Trading Statement

HAYS PLC

TRADING UPDATE

QUARTER ENDED 31 DECEMBER 2011

10 January 2012


Financial summary

Growth in net fees for the quarter ended 31 December 2011 (Q2)      Growth       
(versus the same period last year)                                    
                                                               Actual     LFL*
By region                                                              
      Asia Pacific                                                15%      11%
      Continental Europe & Rest of World                          19%      20%
      United Kingdom & Ireland                                   (7)%     (7)%
      Total                                                        9%       8%
                                                                       
By segment                                                             
      Temporary                                                   14%      13%
      Permanent                                                    3%       1%
      Total                                                        9%       8%
                                                                       
* LFL (like-for-like) growth represents organic growth at constant currency.
Average exchange rates during the period were £1:AUD$1.55 and £1:€1.17 
(AUD$1.60 and €1.16 in the prior year period)


Highlights

· Good Group net fee growth of 8%* versus prior year, despite market 
  conditions becoming increasingly challenging as a result of heightened global
  macro-economic uncertainty

· Continued strong performance of our International business, which grew by 15%* 
  and represented 70% of net fees in the quarter

· Strong growth of 20%* in Continental Europe & Rest of World, driven by Germany 
  and France, which grew net fees by 28%* and 20%* respectively

· Robust net fee growth of 11%* in Asia Pacific, which included 10%* growth in 
  Australia & New Zealand, and 16%* growth in the rest of Asia

· Net fees decreased 7% in the UK & Ireland, with private sector net fees 
  declining 4%. Public sector net fees declined 16%, and remained broadly stable 
  on a sequential basis

· Group consultant headcount increased 1% in the quarter


Commenting on trading for the second quarter, Alistair Cox, Chief Executive,
said:

"This quarter we delivered a good performance in the context of an increasingly
difficult macro-economic environment, which has particularly impacted candidate
and client confidence in the permanent recruitment market around the world. Our
International business, which delivered strong growth of 15%*, now represents
70% of Group net fees and we are the market leader in both Australia and
Germany, the two most attractive specialist recruitment markets in the world
today. In the UK, the environment remains difficult, especially in our Banking
and Public Sector-related specialisms.

Looking ahead to 2012, the macro-economic outlook is increasingly uncertain. We
will therefore focus on maximising our profitability and cash generation until
the outlook is more positive, taking advantage of our flexible cost base to
react to changes in each of our markets as they occur. With our global
footprint and market leadership in so many countries, we are well positioned to
manage through this period of uncertainty and take advantage of the long term
opportunities available to us around the world."


Group

In the quarter ended 31 December 2011, Hays, the leading global professional
recruitment group, increased net fees by 9% (8% on a like-for-like basis*)
against prior year. Net fees in the temporary placement business, which
accounts for 57% of Group net fees, saw strong growth of 13%*. Net fee growth
in the permanent placement business slowed to 1%* as increasing uncertainty
about the global macro-economic environment impacted confidence amongst the
Group's candidates and clients, notably in our Banking related specialisms.

The Group's underlying temporary placement margin** remained broadly stable and
in line with the previous quarter. The Group's consultant headcount increased
by 1% during the quarter, as we became more selective about areas for
investment, and reduced consultant numbers in certain countries.
 

Asia Pacific

In Asia Pacific we recorded net fee growth of 11%*. In our market-leading
Australia & New Zealand business, we recorded overall net fee growth of 10%*,
within which our temporary placement business performed strongly, increasing by
17%* and posting a record monthly net fee performance in the quarter, and our
permanent placement business was broadly flat*. We continue to see strong
performances in Western and South Australia, particularly in Resources & Mining
and associated support specialisms, but growth in other regions in Australia
has continued to moderate through the quarter.

Asia, which accounts for 14% of the division's net fees, achieved net fee
growth of 16%*. In Japan, we continue to see good progress as net fees
increased by 14%* and our business there posted a record monthly fee
performance in the quarter. Elsewhere, whilst performances in China, Singapore
and Hong Kong were strong overall, market conditions across the region became
progressively more difficult through the quarter.

Consultant headcount in the Asia Pacific division increased by 1% during the
quarter.
 

