, their useful economic lives and the methods used to determine the cost of intangibles acquired in a business combination are as follows:

Intangible asset Useful economic life Valuation method

Brand value Between 5 and 10 years Estimated royalty stream if the rights were to be

licensed

Customer relationships 1 year Excess earnings

The amortisation charge is included in 'operating expenses' within the statement of comprehensive income.

2. Exceptional items

Exceptional items comprised costs incurred by the Group arising from the integration of the career transition business.

4. Acquisitions of Career Management Consultants Limited

On 31 May 2012 the Group acquired 100% of the share capital of Career Management Consultants Limited (CMC), a company which was engaged in the provision of career transition services. The consideration was satisfied by £85,000 in cash. The acquisition was made to strengthen the geographical and sector reach of the Group's services.

The main elements which supported the value of the goodwill which arose on acquisition were the people and contacts of CMC which were acquired. The commercial justification of the consideration paid in excess of the net assets, was that to hire such a team in the open market to generate the potential earnings for the Group, with their contacts and reputation, as well as the synergies and cross selling opportunities, would equate to the value of the goodwill.

It was not possible for the Directors to quantify the effect of the acquisition on the Group revenue and profit had the acquisition been made on 1 July 2011 as CMC's financial year end had previously been 30 April and it was not possible retrospectively to establish the position at 1 July 2011 . However draft figures for the 14 months ended 30 June 2012 showed revenue of £3.85m and a pre tax loss of £0.76m. During this period the cost base of CMC was significantly reduced and this continued after the acquisition. The contribution of CMC to the results of the Group for the period between the date of acquisition and the year ended 30 June 2012 was revenue of £0.2m and profit before tax, exceptional items and management charges of approximately £36,000.

The trade and certain assets and liabilities of CMC were transferred to Fairplace Cedar Limited on 30 April 2013. CMC appointed a liquidator in July 2013.

5. Taxation

Current taxation has been provided for at 23.75% (2012: 25.5%).

Employee share options of 34,035 (2012: 71,074) were not included within the diluted EPS due to them being anti-dilutive.

Employee options whose exercise price is greater than the weighted average share price during the year (i.e. they are out of the money) are excluded from the earnings per share calculations.

7. Debtors

Included in other debtors is an amount of £41,000 resulting from the reversal of shares purchased pursuant to the authority to make market purchases, which was in contravention of the relevant legislation, and therefore void.

8. Annual General Meeting

The Annual General Meeting will be held at 10.30am Thursday 12 December 2013 at the Company's offices 36 - 38 Cornhill, London EC3V 3PQ.

9. Report and Accounts

Copies of the Report and Accounts for the year ended 30 June 2013 will be sent to shareholders in due course. Further copies will be available from the Company's website at www.savile.com or at the Company's registered office at 36 - 38 Cornhill, London EC3V 3PQ.