Trading Statement

HAYS PLC

TRADING UPDATE

QUARTER ENDED 31 DECEMBER 2010

6 January 2011


Financial summary

Growth in net fees for the quarter ended 31 December 2010 (Q2)      growth       
(versus the same period last year)                             actual      LFL*
                                                                     
By region                                                              
      Asia Pacific                                                53%       36%
      Continental Europe & Rest of World                          33%       37%
      United Kingdom & Ireland                                     1%        1%
      Total                                                       24%       21%
                                                                       
By segment                                                             
      Temporary                                                    9%        7%
      Permanent                                                   45%       42%
      Total                                                       24%       21%
                                                                       
* LFL (like-for-like) growth represents organic growth at constant currency.


Highlights

· Group net fee growth of 21%* versus prior year driven by strong
  performances in Asia Pacific and Continental Europe & Rest of World divisions

· Solid momentum in Australia with encouraging pick-up in temporary
  placement net fees during the quarter

· Excellent net fee growth in Germany of 47%* versus prior year and now
  operating back above pre-recession levels

· Overall stability in the UK with strong net fee growth of 28% in
  private sector markets versus prior year, offset by tougher conditions in the
  public sector down 38% versus prior year

· Ongoing investment in the International business with consultant
  headcount increased by 6% during the quarter


Commenting on trading for the quarter ended 31 December 2010, Alistair Cox,
Chief Executive of Hays plc, said:

"The breadth and strength of growth this quarter is reflected by the fact that
19 countries grew net fees by more than 20%* versus prior year. Collectively
the International business grew net fees by 37%* versus prior year and several
of our country businesses in Asia and Europe are now operating back above their
pre-downturn levels. The outlook remains good across nearly all of our markets,
including the UK private sector, and we continue to increase consultant
headcount in order to capture the opportunities for growth.

During the quarter we launched operations in Mexico and the United States,
continuing the investment we have made in our International platform over the
past 10 years. Today 65% of the Group's net fees are from the International
business and this, together with the investments we have made in the business,
places us ideally to benefit from the long term structural growth opportunities
in our markets."


Group

In the quarter ended 31 December 2010, Hays, the leading global professional
recruitment group, increased net fees by 24% (21% on a like-for-like basis*)
versus the same period last year. Net fees from the temporary placement
business increased by 7%* and net fees from the permanent placement business
increased by 42%*, as the Group continued to see good momentum across most of
its markets.

On a sequential basis, Group net fees increased by 2%* against the previous
quarter, however this trend was impacted by the traditionally quieter Christmas
period during this quarter. The Group's underlying temporary placement margin**
remained stable and in line with the previous quarter. The Group's consultant
headcount was broadly flat during the quarter, with ongoing investment in
Australia, Asia, Continental Europe and South America offset by reductions in
the United Kingdom. During the quarter new country operations were launched in
the United States and Mexico, together with an additional three office
openings, as the Group continues to build-out its International platform for
growth.

Overall, the Group's performance in the quarter has been in line with the
Board's expectations and over the six months to December 2010 has continued to
achieve operating profit growth at broadly twice the level of net fee growth.


Asia Pacific

In Asia Pacific we recorded net fee growth of 36%* versus prior year. In our
market-leading Australia & New Zealand business net fees increased by 33%*
versus prior year, with net fee growth in our permanent placement business of
49%* and net fee growth in our temporary placement business of 23%*. Net fee
momentum continues to be solid with an encouraging pick-up in temporary
placement business during the quarter. Our performance in Asia, which accounts
for 14% of the division's net fees, continues to be excellent with the region
achieving net fee growth of 63%* against prior year. In China we opened our
third office, located in Suzhou, during the period in order to capitalise on
the rapid expansion of the Chinese market and continue our exceptional growth
performance.

Consultant headcount was increased by 6% during the quarter, with headcount up
13% in Asia, as we continue to invest to ensure we capitalise on the
opportunities for growth we are seeing across the division.
 

Continental Europe & Rest of World ('RoW')

In Continental Europe & RoW we recorded net fee growth of 37%* versus prior
year. Our German business had another excellent quarter with net fee growth of
47%* versus prior year and achieved an all-time monthly net fee record during
the period. Our market-leading IT Contracting business saw continued growth in
contractor numbers, exceeding pre-downturn levels, and our temporary and
permanent placement businesses continue to see strong momentum. Most other
countries in the division have continued to see improving market conditions,
led by strong performances in Brazil, Czech Republic, Poland, Denmark, Hungary
and Austria, which each achieved net fee growth in excess of 40%* versus prior
year. We continued to roll-out our network and have opened offices in Campinas,
Brazil and Gdynia, Poland during the period.

Consultant headcount was increased by 7% during the quarter and we are
continuing to invest across the division.
 