Continental Europe & Rest of World ('RoW')

In Continental Europe & RoW we recorded strong net fee growth of 20%*. Growth
continued to be strong in France where net fees increased by 20%*, and our
German business had another record performance this quarter as net fees
increased by 28%*. Growth in Germany was broadly based across all sectors, and
was particularly strong in our contracting and temporary placement businesses
which achieved an all time record in the quarter.

Growth in the rest of the division, which is primarily a permanent placement
business, slowed to 8% and was negatively impacted by the ongoing Eurozone
crisis and associated macro-economic uncertainty, particularly in some Southern
European and Latin American countries.

Consultant headcount in the Continental Europe & RoW division increased by 4%
during the quarter.
 

United Kingdom & Ireland

In the United Kingdom & Ireland, net fees decreased by 7% in the quarter. In
our private sector business, net fees declined by 4% in large part due to
slowing activity in our permanent placement business particularly in our
Banking and City-related specialisms. Elsewhere in our private sector business,
our IT, Legal, Life Sciences and Sales & Marketing businesses continued to
demonstrate relative resilience.

In our public sector business, net fees decreased by 16% year on year, and
remained stable on a sequential basis.

Consultant headcount in the United Kingdom & Ireland division decreased 2% in
the quarter.


Cash flow and balance sheet

As expected, net debt increased to around £180 million (30 September 2011:
around £175 million) at the end of the quarter due to the timing and phasing of
cash flows and payment in November of the Group's final dividend. As previously
guided, we expect this to reduce in the second half of the Group's financial
year.


* LFL (like-for-like) growth represents organic growth at constant currency.
Average exchange rates during the period                    were £1:AUD$1.55
and £1:€1.17 (AUD$1.60 and €1.16 in the prior year period)

** 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          Group Finance Director            + 44 (0) 20 7383 2266           
David Walker           Head of Investor Relations        + 44 (0) 20 7383 2266           
                                                                  
Maitland                                                                                    
Liz Morley                                               + 44 (0) 20 7379 5151           
Brian Hudspith                                                                              
                                                                                            

Conference call

Paul Venables and David Walker of Hays plc will conduct a conference call for
analysts and investors at 9:00am United Kingdom time on 10 January 2012. 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                                              381709#              


Reporting calendar

Interim Results for six months ended 31 December 2011               22 February 2012  
Interim Management Statement for the quarter ending 31 March 2012   11 April 2012     
Trading update for the quarter ending 30 June 2012                  11 July 2012      


Note to editors

Hays plc (the "Group") is a 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 and Latin America. The Group operates
across the private and public sectors, dealing in permanent positions, contract
roles and temporary assignments. As at 30 June 2011, the Group employed 7,620
staff operating from 255 offices in 31 countries across 20 specialisms. For the
year ended 30 June 2011:

- the Group reported net fees of £672 million and operating profit of £114 million;

- the Group placed around 60,000 candidates into permanent jobs and around 190,000
  people into temporary assignments;

- 31% of Group net fees were generated in Asia Pacific, 33% in Continental 
  Europe & RoW (CERoW) and 36% in the United Kingdom & Ireland;

- the temporary placement business represented 54% of net fees and the permanent 
  placement business represented 46% of net fees;

- Hays operates in the following countries: Australia, Austria,Belgium, Brazil, 
  Canada, Colombia, 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 the USA.


Cautionary statement

This Trading Update (the "Report") has been prepared in accordance with
the Disclosure Rules and Transparency Rules of the UK Financial Services
Authority and is not audited. No representation or warranty, expressed or
implied, is or will be made in relation to the accuracy, fairness or
completeness of the information or opinions made in this Report. Statements in
this Report reflect the knowledge and information available at the time of its
preparation. Certain statements included or incorporated by reference within
this Report 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. The
information contained in this Report is subject to change without notice and 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 Report should be construed as a profit forecast.
This Report does not constitute or form part of any offer or invitation to
sell, or any solicitation of any offer to purchase or subscribe for 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 or any invitation or
inducement to engage in investment activity under section 21 of the Financial
Services and Markets Act 2000. Past performance cannot be relied upon as a
guide to future performance. Liability arising from anything in this Report
shall be governed by English Law, and neither the Company nor any of its
affiliates, advisers or representatives shall have any liability whatsoever (in
negligence or otherwise) for any loss howsoever arising from any use of this
Report or its contents or otherwise arising in connection with this Report.
Nothing in this Report shall exclude any liability under applicable laws that
cannot be excluded in accordance with such laws.