Work Group plc announced preliminary consolidated earnings results and parent cash flow results for the year ended December 31, 2012. On consolidated basis, for the period, the company reported revenue of £18,386,000 compared to £21,698,000 in 2011. Operating loss was £8,165,000 compared to operating profit of £58,000 in 2011. Operating loss before exceptional items was £186,000 compared to operating profit before exceptional items of £544,000 in 2011. Loss before taxation was £8,167,000 compared to profit before taxation of £59,000 in 2011. Loss for the year attributable to owners of the company was £8,131,000 or 32.49 pence per basic and diluted share compared to profit for the year attributable to owners of the company of £31,000 or 0.12 pence per basic and diluted share in 2011. Net cash used in operating activities was £333,000 compared to £334,000 in 2011. Purchase of property, plant and equipment was £512,000 compared to £42,000 in 2011. Adjusted EBITDA before exceptional items was £318,000 compared to £665,000 in 2011. Adjusted diluted loss per share excluding shares held by EBT was 0.71 pence compared to adjusted diluted earning per share excluding shares held by EBT of 1.59 pence in 2011. On parent company basis, the company reported net cash used in operating activities was £239,000 compared to £450,000 in 2011. Purchase of property, plant and equipment was £484,000 compared to £40,000 in 2011.

Work Group plc has launched its strategic review and it continues to consider all viable Strategic opportunities to maximize value for shareholders. The Board of Directors has also previously received approaches from third parties who were interested in either individual parts of the business or the business as a whole but no agreement was reached with any of these parties.

Work Group plc announced that as a result of the recruitment services market being generally challenging, it expects both revenue and profit to be below current market expectations for the financial year ending 31 December 2012. The Group is experiencing a slow final quarter in particular and as a result expects to report a small loss for the year.