United Kingdom & Ireland

In the United Kingdom & Ireland, overall we have again seen stable net fee
trends with net fees increasing by 1% versus prior year. We have continued to
achieve strong net fee growth in the private sector business, which increased
by 28% against prior year, notably in our Accountancy & Finance, IT, Corporate
Accounts and City-related businesses. Our public sector business, which
represents 26% of the division's net fees, continues to face difficult market
conditions with net fees decreasing by 38% versus prior year and is now down
around 45% from peak levels.

Consultant headcount decreased by 8% in the quarter and is down 6% over the
past six months, as we continue to balance the private sector recovery with
difficult public sector markets.


Cash flow and balance sheet

In line with our expectations, net debt increased to around £125 million (30
September 2010: circa £100 million) at the end of the period, primarily due to
the payment of the final dividend of £54 million in November.

* LFL (like-for-like) growth represents organic growth at constant currency.

** the underlying temporary placement gross margin is calculated as temporary
placement net fees divided by temporary placement gross revenue and relates
solely to temporary placements in which Hays generates net fees and
specifically excludes transactions in which Hays acts as agent on behalf of
workers supplied by third party agencies.


Enquiries

Hays plc                                                                            
Paul Venables         Finance Director             + 44 (0) 20 7383 2266   
James Hilton          Investor Relations           + 44 (0) 20 7383 2266   
                                                                  
Maitland                                                                            
Neil Bennett                                       + 44 (0) 20 7379 5151   
Liz Morley                                                                          
                                                                                    
 
Conference call

Paul Venables and James Hilton of Hays plc will conduct a conference call for
analysts and investors at 9:00am United Kingdom time on Thursday 6 January
2011. The dial-in details are as follows:

Dial-in number                                     [phone] 
Password                                           hays                 
                                                                                
The call will be recorded and available for playback for seven days as follows: 
                                                                                
Replay dial-in number                              [phone] 
Access code                                        375396#              


Reporting calendar

Half Year Report for 6 months ending 31 December 2010            28 February 2011  
Interim Management Statement for quarter ending 31 March 2011    7 April 2011      
Trading Update for quarter ending 30 June 2011                   7 July 2011       
Preliminary Results for year ending 30 June 2011                 1 September 2011  
                                                                            

Note to editors

Hays plc (the "Group") is the leading global professional recruiting group. The
Group is the expert at recruiting qualified, professional and skilled people
worldwide, being the market leader in the UK and Asia Pacific, and one of the
market leaders in Continental Europe. The Group operates across the private and
public sectors, dealing in permanent positions, contract roles and temporary
assignments. As at 30 June 2010, the Group employed 6,845 staff operating from
270 offices in 28 countries across 17 specialisms. For the year ended 30 June
2010:

- the Group reported net fees of £557.7 million and operating profit of
  £80.5 million;

- the Group placed around 50,000 candidates into permanent jobs and
  around 180,000 people into temporary assignments;

- 26% of Group net fees were generated in Asia Pacific, 30% in
  Continental Europe & RoW and 44% in the United Kingdom & Ireland;

- the temporary placement business represented 58% of net fees and the
  permanent placement business represented 42% of net fees; and

- Hays operates in the following countries: Australia, Austria,
  Belgium, Brazil, Canada, China, the Czech Republic, Denmark, France, Germany,
  Hong Kong, Hungary, India, Ireland, Italy, Japan, Luxembourg, Mexico, the Netherlands,
  New Zealand, Poland, Portugal, Russia, Singapore, Spain, Sweden, Switzerland,
  UAE, the United Kingdom and USA.


Cautionary statement

This Trading Update has been prepared solely in compliance with the Disclosure
Rules and Transparency Rules of the UK Financial Services Authority and is not
audited. Statements in this Trading Update reflect the knowledge and
information available at the time of its preparation. Certain statements
included or incorporated by reference within this Trading Update may constitute
"forward-looking statements" in respect of the Group's operations, performance,
prospects and/or financial condition. By their nature, forward looking
statements involve a number of risks, uncertainties and assumptions and actual
results or events may differ materially from those expressed or implied by
those statements.  Accordingly, no assurance can be given that any particular
expectation will be met and reliance should not be placed on any
forward-looking statement.  Additionally, forward-looking statements regarding
past trends or activities should not be taken as a representation that such
trends or activities will continue in the future. No responsibility or
obligation is accepted to update or revise any forward-looking statement
resulting from new information, future events or otherwise. Nothing in this
Trading Update should be construed as a profit forecast. This Trading Update
does not constitute or form part of any offer or invitation to sell, or any
solicitation of any offer to purchase any shares in the Company, nor shall it
or any part of it or the fact of its distribution form the basis of, or be
relied on in connection with, any contract or commitment or investment
decisions relating thereto, nor does it constitute a recommendation regarding
the shares of the Company. Past performance cannot be relied upon as a guide to
future performance. Liability arising from anything in this Interim Management
Statement shall be governed by English Law. Nothing in this Trading Update
shall exclude any liability under applicable laws that cannot be excluded in
accordance with such laws.