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SBS Group (SBG)

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Friday 31 March, 2000

SBS Group

Trading Update

SBS Group PLC
31 March 2000

                           SBS Group plc
                          Trading update

In  advance of its interim results announcement for the six months
ended  29 February 2000, which it expects to announce on 25  April
2000,  SBS  Group  plc,  ('SBS' or 'the  Group'),  the  AIM-listed
specialist  IT  staffing business, today announces  the  following
trading update.

In  its  1999 Annual Report, the Group anticipated that in  common
with others in the IT industry, it would have to endure the short-
term  side-effects  of  the so-called Y2K microclimate  which  was
likely to result in a decline in earnings in the first half of the
current  year, but that a return to organic growth in  the  second
half was expected.

In  the event, the effects of the year change were more severe  in
the UK and Continental Europe than had been anticipated in budgets
and  consequently,  the Board now expects pre-tax  profit,  before
amortisation  of  goodwill, of not less than £0.22m  (1999:£1.37m)
for the period.

The results in the period were affected by the following factors:

*    A higher level of terminated contracts and a reduced level of
  new business due to the slow down in our markets at the end of the
  Millennium;
*     The  further  weakness in the Euro over  the  period,  which
  resulted in an exchange loss against a profit in the comparative
  period; and
*      A  significant  bad  debt  when  a  client  was  placed  in
  receivership.


Outlook

The slow-down for SBS in the UK and Europe has not extended to its
North American operations, which continue to perform in line  with
expectations,  including  the recently acquired  Applied  Concepts
Inc.

In  addition,  the group is already seeing the return  to  organic
growth in the UK and Continental Europe in the second half of  the
current  year that was anticipated in the 1999 Annual Report.  The
number  of new contracts signed in January, February and March  of
this  year showed an increase of 75% over the corresponding period
last year and by 350% over the depressed final quarter of 1999.

The  Group  expects business to continue to strengthen  throughout
the  remainder  of  the  year  as these  contracts  contribute  to
profitability and further business is secured. However, because of
the  downturn in business at the end of 1999, this growth is being
built on a lower base than previously budgeted.


For further information, please contact:

SBS Group plc
Gary Jones, Chief Executive
0171 240 7575
Philip Holt, Group Finance Director

Ludgate Communications
0171 253 2252
Tim Davis


                                                                                                                                  

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