Trading statement, Strategic review and Suspension

16 June 2015

WORK GROUP PLC

(the "Company" or the "Group")

Trading statement, Strategic review and Suspension of shares

Trading statement

The past nine months since our last interim statement have been both encouraging and challenging for Work Group.

During the Autumn, the Group experienced a significant contraction in its UK business due to the cancellation and deferral of a number of client assignments.

However, since the end of November, the Group has won a significant number of new business assignments following the management changes made in the UK. The Group has also had encouraging new business wins in its overseas offices and our subsidiaries in Hong Kong and New York continue to trade profitably supported by our outstanding staff in the UK.

Despite these positive trading trends, the losses made in the UK business in the Autumn period, coupled with a lengthening in our customers' working capital cycles, have placed additional operational strain on the Company's working capital resources. Significant efforts have been made to reduce our fixed overheads including certain staff redundancies, reducing Directors' remuneration and a planned move of our head office this Autumn.

Strategic review 

It is against this background that the Board has decided to undertake a strategic review of its operations and appointed SI Partners LLP to work with it on this matter.

The review of the strategic options open to the Company is considering all opportunities for maximising value for shareholders.

Suspension

Taking all these factors into consideration, the Company has taken the decision not to publish its audited results for the year ended 31 December 2014 until the results of the strategic review have been concluded. Therefore, and in accordance with the AIM Rules, the Company's ordinary shares have been suspended from trading on AIM.

Once the Board has had the opportunity to consider the outcome of the strategic review and its implications for the Group's future operations a further announcement will be made.

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